- Records over 8.2 million hours without Lost Time Injury
- Its Operating Profit Rises to N411.3bn in 9M 2024
- Declares US 9.6 Cents Total Dividend Per Share for 9M 2024
Seplat Energy PLC, leading other Nigerian independent energy companies, with listings on both the Nigerian and London Stock Exchange, has announced its unaudited results for the nine months ending 30th September 2024, with a strong underlying business performance, which positively supported increase of the Company’s core dividend by 20% to US3.6 Cents per share in the 3Q 2024 alone. Total core dividend declared to date stands at US9.6 cents per share, Company’s statement has shown.
The company’s revenue growth in the period under review is N1.071tn from N478.1bn Year-on-Year with cash generated from its operations rising to N633.8bn from N213.8bn Year-on-Year).
Working interest production within the period averaged 47,525 boepd (9M 2023: 48,152 boepd) (around the midpoint of guidance.) Daily average liquids production increased 6% and gas production decreased by 11% versus 9M 2023. Annual guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd).
Its operating profit also rose to N411.3bn from N91.3bn Year-on-Year, with an achievement of 8.2 million-man hours with Lost Time Injury (LTI).
During the Oben gas plant turnaround maintenance activity, Seplat says it recorded successful completion of the plant, with expectation of a higher gas production in 4Q 2024.
- The Abiala first oil was achieved in September, with exports to commence Q4 of 2024, targeting gross production level of c.5, 000 bopd in Q1 2025.
- The Company also confirms that the Trans Niger Pipeline (‘TNP’) availability is improving, supporting higher OML 53 production, 3Q 2024 production of 2,097 bopd +85% compared to 3Q 2023, and enabling a resumption of OML 53 crude lifting at Bonny Terminal in September.
- Drilling activity increased. Completed nine wells year to date. Seven from the 2024 program, which is on track.
- ANOH Gas project saw completion of the 23km spur line, however the OB3 pipeline experienced further delays due to the technical challenges associated with the project. NGIC completion date has now moved to end of 2024. Factoring in a further contingency, in line with our previously stated approach, first gas is now expected during 2Q 2025.
- Carbon intensity of 32.7 kgCO2e/boe (9M 2023: 26.0 kgCO2e/boe) for operated assets recorded. High 3Q 2024 emissions due to increased flaring during planned maintenance at Oben and following the resumption of operations at Ohaji OML53. The anticipated impact of the End of Routine Flaring projects, starting in the second half of 2025, is expected to materially reduce absolute emissions by up to 70%.
- Safety culture maintained, achieved 8.2-million-man hours without LTI at Seplat operated assets year to
date (Seplat Energy’s Facts & Figures) have shown.
Additional financial narration of the Company reveals revenue generation of $715.3 million, down 11.7% vs. 9M 2023 of $810.4 million, due largely to overlift reported at 9M 2023. Adjusting for overlift/underlift 9M 2024 revenue $724 million, +6% compared to 9M 2023 of $683 million
- Average price realizations through oil stood at $82.89/bbl (9M 2023: $82.76/bbl); Gas: $3.18/Mscf (9M 2023: $2.87/Mscf).
- Adjusted EBITDA recorded as $383.0 million, up 25% from $306.4 million in 9M 2023, driven by higher revenue (adjusted) and lower costs.
- Cash generated from operations of $423.3 million, up 17% from $362.3 million in 9M 2023.
- Capex of $157.0 million (9M 2023: $125.4 million), reflecting higher drilling activity.
- Balance sheet cash at 9M 2024, $433.9 million (9M 2023: $391.0 million). Net debt at end September, $270 million, down from $366 million at end June 2024. $38.5 million of Reserve-Based Lending (RBL) borrowings repaid year to date. Period end Net Debt to EBITDA was 0.5x.
On Corporate Governance activities, Seplat says it received Ministerial Consent for the acquisition of entire share capital issued out by Mobil Producing Nigeria Unlimited (‘MPNU’).
Other milestones include,
- Strong underlying business performance supports increase to core dividend. 3Q 24 dividend raised by 20% to US3.6 cents. Total core dividend declared to date in 2024 $9.6 cents per share.
- 2024 production guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd). Capex now expected at the top end of the guidance range ($170 million – $200 million).
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy, said: “The first nine months of 2024 has seen Seplat Energy deliver a strong operational performance. Production has been consistent, drilling has improved and our main maintenance activities have been executed successfully. We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant. Further delays to the start up at ANOH are frustrating, but we have been pleased to see the commitment of our government partner in tackling the technically challenging river crossing. Based on the latest estimates received, and maintaining a cautious stance on any risk of further delays, we update our guidance for first gas to Q2 2025. Commodity prices remained supportive, combined with operational uptime and timely cash calls from our joint venture partner, helped cash generation improve year over year, enhancing our balance sheet position. As a result, we are pleased to announce a 20% increase in the core quarterly dividend and note that this is reflective of the strength of the underlying business. The increase does not factor in the organic (ANOH) and inorganic (MPNU) growth opportunities that the company is currently pursuing. We were delighted in recent days to receive Ministerial consent for the acquisition of MPNU. The transaction will be transformational for Seplat Energy, and every effort is now on completing the transaction.”