{"id":63091,"date":"2022-07-28T20:07:16","date_gmt":"2022-07-28T19:07:16","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=63091"},"modified":"2022-07-28T20:11:14","modified_gmt":"2022-07-28T19:11:14","slug":"seplat-energy-records-71-rise-in-q2-revenue-to-527m","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/seplat-energy-records-71-rise-in-q2-revenue-to-527m\/","title":{"rendered":"Seplat Energy Records 71% Rise In Q2 Revenue To $527m"},"content":{"rendered":"
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\u2026 declares US$ 2.5 cents dividend per share<\/p>\n

\u00a0….to end\u00a0 routine flaring by 2024<\/p>\n

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has reported a rise of 238% in its half year 2022 profit before tax (PBT) to $209.9m from $62.1m year-on-year. The company also maintained a strong balance sheet with $350m cash at bank.<\/p>\n

\"\"In the company\u2019s unaudited results for the six months ended 30 June 2022, revenue for the period under review also appreciated by 71% to $527m from $308.8m year-on-year, with a dividend of US$2.5 cents per share declared.<\/p>\n

The indigenous energy company also reported a 208.5% rise in gross profit to $274.3m from $88.9m year-on-year, and has committed to stopping routine flaring by the end of 2024.<\/p>\n

Commenting on the\u00a0results, which were released to the NSE and LSE on Thursday, Roger Brown, Chief Executive Officer, Seplat Energy Plc said: \u201cProduction increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe-Escravos Pipeline. Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95% interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.<\/p>\n

\u201cWe remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy\u2019s position as Nigeria\u2019s leading indigenous oil and gas producer.<\/p>\n

\u201cWe have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our \u2018Tree for Life\u2019 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.\u201d<\/p>\n

Financial highlights \u00a0\u00a0<\/b><\/p>\n

\u2022\u00a0 Revenues up 71% from 6M 2021 to $527.0 million, higher realised oil prices of $107\/bbl<\/p>\n

\u2022\u00a0 EBITDA up 92% to $342.7 million (adjusted for non-cash items)<\/p>\n

\u2022\u00a0 Strong cash generation of $330.1 million, capex of $70.7 million<\/p>\n

\u2022\u00a0 \u00a0Strong balance sheet with $350.0 million cash at bank, net debt of $418.6 million<\/p>\n

\u2022\u00a0 \u00a0Lower production opex of $8.1\/boe achieved<\/p>\n

\u2022\u00a0 Average realised gas pricing sustained at $2.76 despite pricing pressure on domestic gas delivery obligation<\/p>\n

\u2022\u00a0 Q2 dividend of US$2.5 cents per share, taking 6M 2022 total to US$5.0 cents per share<\/p>\n

Operational highlights<\/b><\/p>\n

\u2022\u00a0 Strong safety record extended to 28.4 million man-hours without lost-time injury from Seplat Energy-operated assets<\/p>\n

\u2022\u00a0 \u00a0Working interest production improved to 52.4 kboepd in Q2 (liquids 30.3 kbopd, gas 22.1 kboepd),<\/p>

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Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

6M average of 49.9 kboepd (excludes volumes from Ubima, which was divested in Q1)<\/p>\n

\u2022\u00a0 \u00a0 Amukpe-Escravos Pipeline commercial agreements signed, continuous injection expected from first week of August<\/p>\n

\u2022\u00a0 \u00a0 \u00a0Exit from Ubima completed for consideration of $55 million, with initial payment of $6.4 received in July<\/p>\n

\u2022\u00a0 \u00a0 \u00a0Agreement for 95% equity farm-in to the Abiala Marginal Field carved out of OML 40<\/p>\n

\u2022\u00a0 \u00a0 \u00a0 Five wells drilled<\/p>\n

\u2022\u00a0 \u00a0 \u00a0 \u00a0Full-year guidance narrowed to 50-54 kboepd (excludes Ubima)<\/p>\n

Update on proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU)<\/b><\/p>\n

\u2022\u00a0 \u00a0 Transformational acquisition announced in February 2022 will almost triple production and boost reserves<\/p>\n

\u2022\u00a0 \u00a0 \u00a0 Seplat Energy reiterates that the Sales & Purchase Agreement (SPA) signed on 25 February 2022 to acquire Exxon\u2019s shallow water operations in Nigeria, MPNU, remains valid and the Company remains confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law<\/p>\n

Q2 corporate updates<\/b><\/p>\n

\u2022\u00a0 \u00a0 Ongoing strengthening of governance continues with transition from founder Chairman to Independent Chairman, Basil Omiyi, appointed 18 May; three new Board members announced during the period<\/p>\n

\u2022\u00a0 \u00a0 Samson Ezugworie joins Board in newly created role of Chief Operating Officer<\/p>\n

\u2022\u00a0 \u00a0 \u00a0\u2018Tree for Life\u2019 decarbonisation initiative launched in May with a commitment to plant five million trees in five years across five states in Nigeria<\/p>\n

\u2022\u00a0 \u00a0 \u00a0 \u00a0Seplat West (OMLs 4,38 &41) recommended for ISO 55001 (Asset Management), a first for African E&P<\/p>\n

Outlook<\/b><\/p>\n

Full-year production guidance for 2022 reflects expected third party downtime and the derecognition of Ubima and has been narrowed to 50,000 to 54,000 boepd on a working interest basis, comprising 30,000 to 33,000 bopd liquids and 116 to 121 MMscfd (around 20,000 to 21,000 boepd) gas production.<\/p>\n

Capital expenditure expectation for 2022 remains at around $160 million. The Company expects to drill four additional oil wells in the coming quarter to arrest decline and support production growth across the asset base, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas.<\/p>\n

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–\u00a0\u00a0<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/p>","protected":false},"excerpt":{"rendered":"

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has reported a rise of 238% in its half year 2022 profit before tax (PBT) to $209.9m<\/p>\n","protected":false},"author":6,"featured_media":59697,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[9184],"coauthors":[2391],"class_list":["post-63091","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-seplat-energy"],"yoast_head":"\nSeplat Energy Records 71% Rise In Q2 Revenue To $527m - National Wire<\/title>\n<meta name=\"description\" content=\"Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/seplat-energy-records-71-rise-in-q2-revenue-to-527m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Seplat Energy Records 71% Rise In Q2 Revenue To $527m - 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