Seplat grows after-tax profit by 144% to N34bn

Seplat Energy has reported a 144 percent growth to N33.9 billion in nine months of 2021 from N13.9 billion in the same period of 2021.

Seplat received the sum of N258.7 billion as revenue from contracts with customers in September 2022, a 41.6 percent increase from N182.7 billion in September 2021.

Roger Brown, Chief Executive Officer of Seplat, said: “Seplat Energy has performed well despite an unusually challenging quarter for the Nigerian oil and gas industry, with key export routes being unavailable because of damage and theft. However, our main export route, the Trans Forcados Pipeline, has resumed operations and we continue to increase our use of the Amukpe-Escravos Pipeline and other alternative export routes, giving us confidence that the final quarter of the year will show some improvement in volumes.”

“We remain confident that our transformational acquisition of MPNU will be approved and are working closely with all the relevant stakeholders to achieve a successful outcome for all parties. 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,” he noted.

The Cost of sales grew 12.5 percent to N140.1 billion in September 2022 from N124.5 billion in September 2021.

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The average realised oil price increased to $108.25/bbl from $67.43/bbl in the period reviewed. The average realised gas price, however, dipped to $2.80/Mscf in nine-month 2022 from $2.86/Mscf in nine-month 2021.

The firm said in a note that “third-quarter production was severely affected by evacuation issues in all assets and this led to deferred liquid volumes of 3.4 MMbbls. Consequently, total liquids production in the third quarter averaged 12,475 bopd, down 58 percent from the previous quarter (Q2 2022: 30,338 bopd).”

Cash and cash equivalents at the end of the period rose to N131.4 billion, up 45.3 percent from N90.4 billion in the period reviewed.

General and administrative expenses grew 56 percent to N33.2 billion in the nine-month of 2022 from N21.3 billion in the same period of 2021.

The firm’s finance income grew by a huge 2144 percent to N202 million from N9 million in the comparable periods.

Finance costs dropped 11.6 percent to N21.4 billion in September 2022 from N24.2 billion in September 2021.

Net cash inflows from operating activities recorded a positive N132.7 billion from a positive cash flow of N57.3 billion in September 2021. Net cash outflows used in investing activities recorded N99.2 billion from N31.3 billion negative cash flow year on year.

Net cash outflows used in financing activities recorded N46.4 billion from N28 billion negative cash flow year on year.

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 noted that it remains confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law.

Basic earnings per share attributable to the equity shareholders stood at N59.30 in the nine-month of 2022 from N45.16 in the same period of 2021.