Please see the Full Audited Results
in attached PDF
http://www.rns-pdf.londonstockexchange.com/rns/9272E_1-2024-2-29.pdf
Audited results for the twelve months ended
31
December 2023
29 February 2024
Lagos and London, 29 February 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
audited results for the twelve months ended 31 December
2023.
Financial highlights
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Revenue $1,061.3 million up 12% from
$951.8 million in 2022.
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Average realised oil price
$83.39/bbl (2022: $101.67/bbl); average realised gas price
$2.90/Mscf (2022: $2.82/Mscf).
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Unit production opex of $10.4/boe,
(2022: $10.3/boe).
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Cash generated from operations of
$520 million, down 10% on 2022, funding capex of $184 million and
enhanced shareholder returns.
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Balance sheet strengthened, year-end
cash at bank $450 million (2022: $404 million), excluding $128.3
million MPNU deposit.
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Net debt at year end 2023 reduced to
$306 million (YE 2022: $366 million). Net Debt to EBITDA
0.7x.
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Operational highlights
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Production averaged 47,758 boepd, up
8% from 2022 (44,104 boepd), and within original
guidance.
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Year end 2023 independently audited
2P reserves up 9% to 478 mmboe (YE 2022: 438 mmboe), 47%
liquids.
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Drilled and completed 14 wells in
2023 (of which 6 completed in 4Q 2023), in line with our revised
well program.
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ANOH gas plant achieved mechanical
completion on 29th December 2023. Our government partner recently
announced the tunnelling operations on the Niger river crossing
portion of the OB3 pipeline have begun. Seplat's first gas guidance
of 3Q 2024 is unchanged.
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Carbon emissions intensity: 27.9 kg
CO2/boe (2022: 23.9 kg CO2/boe).
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Achieved more than 8.7 million hours
without Lost Time Injury (LTI) on Seplat-operated assets in
2023.
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Special Dividend & Board
Changes
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Board recommends a special dividend
of US 3c/shr, in addition to Q4 23 declared dividend of US
3c/shr.
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Core dividend declared for 2023 of
US 12 c/shr, up 20% on 2022. Total dividend declared US
15c/shr.
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Mr. Udoma Udo Udoma elected as
Chairman of the Board and will assume office on 1st April 2024,
when he succeeds Mr.Basil Omiyi.
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Mr. Bello Rabiu elected as Senior
Independent Non-Executive Director (SINED) and will succeed Dr.
Charles Okeahalam effective 1st April 2024.
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2024 Outlook
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2024 production guidance of 44-52
kboepd. Guidance assumes availability of TNP from 3Q 2024, and
assumes ANOH contribution in line with guidance.
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Initial 2024 capex guidance $170-200
million. Drilling capex flat on 2022 (13 wells in base plan).
Seplat will fund capex on Abiala, a marginal field development tied
into OML40.
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In February 2024 we received
regulatory approval for the full lifecycle Field development plan
(FDP) for the Sibiri oil discovery on OML40.
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We remain highly confident that
President Tinubu's administration will approve our acquisition of
Exxon Mobil's share capital of Mobil Producing Nigeria Unlimited
(MPNU).
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Roger Brown, Chief Executive
Officer, said:
"Seplat Energy's 2023 results illustrate the Company's ability
to deliver production growth, fortify our balance sheet and reward
shareholders despite facing some unexpected challenges during the
year.
Operational performance was strong, production increased 8%
over 2022 and we recorded the lowest level of reconciliation losses
seen in recent years, a testament to the improving security efforts
on the Niger Delta. Drilling yielded positive results, and I'm
pleased to report strong 2P reserves growth, up 9% on prior year
estimates. Our revenue exceeded $1bn, and while costs increased,
our proactive approach meant we generated more than $260m of free
cash flow in the year, allowing us to continue rewarding our
shareholders and further reduce net debt.
Our strong financial position, excellent operational
performance and robust outlook means that we are delighted to
declare a special dividend again this year, lifting the total
dividend for the year to US$15 cents.
In
2024, we look forward to a number of key growth events. We are
moving forward on both the Sibiri and Abiala developments on OML40.
Clear progress is also being made on the important ANOH gas
project, with first gas expected in 3Q 2024. Finally, we have high
confidence that we will conclude the transformational acquisition
of MPNU this year.
I'm delighted to welcome Mr.Udoma as Seplat Energy's new
Chairman and Mr. Rabiu as SINED and wholeheartedly thank Mr.Omiyi
and Mr. Okeahalam for their longstanding support and guidance.
Nigeria's Oil & Gas industry is going through a generational
change and as we reach our tenth year as a listed company, we fully
intend to play an important role as Nigeria's leading independent
company."
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Summary of performance
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$
million
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₦
billion
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FY
2023
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FY
2022
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%
Change
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FY
2023
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FY
2022
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Revenue
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1,061.3
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951.8
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11.5%
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696.9
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403.9
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Gross profit
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532.0
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464.7
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14.5%
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349.3
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197.2
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EBITDA *
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447.9
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416.9
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7.4%
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294.1
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176.9
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Operating profit (loss)
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249.4
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274.7
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(9.2%)
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163.7
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116.6
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Profit (loss) before tax
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191.2
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204.4
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(6.4%)
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125.5
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86.7
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Cash generated from
operations
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519.9
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574.6
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(9.5%)
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340.6
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243.9
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Working interest production
(boepd)
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47,758
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44,104
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8.3%
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Volumes lifted (MMbbls)
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11.3
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8.3
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36.3%
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Average realised oil price
($/bbl.)
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$83.39
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$101.67
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(18.0%)
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Average realised gas price
($/Mscf)
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$2.90
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$2.82
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2.8%
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LTIF
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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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27.1
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23.9
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13.4%
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* Adjusted for non-cash
items
Responsibility for publication
This announcement has been
authorised for publication on behalf of Seplat Energy by Emeka
Onwuka, Chief Financial Officer, Seplat Energy PLC.
Signed:
Emeka Onwuka
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 / 13.00 WAT on Thursday
29 February 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 dialing 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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Emeka Onwuka, Chief Financial
Officer
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+234 1 277 0400
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Eleanor Adaralegbe, CFO
Designate
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James Thompson, Head of Investor
Relations
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ir@seplatenergy.com
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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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Luke Spells / 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 revenue 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 85MMscfd 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/