Seplat Energy Grows PBT To N244bn In H1 2024

 … Achieves Over 4.9 million Hours Without Lost Time Injury

The foremost energy company grew its profit before tax (PBT) to N244 billion from N43.5 billion Year-on-Year with cash generated hitting N308.2 billion.

The company’s production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd).

In the same vein, Seplat Energy advanced its operating profit to N285.2 billion from N60.2 billion Year-on-Year.

It achieved more than 4.9 million hours without Lost Time Injury (LTI) at Seplat-operated assets in 6M 2024.

• Production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd).

• Pipeline losses of 3.1 per cent in 6M 2024, highlights an improving environment for stable operations on the Niger Delta.

Average deferments also improved to 24 per cent (6M 2023: 26%).

• ANOH gas project on track to reach first gas by end 3Q 2024. Critical infrastructure progressed well in 2Q 2024; spurline achieved mechanical completion and progress on OB3 pipeline tunnelling means both infrastructure projects are on track for completion during 3Q 2024.

• Achieved more than 4.9 million hours without Lost Time Injury (“LTI”) at Seplat-operated assets in 6M 2024.

• Revenue $421.6 million from $547.0 million in 6M 2023 (6M 2024 reported underlift of $55.8 million, 6M 2023 reported overlift of $59.4 million).

• Average realised oil price $85.55/bbl (6M 2023: $79.54/bbl); average realised gas price $2.95/Mscf (6M 2023: $2.87/Mscf).

• Unit production opex stable at $9.7/boe, (6M 2023: $9.6/boe).

• Adjusted EBITDA rose 13.3% to $267.3 million in 6M 2024 (6M 2023: $235.8 million), benefiting from lower costs.

• Cash generated from operations of $226.0 million in 6M 2024, down from $260.0 million in 6M 2023. Cash generated from operations in 2Q 2024 improved sequentially rising to $209.2 million (1Q 2024: $16.8 million).

• Capex invested of $102.4 million (6M 2023: $88.8 million).

• Balance sheet cash at 6M 2024, $371.8 million (3M 2024: $335.6 million), $128 million Mobil Producing Nigeria Unlimited (MPNU) deposit not included.

• Net debt at end June $366 million, down from $385 million at end 1Q 2024. $19.3 million of Reserve-Based Lending (RBL) borrowings were repaid in 6M 2024. Net Debt to EBITDA was 0.76x.

• Q2 2024 dividend declared of US$3.0 c/share. 6M 2024 total declared dividends US$6.0 c/share (6M 2023: US$6.0 c/share)

Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy, said: “Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company. Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.

“In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024. We thank our government partners for their efforts towards completion of critical pipeline infrastructure in recent weeks. In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production. We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas’.

“In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.

“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion.”