2 weeks Ago By Admin2
LAGOS – Seplat Energy Plc, a Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange,will commence exports from Abiala field during Q4 2024, targeting gross production level of c.5,000 bopd in Q1 2025. First oil was achieved from the field in September this year.
The company announced this in its unaudited results for the for the nine months ended 30 September 2024 Its Oben gas plant turnaround maintenance activity was successfully completed, and it expects higher gas production in 4Q 2024. It added: “Working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance. Daily average liquids production increased 6% and gas production decreased by 11% versus 9M 2023.
Annual guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd) “Trans Niger Pipeline (‘TNP’) availability 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.” “Drilling activity increased. Completed nine wells year to date.
Seven from the 2024 program, which is on track. 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, 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 company’s safety culture was maintained, and achieved 8.
2-million-man hours without LTI at Seplat operated assets year to date. Its revenues of $715.3 million, down 11.
7% vs. 9M 2023 ($810.4 million), largely due to overlift reported at 9M 2023.
It is adjusting for overlift/underlift 9M 2024 revenue $724 million, +6% compared to 9M 2023 of $683 million It adjusted EBITDA $383.0 million, up 25% from $306.4 million in 9M 2023, driven by higher revenue (adjusted) and lower costs.
Cash generated from operations of $423.3 million, up 17% from $362.3 million in 9M 2023.
It realized Capex of $157.0 million (9M 2023: $125.4 million), reflecting higher drilling activity.
Balance sheet cash was 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. The company received Ministerial Consent for acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’).
It added: Strong underlying business performance supports increase to core dividend. 3Q 24 dividend raised by 20% to US3.6 cents.
Total core dividend declared to date in 2024 $9.6 cents per share. “2024 production guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd).
Capex now expected at the top end of the guidance range ($170 million – $200 million). Speaking on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy, 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..
