- Makes new Board membership appointments, accordingly;
- Sibiri and Abiala developments on OML40 to progress unabated;
- Seplat receives regulatory approval for the full lifecycle Field development plan (FDP) for the Sibiri oil discovery on OML40 February 2024;
- First gas expected from the all-important ANOH gas project 3Q 2024;
- Firm releases full year 2023 results to NGX and LSE, with impressive numbers across board;
- Recorded percentage growth in revenue, from N403.9bn in 2022 to N696.9bn in 2023
- Releases its operational outlook for 2024
Seplat Energy Plc, leading other Nigerian independents, with listings on both the Nigerian Stock Exchange and London Stock Exchange Commissions, has announced its audited results for the twelve months ended 31 December 2023, recording a 12 per cent growth in revenue, from N403.9bn to N696.9bn.
The company also declared a total dividend of US 15 cents per Share, in line with the Board’s recommendation of a special dividend of US 3 cents per share, even as its gross profit within the fiscal year rose by 14.59% to N349.3bn. It had equally reported an achievement of over 8.7 million hours without any single lost time injury on all its operated assets in 2023. Core dividend declared for 2023 was US 12 cents per share, up 20 per cent from the previous year 2022, with total dividend therefore as US 15 cents per share.
Seplat Energy’s 2024 production guidance is put at 44-52 kboepd as Guidance assumes availability of TNP from 3Q 2024, and assumed ANOH contribution strictly in line with the guidance.
Initial 2024 capex guidance is $170-200 million, while drilling capex was flat 2022 with 13 wells as base plan, even as the company prepares to carry on with capital funding on Abiala, which is a marginal field development inextricably tied to OML40.
In February 2024 the company received regulatory approval for the full lifecycle Field development plan (FDP) for the Sibiri oil discovery on OML40.
It said its revenue rose 12% to $1,061.3 million in 2023, from $951.8 million in 2022, as the average realizable oil price was $83.39/bbl (2022: $101.67/bbl); while gas was $2.90/Mscf (2022: $2.82/Mscf), yet with unit production opex of $10.4/boe, (2022: $10.3/boe) recorded.
Cash generated from operations was $520 million, down 10% on 2022 funding capex of $184 million, apparently alongside enhanced shareholder returns.
The company said its balance sheet strengthened year-end, with cash at bank recorded as $450 million (2022: $404 million), excluding $128.3 million MPNU deposit. Net debt at year end 2023 reduced to $306 million (YE 2022: $366 million).
Production averaged 47,758 boepd, up 8% from 2022 (44,104 boepd), and within original guidance.
Year end 2023 independently audited 2P reserves went up 9% to 478 mmboe (YE 2022: 438 mmboe), with 47% of liquids.
It drilled and completed 14 wells in 2023 (6 of which were completed in 4Q 2023), in line with its revised well program.
ANOH gas plant achieved mechanical completion on 29th December 2023, recalling that recently government partner announced the beginning of tunneling operations on the Niger River Crossing axis of the OB3 pipeline, with the company’s first gas guidance of 3Q 2024 subsisting. Carbon emissions intensity: 27.9 kg CO2/boe (2022: 23.9 kg CO2/boe).
Added to the company’s outlook for 2024 was the management’s optimism that Nigeria’s current leadership will approve its acquisition plan of Exxon Mobil’s share capital in Mobil Producing Nigeria Unlimited (MPNU).
Commenting on the results, Roger Brown, Chief Executive Officer, Seplat Energy Plc, said: “Seplat Energy’s 2023 results illustrate the Company’s ability to deliver production growth, fortify our balance sheet and reward shareholders despite facing some unexpected challenges during the year.
“Operational performance was strong, production increased 8% over 2022 and we recorded the lowest level of reconciliation losses seen in recent years, a testament to the improving security efforts on the Niger Delta. Drilling yielded positive results, and I’m pleased to report strong 2P reserves growth, up 9% on prior year estimates. Our revenue exceeded $1bn, and while costs increased, our proactive approach meant we generated more than $260m of free cash flow in the year, allowing us to continue rewarding our shareholders and further reduce net debt.
“Our strong financial position, excellent operational performance and robust outlook means that we are delighted to declare a special dividend again this year, lifting the total dividend for the year to US$15 cents.
“In 2024, we look forward to a number of key growth events. We are moving forward on both the Sibiri and Abiala developments on OML40. Clear progress is also being made on the important ANOH gas project, with first gas expected in 3Q 2024. Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year.”
However all these success stories would not have been possible without the resilience of the key protagonists at Seplat whose determination from the onset was to work with a team whose united team spirit was undeniably clear and unquestionable.
Roger Brown, while commending the intellectual prowess of the outgoing Board members had also welcomed Udo Udoma and Bello Rabiu, elected as the new Board Chairman, and Senior Independent Non-Executive Director respectively in these words: “I’m delighted to welcome Mr. Udoma as Seplat Energy’s new Chairman and Mr. Rabiu as SINED and wholeheartedly thank Mr. Omiyi and Mr. Okeahalam for their longstanding support and guidance. Nigeria’s Oil & Gas industry is going through a generational change and as we reach our tenth year as a listed company, we fully intend to play an important role as Nigeria’s leading independent company.”
Commenting on the appointments, Mr. Basil Omiyi, the Chairman of Seplat Energy, said:
“Seplat Energy’s commitment to strong corporate governance remains unwavering and is demonstrated by the recent appointment of Mr. Udoma Udo Udoma and Mr. Bello Rabiu as the new chairman and SINED respectively.
“We are confident that under their guidance, Seplat Energy will continue to expand and consolidate its position as Nigeria’s leading energy company and the partner of choice to deliver energy transition for Africa’s largest economy and its rapidly growing population.”
