Seplat’s grows Q3 revenue by 31% to N478.1bn
- Gross profit hits N245.6bn
Indigenous energy group, Seplat energy Plc, has announced a 31 percent revenue jump, posting gross earnings of N478.1 billion in the first nine months of the year and interim dividend of US3 cents per share.
The Nigerian independent energy company which is listed on both the Nigerian Exchange Limited and the London Stock Exchange said the financial performance e for the third quarter ended September 30 is a strong improvement on the N258.7billion posted in the same period last year.
The company which is on track to become the largest domestic gas supplier in the country stated that the dividend payment is part in line with higher core annual dividend of US 12 cents.
The company’s also grew its gross profit in the period to N245.6 billion from N118.5 billion, riding on the back of average production of 48,152 barrels of oil equivalents per day (boepd) in the period. The production performance, it explained, also went up by 11 per cent. Production of hydrocarbon liquids from the company’s operations grew by 17 per cent, benefiting from improved uptime at Forcados Oil Terminal and availability of the Amukpe-Escravos pipeline.
The strong financial performance in the period derived from strong revenue at a period of rising costs; resulting in strengthened balance sheet, the company stated.
Efficiency parameters indicated that Seplat achieved a record of over 6.4 million hours without Lost Time on Injury (LTI) at operated assets.
In providing dollar denominated financial highlights, Seplat stated that the 31 percent revenue jump translated to $810.4 million, including an overlift of $127.8 million. The figures show significant advancement from $618.6 million recorded in the thirds quarter of 2022, including an underlift of $60.3 million.
The company reported that adjusted revenue was stable across the full year; explaining that whereas production increased in the current year, average oil prices also dropped by $25.49 per barrel ($25.49/bbl) from $108.25/bbl in the first nine months of 2022 to $82.76/bbl in 2023.
A seven cent price increase in the average price of gas from $2.80 per 1000 standard cubic feet (mscf) in 2022 to $2.87/mscf in 2023 could not fill the gap in oil price realizations, Seplat stated. The situation was worsened by a four cent increase in unit operating cost which jumped from $9.3/boe in 2022 to $9.7/boe in 2023, the company added.
Consequently, the company’s cash generation remained at $365.1 million year in tear, while funding of capital expenditure (capex) stood at $125.4 million.
The company’s balance sheet strengthened in the quarter, with cash at bank rising by $86 million from $305 million in the first nine months of 2022 to $391.0 million in the same period in 2023. The declared cash reserves exclude3s the $128 million already deposited for asset acquisition with Mobil Producing Nigeria Unlimited (MPNU).
Seplat whose key growth projects are credit funded disclosed that it blew down its debt profile by $1a04.6 million in the period from $452.2 million in 2022 to $347.6 million in 2023; adding that “a further $11 million of RBL borrowings were repaid in 3Q 2023 ($22 million YTD). Net Debt to TTM EBITDA improved to 0.9x.”
