- Achieved over 4.9 million hours without Lost Time Injury
- Operating Profit Rise to N285.2bn in H1 2024
- Declares US 6 Cents Total Dividend Per Share for H1 2024
Seplat Energy PLC, a leading Nigerian independent energy company, with listings on both the Nigerian and London Stock Exchange, has announced its unaudited results for the six months ended 30 June 2024, declaring US 6 Cents total dividend per share for the period.
In an email to Energy Window International, the company stated that its profit before tax (PBT) grew to N244bn from N43.5bn Year-on-Year with cash generated hitting N308.2bn.
Production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd), while advancing its operating profit to N285.2bn from N60.2bn Year-on-Year.
It also achieved, according to the report, more than 4.9 million hours without Lost Time Injury (LTI) at all its-operated assets in 6M 2024.
Production, according to its operational highlights, averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd), this is with pipeline losses of just 3.1% in 6M 2024, indicating certain reasonable degree of improvement within its environment and operational zones within the Niger Delta.
Average deferments also improved to 24% (6M 2023: 26%). Other highlights include,
- ANOH gas project on track to reach first gas by end 3Q 2024,
- Critical infrastructure had progressed well in 2Q 2024 – spurline achieved mechanical completion and progress on OB3 pipeline tunneling, which means that both infrastructure projects are on track for completion during 3Q 2024.
- Abiala-1 workover activity completed, with the second well kickstarted, with first oil to come onstream about the 3Q 2024,
- Sibiri-1 and Sibiri-2 onstream and producing, at a combined rate of c.3, 000 bopd (gross).
- Carbon emissions intensity down 28.6 kg CO2/boe (6M 2023: 26.3 kg CO2/boe),
- Achieved more than 4.9 million hours without Lost Time Injury (“LTI”) at Seplat-operated assets in 6M 2024.
Record of its financial transactions show that,
- Revenue of $421.6 million from $547.0 million in 6M 2023 (6M 2024 reported underlift of $55.8 million, 6M 2023 reported overlift of $59.4 million),
- Average realizable oil price of $85.55/bbl (6M 2023: $79.54/bbl), and average realized gas price $2.95/Mscf (6M 2023: $2.87/Mscf).
- Unit production opex stable at $9.7/boe, (6M 2023: $9.6/boe),
- Adjusted EBITDA rose 13.3% to $267.3 million in 6M 2024 (6M 2023: $235.8 million), benefiting from lower costs,
- Cash generated from operations of $226.0 million in 6M 2024, down from $260.0 million in 6M 2023. Cash generated from operations in 2Q 2024 improved sequentially rising to $209.2 million (1Q 2024: $16.8 million),
- Capex investment of $102.4 million (6M 2023: $88.8 million),
- Balance sheet cash at 6M 2024, $371.8 million (3M 2024: $335.6 million), $128 million Mobil (Producing Nigeria Unlimited (MPNU) deposit not included),
- Net debt at end June $366 million, down from $385 million at end 1Q 2024. $19.3 million of Reserve-Based Lending (RBL) borrowings were repaid in 6M 2024. Net Debt to EBITDA was 0.76x,
- Q2 2024 dividend declared of US$3.0 c/share. 6M 2024 total declared dividends US$6.0 c/share (6M 2023: US$6.0 c/share),
- Full year guidance unchanged. Production 44,000-52,000 boepd. Capex $170 million – $200 million.
The company has announced, 14 June 2024, that it had been notified of a settlement reached between Nigerian National Petroleum Company Limited (NNPCL) and MPNU as regards the MPNU transaction as well as the termination of the court proceedings, this is with focus to ensuring it secures regulatory approvals on the aforesaid transaction in the near term.
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy, said: “Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company. Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.
“In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024. We thank our government partners for their efforts towards completion of critical pipeline infrastructure in recent weeks. In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production. We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas”.
“In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.
“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion.”