Seplat Energy, the largest indigenous energy company by market value, has bounced back from the pandemic-induced loss of 2020, as the oil rally helped push the company back to profitability in 2021.
Seplat posted a profit of N46.9 billion in 2021 compared to a loss of N30.7 billion in 2020.
The company benefited from the oil price rally which averaged $70.54/bbl in 2021 compared to $39.95/bbl in 2020 when the pandemic weakened oil sales.
Revenue from oil and gas sales jumped 53 percent in 2021 to N293.6 billion compared to N190.9 billion in 2020.
“Seplat Energy announced a major acquisition last week and despite a challenging year for Nigerian oil and gas, the robust results delivered today clearly show how our 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 our vision,” Roger Brown, the Chief Executive Officer said.
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The company has bought the entire offshore shallow water business of ExxonMobil in Nigeria at the cost $1.2billion. The company entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation.
“Once we have completed our acquisition of MPNU, we will add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses,” Brown said.
The CEO also explained the addition of MPNU offers a significant underdeveloped gas resources base which alongside the ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.
Cost of sales rose 22 percent to N179.4 billion compared to N146 million in 2020.
Borrowing cost also surged 64 percent to N30.5 billion compared to N18.6 billion in 2020.
The company announced a Final Dividend of US$0.025 (2.5 Cents) per Ordinary Share of N0.50k each, will be paid to shareholders whose names appear in the Register of Members as at the close of business on 5th May 2022. This is subject to appropriate withholding tax and shareholders’ approval.
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