Please see the Full Audited
Results in attached PDF
http://www.rns-pdf.londonstockexchange.com/rns/3114Y_1-2024-7-29.pdf
Unaudited results for the six months ended
30
June 2024
30 July 2024
Lagos and London, 30 July 2024: Seplat
Energy PLC ("Seplat Energy" or "the Company"), a leading Nigerian
independent energy company listed on both the Nigerian Exchange and
the London Stock Exchange, announces its unaudited results for the
six months ended 30 June 2024.
Operational highlights
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Production averaged 48,407 boepd (6M 2023:
50,805 boepd), at midpoint of guidance (44,000 boepd - 52,000
boepd).
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Pipeline losses of 3.1% in 6M 2024, highlights
an improving environment for stable operations on the Niger Delta.
Average deferments also improved to 24% (6M 2023: 26%).
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ANOH gas project on track to reach first gas
by end 3Q 2024. Critical infrastructure progressed well in 2Q 2024;
spur line achieved mechanical completion and progress on OB3
pipeline tunnelling means both infrastructure projects are on track
for completion during 3Q 2024.
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Abiala-1 workover activity complete, second
well commenced, first oil on track for 3Q 2024.
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Sibiri-1 and Sibiri-2 onstream and producing
at a combined rate of c.3,000 bopd (gross).
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Carbon emissions intensity: 28.6 kg CO2/boe
(6M 2023: 26.3 kg CO2/boe).
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Achieved more than 4.9 million hours without
Lost Time Injury ("LTI") at Seplat-operated assets in 6M
2024.
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Financial
highlights
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Revenue $421.6 million from $547.0 million in
6M 2023 (6M 2024 reported underlift of $55.8 million, 6M 2023
reported overlift of $59.4 million).
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Average realised oil price $85.55/bbl (6M
2023: $79.54/bbl); average realised gas price $2.95/Mscf (6M 2023:
$2.87/Mscf).
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Unit production opex stable at $9.7/boe, (6M
2023: $9.6/boe).
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Adjusted EBITDA rose 13.3% to $267.3 million
in 6M 2024 (6M 2023: $235.8 million), benefitting from lower
costs.
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Cash generated from operations of $226.0
million in 6M 2024, down from $260.0 million in 6M 2023. Cash
generated from operations in 2Q 2024 improved sequentially rising
to $209.2 million (1Q 2024: $16.8 million).
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Capex invested of $102.4 million (6M 2023:
$88.8 million).
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Balance sheet cash at 6M 2024, $371.8 million
(3M 2024: $335.6 million), $128 million Mobil Producing Nigeria
Unlimited (MPNU) deposit not included.
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Net debt at end June $366 million, down from
$385 million at end 1Q 2024. $19.3 million of Reserve-Based Lending
(RBL) borrowings were repaid in 6M 2024. Net Debt to EBITDA was
0.76x.
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Q2 2024 dividend declared of US$3.0 c/share.
6M 2024 total declared dividends US$6.0 c/share (6M 2023: US$6.0
c/share)
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Corporate
updates
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Full year guidance unchanged. Production
44,000-52,000 boepd. Capex $170 million - $200 million.
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On 14 June 2024, we announced that we had been
notified of a settlement reached between Nigerian National
Petroleum Company Limited (NNPCL) and MPNU with regards to the MPNU
transaction as well as the termination of the court proceedings.
Seplat is focused on securing regulatory approvals in the near
term.
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Roger Brown, Chief Executive
Officer, said:
"Seplat
Energy delivered a solid performance in the first half of 2024.
Continued operational strength positions us well for the second
half of the year, which is set to be an active one for the company.
Reported cash generation was softened by the underlift in the
period, but this is largely a timing effect and our cash generation
and balance sheet remain strong.
In May we
were honoured to receive President Tinubu for the commissioning of
the ANOH gas plant and associated pipelines, and the project
remains on track for first gas in 3Q 2024. We thank our government
partners for their efforts towards completion of critical pipeline
infrastructure in recent weeks. In 2H 2024 we also look forward to
first gas on the Sapele gas plant, which alongside debottlenecking
activities at Oben should further enhance gas production. We are
well on our way to increasing gas production in support of
Nigeria's 'Decade of Gas'.
In our oil
business, early results from Sibiri have been modestly ahead of
expectations, as well, having completed the first of two planned
wells, production at Abiala should commence in the coming weeks,
finally we look to higher production at Ohaji once stable
operations on the Trans Niger Pipeline are achieved. Combined with
growth in our gas business, and we are looking forward to a strong
second half with momentum to carry into 2025.
During the
quarter a number of important steps were made that support
completion of our proposed acquisition of MPNU. We are confident
and committed to its completion and continue to work with
regulators, government, and other parties to ensure its successful
completion."
Summary of performance
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$
million
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₦
billion
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6M
2024
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6M
2023
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%
Change
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6M
2024
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6M
2023
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Revenue
*
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421.6
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547.0
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(22.9%)
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575.1
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278.3
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Gross
profit
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181.5
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276.3
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(34.3%)
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247.5
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140.6
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EBITDA
**
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267.3
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235.8
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13.3%
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364.5
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120.0
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Operating
profit (loss)
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209.1
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118.4
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76.7%
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285.2
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60.2
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Profit
(loss) before tax
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178.9
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85.4
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109.5%
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244.0
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43.5
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Cash
generated from operations
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226.0
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260.0
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(13.1%)
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308.2
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132.3
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Working
interest production (boepd)
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48,407
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50,805
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(4.7%)
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Oil
volumes produced (MMbbls)
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5.40
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5.47
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(1.3%)
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Oil
volumes lifted (MMbbls)
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4.21
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6.07
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(30.7%)
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Average
realised oil price ($/bbl.)
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$85.55
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$79.54
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7.6%
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Average
realised gas price ($/Mscf)
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$2.95
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$2.87
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2.8%
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LTIF
(operated assets)
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0
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0
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CO2
emissions intensity
from
operated assets, kg/boe
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28.6
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26.3
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11.4%
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* 6M 2024 revenue excludes an
underlift of $55.8m, 6M 2023 revenue includes an overlift of
$59.4m
** Adjusted for non-cash
items (impairments, fair value loss, and
exchange gain)
Responsibility for publication
This announcement has been
authorised for publication on behalf of Seplat Energy by Eleanor
Adaralegbe, Chief Financial Officer, Seplat Energy PLC.
Signed:
Eleanor Adaralegbe
Chief Financial
Officer
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Important notice
The information contained within this
announcement is unaudited and deemed by the Company to constitute
inside information as stipulated under Market Abuse Regulations.
Upon the publication of this announcement via Regulatory
Information Services, this inside information is now considered to
be in the public domain.
Certain statements included in these results
contain forward-looking information concerning Seplat Energy's
strategy, operations, financial performance or condition, outlook,
growth opportunities or circumstances in the countries, sectors, or
markets in which Seplat Energy operates. By their nature,
forward-looking statements involve uncertainty because they depend
on future circumstances and relate to events of which not all are
within Seplat Energy's control or can be predicted by Seplat
Energy. Although Seplat Energy believes that the expectations and
opinions reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations and
opinions will prove to have been correct. Actual results and market
conditions could differ materially from those set out in the
forward-looking statements. No part of these results constitutes,
or shall be taken to constitute, an invitation or inducement to
invest in Seplat Energy or any other entity and must not be relied
upon in any way in connection with any investment decision. Seplat
Energy undertakes no obligation to update any forward-looking
statements, whether because of new information, future events or
otherwise, except to the extent legally required.
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Investor call
At 12:00 GMT / 12:00 WAT
today, Tuesday 30 July
2024, the Executive Management team will host a
conference call and webcast to present the Company's
results.
The presentation can be accessed
remotely via a live webcast link and pre-registering details are
below. After the meeting, the webcast recording will be made
available and access details of this recording are also set out
below.
A copy of the presentation will be
made available on the day of results on the Company's website
at https://seplatenergy.com/.
The Company requests that
participants dial in 10 minutes ahead of the call. When dialling
in, please follow the instructions that will be emailed to you
following your registration.
Enquiries:
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Seplat
Energy Plc
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Eleanor Adaralegbe,
Chief Financial Officer
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+234 1 277
0400
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James Thompson, Head
of Investor Relations
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+44 203 725
6500
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Ayeesha Aliyu,
Investor Relations
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Chioma Afe, Director,
External Affairs & Social Performance
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FTI
Consulting
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Ben Brewerton /
Christopher Laing
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+44 203 727 1000
seplatenergy@fticonsulting.com
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Citigroup
Global Markets Limited
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Peter Brown / Peter
Catterall
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+44 207 986 4000
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Investec
Bank plc
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Chris Sim / Charles
Craven
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+44 207 597 4000
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About Seplat Energy
Seplat Energy PLC (Seplat) is
Nigeria's leading indigenous energy company. Listed on the Nigerian
Exchange Limited (NGX: SEPLAT) and the Main Market of the London
Stock Exchange (LSE: SEPL), we are pursuing a Nigeria-focused
growth strategy in oil and gas, as well as developing a Power &
New Energy business to lead Nigeria's energy transition.
Seplat's energy portfolio consists
of seven oil and gas blocks in the prolific Niger Delta region of
Nigeria, which we operate with partners including the Nigerian
Government and other oil producers. We also have a financial
interest in OML 55. We operate a 465MMscfd gas processing plant at
Oben, in OML4, and are building the 300MMscfd ANOH Gas Processing
Plant in OML53 and a new 90MMscfd gas processing plant at Sapele in
OML41, to augment our position as a leading supplier of gas to the
domestic power generation market. https://www.seplatenergy.com/