Seplat Energy Plc has marked a significant milestone, registering an impressive 83 percent increase in earnings for the financial year 2023.
Seplat, dual-listed on the Nigerian Exchange and the London Stock Exchange, revealed in its audited results for the twelve months ending 31 December 2023, a surge in annual profit to N81.33bn from N44.433bn in the corresponding period of 2022.
In a regulatory filing with the Nigerian Exchange Group on Thursday, Emeka Onwuka, the Chief Financial Officer of Seplat Energy Plc, revealed that the company’s revenue in local currency soared to around N697bn, reflecting a noteworthy 73 percent increase from the N404bn reported in 2022.
Seplat Energy Plc reported a profit attributable to equity holders of $83.1 million in US dollar terms for the 12 months ended December 31, 2023, compared to $62.4 million reported in the previous year.
Read also: Benson Sheds Light On Solar Energy’s Impact In Rural Africa
“Following a sterling performance, the board is recommending a final dividend of $0.03 per share and a special dividend of $0.03 for the period, payable to shareholders on record on April 26. It paid $0.025 and $0.05, respectively, a year ago”.
Upon closer inspection of Seplat’s performance indicators, it was found that revenue experienced a 12 percent year-on-year surge to $1,061.3 million from $951.8 million in 2022. The average realized oil price declined to $83.39 per barrel (bbl) compared to $101.67/bbl in 2022.
“Also, the average realised gas price settled at $2.90/Mscf, a decline from $2.82/Mscf in the comparable year. The company said unit production operating expenses rose marginally to $10.4/boe from $10.3/boe in 12 months”, Onwuka said.
The Chief Executive Officer, Seplat Energy Plc, Roger Brown said the company’s ability to deliver production growth, fortified 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”.
In 2024, Mr. Brown stated that they looked forward to several key growth events. He mentioned that they were progressing on both the Sibiri and Abiala developments on OML40. Additionally, he noted that clear progress was also being made on the important ANOH gas project, with the anticipation of first gas in 3Q 2024.
Lastly, he expressed high confidence in concluding the transformational acquisition of MPNU within the year.