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Seplat grows revenue by 11% to $1bn in 2023

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Seplat grows revenue by 11% to $1bn in 2023

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The revenue of indigenous energy firm, Seplat Energy has appreciated by 11.5 per cent in the financial year 2023 to $1.06bn from $951m in the corresponding period of 2022.

Based on the Audited results for the period ended December 2023 filed with the Nigerian Exchange Limited on Thursday, cash generated from operations stood at $520m down by 10 per cent from the previous year.

Its balance sheet strengthened, year-end cash at the bank rose to $450m (2022: $404m), and debt at year-end 2023 reduced to $306m from $366m in 2022.

The results indicated that Profit Before tax saw a 6.4 per cent decline to $191.3m  from $204m in 2022.

Seplat’s board of directors proposed a final dividend of $0.03/share and a special dividend at a rate of $0.03/share.

Commenting on the results, the Chief Executive Officer of Seplat, 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 $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 15 cents. In 2024, we look forward to several 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 the first gas expected in 3Q 2024. Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year.”

Meanwhile, Seplat has announced the appointment of Senator Udoma Udo Udoma as the Company’s new Independent Non-Executive Chairman to succeed Mr Basil Omiyi who will retire on March 31, 2024.

A new Senior Independent Non-Executive Director, Mr. Bello Rabiu, was also appointed. His appointment is effective April 1, 2024, when he succeeds Dr. Charles Okeahalam, who will be retiring on March 31, 2024.

On the appointments, Brown said, “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.”

Udoma was a former lawmaker who was elected into the Nigerian Senate in 1999 and served for two terms.

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