Seplat Energy Plc, has announced a 197.8% increase in its pre-tax profit to N34.7 billion for the first quarter (Q1) 2022, from N10.6 billion year-on-year.
The company’s unaudited results for the three months ended 31 March, 2022, released to the Nigerian Exchange Limited (NGX), and London Stock Exchange (LSE), also showed a 197.8% jump generated cash from its operations to N74.4billion from N1.7billion a year ago.
Revenue rose 58.6% to N100.6billion from N57.9billion and gross profit soared to N48.8billion from N20.1billion or 122.3% during the period in review.
Other financial highlights in dollar terms showed revenues were up 58.6% to $241.8 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 81.6% to $147.4 million (adjusted for non-cash items).
The results also showed strong cash generation of $178.7 million, capital expenditure (capex) of $25.7 million, strong balance sheet with $312.2 million cash at bank, net debt of $442.6 million, all of which bolstered the declaration of Q1 interim dividend of US2.5 cents per share.
In its operations, Seplat Energy demonstrated a strong safety record, which extended to 26.1 million hours without lost time injury (LTI) from operated assets (2.0 million hours in Q1 2022).
Working interest production averaged 47,603 barrels of oil equivalent per day (boepd) (liquids 29,079 bopd, gas 18,524 boepd), while full-year guidance remaine unchanged at 50-60,000 kboepd.
We have proven we have the financial strength and credibility to attract international finance into Nigeria’s energy sector, and this will help us in our aim to deliver energy transition and provide cleaner, more reliable and more affordable energy for Nigeria’s young and growing population.
Commenting on the results, Chief Executive Officer, Roger Brown, said: “Seplat Energy delivered a good quarter that benefited from higher oil pricing, which offset lower production owing to continuing problems with the Trans Forcados Pipeline.
“However, the alternative Amukpe-Escravos Pipeline is mechanically complete and once we have signed the commercial agreements, we expect Chevron to be lifting our oil through the Escravos Terminal in the third quarter.
“Our proposed acquisition of MPNU remains on course. We are awaiting the necessary approvals from government and regulators and expect the transaction to complete in the second half of this year.
“The effective date of 1 January 2021 means we will benefit from higher recent oil prices and as we have previously reported, the addition of MPNU will nearly treble our production and double our reserves on a pro forma 2020 basis.
“The acquisition will reinforce our leadership of Nigeria’s indigenous energy sector and enabling us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns.
“It will also bring a significant undeveloped gas resource base which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.
“We announce the decision to divest the Group’s interest in the Ubima marginal field for a consideration of $55million, which marginally reduces the company’s 2P reserves by 2 MMboe to 455 MMboe. “We have proven we have the financial strength and credibility to attract international finance into Nigeria’s energy sector, and this will help us in our aim to deliver energy transition and provide cleaner, more reliable and more affordable energy for Nigeria’s young and growing population.”