By Yange Ikyaa
Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, in 2022 grew its revenue by 29.8 per cent to N403.9 billion from N293.6 billion year-on-year, even as its gross profit soared to N197.2 billion from N114.2 billion year-on-year, rising by 63 per cent.
It also announced its audited results for the full year ended 31 December 2022, posting a rise in profit before tax of 15.3 per cent to N86.7 billion from N71 billion year-on-year. The company also generated cash from its operations to the tune of N242.4 billion from N150.9 billion year-on-year, rising by 51.6 per cent.
Following this, the Company said it is paying a US7.5-cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounts to a full-year dividend of US15 cents, representing a dividend yield of around 11 per cent at the current LSE share price.
Commenting on the results, Mr. Roger Brown, the Chief Executive Officer of Seplat Energy Plc, said “I am delighted that our strong financial performance will enable the payment of a US7.5-cent final dividend, despite the significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents represents a dividend yield of around 11% at the current LSE share price.”
In its operations, Seplat Energy’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure, predominantly in Q3. Use of Amukpe-Escravos Pipeline (AEP) enabled high uptime in December, and an exit rate of 53 kboepd.
The Company completed 13 wells, including two wells for the ANOH Gas Processing Plant, which is 95 per cent mechanically complete, awaiting third-party infrastructure completion.
According to Brown, “As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year. Our gas business continues to develop, with first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.”
In dollar terms, Seplat Energy posted revenues of $951.8 million, up 29.8%; adjusted EBITDA of $416.9 million, up 12.1%; strong full year cash generation of $571.2 million against capex of $163.3 million and $140.3million transaction deposits.
The Company also showed a strong balance sheet with $404.3 million cash at bank, and net debt of $365.9 million, as well as full year production cost of $10.3/boe; while 2022 Ubima divestment receipts were $18.6 million out of $55.0 million, with additional $0.9 million received in Jan 2023.