… Declares $.03 cents Q1 dividend per share
Seplat Energy Plc, a dual-listed Nigerian independent company, has announced a 36.9% increase in revenue to $331million in the first quarter (Q1) of 2023 compared to $241.8million a year ago driven by higher production volumes.
Also, its unaudited results filed with the Nigerian Exchange Limited (NGX), and the London Stock Exchange (LSE), last week for the three months ended March 31, 2023, saw a rise in profit before tax by 3.2% to N39.5billion from N34.7billion year-on-year.
The company also reported that its core annual dividend target has been raised by 20% to $.12 cents; declaring a Q1 dividend payout of $.03 cents per share.
Also, Q1 revenue by 36.9% to N152billion from N100.6billion year-on-year, driven by higher production volumes; as its gross profit for the period soars to N91.1billion from N48.8billion year-on-year, rising by 69%.
Seplat Energy recorded a strong Q1 cash generation of $139.9 million and capital expenditure (capex) of $44.7 million; with Balance Sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included).
Strong Performance
Strong corporate governance will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.
In its statement to the NGX and LSE, Seplat’s Chairman, Basil Omiyi, was quoted as saying that the management and staff again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation.
This, he said, enabled “the Board to increase our annual core dividend target from US 10 cents to US 12 cents per share, paid in equal quarterly dividends.”
He continued: “The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil.
“On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas.
“We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome,” and expressed the hope that the transaction will be brought to a successful conclusion.
This performance comes amid a series of crises that had engulfed the company including the accusation and withdrawal of criminal charges against its chief executive, Roger Brown, and subsequent resignation of one of its directors, Fabian Ajogwu, citing ‘external interferences’ as well as its chairman, Omiyi.
Against this backdrop, Omiyi said: “I wish to thank all our staff for remaining focused on delivering this strong performance, united in their support of Seplat’s management team, against a backdrop of unnecessary distractions that will not derail our progress and ambition to become Nigeria’s leading energy supplier.
“The Board announced its Succession Forward Plan earlier this month and I look forward to steering this national energy champion in my final year as Chairman, fully resolved to implement the strong corporate governance.”
This, he said, “will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”
