Seplat Energy Grows PBT By 90.3% To N77.5bn In Q3, 2022

… $44.1m Dividend Paid In The Period

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its unaudited results for the nine months ended 30 September 2022, recording a rise in profit before tax by 90.3 per cent to N77.5 billion from N38.6 billion year-on-year. The company also generated cash from its operations to the tune of N154 billion from N64.9 billion year-on-year, rising by 124.7 per cent.

The energy Company’s also grew its revenue by 34.4 per cent to N258.7 billion from N182.7 billion year-on-year; as its gross profit soars to N118.5 billion from N58.1 billion year-on-year, rising by 93.5 per cent.

Seplat Energy is paying third quarter dividend of US2.5 cents per share, taking 9M 2022 total to US7.5 cents per share ($44.1 million paid in the period).

In its operations, Seplat Energy demonstrated a strong safety record, which extended to 30.5 million hours without lost-time injury at Seplat Energy-operated assets; eight (8) wells completed, another seven wells to be drilled in Q4 (currently drilling four wells); and the Amukpe-Escravos Pipeline commenced commercial operations in August, with 700 kbbls lifted in October.

Financial Highlights

Revenues up 34.4% to $618.6 million ($678.9 million including underlift), driven by higher realised oil prices of $108.25/bbl.
EBITDA up 27% to $337.9 million (adjusted for non-cash items)
Strong cash generation of $368.1 million, capex of $110.3 million
Strong balance sheet with $304.8 million cash at bank, net debt of $452.2 million
Production opex of $9.3/boe
Average realised gas pricing sustained at $2.80/Mscf despite pricing pressure on domestic gas delivery obligation
Received $13.4 million out of a total of $55 million in accordance with Ubima divestment agreement
Q3 dividend of US2.5 cents per share, taking 9M 2022 total to US7.5 cents per share ($44.1 million paid in the period)

Operational Highlights

Strong safety record extended to 30.5 million hours without lost-time injury at Seplat Energy-operated assets
Volumes of 43,337 boepd, impacted by oil theft and outages of key infrastructure
Amukpe-Escravos Pipeline commenced commercial operations in August, 700 kbbls lifted in October.
Eight wells completed, another seven wells to be drilled in Q4 (currently drilling four wells)
Full-year guidance adjusted downwards to 40-44 kboepd owing to pipeline and export terminal outages, which were materially worse in Q3; capex maintained at $160 million, capex per well lower due to improved drilling performance
Seplat Energy reiterates that the Sales & Purchase Agreement (SPA) signed on 25 February 2022 to acquire Exxon’s shallow water operations in Nigeria, MPNU, remains valid
The Company remains confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law
Successfully refinanced existing $350m RCF due September 2023 with a new three-year $350 RCF due April 2026
Seplat West (OMLs 4, 38 &41) awarded ISO 55001 (Asset Management), a first for an African E&P company .

Commenting on the results, Chief Executive Officer (CEO), Seplat Energy Plc, Mr. Roger Brown, said: “Despite an unusually challenging quarter for the Nigerian oil and gas industry, with key export routes being unavailable because of force majeure, we have demonstrated that we have a resilient business. The Amukpe-Escravos Pipeline has been operational since August and we have had our first oil export this month. The Trans Forcados Pipeline has now resumed operations and we continue to increase our use of alternative export routes, giving us confidence that the final quarter of the year will show some improvement in volumes.

“We are working closely with all the relevant stakeholders on our transformational acquisition of MPNU and remain confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law. The acquisition will add significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.”