Seplat Energy rakes in N696.9bn revenue in 2023

Seplat Energy Plc has announced its audited results for the year 2023, recording a growth of 12 per cent in revenue from N403.9 billion to N696.9 billion.

Seplat Energy also reported a gross profit rise of 14.5 per cent from N197.2 billion to N349.3 billion and achieved more than 8.7 million hours without Lost Time Injury (LTI) on Seplat-operated assets in 2023.

The energy company made this known in a statement issued on Thursday, February 29, 2024.

It noted that its 2024 production guidance was put at 44-52 kboepd, while guidance assumed availability of TNP from Q3 2024, with ANOH contribution in line with guidance.

The company disclosed that its revenue increased by 12 per cent to $1,061.3 million from $951.8 million in 2022.

Seplat Energy added: “Average realised oil price $83.39/bbl (2022: $101.67/bbl); average realised gas price $2.90/Mscf (2022: $2.82/Mscf).

“Unit production opex of $10.4/boe, (2022: $10.3/boe); cash generated from operations of $520 million, down 10 per cent on 2022, funding capex of $184 million and enhanced shareholder returns.

“Balance sheet strengthened, year-end cash at bank $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). Net Debt to EBITDA 0.7x.”

Speaking on its operations, the company said: “Production averaged 47,758 boepd, up 8 per cent from 2022 (44,104 boepd), and within original guidance.

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“Year end 2023 independently audited 2P reserves up 9 per cent to 478 mmboe (YE 2022: 438 mmboe), 47 per cent liquids.

“Drilled and completed 14 wells in 2023 (of which 6 completed in 4Q 2023), in line with our revised well program.

“ANOH gas plant achieved mechanical completion on 29th December 2023. Our government partner recently announced the tunnelling operations on the Niger River crossing portion of the OB3 pipeline have begun. Seplat’s first gas guidance of 3Q 2024 is unchanged.

“Carbon emissions intensity: 27.9 kg CO2/boe (2022: 23.9 kg CO2/boe).

“Achieved more than 8.7 million hours without Lost Time Injury (LTI) on Seplat-operated assets in 2023.”

Speaking on the results, the Chief Executive Officer of Seplat Energy Plc, Roger Brown, 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 per cent 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 per cent on prior year estimates. Our revenue exceeded $1 billion, and while costs increased, our proactive approach meant we generated more than $260 million 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 $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.”

The Star