REG - Seplat Energy PLC - Full Year 2023 Financial Results

Seplat EnergyAnnouncement

29/02/2024 07:15

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RNS Number : 9272E  Seplat Energy PLC  29 February 2024

 

Please see the Full Audited Results in attached PDF

 

http://www.rns-pdf.londonstockexchange.com/rns/9272E_1-2024-2-29.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

 •        Revenue $1,061.3 million up 12% from $951.8 million in 2022.
 •        Average realised oil price $83.39/bbl (2022: $101.67/bbl); average realised
          gas price $2.90/Mscf (2022: $2.82/Mscf).
 •        Unit production opex of $10.4/boe, (2022: $10.3/boe).
 •        Cash generated from operations of $520 million, down 10% on 2022, funding
          capex of $184 million and enhanced shareholder returns.
 •        Balance sheet strengthened, year-end cash at bank $450 million (2022: $404
          million), excluding $128.3 million MPNU deposit.
 •        Net debt at year end 2023 reduced to $306 million (YE 2022: $366 million). Net
          Debt to EBITDA 0.7x.

Operational highlights

 •        Production averaged 47,758 boepd, up 8% from 2022 (44,104 boepd), and within
          original guidance.
 •        Year end 2023 independently audited 2P reserves up 9% to 478 mmboe (YE 2022:
          438 mmboe), 47% liquids.
 •        Drilled and completed 14 wells in 2023 (of which 6 completed in 4Q 2023), in
          line with our revised well program.
 •        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.
 •        Carbon emissions intensity: 27.9 kg CO2/boe (2022: 23.9 kg CO2/boe).
 •        Achieved more than 8.7 million hours without Lost Time Injury (LTI) on
          Seplat-operated assets in 2023.

 

Special Dividend & Board Changes

 •        Board recommends a special dividend of US 3c/shr, in addition to Q4 23
          declared dividend of US 3c/shr.
 •        Core dividend declared for 2023 of US 12 c/shr, up 20% on 2022. Total dividend
          declared US 15c/shr.
 •        Mr. Udoma Udo Udoma elected as Chairman of the Board and will assume office on
          1st April 2024, when he succeeds Mr.Basil Omiyi.
 •        Mr. Bello Rabiu elected as Senior Independent Non-Executive Director (SINED)
          and will succeed Dr. Charles Okeahalam effective 1st April 2024.

2024 Outlook

 •        2024 production guidance of 44-52 kboepd. Guidance assumes availability of TNP
          from 3Q 2024, and assumes ANOH contribution in line with guidance.
 •        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.
 •        In February 2024 we received regulatory approval for the full lifecycle Field
          development plan (FDP) for the Sibiri oil discovery on OML40.
 •        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).

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."

 Summary of performance                                                     ₦ billion

                                      $ million
                                      FY 2023  FY 2022  % Change      FY 2023       FY 2022
 Revenue                              1,061.3  951.8    11.5%         696.9         403.9
 Gross profit                         532.0    464.7    14.5%         349.3         197.2
 EBITDA *                             447.9    416.9    7.4%          294.1         176.9
 Operating profit (loss)              249.4    274.7    (9.2%)        163.7         116.6
 Profit (loss) before tax             191.2    204.4    (6.4%)        125.5         86.7
 Cash generated from operations       519.9    574.6    (9.5%)        340.6         243.9
 Working interest production (boepd)  47,758   44,104   8.3%
 Volumes lifted (MMbbls)              11.3     8.3      36.3%
 Average realised oil price ($/bbl.)  $83.39   $101.67  (18.0%)
 Average realised gas price ($/Mscf)  $2.90    $2.82    2.8%
 LTIF                                 0        0
 CO2 emissions intensity              27.1     23.9     13.4%

 from operated assets, kg/boe

* 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

 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.

 

 

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/ (https://seplatenergy.com/) .

 

 Event title:                            Seplat Energy Plc: Full year results
 Event date                              12:00pm (London) 1:00pm (Lagos) Thursday 29 February 2024
 Webcast Live Event Link                 https://www.lsegissuerservices.com/spark/SeplatPetroleumDevelopmentCo/events/324685dd-279c-4b55-8629-0bf1130486fc
                                         (https://www.lsegissuerservices.com/spark/SeplatPetroleumDevelopmentCo/events/324685dd-279c-4b55-8629-0bf1130486fc)
 Conference call and pre-register Link:  https://url.za.m.mimecastprotect.com/s/e9tzCvg5D2T7jJPwC5Ynhc?domain=lseg.registrations.events
                                         (https://url.za.m.mimecastprotect.com/s/e9tzCvg5D2T7jJPwC5Ynhc?domain=lseg.registrations.events)

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:

 Seplat Energy Plc
 Emeka Onwuka, Chief Financial Officer                            +234 1 277 0400
 Eleanor Adaralegbe, CFO Designate
 James Thompson, Head of Investor Relations                       ir (mailto:ir@seplatenergy.com) @seplatenergy.com (mailto:ir@seplatenergy.com)
 Ayeesha Aliyu, Investor Relations
 Chioma Afe, Director, External Affairs & Social Performance

 FTI Consulting
 Ben Brewerton / Christopher Laing                                +44 203 727 1000

                                                                  seplatenergy@fticonsulting.com

 Citigroup Global Markets Limited
 Luke Spells / Peter Catterall                                    +44 207 986 4000

 Investec Bank plc
 Chris Sim / Charles Craven                                       +44 207 597 4000

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/ (https://www.seplatenergy.com/)

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