Seplat Reports N91.1b In Earnings In The First Quarter Of 2023

Seplat Reports

According to Seplat Energy Plc, its gross profit increased by 69% to N91.1 b in the first quarter (Q1) 2023 from N48.8 b in the same quarter last year.The energy company reported an increase in earnings before tax of 3.2% to N39.5 billion from N34.7 billion year over year in its unaudited results for the three months ending March 31, 2023, which were made public to The Guardian.

Basil Omiyi, the Independent Chairman, commented on the outcomes:  “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the board to increase our annual core dividend target from US10 cents to US12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.”

“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil.”

“On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.”

Due to greater production volumes, the energy company’s Q1 revenue increased by 36.9% to N152 billion from N100.6 billion in the prior year. However, it reported strong Q1 cash generation of $139.9 million and capex of $44.7 million, and its balance sheet was strengthened by $459.7 million in cash on hand and $288.2 million in net debt (excluding Mobil’s $130 million cash deposit).

Seplat said that its working interest output climbed by 8.6% to 51,720 barrels of oil equivalent per day (boepd), which is in the upper end of the period’s target range.

The Amukpe-Escravos Pipeline (AEP) is supporting larger export volumes from important western assets, the new OP-15 well is increasing liquids output at Oil Mining Lease (OML) 40, and the Oben-34 well is increasing gas production, according to the report.

The business reported that throughout the time period, its assets went more than 3.8 million hours without a Lost Time Injury (LTI).

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