Seplat Energy grows pre-tax profit by 15.3% to N86.7b

Seplat’s director, Fabian Ajogwu, resigns, cites ‘external interferences’

Seplat Energy Plc maintained appreciable growths in the top-line and profitability in the 2022 business year, with pre-tax profit rising by 15.3 per cent to N86.7 billion.

Key extracts of the audited report and accounts of the oil and energy group for the year ended December 31, 2022 released at the Nigerian Exchange (NGX) indicated that cash generated from operations grew by 51.6 per cent to N242.4 billion in 2022 as against N150.9 billion in 2021. Total revenue had risen by 29.8 per cent to N403.9 billion compared with N293.6 billion. Gross profit jumped by 63 per cent from N114.2 billion to N197.2 billion.

The board of directors of the company has recommended a total dividend per share of US7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounted to a full-year dividend of US15 cents, representing a dividend yield of around 11 per cent at the current price on London Stock Exchange (LSE) share price.

The board had recommended a special dividend of US5.0 cents per share and a final dividend of US2.5 cents per share

Operation review showed that Seplat Energy’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in third quarter 2022. Use of Amukpe-Escravos Pipeline (AEP) enabled high uptime last December, exit rate of 53 kboepd.

According to the management of the company, it completed 13 wells, including two wells for the ANOH gas processing plant. ANOH Gas Processing Plant is 95 per cent mechanically complete, awaiting third-party infrastructure completion.

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This year, the company projected full year production guidance of 45-55 kboepd, excluding ANOH, with capital expenditure expected to be $160 million. It projected that increased use of AEP will improve revenue assurance while its Sibiri appraisal wells indicating results on high side of initial oil in-place estimates, FID targeted by the end of the year.

ANOH first gas guidance has however been moved to fourth quarter 2023 owing to delays in third-party infrastructure.

The management of the group said it has continued to pursue a reaffirmation of the Ministerial approval received on August 8, 2022 to acquire the Nigerian assets of Mobil Oil Producing Nigeria.

Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown said the company’s strong financial performance will enable the payment of a US7.5 cent final dividend, despite the significantly disrupted production it experienced in the second half of the year.

“As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February, this year. Our gas business continues to develop, with first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.

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“We are continuing to pursue the Presidential approval received on the 8 August 2022 for the MPNU acquisition and we remain focused on concluding the transaction within the remaining term of President Buhari before a new president is sworn into office at the end of May 2023.

“We are implementing our roadmap to net zero and have made encouraging progress with a 35 per cent reduction in emission intensity last year. The major reduction in carbon emissions is routine flaring which we are on target to eliminate by the end of 2024. Alongside these efforts, and as part of our stated strategy to become Nigeria’s energy champion across the entire value chain, we are planning to invest in gas-to-power and solar power projects with FID targeted for later this year if the projected returns meet our internal hurdle rates.

“We are confident in our outlook for 2023, with the new Amukpe-Escravos Pipeline working well, our drilling cost reductions and efficiencies being delivered, and ANOH’s first gas expected in Q4 once 3rd party infrastructure is completed, our business is on a firm footing to facilitate significant growth and higher returns for stakeholders,” Brown said.

Meanwhile, the board of the company has appointed Ms. Koosum Kalyan as an independent non-executive director with effect from February 28.

Chairman, Seplat Energy Plc, Mr. Basil Omiyi, said Kalyan has a proven track record of operating across the African continent and her experience spans over decades and cuts across the oil and gas industry as well as the wider energy industry.

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“Seplat Energy eagerly looks forward to the enormous contribution she will make towards the company’s growth plans achieving global success,” Omiyi said.

Kalyan is a South African businesswoman and economist whose career began in the Electricity Commission in Melbourne Australia as an economist. She subsequently joined Shell South Africa as an economist and became a member of the Shell Global Scenario Planning Team after which she embarked on her expatriate posting to Shell International London for nine years. The scope of her work included projects in Nigeria, Gabon, Mozambique and Tanzania, among others. Kalyan assisted governments in transforming its energy policies and in joining the Extractive Industries Transparency Initiative during her tenure at Shell and also assisted in digitising government institutions.

She has served on the Boards of several companies where she contributed her wealth of knowledge to the progress of these companies and was recently appointed the Chairperson of Control Risk for Southern Africa.

Kalyan has a degree in B. Com Law and a degree in Economics from the University of Durban Westville. She has also completed the Senior Executive Management Program at London Business School and a Leadership Management Program at Shell Leadership Institute.


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