Seplat Energy Plc, a Nigerian independent energy company listed on both the Nigerian Exchange Limited (NGX), and the London Stock Exchange (LSE), said total revenue rose by 29.8% to $951.8million while pre-tax profit rose by 15.3% to $204.4million in full year 2022.
This was disclosed at the company’s 10th Annual General Meeting (AGM), with shareholders, regulators, company directors, and the media, amongst other stakeholders joining virtually.
Addressing shareholders the Board Chairman, Basil Omiyi, said with the healthy financial performance and solid cash position, the Board recommended a special dividend of US 5 cents per share to be paid to shareholders, added to the final quarterly dividend of US 2.5 cents per share, bringing the year’s total to US 15 cents per share.
The shareholders at the meeting approved the dividend payout, which will be paid around May 16 to shareholders whose names appear in the Company’s Register at the close of business on April 18.
Omiyi said the Company’s oil business started the year on a strong footing, with working interest production of 29,078 barrels of oil per day (bopd) and 30,338bopd in Q1-2022 and Q2-2022 respectively, according to a Seplat statement.
Also, he said the Company’s gas business remained strong through the year, as good progress was made with the construction of the ANOH Gas Processing Plant, which now awaits the completion of third-party infrastructure before it can commence operations, projected for the final quarter of 2023.
“The positive impact of renegotiated Gas Sales Agreements (GSAs) in H2-2022 provided healthy support for revenue growth and profitability and we continue to focus on increasing capacity utilisation at our Oben Gas Processing Plant,” he added.
We have adopted a new Board-approved Climate Change Policy and have advanced a major component of our decarbonisation strategy: eliminating routine flaring by the end of 2024 through our Flares Out initiative…
Energy transition
Over the past 12 months, Omiyi said Seplat had taken significant steps towards fulfilling its new purpose and vision with regards to energy transition. This was done by scaling up its Midstream Gas business to increase natural gas supply to electricity companies.
He added that the Company’s New Energy business has been tasked with developing power and renewable energy.
Omiyi explained: “At the same time, we have strengthened our approach to understanding and evaluating climate risk, which we have re-designated as a key risk to our business.
“We have adopted a new Board-approved Climate Change Policy and have advanced a major component of our decarbonisation strategy: eliminating routine flaring by the end of 2024 through our Flares Out initiative, which is six years ahead of Nigerian regulatory requirements and the World Bank’s initiative to achieve Zero Routine Flaring by 2030.
“These steps form part of a transition plan that will align our business strategy with the overarching goal of the Paris Agreement to limit mean global temperature rise to well below 2°C and contribute to supporting Nigeria’s pathway to achieving carbon neutrality by 2060.
“This plan is subject to evaluation, approval and oversight of our Board and Management teams and is underpinned by actionable, specific initiatives for decarbonising our operations and increasing the overall sustainability of our business model.”
In accordance with guidance provided by the Taskforce on Climate-related Financial Disclosures, and as required under the terms of our listing on the LSE, the Chairman informed that Seplat has published its first Climate Risk and Resilience Report, which is a separate and comprehensive document that outlines its approach to climate change risk.
