Leading indigenous energy company, Seplat Energy Plc, has announced its audited results for the full year ended 31 December 2022, reporting a rise in profit before tax by 15.3 per cent to N86.7bn from N71bn year-on-year.
The leading Nigerian independent energy company, which is listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), also generated cash from its operations to the tune of N242.4bn from N150.9bn year-on-year, rising by 51.6 per cent.
The energy company also grew its revenue by 29.8 per cent to N403.9bn from N293.6bn year-on-year; as its gross profit soars to N197.2bn from N114.2bn year-on-year, rising by 63 per cent.
Seplat Energy is paying a US7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounts to a full-year dividend of US15 cents, representing a dividend yield of around 11 per cent at the current LSE share price.
In addition, Seplat Energy’s working interest production averaged 44,000 kboepd, impacted by outages of key infrastructure predominantly in Q3. Use of Amukpe-Escravos Pipeline (AEP) enables high uptime in December, exit rate of 53 kboepd. The Company 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.
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc said: “I am delighted that our strong financial performance will enable the payment of a US7.5 cent final dividend, despite the significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents represents a dividend yield of around 11% at the current LSE share price.
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.
“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% 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.”
