By Christie U. Omonigho
- Its revenue rose to N1.652trillion full year 2024
- Declares US 16.5 cents total dividend per share for 2024
- Operating Profit (OP) grows to N647.9bn within the record year 2024
- Achieving 11 million Hours without lost time injury
Seplat Energy PLC has announced its audited results for the twelve months ended 31 December 2024, with a strong operational and strategic progress, culminating in the transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU) but now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU). And speaking of 2024, and confidence as its watchword and a boast, underpinned though by its business outlook special dividend, were triggers that total dividend of the company in 2024 rose US16.5 cents per share, up by 10% compared to 2023.
Its revenue for the period grew to N1.652tn from N696.9bn Year-on-Year with cash generated from its operations rising to N567.5bn from N340.6bn Year-on-Year.
Onshore assets production averaged 48,618 barrels of oil equivalent per day (boepd) up 2% from 2023 to 47,758 boepd), and within guidance. This included 19 days of SEPNU production (annualized average contribution of 4,329 kboepd), as reported production reached 52,947 boepd, 11% higher than 2023.
The company’s operating profit also rose to N647.9bn from N163.7bn Year-on-Year while profit before tax surged to N561.4bn from N125.5bn Year-on-Year.
Statement also showed that the gross profit of the company, in the vein, hit N710.1bn from N349.3bn Year-on-Year, achieving more than 11.0 million hours (2023: 8.7 million hours) without Lost Time Injury (LTI) on its-operated assets in the year under review.
Again, on its operational balance sheet, the company’s onshore assets production was 48,618 boepd up 2% from 2023 (47,758 boepd), and within range the company says. And this was besides the 19 days of SEPNU production (annualized average contribution of 4,329 kboepd), even as reported production reached 52,947 boepd, 11% higher than 2023.
- Year End 2024 independently audited 2P reserves went up 85% to 886 MMboe (YE 2023: 478 MMboe), 65% liquids.
- Group 2P+2C increased by 125% to 1,217 MMboe (YE 2023: 540 MMboe), 55% liquids.
- Organic reserve replacement ratio in the company’s onshore assets of 176%, reflected positive drilling results, Seplat said.
- ANOH gas plant is planning to test with third party dry gas in 1H 2025, and tunnelling operations on OB3 resumed during 1Q 2025.
- Trans Niger Pipeline (‘TNP’) resumed 24hr operations in 4Q 2024. OML 53 oil production grew 60% on 2023, on improved export availability.
- Sapele Integrated Gas Plant (‘IGP’) was commissioned in 4Q 2024 and achieved first commercial gas sales in early 2025.
- Carbon emissions intensity for Seplat onshore assets: 32.3 kg CO2/boe (2023: 29.4 kg CO2/boe). End of routine flaring on track for H2 2025.
- The company achieved more than 11.0 million hours (2023: 8.7 million hours) without Lost Time Injury (LTI) on its operated assets in 2024.
- Revenue rose $1,116 million up 5% (FY 2023: $1,061 million), which also includes 19 days contribution from SEPNU. Underlying adjusted revenue stable at $961 million (FY 2023: $962 million).
- Seplat Energy Onshore unit production opex of $12.3/boe (2023: $10.4/boe) was recorded.
- Cash generated from operations of $384 million, down 26% on 2023, impacted by; timing of liftings, one-off costs predominately associated with SEPNU acquisition and working capital acquired on consolidation of SEPNU.
- Achieved cash capex of $208 million (FY 2023: 184 million).
- Balance sheet remains robust, year-end and cash at bank $469.9 million (2023: $450.1 million), excluding $132.2 million restricted cash.
- Net debt at year end 2024 of $898 million (YE 2023: $306 million). Pro-forma ND/EBITDA 0.7x.
Highlighting post completion of SEPNU:
- Strong production performance since completion, averaging net 81.1 kboepd, FY 2024 average working interest production 69.4 kboepd.
- First 100 day integration plan well advanced.
- 2025 work program and budget discussions with JV partner progressed but subject to final approval. Strong alignment on increasing investment to improve integrity and reliability and strengthen the asset base for long term growth.
On Special Dividend SEPNU reported that,
- Q4 2024 declared dividend of US$ 3.6c/shr, total core dividend declared for 2024 of US 13.2c/shr, up 10% on 2023
- The Board recommends a US$ 3.3c/shr special dividend for 2024. Reflecting the strength of balance sheet and confidence in our outlook.
- Total dividend declared for 2024 US$ 16.5c/shr, also up 10% on 2023.
Outlook for 2025
- 2025 average production guidance of 120-140 kboepd (Seplat Onshore 48-56 kboepd, SEPNU 72-84 kboepd).
- Initial 2025 capex guidance $260-320 million. (Seplat Onshore $180-220 million, SEPNU $80-100 million). Plan includes 13 new wells onshore, replacement of an inlet gas exchanger on East Area Project (EAP) NGL project offshore and other capex projects.
- Unit operating costs for the group are expected to be $14.0-15.0/boe. Strategic maintenance and integrity activities will be the focus for SEPNU in 2025. Targeting short cycle oil growth and laying a foundation for sustained improvements in uptime to support our longer term growth ambitions.
- Capital Markets Day in 3Q 2025, where the company will provide details of its medium to long term growth ambitions.
Roger Brown, Chief Executive Officer has this to say: “2024 was truly a defining year for Seplat Energy. In addition to delivering key growth projects in our existing onshore business, we closed out 2024 by completing the acquisition of SEPNU, the largest in the Company’s history, which adds significant scale and attractive low-cost growth potential. In the first few months since the acquisition, it has already become clear that there is significant prize in the offshore shallow water, operating a closed loop system from well-head production to hydrocarbon sales at the terminal.
This year we will focus on re-opening previously shut in wells in SEPNU, alongside another full drilling campaign for our onshore assets and we look forward to delivering first gas at ANOH. We will also accelerate the subsurface work and contracting needed to commence an infill drilling campaign at SEPNU.
Our confidence in the future trajectory for the enlarged business, combined with our strong financial position, means that we are delighted to declare a special dividend again for 2024, lifting the total dividend for 2024 to $16.5 cents per share, an uplift of 10% from 2023.
The Seplat Energy team is rightly proud of its achievements in 2024, and we fully intend to continue our mission to create significant shared value and enhance prosperity for all our stakeholders in Nigeria and beyond.”