2 weeks Ago By Success Nwogu
Seplat Energy PLC has announced that it grew its revenue for nine months ended 30 September 2024, to N1.071 trillion from N478.1bn Year-on-Year with cash generated from its operations rising to N633.
8bn from N213.8bn Year-on-Year). It added that its working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance.
Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange also said that its operating profit also rose to N411.3bn from N91.3bn Year-on-Year.
It added that it achieved 8.2 million-man hours without Lost Time Injury (LTI). These were contained in its unaudited results for the nine months ended 30 September 2024 which was made available to journalists on Tuesday.
On operational highlights, the report stated the company’s working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance. It added that its daily average liquids production increased 6% and gas production decreased by 11% versus 9M 2023. It also said that its annual guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd).
The report stated that Oben gas plant turnaround maintenance activity was successfully completed and there should be expectation of higher gas production in 4Q 2024. On Abiala first oil achieved in September, it stated that exports to commence during Q4 2024, targeting gross production level of c.5,000 bopd in Q1 2025.
The report also said that Trans Niger Pipeline (‘TNP’) availability is improving, supporting higher OML 53 production, 3Q 2024 production of 2,097 bopd +85% compared to 3Q 2023, and enabling a resumption of OML 53 crude lifting at Bonny Terminal in September. It stated that drilling activity increased and that there were completed nine wells year to date; seven from the 2024 program, which is on track. The report said: “ANOH Gas project saw completion of the 23km spur line, but the OB3 pipeline experienced further delays due to the technical challenges associated with the project.
NGIC completion date has now moved to the end of 2024. Factoring in a further contingency, in line with our previously stated approach, the first gas is now expected during 2Q 2025. “Carbon intensity of 32.
7 kgCO2e/boe (9M 2023: 26.0 kgCO2e/boe) for operated assets. High 3Q 2024 emissions due to increased flaring during planned maintenance at Oben and following the resumption of operations at Ohaji, OML53.
The anticipated impact of the End of Routine Flaring projects, starting in the second half of 2025, is expected to materially reduce absolute emissions by up to 70%. “Safety culture maintained, achieved 8.2-million-man hours without LTI at Seplat operated assets year to date.
” On financial highlights, it said: “Revenues of $715.3 million, down 11.7% vs.
9M 2023 ($810.4 million), largely due to overlift reported at 9M 2023. Adjusting for over lift/under lift 9M 2024 revenue $724 million, +6% compared to 9M 2023 of $683 million “Average price realisations.
Oil: $82.89/bbl (9M 2023: $82.76/bbl); Gas: $3.
18/Mscf (9M 2023: $2.87/Mscf). “Adjusted EBITDA $383.
0 million, up 25% from $306.4 million in 9M 2023, driven by higher revenue (adjusted) and lower costs.” It added: “Cash generated from operations of $423.
3 million, up 17% from $362.3 million in 9M 2023. “Capex of $157.
0 million (9M 2023: $125.4 million), reflecting higher drilling activity. “Balance sheet cash at 9M 2024, $433.
9 million (9M 2023: $391.0 million). Net debt at end September, $270 million, down from $366 million at end June 2024.
$38.5 million of Reserve-Based Lending (RBL) borrowings repaid year to date. Period end Net Debt to EBITDA was 0.
5x.” On corporate updates, the report said that the company received Ministerial Consent for acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’). It also reported strong underlying business performance supporting an increase in core dividend.
It stated that the 3Q 24 dividend raised by 20% to US3.6 cents and that total core dividend declared to date in 2024 $9.6 cents per share.
It stated that 2024 production guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd) while Capex now expected at the top end of the guidance range ($170 million – $200 million). Chief Executive Officer, Seplat Energy, Mr. Roger Brown, commenting on the results, said: “The first nine months of 2024 has seen Seplat Energy deliver a strong operational performance.
Production has been consistent, drilling has improved and our main maintenance activities have been executed successfully. “We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant. Further delays to the start-up at ANOH are frustrating, but we have been pleased to see the commitment of our government partner in tackling the technically challenging river crossing.
“Based on the latest estimates received, and maintaining a cautious stance on any risk of further delays, we update our guidance for first gas to Q2 2025. Commodity prices remained supportive, combined with operational uptime and timely cash calls from our joint venture partner, helped cash generation improve year over year, enhancing our balance sheet position. “As a result, we are pleased to announce a 20% increase in the core quarterly dividend and note that this is reflective of the strength of the underlying business.
The increase does not factor in the organic (ANOH) and inorganic (MPNU) growth opportunities that the company is currently pursuing. “We were delighted in recent days to receive Ministerial consent for the acquisition of MPNU. The transaction will be transformational for Seplat Energy, and every effort is now on completing the transaction.
”.
