Seplat to announce board chairman as ABC Orjiako retires after 13 years

Seplat Energy Plc will latest this Friday annouce its new board chairman to replace ABC Orjiako who retires from the board after 13 years.

The energy company is expected to make the announcement after today’s post – annual general meeting of the board of directors.

This was disclosed by Seplat Energy Plc shortly after the company’s 9th Annual General Meeting (AGM) which held in Lagos on Wednesday, May 18.

Seplat Energy Plc, a leading indigenous Nigerian energy company with a strategic focus on Nigeria is listed on both the Nigerian Exchange Limited (NGX) and London Stock Exchange (LSE).

The retired chairman, Orjiako; the CEO, Roger Brown as well as Emeka Onwuka, Chief Financial Officer addressed the media after the annual general meeting.

“This is my last AGM as your chairman. Now that I have climbed the iroko, I have fetched all the firewood,” Orjiako cheerfully told the shareholders at the meeting.

“I’m very happy that I have been associated with the company in the last 13 years. It has been a good journey. It is the real actualisation of good dream that was supported by the people Seplat has,” Orjiako said.
While thanking the shareholders and all stakeholders in the company for their co-operations during his tenure, Orjiako noted that “though I am retired, but not tired.”

“I am sure that this company can only grow. I have absolute confidence in the board, management and staff of Seplat, also, the incoming chairman,” Orjiako added.

At the annual general meeting, the shareholders approved for the board to pay a final dividend of $0.025/share (2.5 cents) to Seplat’s shareholders whose names appear in the Register of Members as at the close of business on May 5, 2022.

The following currency exchange rates applies in determining the final dividend for 2021 to any shareholder that qualifies for and has elected to receive the dividend payment in Naira or Sterling (GBP): Exchange Rate $1/N416.55; $1/0.7976 Pounds.

The exchange rate for the Naira or Pound Sterling amounts payable was determined by reference to the exchange rates applicable to the US dollar available on April 29, 2022. Among other ordinary and special businesses at the AGM, the shareholders of Seplat received the Audited Financial Statements of the Company for the year ended December 31, 2021, together with the Reports of the Directors, Auditors and the Statutory Audit Committee thereon.

Seplat Energy Plc audited results for the full year ended December 31, 2021 shows it recorded growth in its 2021 full-year gross profit by 128.9percent to N114.2billion.

The foremost indigenous energy company also recorded a 38.2percent rise in its 2021 full-year revenue to N293.6billion; and a growth in profit before tax by 321.1percent to N71billion.

Read also: Climate change: Seplat Energy to plant five million trees

Seplat Energy recently announced a major acquisition and despite a challenging year for Nigerian oil and gas, the robust results delivered in 2021 clearly show how the company increasing financial strength has made such an acquisition possible, without the need to dilute shareholders, by giving international financial partners the confidence to invest in its vision. The proposed $1.28 billion Mobil Producing Nigeria Unlimited (MPNU) acquisition by Seplat adds transformational shallow water portfolio with dedicated export routes.

Seplat’s 2021 financial highlights show revenues went up by 38percent to $733 million ($747 million including $14million underlift); Adjusted EBITDA up 40percent to $372 million; Strong cash generation of $394 million against capex of $137 million (excluding cost of rig acquisitions); strong balance sheet with $341 million cash at bank, net debt of $426 million.

Seplat’s ANOH project mechanical completion is expected in the second-half (H2) of 2022 (84percent complete at present, all materials in country), however delays to third-party spur line likely to delay first gas to first-half (H1) 2023. Seplat eliminated related party transactions from January 1, 2022.

Outlook for 2022 (excluding MPNU)

Production guidance of 50-60 kboepd, capex expected to be $160 million; and MPNU next steps: focus on government approvals and transition planning, completion expected H2.

Outlook and plans for 2022

Full-year production guidance for 2022 is set at 50,000 to 60,000 boepd on a working interest basis, comprising 30,000 to 35,000 bopd liquids and 116 to 150 MMscfd (20,000 to 25,000 boepd) gas production. This guidance does not include any contribution from MPNU and the ANOH Gas Plant.

Seplat expects production uptime of 75percent for evacuation through the TFS and 90percent for evacuation via the AEP, the latter being our preferred export route from OMLs 4, 38, & 41.

Capital expenditure for 2022 is expected to be around $160 million. Seplat expect to drill a minimum of ten wells, including the Sibiri exploration well and one appraisal well, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas. The 2022 drilling programme is designed to address production decline and along with completion of maintenance activities, will support long-term production levels from the assets. With the recovery in oil prices, rig-based and other project activities activity will ramp-up in 2022.

Facilities and engineering projects will focus on delivery of an upgraded integrated gas processing facility at Sapele and further upgrades to the liquid treatment facility to enable increased deliveries of dry crude. Towards Seplat’s goal to end routine flaring by 2024, it will focus on Oben, Amukpe, Sapele & Jisike end of routine flaring projects, which will capture and monetise gas for productive use.

In OML 53, in addition to drilling, Seplat plans to complete the Jisike flow station debottlenecking and gaslift compressor station and installation of the Ohaji South Lease Automatic Custody Transfer (LACT) Unit.

For the non-operated assets, in OML 40, in additional to the drilling plans, facilities and engineering work will focus on the Gbetiokun facilities upgrade to optimise the Gbetiokun barging operations; whilst Seplat completes all front-end activities for the Gbetiokun to Adagbasa pipeline which will replace the barging of the produced crude. In OPL 283, Seplat has planned one gas well re-entry for production testing and the Igbuku gas plant design (FEED). The delivery of the 2022 workplan will be underpinned by a strong commitment to safety, asset integrity, GHG emissions reduction and operational excellence.