By Godfrey AKON
A leading indigenous energy company, Seplat Energy Plc, has announced its revenue growth of N1.071trilion in nine months, from N478.1 billion Year-on-Year with cash generated from its operations rising to N633.8bn from N213.8bn Year-on-Year.
The company said in a statement on Tuesday that its operating profit also rose to N411.3 billion from N91.3 billion Year-on-Year, as the company achieved 8.2 million-man hours without Lost Time Injury, LTI.
Seplat Energy said its unaudited results for the nine months ended 30 September 2024, had a strong underlying business performance which supports increase to core dividend by 20 per cent to US3.6 Cents per share in 3rd quarter of 2024 alone.
While disclosing that the total core dividend declared to date in 2024 is US9.6 cents per share, it reported that working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance.
On its Operational highlights, the company noted that its working interest production averaged 47,525 barrel of oil equivalent per day, boepd.
“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).
“Oben gas plant turnaround maintenance activity successfully completed, expect higher gas production in 4Q 2024. Abiala first oil achieved in September. Exports to commence during Q4 2024, targeting gross production level of c.5,000 bopd in Q1 2025.
“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 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 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%,” it said.
On Corporate updates, the company said it received ministerial consent for acquisition of entire issued share capital of Mobil Producing Nigeria Unlimited, MPNU.
It noted that “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).”
Commenting 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.
“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.”
