Q3’21: Seplat Energy to pay interim dividend of US 2.5cents per share

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and London Stock Exchange has announced a quarterly dividend of US2.5cents (United States two and half cents) per Ordinary Share (subject to appropriate withholding tax (WHT) to be paid to Seplat Energy’s shareholders whose names appear in the Register of Members as at the close of business on 15th November 2021.

This follows the release of the Energy company’s unaudited results for the
nine months ended 30 September 2021. Seplat Energy grew nine months revenue by 18.7percent to N182.7billion from N135.6billion in same period of 2020. Gross profit rose by 61.7percent, to N58.1billion from a low of N31.7billion in 9M’2020. Profit before tax (PBT) by 174.9percent, to N38.6billion from Loss Before Tax (LBT) of N45.5billion in same period of 2020.

To enable SEPLAT’s Registrar, Datamax Registrars Limited, prepare for the payment of the interim dividend, the Register of shareholders will be closed on 16th November 2021.

Seplat Energy is pursuing a Nigeria-focused growth strategy and is well positioned to participate in future asset divestments by international oil companies, farm-in opportunities, and future licensing rounds. The Company is a leading supplier of gas to the domestic power generation market.

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Roger Brown, Chief Executive Officer, Seplat Energy said: “Production has recovered strongly since the outage at Forcados Oil Terminal (FOT) and we have been averaging nearly 33kbopd liquids throughout October. Now that production has normalised, we expect production to be in the range 48-50 kboepd for the year, provided uptime on the Forcados Pipeline and FOT remains above the budgeted 80percent. I’m pleased to report that our new wells at Gbetiokun are performing strongly, and we will soon commence drilling the exciting Sibiri prospect on OML40.

We have taken the difficult, but practical decision to bring an end to the uncertainty of the Access Bank legal dispute regarding Cardinal Drilling Services, which completes the Board-mandated removal of Related Party Transactions”.

“Although we maintain our previously stated position that legal action against the Company was wholly without merit, the risk of significant disruption to our operations and other opportunities from a long, drawn-out legal case brought us to a negotiated settlement with Access Bank. We have therefore acquired the four Cardinal rigs and we are now focusing on fast tracking their deployment in future drilling campaigns. Our business model is robust, despite setbacks in the third quarter, thanks to the prudent and flexible approach we have taken to managing the business. With an increased focus on efficiency in our operations, improving uptime by opening up the Amukpe to Escravos Pipeline and driving further cost reduction across our portfolio, this will provide the bedrock allowing us to operate effectively in fluctuating commodity prices and generate returns for shareholders,” the CEO said.

Brown is optimistic that the coming year will be much stronger, “with many of the problems of the past put behind us.” “After we set out our future strategy in July’s Capital Markets Day and launched our new corporate name of Seplat Energy plc, complete with its new branding, we are now focusing on building out and executing the energy transition that is right for Nigeria. A strong step forward will be when we bring on stream the ANOH project next year delivering more transition gas to an energy poor market, over reliant on expensive, high carbon-emitting electricity generated from small-scale diesel and PMS generators. Our three- pillar strategy is designed to ensure we balance carbon emission reduction with the essential social agenda for undeniably the most under-electrified, youngest and fastest growing population on earth. Seplat Energy’s focus is clear:
“Reliable energy, limitless potential,” Brown said.

Operational highlights
Nine months working interest production of 47,280 boepd down 6.7percent year on year largely as a result of the shut-in of the Forcados Oil Terminal (FOT) in August (Q3: 40,381 boepd). Liquids production down 16.6percent year on year at 27,804 bopd, recovering to 33kbopd liquids in October. Gas production up 13percent to 113 MMscfd, despite FOT impact on associated gas.Completed two gas wells and three oil wells in the period, new Gbetiokun wells performing strongly.

On the outlook for 2021, Seplat said, “Liquids production has recovered strongly following the outage and force majeure at Forcados and after averaging approximately 33 kbopd liquids in October, we expect the Group’s full-year liquids and gas production to be in the range 48-50 kboepd, assuming 80percent up time.

“We expect to introduce liquids into the Amukpe -Escravos Pipeline in December, which will provide a secure and reliable alternative export route and reduce our reliance on the TFP, which has caused significant problems in the past. Following its successful funding, the completion of the ANOH project remains a major priority and we expect first gas to be achieved in H1 2022, at lower cost than originally estimated at FID.”