REG - Seplat Energy PLC - Full Year 2024 Financial Results
04/03/2025 07:15
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RNS Number : 1941Z Seplat Energy PLC 04 March 2025
Please see the Full Audited Results in attached PDF
http://www.rns-pdf.londonstockexchange.com/rns/1941Z_1-2025-3-4.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1941Z_1-2025-3-4.pdf)
Audited results for the year ended 31 December 2024
4 March 2025
Overview
Lagos and London, 4 March 2025: 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 2024.
Summary
Strong operational and strategic progress in 2024 culminating with the
transformational acquisition of Mobil Producing Nigeria Unlimited ('MPNU')
(renamed Seplat Energy Producing Nigeria Unlimited 'SEPNU'). Confidence in
business outlook underpinned by special dividend, lifting total 2024
distribution to US$ 16.5 cents per share, up 10% on 2023.
Operational highlights
• Production (onshore assets) averaged 48,618 boepd up 2% from 2023
(47,758 boepd), and within guidance. Including 19 days of SEPNU production
(annualised average contribution of 4,329 kboepd), reported production reached
52,947 boepd, 11% higher than 2023.
• YE 2024 independently audited 2P reserves up 85% to 886 MMboe (YE
2023: 478 MMboe), 65% liquids.
• Group 2P+2C increases by 125% to 1,217 MMboe (YE 2023: 540 MMboe), 55%
liquids.
• Organic reserve replacement ratio in Seplat's onshore assets of 176%,
reflects positive drilling results.
• ANOH gas plant is planning to test with third party dry gas in 1H
2025, tunnelling operations on OB3 resumed during 1Q 2025.
• Trans Niger Pipeline ('TNP') resumed 24hr operations in 4Q 2024. OML
53 oil production grew 60% on 2023, on improved export availability.
• Sapele Integrated Gas Plant ('IGP') was commissioned in 4Q 2024 and
achieved first commercial gas sales in early 2025.
• Carbon emissions intensity for Seplat onshore assets: 32.3 kg CO2/boe
(2023: 29.4 kg CO2/boe). End of routine flaring on track for H2 2025.
• Achieved more than 11.0 million hours (2023: 8.7 million hours)
without Lost Time Injury (LTI) on Seplat-operated assets in 2024.
Financial highlights
• Revenue $1,116 million up 5% (FY 2023: $1,061 million), including 19
days contribution from SEPNU. Underlying adjusted revenue stable at $961
million (FY 2023: $962 million).
• Seplat Onshore unit production opex of $12.3/boe (2023: $10.4/boe)
• Cash generated from operations of $384 million, down 26% on 2023,
impacted by; timing of liftings, one-off costs predominately associated with
SEPNU acquisition and working capital acquired on consolidation of SEPNU.
• Cash capex of $208 million (FY 2023: 184 million).
• Balance sheet remains robust, year-end cash at bank $469.9 million
(2023: $450.1 million), excluding $132.2 million restricted cash.
• Net debt at year end 2024 of $898 million (YE 2023: $306 million).
Pro-forma ND/EBITDA 0.7x.
SEPNU highlights post completion
• Strong production performance since completion, averaging net 81.1
kboepd, FY 2024 average working interest production 69.4 kboepd.
• First 100 day integration plan well advanced.
• 2025 work program and budget discussions with JV partner progressed
but subject to final approval. Strong alignment on increasing investment to
improve integrity and reliability and strengthen the asset base for long term
growth.
Special Dividend
• Q4 2024 declared dividend of US$ 3.6c/shr, total core dividend
declared for 2024 of US 13.2c/shr, up 10% on 2023
• The Board recommends a US$ 3.3c/shr special dividend for 2024.
Reflecting the strength of balance sheet and confidence in our outlook.
• Total dividend declared for 2024 US$ 16.5c/shr, also up 10% on 2023.
2025 Outlook
• 2025 average production guidance of 120-140 kboepd (Seplat Onshore
48-56 kboepd, SEPNU 72-84 kboepd).
• Initial 2025 capex guidance $260-320 million. (Seplat Onshore $180-220
million, SEPNU $80-100 million). Plan includes 13 new wells onshore,
replacement of an inlet gas exchanger on East Area Project (EAP) NGL project
offshore and other capex projects.
• Unit operating costs for the group are expected to be $14.0-15.0/boe.
Strategic maintenance and integrity activities will be the focus for SEPNU in
2025. Targeting short cycle oil growth and laying a foundation for sustained
improvements in uptime to support our longer term growth ambitions.
• Capital Markets Day in 3Q 2025, where we will detail our medium to
long term growth ambitions.
Roger Brown, Chief Executive Officer, said:
"2024 was truly a defining year for Seplat Energy. In addition to delivering
key growth projects in our existing onshore business, we closed out 2024 by
completing the acquisition of SEPNU, the largest in the Company's history,
which adds significant scale and attractive low-cost growth potential. In
the first few months since the acquisition, it has already become clear that
there is significant prize in the offshore shallow water, operating a closed
loop system from well-head production to hydrocarbon sales at the terminal.
This year we will focus on re-opening previously shut in wells in SEPNU,
alongside another full drilling campaign for our onshore assets and we look
forward to delivering first gas at ANOH. We will also accelerate the
subsurface work and contracting needed to commence an infill drilling campaign
at SEPNU.
Our confidence in the future trajectory for the enlarged business, combined
with our strong financial position, means that we are delighted to declare a
special dividend again for 2024, lifting the total dividend for 2024 to $16.5
cents per share, an uplift of 10% from 2023.
The Seplat Energy team is rightly proud of its achievements in 2024, and we
fully intend to continue our mission to create significant shared value and
enhance prosperity for all our stakeholders in Nigeria and beyond."
Summary of performance
$ million ₦ billion
FY 2024* FY 2023 % change FY 2024* FY 2023
Revenue ** 1,116.2 1,061.3 5.2% 1,651.6 696.9
Gross profit 479.9 532.0 (9.8)% 710.1 349.3
EBITDA *** 539.0 448.2 20.3% 796.4 293.1
Operating profit (loss) 437.9 249.4 75.6% 647.9 163.7
Profit (loss) before tax 379.4 191.2 98.4% 561.4 125.5
Cash generated from operations 383.5 519.9 (26.2)% 567.5 340.6
Working interest production (boepd) 52,947 47,758 10.9%
Volumes lifted (MMbbls) 12.4 11.3 9.7%
Average realised oil price ($/bbl) 80.04 83.39 (4.0)%
Average realised gas price ($/Mscf) 3.06 2.90 5.5%
LTIF - -
CO2 emissions intensity from operated assets, kg/boe 32.3 29.7 8.8%
*Throughout results FY24 reported figures consolidate SEPNU contribution from
the completion date of 12 December 2024
** FY24 reported revenue excludes an underlift of $11 million, FY23 includes
an overlift of $99 million
*** Adjusted for non-cash items
Responsibility for publication
This announcement has been authorised for publication on behalf of Seplat
Energy by Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy PLC.
Signed:
Eleanor Adaralegbe
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 Tuesday 4th March 2025, 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 the same as
for the webcast.
A copy of the presentation will be made available on the day of results on the
Company's website at https://seplatenergy.com/ .
Event title: Seplat Energy Plc: Full year results
Event date 12:00pm (London) 1:00pm (Lagos) Tuesday 4th March 2025
Webcast Live Event Link W
(https://sparklive.lseg.com/SEPLATENERGY/events/b40244cf-b721-46ba-b6b6-8e8104ff837d/seplat-energy-plc-full-year-results-2024)
e
(https://sparklive.lseg.com/SEPLATENERGY/events/b40244cf-b721-46ba-b6b6-8e8104ff837d/seplat-energy-plc-full-year-results-2024)
bcast link
(https://sparklive.lseg.com/SEPLATENERGY/events/b40244cf-b721-46ba-b6b6-8e8104ff837d/seplat-energy-plc-full-year-results-2024)
Conference call and pre-register Link: https://registrations.events/direct/LON2149418
The Company requests that participants dial in 10 minutes ahead of the call.
When dialling in, please follow the instructions that will be emailed to you
following your registration.
Enquiries:
Seplat Energy Plc
Eleanor Adaralegbe, Chief Financial Officer +23412770400
James Thompson, Head of Investor Relations 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
Peter Brown / 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). Through our strategy to Build a
sustainable business and Deliver energy transition, we are transforming lives
by delivering affordable, reliable and sustainable energy that drives social
and economic prosperity.
Following the acquisition of Mobil Producing Nigeria Unlimited, Seplat
Energy's enlarged portfolio consists of eleven oil and gas blocks in onshore
and shallow water locations in the prolific Niger Delta region of Nigeria,
which we operate with partners including the Nigerian Government and other oil
producers. Furthermore, we have an operated interest in three export terminals
including the Qua Iboe export terminal and Yoho FSO, as well as an operated
interest in the Bonny River Terminal (BRT) NGL recovery plant. We operate two
gas processing plants onshore, at Oben in OML 4 and Sapele in OML 41, and are
soon to open the 300 MMscfd ANOH Gas Processing Plant in OML 53 as a joint
venture with NGIC. Combined, these gas facilities augment Seplat Energy's
position as a leading supplier of natural gas to the domestic power generation
market.
For further information please refer to our website;
https://www.seplatenergy.com/ (https://www.seplatenergy.com/)
Operating review
Reserves and Resources
Following completion of the acquisition of Mobil Producing Nigeria Unlimited
('MPNU'), now renamed Seplat Energy Producing Nigeria Unlimited ('SEPNU'), the
Company's oil & gas portfolio now comprises direct interests in eleven oil
and gas blocks all of which are located in shallow water, onshore and swamp
areas of the Niger Delta. This portfolio provides the Group with a strong
inventory of oil and gas reserves and production capacity, as well as material
upside opportunities to add reserves through future development activities.
The Group's audited 2P reserves, were assessed independently by Ryder Scott
Company, L.P for the onshore assets and by ERC Equipoise for the SEPNU assets.
Total 2P reserves increased by 408 MMboe from 478 MMboe at the end of 2023 to
886 MMboe at the end of 2024. The increase in 2P reserves is attributed to 395
MMboe from SEPNU and positive revisions to reserves at OMLs 4, 38, 41 and OML
53.
Working interest 2P reserves as of 1st January 2025
Asset Seplat 2P reserves at 31-Dec-2024 2P reserves at 31-Dec-2023
Liquids Gas NGLs Total Liquids Gas NGLs Total
% MMbbl Bscf MMbbl MMboe MMbbl Bscf MMbbl MMboe
OMLs 4, 38, 41 45% 138 655 - 251 135 617 - 242
OML 40** 45% 26 - - 26 24 - - 24
OML 53 40% 49 789 - 185 51 747 - 180
OML 55 Fin Interest 3 - - 3 3 - - 3
OPL 283 40% 9 81 - 22 9 81 - 23
Abiala 95% 4 - - 4 4 17 - 6
Seplat Onshore 229 1,525 - 492 226 1,463 - 478
OML 67, 68, 70 40% 276 - - 276 - - - -
OML 104 40% 41 - - 41 - - - -
SEPNU Gas* 40% 248 43
NGL 51% - - 35 35 - - - -
SEPNU 317 248 35 395 - - - -
Seplat Group 546 1,773 35 886 226 1,463 - 478
*Due to integrated nature of the SEPNU fields, gas and NGLs resources have not
been classified across individual assets
**Eland has a 45% working interest in OML40 until the Westport loan is fully
repaid in accordance with the loan agreement, reverting to 20.25%
Quantities of oil equivalent are calculated using a gas-to-oil conversion
factor of 5,800 scf of gas per barrel of oil equivalent.
The Group's audited 2C resources increased by 432% to 330 MMboe, comprising 89
MMbbls of oil & condensates and 1,402 Bscf of natural gas. The increase
was supported by the MPNU acquisition, positive revisions on resources in
place, and revision of Abiala 2P gas reserves to 2C resource. Excluding the
impact of SEPNU, 2C resources rose 35% to 84 MMboe, comprising 46 MMboe oil
& condensates and 220 Bscf of gas.
Working interest 2C reserves as of 1st January 2025
Asset Seplat 2C reserves at 31-Dec-2024 2C reserves at 31-Dec-2023
Liquids Gas Total Liquids Gas Total
% MMbbl Bscf MMboe MMbbl Bscf MMboe
OMLs 4, 38, 41 45% 31 122 52 29 111 48
OML 40 45% 4 - 4 3 - 3
OML 53 40% 10 80 24 4 32 10
OML 55 Fin Interest - - - - - -
OPL 283 40% 1 4 2 1 4 2
Abiala 95% - 15 3 - - -
Seplat Onshore 46 220 84 37 146 62
OML 67, 68, 70 40% 30 1,047 211 - - -
OML 104 40% 12 134 36 - - -
SEPNU 42 1,181 247 - - -
Seplat Group 89 1,402 330 37 146 62
Consequently, the Group's working interest 2P reserves and 2C resources stood
at 1,217 MMboe as of 31 December 2024, comprising 669 MMbbls liquids and 3,175
Bscf of natural gas (547 MMBoe). Onshore reserves & resources amounted to
575 MMboe (comprising 274 MMbbls of liquids and 1,745 Bscf of gas) and
offshore amounted to 641 MMboe (comprising 394 MMbbls of liquids and 1,430
Bscf of gas).
Note: In the Operating review section, "Seplat Onshore" refers to the legacy
assets owned by Seplat Energy prior to the acquisition of MPNU. "SEPNU/Seplat
Offshore" refers to the recently acquired shallow water assets.
Group Production
Working interest production for the twelve months ended 31 December 2024
Asset Seplat WI FY 2024 FY 2023
Liquid Gas NGLs Total Liquid Gas NGLs Total
% bopd MMscfd bpd kboepd bopd MMscfd bpd kboepd
OMLs 4, 38, 41 45% 14,992 108.0 - 33,614 14,866 114.1 - 34,538
OML 40 45% 11,506 - - 11,506 10,455 - - 10,455
OML 40 - Abiala 95% 19 - - 19 - - - -
OML 53 40% 1,933 - - 1,933 1,212 - - 1,212
OPL 283 40% 1,547 - - 1,547 1,554 - - 1,554
Seplat Onshore 29,997 108.0 - 48,618 28,087 - - 47,758
OMLs 67, 68, 70 40% 2,864 2.5 272 3,572 - - - -
OML 104 40% 556 - - 556 - - - -
OML 99 (A/K Field) 9.6% 48 0.9 201 - - - -
SEPNU 3,468 3.4 272 4,329 - - - -
Total 33,465 111.4 272 52,947 28,087 - - 47,758
2024 includes 19 days of SEPNU production averaged across the calendar year
Liquid production volumes as measured at the LACT (Lease Automatic Custody
Transfer) unit for OMLs 4, 38 and 41; OML 40 and OPL 283 flow station.
Gas conversion factor of 5.8 boe per scf.
Volumes stated are subject to reconciliation and may differ from sales volumes
within the period.
In 2024, total liquids production improved on 2023, as the Company produced
11.0 MMbbls of oil, 7.1% higher than 10.3 MMbbls delivered in 2023, on a like
for like basis. Including the benefit of SEPNU assets from completion,
production increased by 19.3% to 12..2 MMbbls. This was partially offset by
gas production which was 5.1% lower at 39.5 Bcf (2023: 41.6 Bcf) when
comparing on a like for like basis. Including SEPNU's post-completion gas
production, total gas production closed at 40.8 Bcf, 2.1% lower than 2023's
production. Following completion of the acquisition of MPNU, the Company
produced 99.7 kbbls of NGLs in the final 19 days of the year. The production
mix, including SEPNU, was 63.2% oil, 36.3% gas, and 0.5% NGLs.
2024 working interest production by quarter
Asset Seplat WI Q1 2024 Q2 2024 Q3 2024 Q4 2024
Liquid Gas NGLs Total Liquid Gas NGLs Total Liquid Gas NGLs Total Liquid Gas NGLs Total
% bopd MMscfd bpd kboepd bopd MMscfd bpd kboepd bopd MMscfd bpd kboepd bopd MMscfd bpd kboepd
OMLs 4, 38, 41 45% 15.1 109.5 - 34.0 15.5 107.9 - 34.1 14.6 93.6 - 30.8 14.8 121.1 - 35.7
OML 40 45% 12.5 - - 12.5 10.6 - - 10.6 11.3 - - 11.3 11.6 - - 11.6
OML 40 - Abiala 95% - - - - - - - - - - - - 0.1 - - 0.1
OML 53 40% 1.3 - - 1.3 1.2 - - 1.2 2.1 - - 2.1 3.2 - - 3.2
OPL 283 40% 1.6 - - 1.6 1.7 - - 1.7 1.6 - - 1.6 1.3 - - 1.3
Seplat Onshore 30.5 109.5 - 49.4 29.0 107.9 - 47.6 29.6 93.6 - 45.8 31.0 121.1 - 51.8
OMLs 67, 68, 70 40% - - - - - - - - - - - - 11.4 10.0 1.1 14.2
OML 104 40% - - - - - - - - - - - - 2.2 - - 2.2
OML 99 (A/K Field) 9.6% - - - - - - - - - - - - 0.2 3.5 - 0.8
SEPNU - - - - - - - - - - - - 13.8 13.5 1.1 17.2
Total 30.5 109.5 - 49.4 29 107.9 - 47.6 29.6 93.6 - 45.8 44.8 134.6 1.1 69.0
4Q 2024 includes 19 days of SEPNU production averaged across the quarter
Liquid production volumes as measured at the LACT (Lease Automatic Custody
Transfer) unit for OMLs 4, 38 and 41; OML 40 and OPL 283 flow station.
Gas conversion factor of 5.8 boe per scf.
Volumes stated are subject to reconciliation and may differ from sales volumes
within the period.
Average daily working interest production, excluding SEPNU's production
contribution, increased by 1.8% to 48,618 boepd, modestly above the midpoint
of our guidance range (46,000-50,000 boepd). The improvement in production was
broadly supported by higher production on our Eastern assets following
resumption of evacuation via the Trans Niger Pipeline (TNP). In addition,
strong well performance from the 2023 drilling program at OML 40 contributed
to sustained strong production during the period. Average daily working
interest production (inclusive of SEPNU's production) increased by 10.9% to
52,947 boepd in 2024, compared to 47,758 boepd in 2023. As such, reported
production, was delivered above the top end of our guidance range.
Seplat Energy Producing Nigeria Unlimited (SEPNU)
Seplat completed the acquisition of SEPNU (previously Mobil Producing Nigeria
Unlimited, MPNU) on 12 December 2024. The cash consideration on closing was
$800 million, including $128.3 million deposit paid in 2022. All operations
have been consolidated since this point and are included in reported accounts.
Since the completion of the transaction Seplat has focused on integration of
the businesses across people and systems, and budget planning for 2025. These
workstreams are progressing well. As part of the transaction up to $300
million may also be paid, subject to certain performance conditions over the
period 5 year period 2022-2026. For 2022 and 2023 a total of $43 million was
paid (included in closing consideration). For 2024 contingent payment three
(CP3) was not paid as the volume performance target was not met.
For the full year 2024, MPNU recorded average working interest production of
69.4 kboepd, down 9% on 2023. Across product lines, 85% was Crude and
Condensate, 4% NGL, 12% gas. The Amenam-Kpono field (A/K) contributed 4.0
kboepd to average daily production.
From 12 December 2024 to year end the annualised average contribution of SEPNU
to Seplat daily average working interest production was 4,329 boepd (Liquids:
3,468 bopd, NGLs: 272 bpd, Gas: 3.1 MMscfd).
Since completion of the acquisition the key focus points have been;
integration and 2025 budget planning with our JV partner. These discussions
have commenced with strong partner alignment to increase opex and capex
activities, which are designed to improve integrity, reliability and deliver
sustained production growth. The most significant 2025 investments include
contracting two additional barges (one for integrity work and the other for
well work to restore production from idle wells) and replacement of the Inlet
Gas Exchanger (IGE) on EAP NGL facility.
In addition a number of projects will be undertaken, within operating and
maintenance ('O&M'). The work program is designed to provide a strong
foundation that will lead to improved uptime supporting further production
growth in 2026 and beyond.
The Company has also begun planning for longer term growth activities
including drilling of new production well stock, which requires contracting a
jack-up rig, and other key growth opportunities such as new field developments
and commercialisation of the large gas resource base.
Seplat Onshore
Western Assets
In OMLs 4, 38, & 41, working interest liquids production rose by 0.8% to
14,992 bopd (2023: 14,866 bopd). The marginal improvement in liquids
production was due to improved export route availability through the year
compared to 2023 when the Trans Forcados Pipeline (TFP) - Forcados Oil
Terminal (FOT) export route was unavailable for a combined 69 days in the
second half of 2023. Some operational challenges on the TFP-FOT route were
experienced as leak repairs were carried out on the line in September and
October incurring 40-days downtime. However, due to availability of the
AEP-EOT route, impact on operations was minimal, again highlighting the
benefit of having multiple evacuation route options. Total deferments on our
western assets for 2024 was 18%, a significant improvement on 2023's 26%.
Elcrest
Production at OML 40 continued to improve during the year as average daily
working interest production rose by 10.1% to 11,506 bopd, from 10,455 bopd in
2023. The improved production is due to the impact of a successful drilling
campaign, improved well performance, and improved availability of evacuation
routes during the year. For context, overlapping downtime on our alternative
evacuation routes was one day in 2024. Total deferments on OML 40 was 13%,
significantly lower than 30% recorded in 2023.
Sibiri oil field
In our FY 2023 results, we communicated the receipt of regulatory approval for
the full lifecycle field development plan for Sibiri oil discovery in February
2024. The well performance recorded at Sibiri has been strong, reflected in
OML 40 growth 2024 vs. 2023) and supports additional development drilling.
We are pleased to confirm plans to drill three wells (Sibiri-C, Sibiri-D,
& Sibiri-E) at the Sibiri field in the 2025 drilling program as part of
the development phase of the project. The Sibiri well program will commence in
H2-2025, and are expected to produce at a gross rate of approximately 4,800
bopd when onstream.
Abiala oil development
We achieved first oil at the Abiala Marginal Field on 15th September following
completion of an extended well test at Abiala-01. Abiala produced crude
through an extended well test ('EWT') during part of Q4 2024, resulting in the
production of 6,978 barrels of oil (annualised average 19 bopd) which was
barged and trucked to storage.
The EWT was renewed in January 2025 and the well has been producing, via a
single production string, at c.1,000 bopd through the test separator. On 13th
February 2025 the field development approval ('FDP') was received from the
Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and as such, work
has commenced to begin production from all four production strings across the
two wells (Abiala 1 W/O and Abiala-2). We retain our target for gross field
production at c.5,000 bopd, and forecast reaching this level in Q2 2025.
Eastern Assets
In OML 53, daily working interest production increased 60% to 1,933 bopd in
2024, from 1,212 bopd in 2023, due to improved access to evacuation routes for
the asset during the year. We reported in our Q1 2024 results that the TNP
export line resumed preliminary operations before progressing to daylight
operations, and during Q4 2024 the pipeline re-commenced 24-hour operations.
Production from our Ohaji field is now split between the Waltersmith refinery
(WSR) and the TNP line for export via the Bonny terminal.
Production from our Jisike field improved significantly in the final quarter
of the year as the reliability of the Antan-Ebocha-Brass terminal route
improved. The line had an uptime of 89% in the final four months of the year,
compared to 31% in the first eight months. For context, the magnitude of
improvement in production from OML 53 in Q3 and Q4 2024 is reflected in
production increasing by 85% and 129% respectively.
In OPL 283, production declined marginally by 0.5% to 1,547 bopd (2023: 1,554
bopd).
Drilling activities
In our 2024 drilling programme, we completed 11 of the 13 well plan during the
year, with the final two wells completing shortly after year end. The campaign
focused on our assets in OMLs 4, 38, & 41 and OML 40. Eight wells from the
2024 programme are currently contributing to production, adding a combined
6,000 bopd and 46 MMscf/d on a gross basis.
In OML 4, 38, & 41, we delivered seven wells (Ovhor-21, Ovhor-22,
Ovhor-23, Sapele-38, Oben-55, Oben-56, & Oben-54) within the financial
year. All the completed wells except Ovhor-23 are now onstream and
contributing to production. Ovhor-23 which has been completed is currently
shut-in, pending completion of bottom hole pressure (BHP) survey. The final
two wells in the 2024 plan, Ovhor-24 and Oben-57 finalised installation of
their respective production strings early in 2025. The wells are expected to
produce at a combined gross rate of 3,500 bopd and 3.9 MMscfd, once onstream.
At OML 40 and Abiala marginal field, we completed the four wells in the
drilling program for 2024. Gbetiokun-12, Gbetiokun-13, Abiala-1 W/O, and
Abiala-2 were the wells completed during the year. Production has commenced
from Gbetiokun-12. Production is expected to commence from Gbetiokun-13,
Abiala-1 W/O and Abiala-2 in Q1-2025 with a combined target gross production
of approximately 6,500 bopd.
Midstream Gas business performance
Seplat Energy continues to play a critical role in expanding the domestic gas
market to fuel the Nigerian economy's growth. During the period, the Company
delivered 40.8 Bcf (2023: 41.6 Bcf) of gas, and 39.5 Bcf excluding the
contribution from SEPNU. The average daily working interest gas production
volumes decreased by 2.3% to 111.4 MMscfd, from 114.1 MMscfd in 2023.
Excluding SEPNU's production, average daily working interest gas production
volumes decreased by 5.3% to 108.0 MMscfd. The decline in gas production was
due to the two-week shutdown of the Oben gas plant for the turnaround
maintenance (TAM) activities as well as the impact of delays in bringing new
gas wells onstream in the first half of the year. As detailed below, progress
on major onshore gas midstream projects continues and we expect onshore gas
production to grow in 2025.
The business continues to pursue growth opportunities to maximise the
utilisation of the Oben gas plant. During the year, the Company signed three
new Gas Sales Agreements (GSA) in addition to existing contracts. The new
off-takers are taking up to a combined 100 MMscfd. We continue to negotiate
with additional potential buyers for new gas sales contracts as gas demand
continues to grow in the domestic market.
Oben Gas Plant
The turnaround maintenance (TAM) activities of the Oben gas plant were
successfully carried out during August. The TAM was completed ahead of
schedule and under budget with the gas plant restarting on August 28th, one
day ahead of plan. Alongside statutory activities, a number of additional
activities were delivered concurrently, such as; debottlenecking of condensate
separators, conversion of in-let valves to support lower pressure production,
tie-ins for western assets flares out projects, an upgrade of the gas metering
system and a power upgrade for a new 1.2 MVA gas Gen Set, delivering on our
corporate diesel displacement initiatives.
Following completion of the TAM activities, gas production has significantly
improved, with average daily working interest production of 121.1 MMscfd in Q4
2024, this includes peak working interest daily production of 132.3 MMscfd
recorded on 11 December.
Sapele Gas Plant
The Sapele Gas Plant is an 90 MMscfd plant, capable of processing both
Non-Associated Gas (NAG) and Associated Gas (AG) which meets export
specifications and LPG processing module which would supply LPG to the
domestic market. The project will also contribute significantly to Seplat's
target to end routine flaring by the end of 2025.
Work at the new Sapele Gas Plant has continued through the year. The initial
30 MMscfd Mechanical Refrigeration Unit ('MRU') was completed in Q4 2024,
inline with expectations. The start of commercial operations began in February
2025, and the first module is currently ramping up to full capacity.
In 2025, work will continue for the second MRU, which will lift total
production capacity to 90 MMscfd. The upgraded facility will produce gas that
meets export specifications, and the LPG processing module will enhance the
economics of the plant and eliminate routine gas flaring.
We note that in early 2025, the combination of Oben and Sapele gas plants in
operation has seen onshore gas production regularly exceed 300 MMscfd on a
gross basis (>135 MMscfd on a working interest basis).
ANOH Gas
In 2024, AGPC achieved 14.7 million man-hours without Lost Time Injury. We are
pleased to note that the ANOH gas plant is now ready to receive commissioning
gas, doing so in the early part of 2025.
The river crossing element of the OB3 line in H2 2024 has continued to prove
technically challenging for NGIC and at the year end the tunnelling operations
remained at 1.12 km of the 1.85 km of the river crossing. Significant
additional equipment has been delivered to site and tunnelling should be
restarted this week with a target completion in early 2Q 2025. This is a top
priority for NNPC as well as the government, and we monitor progress on a
continuous basis.
The ANOH gas plant commissioning plan continues to progress. The original plan
was to use processed gas (dry gas) from the OB3 pipeline to commission the
plant, but given the segment of the OB3 line needed is not yet operational,
the Company has opted to purchase gas from a third party to complete plant
commissioning, which will enable the plant to be ready for startup during 2Q
2025, in line with our revised plan.
As reported previously the upstream wells and partner operated spur line are
in a state of readiness for operation.
With support of our partner, we are advancing discussions with 3(rd) party gas
offtakers in the Eastern part of Nigeria who do not require the OB3 (one of
which had previously executed a 50MMScfd gas supply agreement, with a desire
to increase to 100MMscfd in the first half of 2026) thereby allowing the
startup of the ANOH gas plant, while we wait for completion of the OB3
pipeline to enable the plant to reach full production. We expect volumes of
gas to flow to other customers from 3Q 2025 with a potential to flow up to
half the capacity of the plant.
As we have done in the past, we have added 6 months to the expected date for
commissioning of the pipeline as communicated by our partner and thus we have
subsequently moved the date for transporting gas through the OB3 to 4Q 2025.
New Energy Business
In line with our strategy to deliver energy transition, we continue to assess
various midstream gas, power, and renewable investment opportunities that are
focused on increasing energy supply and reliability, while lowering costs and
reducing the carbon intensity of Nigeria's electricity consumption.
In 2024, following detailed review, we decided not to progress a potential
investment in the power sector due to timing in relation to closing out the
MPNU acquisition. In 2025 we continue to assess a number of potential
investment opportunities, and in the early part of the year are interrogating
an opportunity in Compressed Natural Gas (CNG) market. Furthermore we are
exploring options to bring third party gas into Oben gas plant in order to
increase long term gas plant utilisation.
Ending routine flaring
Reducing the carbon intensity of our operations is a key strategic focus.
Seplat has implemented its end of routine flaring (EORF) roadmap, which
includes investments across our production facilities to minimise Scope 1
& 2 greenhouse gas emissions and improve overall energy efficiency.
The carbon intensity recorded on Seplat onshore for the period was 32.3 kg
CO2/boe, higher than the 29.4 kg CO2/boe recorded in 2023. The increase in
carbon intensity was primarily driven by increased production from our Eastern
assets following reinstatement of TNP Zone 6. Wells in our Eastern asset are
gas-rich which leads to associated gas emissions as production increases. The
shutdown of the Oben Gas Plant during the TAM activities carried out in August
led to higher emissions during the two-week period, also contributing to
higher carbon intensity compared to last year.
As we stated in earlier sections (Sapele Gas Plant), the first module of SIGP
has commenced operations and is now producing. Once the plant is operating at
capacity, expected during 2025, it has the potential to materially reduce the
Group Scope 1 emissions.
Other ongoing key flare-out projects, including the Western Asset Flares Out
(installation of vapour recovery unit compressors), Sapele LPG Storage &
Offloading Facility, Oben LPG Project and Ohaji Flares Out Project. The
Company is on track to end routine flaring of gas across its onshore assets in
2H 2025.
We are currently assessing the flaring regime within SEPNU, and will report on
emissions from 2025. Current planning includes potential strategies which may
be deployed to reduce emissions.
HSE Performance
The Company achieved a total of 11.0-million hours without any Lost Time
Injury (LTI) on its operated assets in 2024 (2023: 8.7-million hours), which
reflects the Company's strong focus on safety and the dedication of its
workforce to maintaining a secure work environment. Till date, the Company has
achieved a cumulative 21.5-million-man hours since last LTI recorded (on 13th
October 2022). In addition, TRIR was flat at 0.046 with five medical cases
reported during this period. No Tier 2 Process Safety Loss of Primary
Containment (LOPC) incident were recorded during the period. We note that
there we no LTIs, nor TRIRs on SEPNU assets in the period post completion.
The Company is on a path to achieve ISO 45001 and 14001 standards
certifications, demonstrating its commitment to top-tier safety and
environmental performance. During the year, we completed stage one regulatory
audit for ISO 14001 while stage one regulatory audit for ISO 45001 is expected
to be completed in March. Overall, we expect to achieve these standards
certifications by the end of Q2-2025 after completion of stage two regulatory
audits. These certifications are globally acknowledged benchmarks for
occupational health and safety management systems and environmental management
systems, respectively.
Several activities took place during the year as part of efforts to continue
to strengthen our safety protocols. We conducted stakeholder engagement on
work at height, lifting & hoisting, and excavation procedures to ensure
safety excellence in operations. We also completed biodiversity action plans
(BAP) field data gathering, GHG scope 3 emissions employee surveys, and
installation of water meters across all our assets.
Petroleum Industry Act (PIA) Implementation Status
Seplat made a conditional application to convert its onshore assets to the PIA
in October 2022 and executed conversion contracts with the commission in
February 2023 to preserve its right to convert to the PIA subject to the
evolution and resolution of the regulatory landscape. Through 2024, the
Company undertook extensive technical reviews with the commission to delineate
its acreages with the purpose of determining mining leases and prospecting
license areas for retention, areas for relinquishment as well as the minimum
work program commitments on retained license areas. These engagements were
completed in November 2024 and Seplat made its final submission to the
Commission in December 2024 based on agreed position. Seplat is pleased with
the completion of this technical process which has been on the critical path
to completing the Company's PIA conversion process.
After the period end, On 25(th) February, 2025 the Commission wrote to Seplat
acknowledging that delineation has been made based on principles established
in section 93 of the PIA, 2021. The Commission has requested documentations
from Seplat that would facilitate the preparation of legal transfer documents
on the retained PMLs and PPLs. Seplat will progress this accordingly.
Following the acquisition of MPNU, Seplat will be engaging with the Commission
to resume the process of conversion of its offshore assets to PIA. Further
updates will be provided in due course.
Outlook
Production guidance
Seplat Energy's production operations were robust in 2024, supported by
measures to diversify evacuation routes and continued positive security
environment. This is expected to continue in 2025 where we target growth from
both onshore and offshore operations.
Initial 2025 production guidance is set at 120-140 kboepd. This includes:
• Seplat Onshore: 48-56 kboepd. mid-point delivers 7% growth on 2024.
Production in 2025 is set to benefit from well stock delivered in 2024, plus
contribution from ANOH from 2H25, Sapele Gas Plant and Abiala through the
year. We also see growth on OML 53 oil given resumption of 24-hour operations
on TNP.
• SEPNU: 72-84 kboepd. mid-point delivers 12% growth on 2024. We are
targeting growth from restoration of idle wells, investment in improving
reliability of the NGL facilities and other activities which will improve
uptime and provide the basis for longer term growth plans.
Capex guidance
Working interest capital expenditure for 2025 is expected to be in the range
of $260-$320 million.
• Seplat Onshore: $180-220 million. Key focus is new well stock to
offset natural decline
• Program includes drilling 13 new wells: OMLs 4, 38 & 41: Seven,
OML 53: Two, OML 40: Four. Of these, 9 are oil wells and 4 are gas wells
• Completion of the second MRU at the Sapele IGP
• Delivery of Oben, Amukpe, Sapele & Ohaji flares out projects
• SEPNU: $80-100 million. Key focus on capital projects and long term
planning to improve reliability, uptime and safety
• Installation of the Inlet Gas Exchanger on the East Area Project
(EAP) NGL facility
• Long lead items for 2026+ drilling program
Opex guidance
Unit operating costs for the Company are expected be in the range of
$14.0-15.0/boe. This increase in unit operating costs versus prior years
reflects increased investment in O&M activities across our offshore
assets, mainly re-opening previously shut-in wells. Our expectation is that
unit opex will moderate post 2025 as production grows and as investment pivots
towards capital projects. In 2025 the major cost items are:
• Contracting two barges to operate across the offshore license area
from early 2Q 2025, one targeting integrity works and the other working on
idle wells, targeting 20+ wells in 2025.
.
The primary goal of the 2025 opex plan is to increase reliability and
integrity offshore which will set a solid foundation from which to grow
production over time. Due to the nature of the installed infrastructure
offshore, the 2025 plan necessitates partial asset shut-downs, particularly in
2Q and 3Q 2025.
Sustainability
Our ESG (Environmental, Social, and Governance) performance and 2025 targets
reflect our continued emphasis on ESG measurement and reporting. In line with
our climate strategy, which includes a commitment to achieving carbon
neutrality by 2050, our immediate priority is to eliminate routine flares
across our onshore assets by the end of 2025. This is a major project covering
multiple production locations, completion is planned for 2H 2025 and will
align our commitment to environmental sustainability and regulatory
compliance. This initiative will significantly reduce our carbon intensity and
contribute to our broader sustainability objectives.
We recognise the importance of the sustainability of our evacuation options
and strive to bolster security measures along our evacuation routes to
safeguard our operations. These initiatives are geared towards maximising the
volume of oil sales and revenue for the Company, highlighting our commitment
to operational efficiency and financial sustainability. These deliverables
underscore our dedication to innovation, sustainability, and value creation
across all operations.
Financial & Strategic guidance
Our financial strategy ensures we can appropriately fund our capital
expenditure, meet necessary debt repayments, and return cash to our
shareholders. It is a strategy which provides the flexibility required to
realise the value of our asset base. Our revenue stream is biased to US dollar
denominated oil exports, while we also have a Naira revenue stream via gas
sales and domestic oil supply that funds our significant Naira cost base. We
continue to closely monitor the performances of oil prices, currency
fluctuations and evacuation routes, and their implications on cash generation
to appropriately scale and phase our capital allocation, ensuring that we have
a sound financial platform from which we can grow.
The tenor of the Company's $350m revolving credit facility is tied to the
refinancing of the $650 million notes, whereby the current final maturity date
of 30 June 2025 will automatically extend to 31 December 2026 if the notes are
refinanced before 30 May 2025.
With respect to G&A, in 2025, we forecast normalisation of cost coupled
with the benefit of higher group production levels, as such we forecast unit
G&A in a $4.5-5.0/boe range.
With respect to shareholder returns, we will maintain our policy of paying a
progressive quarterly core dividend in the near term, with an option of a
special dividend subject to performance.
In order to provide more granular details on our medium and long term plans
for SEPNU and the business as a whole we will host a Capital Markets Day,
which is planned for 3Q 2025. We will also present an updated CPR which
reconciles the reserves and resources indicated by the ERCE and the SEPNU
management estimates as carried by Exxon prior to the sale.
Financial review
2024 results benefited from higher production, particularly oil production.
This was partially offset by Brent oil price which averaged 3% lower than in
2023 at $79.86/bbl, and lower gas production. Our onshore operations, recorded
average realised oil price of $81.48/bbl, a $1.62/bbl premium to Brent, while
our blended realised gas price delivered strong growth, averaging $3.16/Mscf,
a 9% increase on 2023. SEPNU's operations have been consolidated post 12
December 2024 completion, as such average realised oil and gas prices reported
for 2024 were modestly lower at $80.04/bbl, principally given weaker commodity
pricing in 4Q 2024 while average realised gas price was $3.06/Mscf for the
enlarged group.
Revenue
Reported Reported Onshore Onshore Reported
Description Units FY-2024 y/y change* FY-2024 LfL y/y change FY-2023
Oil volumes lifted mmbbl 12.4 10% 9.8 (13)% 11.3
Gas sales volume Bscf 40.8 (2)% 39.5 (5)% 41.6
Average realised oil price US$/bbl 80.04 (4)% 81.48 (2)% 83.39
Average Brent crude oil price US$/bbl 79.86 (3)% 79.86 (3)% 82.15
Premium (discount) to Brent US$/bbl 0.18 (85)% 1.62 31% 1.24
Average realised gas price US$/mscf 3.06 6% 3.16 9% 2.90
Crude oil revenue US$m 991.0 6% 798.5 (15)% 937.9
Gas revenue US$m 124.9 1% 121.8 (1)% 123.4
NGLs revenue US$m 0.3 nm - -% -
Total revenue US$m 1,116.2 5% 920.3 (13)% 1,061.3
(Overlift)/underlift kbbls na nm 382 (120)% (1,865)
(Overlift)/underlift US$m 10.5 (111)% 40.9 (141)% (98.9)
Total revenue adjusted for (overlift)/underlift US$m 1,126.7 17% 961.2 -% 962.4
Crude oil revenue adjusted for (overlift)/underlift US$m 1,001.5 19% 839.4 -% 839.0
Total revenue from oil and gas sales for 2024, including the consolidation of
SEPNU, rose 5.2% to $1,116.2 million from $1,061.3 million in 2023. Adjusting
reported revenue for 2024 underlifts and 2023 overlifts, total oil and gas
sales were $1,126.7 million ($10.5 million underlift), 17.1% higher than
2023's equivalent revenue figure of $962.4 million ($98.9 million overlift).
Excluding the impact of SEPNU, and adjusting for underlift(overlift), total
oil & gas revenue was stable at $961.2 million.
Reported crude oil revenue, including consolidation of SEPNU, rose 6% to
$991.0 million in 2024 from $937.9 million in 2023, supported by 2.6 MMbbls of
crude lifted in SEPNU between completion and year end 2024. Excluding the
impact of SEPNU, crude oil revenue fell 14.9% to $798.5 million in 2024. The
lower crude oil revenue on our onshore assets was principally due to lower
liftings during the period. Total onshore crude oil liftings in 2024 fell 13%
to 9.8 MMbbls in 2024 (2023: 11.3 MMbbls).
Reported gas revenue rose by 1.3%, reaching $124.9 million in 2024, compared
to $123.4 million in 2023. Gas sales represented 11% of total reported revenue
in 2024. Excluding the impact of SEPNU, gas sales for the onshore business was
$121.8 million (2023: $123.4 million), representing 13% of total sales. The
decline in gas sales is attributed to the 5.0% decline in gas sales volume,
which offset the 9.0% increase in realised gas prices by Seplat Onshore.
The business recorded $0.3 million revenue from Natural Gas Liquids (NGLs)
sales during the 19-day operating period of SEPNU in 2024.
The group's average reconciliation loss factor remained stable at 3.4% in 2024
(compared to 3.5% in 2023), attributed to enhanced security measures and
strengthened asset integrity management during the period.
Note: throughout the Financial review section (pages 11-15) "FY-2024 Reported"
includes 19 days of SEPNU on the income statement and cashflow items. "FY2024
Onshore" reflects the Company's 2024 performance excluding SEPNU. This has
been included to illustrate the underlying performance of the Company prior to
the combination. "FY-2023 Reported" reflects the Company's 2023 performance.
The 2024 balance sheet is consolidated.
Gross profit
Reported Reported Onshore Onshore Reported
Description Units FY-2024 *y/y change FY-2024 LfL y/y change FY-2023
Non-Production Cost:
Royalties US$'m 146.0 (20)% 156.6 (15)% 183.4
Depletion, Depreciation, & Amortisation US$'m 179.3 20% 153.3 2% 149.6
Production Cost:
Crude Handling Fees US$'m 66.9 -% 66.9 -% 66.7
Barging & Trucking US$'m 17.1 (24)% 17.1 (24)% 22.5
Operational & Maintenance Expenses US$'m 215.3 132% 142.5 53% 92.9
Others US$'m 11.6 (18)% 21.4 52% 14.1
Production Opex per boe US$/boe 15.2 45% 12.3 17% 10.5
Cost of Sales US$'m 636.2 20% 557.8 5% 529.2
Gross Profit US$'m 479.9 (10)% 362.5 (32)% 532.0
In 2024, gross profit fell 9.8% to $479.9 million, from $532.0 million in
2023. Excluding the impact of SEPNU, gross profit declined 31.9% to $362.5
million. The decline is attributed to lower oil liftings and higher direct
operating costs.
Direct operating costs, which encompass expenses related to crude-handling
charges (CHC), barging/trucking, operations & maintenance, amounted to
$295.5 million in 2024, of which $75.8 million were related to SEPNU
operations. SEPNU operating cost included certain costs related to the
transaction which are not expected to repeat in 2025. Excluding the impact of
SEPNU direct operating costs rose to $219.7 million, a 20.6% increase on the
$182.2 million incurred in 2023. The increase in costs was principally due to
due exceptional costs of $21.9 million related to legacy regulatory payments
and due to a higher gas flare penalty which rose $16.1 million to $27.7
million, following an upward revision in the unit cost basis of the gas flare
penalty by the Nigerian government.
Non-production costs decreased by 2.3% to $325.3 million, made up of $146.0
million in royalties (2023: $183.4 million), of which SEPNU contributed -$10.6
million, and $179.3 million in depreciation, depletion, and amortisation
(2023: $149.6 million), of which SEPNU contributed $26.0 million. The lower
royalties payment in 2024 is due to recovery of OML 53 JV partner share of
royalties incurred on sale of crude to the Walter Smith Refinery ("WSR")
between 2022 and 2024. Prior to the agreement reached with NUIMS to begin
sharing in crude sales to WSR, Seplat had been the lone seller in the JV and
as a result incurred 100% of the royalties. With an agreement now in place to
net off the overlift position against outstanding cash calls, we were able to
recover NUIMS 60% share of the royalties.
Considering the cost per barrel equivalent basis, on a reported basis
production operating expenses (opex) were $15.2/boe. Excluding the impact of
SEPNU, unit opex in the onshore business amounted to $12.3/boe in 2024,
elevated due to items noted above and higher than the to $10.4/boe in 2023.
Operating profit
Reported Reported Onshore Onshore Reported
Description Units FY-2024 *y/y change FY-2024 y/y change FY-2023
Other Income/(Loss) US$'m 37.2 (131)% 67.3 (155.2)% (121.9)
Gain on bargain purchase US$'m 86.0 nm 86.0 -
General and Administrative Expenses US$'m (147.2) 3% (144.2) 0.4% (143.6)
Impairment Loss on Financial Assets US$'m (10.6) (17)% (10.6) (16.5)% (12.7)
Fair Value Loss US$'m (7.3) 62% (6.0) 33.3% (4.5)
Operating Profit US$'m 437.9 76% 355.1 42.4% 249.4
Adjusted EBITDA US$'m 539.0 20% 440.0 (1.8)% 447.9
In 2024, reported operating profit rose 75.6% to $437.9 million, from $249.4
million in 2023. Excluding the impact of SEPNU, operating profit grew by 42.4%
to $355.1 million.
The increase in reported operating profit was driven primarily by the gain on
bargain purchase of $86.0 million recorded on the acquisition of Mobil
Producing Nigeria Unlimited ("MPNU"). Other drivers include FX gain of $30.1
million and underlift of $10.5 million in 2024 compared to FX loss of $27.5
million and overlift of $98.9 million in 2023. The FX gain reported in the
period is further to the agreement with our JV partner, NUIMS, to net off
outstanding cash calls in OML 53 and our subsequent re-denomination of
overlift liabilities in Naira. This is in contrast to the FX loss reported in
prior year arising from the Naira devaluation. The FX gain reported in the
period is further to the agreement with our JV partner, NUIMS, to net off
outstanding cash calls in OML 53 and our subsequent re-denomination of
overlift liabilities in Naira. This is in contrast to the FX loss reported in
prior year arising from the Naira devaluation.
Reported G&A expenses amounted to $147.2 million, modestly higher than the
figure reported in the prior year (2023: $143.6 million). G&A expenses
have been elevated since 2022, in 2024 the higher G&A costs were
principally due to fees associated with the acquisition of MPNU. These are not
expected to repeat in 2025. Reported unit G&A cost for the year was
$8.2/boe, excluding exceptional items, unit G&A expenses for Seplat
Onshore and the enlarged group would have been approximately $5.7/boe and
$5.2/boe respectively.
Seplat remains committed to managing costs across the business effectively in
2025. We also expect some of the one-off costs in recent years associated with
professional fees to wind down in 2025.
Adj. EBITDA
After adjusting for non-cash items such as impairment, fair value, and
exchange losses, the adjusted EBITDA for the period was $539.0 million (2023:
$447.9 million), resulting in a margin of 48.3% (2023: 42.2%). Excluding the
impact of SEPNU, adjusted EBITDA was $440.0 million resulting in a margin of
47.8%.
Taxation
The income tax expense of $234.7 million (2023: $67.3 million) includes a
current tax charge of $193.7 million (2023: $84.1 million) and a deferred tax
charge of $41.0 million (2023: $16.8 million credit). Excluding the impact of
SEPNU, the total income tax expense for the onshore business was $170.5
million, including a deferred tax liability of $97.7 million (2023: deferred
tax asset of $16.8 million). We note that current tax expense component for
Seplat onshore of $72.8 million is lower than 2023 ($84.1 million) after
adjusting for the impact SEPNU's current tax expense.
Cash taxes paid in 2024 was $68.0 million, modestly higher than the $62.1
million paid in 2023, representing approximately 17.7% of operating cash flow.
The cash tax paid reflects continuing investments across our asset base.
Net result
On a reported basis profit before tax rose 98.4%, amounting to $379.4 million,
compared to $191.2 million in 2023. Profit after tax grew by 16.9% to
$144.8million in 2024, from $123.9 million in 2023. Excluding the impact of
SEPNU, profit after tax was flat at $122.9 million.
The profit attributable to equity holders of the parent Company, representing
shareholders, was $153.3 million in 2024, which resulted in basic earnings per
share of $0.26 for the period (2023: $0.14/share).
Reported Reported Onshore Onshore Reported
Description Units FY-2024 *y/y change FY-2024 y/y change FY-2023
Profit before Tax US$'m 379.4 98% 293.4 53% 191.2
Total Income tax expense: (234.7) 249% (170.5) 153% (67.3)
Current Tax US$'m (193.7) 130% (72.8) (13)% (84.1)
Deferred Tax US$'m (41.0) nm (97.7) (682)% 16.8
Net Income/(Loss) US$'m 144.7 17% 122.9 (1)% 123.9
Profit Attributable to Holders of Equity US$'m 153.3 84% 131.4 58% 83.1
Earnings per Share US$'shr 0.26 86% 0.22 57% 0.14
Cash flows from operating activities
During the period, the Company generated $383.5million in cash from its
operating activities, a 26.2% decrease from the $519.9 million generated in
2023 predominantly due to, the underlift reported in the period, alongside
transaction costs and the working capital effects associated with
consolidating SEPNU. Excluding these elements, cash flow from operations would
have been approximately $83 million higher.
Net cash flow from operating activities amounted to $310.0 million in 2024,
compared to $442.0 million in 2023. This figure includes modestly higher cash
tax payments of $68.0 million and a hedging premium of $5.0 million paid
during the current period, while in the previous year, cash tax payments were
$62.1 million, and the hedging premium paid was $5.4 million.
Seplat Onshore had a strong year for cash call collection, highlighting our
continued good relationship with our JV partners. On the NEPL/Seplat JV for
OML 4, 38, 41, we received a total of $352 million in cash call settlement for
2024, bringing the cash call receivable balance for the year to $69 million
(2023: $83 million). On the NUIMS/Seplat JV for OML 53, we received $66
million in cash call settlement which brought the year end balance to $16
million (2023: $21 million). Total cash call payments received in 2024 was 47%
higher than 2023 receipts.
Due to the SEPNU acquisition, we took over several working capital balances
that impacted cash flow from operating activities in 2024.
Cash flows from investing activities
In 2024, the total net cash outflow from investing activities was $658.9
million, an increase on the $159.3 million expended in 2023. The significant
increase in net cash outflow from investing activities is primarily due to the
costs associated with the MPNU acquisition. Net transaction cost of $489.6
million, reflects the completion amount of $672.3 million net of $182.7
million cash balance acquired on closing.
The cash capital expenditure on oil & gas assets during the period was
$202.6 million (2023: $179.0 million), including $139.0 million in drilling
activities and $63.5 million in engineering projects. Total capex (including
other fixed assets) was $208.1 million (2023: $183.9 million). Capital
expenditure was slightly above plan in the year, predominantly due to higher
drilling costs.
During the year, the Company completed the negotiation for the sale of Turnkey
rigs (formerly known as Cardinal Drilling Rigs) for the sum of $12.3 million.
At year end the Company had received $8.5 million, a further $1.0 million was
received in January 2025. In addition, we received $6.2 million related to
our disposal of Ubima, and $10.9 million related to our interest in OML 55.
Cash flows from financing activities
Net cash inflow from financing activities was $409.6 million, compared to an
outflow of $196.7 million in 2023.
The net cash inflow recorded in 2024 is reflective of proceeds from RCF
drawdown and Advanced Payment Facility with ExxonMobil Trading, totalling
$650.0 million. The proceeds were used to fund the completion payment for the
MPNU acquisition. Outflows included dividends paid to Shareholders amounting
to $91.4 million (2023: $98.8 million paid) and a charge of $19.5 million
relating to Seplat Energy's Long-Term Incentive Plan. The Trustees hold the
shares under a Trust for the benefit of Seplat Energy employee beneficiaries
covered under the Trust. In addition, $62.5 million for interest on loans and
borrowings, was flat versus 2023. A further $21.5 million for other financing
charges is associated with commitment fees and other transaction costs
incurred on interest-bearing loans and borrowings. The loan repayments of
$38.5 million, in two $19.25 million tranches, during the period represent
principal repayments of the Eland Senior RBL Facility.
Debt Repayments
The $110 million Westport RBL Facility (RBL Facility) commenced amortising on
31 March 2023. The reduction in facility commitments will be on a semi-annual
basis on March and September of each year until final maturity in 2026. In
2024, Seplat paid $38.5 million in principal repayments under the RBL Facility
in two tranches on 31 March 2024 and 30 September 2024 As at 31 December
2024, $49.5 million is outstanding under the RBL Facility. The next reduction
in commitments will be on 31 March 2025 for an amount of $19.25 million.
As the Company continuously reviews its funding and maturity profile, it
continues to monitor the market to ensure that it is well positioned for any
refinancing and or buyback opportunities for the current debt facilities -
including potentially the $650 million 7.75% 144A/Reg S bond which matures in
April 2026.
The tenor of the Company's $350m revolving credit facility is tied to the
refinancing of the $650 million notes, whereby the current final maturity date
of 30 June 2025 will automatically extend to 31 December 2026 if the notes are
refinanced before 30 May 2025.
Liquidity
The balance sheet continues to remain healthy with a solid liquidity position.
Reported Reported Onshore Onshore Reported
Description Units FY-2024 y/y change FY-2024 LfL y/y change FY-2023
Senior loan notes US$'m 639.1 (2)% 639.1 (2)% 654.2
Westport Reserve Based Lending (RBL) facility US$'m 51.1 (44)% 51.1 (44)% 91.0
Offtake facilities US$'m 10.3 1% 10.3 1% 10.2
Revolving credit facility US$'m 370.1 nm - nm -
Advance payment facility US$'m 297.0 nm - nm -
Total borrowings US$'m 1,367.6 81% 700.5 (7)% 755.4
Cash and cash equivalents (exclusive of restricted cash) US$'m 469.9 4% 337.0 (25)% 450.1
Net Debt US$'m 897.7 194% 363.5 19% 305.3
Adjusted EBITDA *** US$'m 1,353.5 202% 440.0 (2)% 447.9
Net Debt-to-TTM EBITDA x 0.66x nm 0.83x nm 0.68x
* Including amortised interest and
** accrual for the RCF (undrawn) commitment fee
*** $1,353.5 million in adjusted EBITDA 2024 represents the FY 2024 pro-forma
adjusted EBITDA for Seplat and SEPNU combined
Seplat Energy ended the year with gross debt of $1,367.6 million (2023: $755.4
million) and cash at bank of $469.9 million (2023: $450.1 million), leaving
net debt at $897.7 million (2023: $305.3 million). The increase in the debt
balance reflects the addition of the $350 million RCF and the $300 million
advance payment facility, both drawn to fund the completion payment of the
MPNU acquisition. Excluding the impact of MPNU related borrowings, gross debt
would have declined by 7.3% to $700.5 million.
We continue to monitor the Net Debt-to-EBITDA ratio of the Company with a
focus to keep it under 2.0x (Debt covenant - 3.0x). At the end of 2024,
proforma Net Debt-to-EBITDA ratio closed at 0.66x, from 0.68x in 2023.
Dividend
The Board has approved/recommended a core dividend of US$ 3.6 cents per share
for the final quarter 2024 (subject to appropriate WHT). This brings the
total core dividend declared for 2024 to US$ 13.2 cents per share, a 10%
increase on 2023. In addition, following a review of Seplat's operational
performance and business outlook, the Board has decided to declare an
additional special dividend of US$ 3.3 cents per share (subject to appropriate
WHT). The 4Q 2024 and special dividends will be paid to shareholders whose
names appear in the Register of Members as at the close of business on 9 May
2025 (LSE), 12 May 2025 (NGX). This brings the total dividend declared for
2024 to US$ 16.5 cents per share, a 10% increase on 2023. The payment of the
special dividend reflects the Board's continued confidence in the outlook for
the Company and is underpinned by a strong balance sheet. The Company will
review its dividend policy through 2025 as part of the overall capital
allocation policy of the enlarged group.
Reporting Period Proposed Dividend (US$ cents per share) Announcement Date Qualification Date (LSE) Qualification Date (NGX) Payment Date
Q1 2024 3.0 14. June 2024
Q2 2024 3.0 28. August 2024
Q3 2024 3.6 27. November 2024
Q4 2024 3.6 4. March 2025 9. May 2025 12. May 2025 23. May 2025
Special 3.3 4. March 2025 9. May 2025 12. May 2025 23. May 2025
Total 16.5
Hedging
Seplat Energy's hedging policy aims to guarantee appropriate levels of cash
flow assurance in times of oil price weakness and volatility. The total volume
hedged in 2024 was 6.0 MMbbls at a weighted average premium of $0.81/bbl and a
weighted average strike price of $60.0/bbl.
2024 Oil Hedges (Brent Deferred Premium Put Options) Unit Q1 2024 Q2 2024 Q3 2024 Q4 2024
Volumes hedged MMbbls 1.5 1.5 1.5 1.5
Price hedged US$/bbl 65 55 60 60
Puts cost US$/bbl 1.08 0.86 0.86 0.435
The 2025 hedging program has commenced using an equivalent strategy as
previously employed, at larger scale. Year to date 15.75 MMbbls have been
hedged for 1Q-3Q 2025 at a weighted average premium of $0.76/bbl and a
weighted average strike price of $55.0/bbl. Additional barrels are expected to
be hedged for 4Q 2025 later in the year. The Board and management team closely
monitor prevailing oil market dynamics and given the relatively softer oil
price outlook for 2025 have hedged three quarters in advance, providing longer
dated cash flow assurance than our typical, two quarter in advance, strategy.
2025 Oil Hedges (Brent Deferred Premium Put Options) Unit Q1 2025 Q2 2025 Q3 2025 Q4 2025
Volumes hedged MMbbls 5.25 5.25 5.25
Price hedged US$/bbl 55 55 55
Puts cost US$/bbl 0.44 0.97 0.87
Credit ratings
Seplat maintains corporate credit ratings with Moody's Investor Services
(Moody's), Standard & Poor's (S&P) Rating Services and Fitch. The
current corporate ratings are as follows: (i) Moody's Caa1 (positive) (ii)
S&P B (stable) (iii) Fitch B- (positive).
In October 2024 Fitch maintained our corporate rating at B-, but upgraded our
outlook to positive, this was linked to an upgraded outlook for the Nigerian
sovereign long term rating and the agency's view of a stronger business
profile post the completion of the MPNU acquisition. Our ratings with S&P
and Moody's were reaffirmed in April 2024 and December 2024 respectively.
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