Seplat Energy Plc on Wednesday reported a 208.5 percent growth in its gross profit to $274.3million, from $88.9million year-on-year.
Also, the independent energy company listed on both the Nigerian Exchange (NSE) and the London Stock Exchange (LSE), has reported a 238 percent rise in its half year 2022 profit before tax (PBT) to $209.9million, from $62.1million year-on-year.
The performances were part of the highlights of the company’s unaudited results for the six months ended June 30, 2022, which showed a strong balance sheet with $350million cash at bank.
The highlights equally showed the company’s revenue for the period under review appreciated by 71 percent to $527million, from $308.8million year-on-year, with a dividend payout of $2.5 cents per share declared for their investors.
In presenting the details of the Company’s performance, the Chief Executive Officer, Seplat Energy Plc, Roger Brown, reaffirmed the indigenous energy company’s commitment to end routine gas flaring from its operations by the end of 2024.
Brown said crude oil production increased significantly in the second quarter of the year, achieving 52,400 barrels of oil equivalent per day across its operations.
He said Seplat hopes to maintain higher production volumes for the rest of the year now that the company has unfolded plans to export liquids through the more secure Amukpe-Escravos Pipeline.
Having divested its interest in Ubima oil field, and as a result of its high production costs and export difficulties, the CEO disclosed that the company plans to commence operations in the Abiala marginal oilfield next year using existing infrastructure in OML 40.
The company acquired a 95 percent interest in the field recently in line with the strategy for low-cost, low-risk upstream growth the company announced last year.
“We remain confident that our transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU) will be approved by the regulatory authorities, to add significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.
“We have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states. All of these initiatives demonstrate our strategic commitment to build a sustainable company that delivers energy transition for the benefit of all Nigerians,” Brown said.
Details of the financial report showed the company’s earnings before interest, taxes, depreciation and amortization
(EBITDA) was up 92 percent to $342.7 million (adjusted for non-cash items), while a strong cash generation was achieved, with about $330.1 million was realised, and capital expenditure (Capex) at $70.7 million and lower production operating expenditure (OPEX) of $8.1 per barrel of oil.
Despite net debt of $418.6 million, the statement should the company recorded a strong balance sheet with about $350.0 million cash balance at bank.
Operational highlights showed the company achieved a strong safety record extended to 28.4 million man-hours without lost-time injury from the assets it operated, with working interest production improving to 52,400 barrels of oil per day, the country including 30.3 KBOPD of liquids, and the and 22.1 KBOEPD of natural gas.
Apart from an average of 49.9 Kboepd, excluding volumes from Ubima oilfield, divested from in Q1, the company plans to drill five new wells.
During the period under review, the company signed the Amukpe-Escravos Pipeline commercial agreements, for the continuous injection of gas expected from first week of August.
Agreement for 95 percent equity farm-in to the Abiala Marginal Field carved out of OML 40 was also signed during the period.
Despite ongoing legal contest by the Nigerian National Petroleum Company Limited against the the Sales & Purchase Agreement (SPA) signed on February 25, 2022 for the acquisition of ExxonMobil’shallow water operations in Nigeria, Seplat Energy insists the exercise remains valid, and expressing confidence that the exercise would be brought to a successful conclusion in accordance with the Nigerian law.