REG - Seplat Energy PLC - Q3 2022 Financial Results

Seplat EnergyAnnouncement

27/10/2022 07:00

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RNS Number : 2586E  Seplat Energy PLC  27 October 2022

 

Please see the full Unaudited Results in attached PDF

http://www.rns-pdf.londonstockexchange.com/rns/2586E_1-2022-10-26.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2586E_1-2022-10-26.pdf)

Seplat Energy Plc

Unaudited results for the nine months ended 30 September 2022

 

Lagos and London, 27 October 2022: 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 unaudited
results for the nine months ended 30 September 2022.

Financial highlights

·    Revenues up 34.4% to $618.6 million ($678.9 million including
underlift), driven by higher realised oil prices of $108.25/bbl.

·    EBITDA up 27% to $337.9 million (adjusted for non-cash items)

·    Strong cash generation of $368.1 million, capex of $110.3 million

·    Strong balance sheet with $304.8 million cash at bank, net debt of
$452.2 million

·    Production opex of $9.3/boe

·    Average realised gas pricing sustained at $2.80/Mscf despite pricing
pressure on domestic gas delivery obligation

·    Received $13.4 million out of a total of $55 million in accordance
with Ubima divestment agreement

·    Q3 dividend of US2.5 cents per share, taking 9M 2022 total to US7.5
cents per share ($44.1 million paid in the period)

Operational highlights

·    Strong safety record extended to 30.5 million hours without lost-time
injury at Seplat Energy-operated assets

·    Volumes of 43,337 boepd, impacted by oil theft and outages of key
infrastructure

·    Amukpe-Escravos Pipeline commenced commercial operations in August,
700 kbbls lifted in October.

·    Eight wells completed, another seven wells to be drilled in Q4
(currently drilling four wells)

·    Full-year guidance adjusted downwards to 40-44 kboepd owing to
pipeline and export terminal outages, which were materially worse in Q3; capex
maintained at $160 million, capex per well lower due to improved drilling
performance

Update on proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU)

·    Seplat Energy reiterates that the Sales & Purchase Agreement
(SPA) signed on 25 February 2022 to acquire Exxon's shallow water operations
in Nigeria, MPNU, remains valid

·    The Company remains confident that the proposed acquisition will be
brought to a successful conclusion in accordance with the law

Q3 corporate updates

·    Provisional applications to the NUPRC (Nigerian Upstream Petroleum
Regulatory Commission) for the voluntary Petroleum Industry Act (PIA)
conversion of operated Oil Mining Leases

·    Successfully refinanced existing $350m RCF due September 2023 with a
new three-year $350 RCF due April 2026

·    Seplat West (OMLs 4, 38 &41) awarded ISO 55001 (Asset
Management), a first for an African E&P company

 

Roger Brown, Chief Executive Officer, said:

"Despite an unusually challenging quarter for the Nigerian oil and gas
industry, with key export routes being unavailable because of force majeure,
we have demonstrated that we have a resilient business. The Amukpe-Escravos
Pipeline has been operational since August and we have had our first oil
export this month. The Trans Forcados Pipeline has now resumed operations and
we continue to increase our use of alternative export routes, giving us
confidence that the final quarter of the year will show some improvement in
volumes."

"We are working closely with all the relevant stakeholders on our
transformational acquisition of MPNU and remain confident that the proposed
acquisition will be brought to a successful conclusion in accordance with the
law. The acquisition will add significant reserves and production capacity
that will strongly reinforce Seplat Energy's position as Nigeria's leading
indigenous oil and gas producer."

Summary of performance
                                      $ million                              ₦ billion
                                      9M 2022  9M 2021   % Change      9M 2022       9M 2021
 Revenue                              618.6    460.4     34.4%         258.7         182.7
 Gross profit                         283.4    146.5     93.5%         118.5         58.1
 EBITDA *                             337.9    266.4     32.2%         141.3         105.7
 Operating profit (loss)              235.9    157.8     49.5%         98.6          62.6
 Profit (loss) before tax             185.2    97.4      90.3%         77.5          38.6
 Cash generated from operations       368.1    163.8     124.7%        154.0         64.9
 Working interest production (boepd)  43,337   47,280**  -8.3%
 Volumes lifted (MMbbls)              4.9      5.5       -10.9%
 Average realised oil price ($/bbl.)  $108.25  $67.43    60.5%
 Average realised gas price ($/Mscf)  $2.80    $2.86     -2.1%

* Adjusted for non-cash items **includes Ubima production

 

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

Enquiries:
 Seplat Energy Plc
 Emeka Onwuka, Chief Financial Officer                             +234 1 277 0400
 Eleanor Adaralegbe, Vice President, Finance
 Carl Franklin, Head of Investor Relations
 Ayeesha Aliyu, Investor Relations
 Chioma Nwachuku, Director, External Affairs & Sustainability

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

                                                                   seplatenergy@fticonsulting.com

 Citigroup Global Markets Limited
 Tom Reid / Luke Spells                                            +44 207 986 4000

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

 

Notes to editors

Seplat Energy PLC is Nigeria's leading indigenous energy company. It is listed
on the Nigerian Exchange Limited (NGX: SEPLAT) and the Main Market of the
London Stock Exchange (LSE: SEPL).

Seplat Energy is pursuing a Nigeria-focused growth strategy through
participation in asset divestments by international oil companies, farm-in
opportunities, and future licensing rounds. The Company is a leading supplier
of gas to the domestic power generation market. For further information please
refer to the Company website, https://seplatenergy.com/
(https://seplatenergy.com/)

 

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