Oil & Gas
…says actions driving much needed efficiency gains
SEPLAT Energy PLC, a Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has announces its unaudited results for the three months ended March 31, 2024, declaring US 3 cents dividend per share for the period.
For the period under review, production averaged 49,258 barrels of oil equivalent per day (boepd), down 4.8% on prior period (3M 2023: 51,720 boepd), but 5.7% above Q4 2023 production, and towards the upper end of 2024 guidance (44,000 boepd – 52,000 boepd).
Seplat Energy also achieved more than 2.3 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1 2024.
The Company also applauded the progressive moves taken by President Bola Tinubu and the industry regulators, following the signing of the executive orders that will provide fiscal incentives in Nigeria’s gas and midstream businesses. In addition, an executive order was signed and gazetted into law, which has potential to materially improve our contracting process and bring the right level of efficiency that will support costs reductions. This can drive the much-needed efficiency gains across our industry.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently lifted the domestic gas price to $2.42/Mscf supporting revenue generation and re-emphasising the government’s commitment to develop Nigeria’s gas resources, a factor aligned with Pillar 2 in our strategy.
According to Seplat Energy, the message to investors on the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited (MPNU) is unchanged. Dialogue between key parties is active and constructive, and the company remains confident that a conclusion will be reached on the transformational acquisition.
Operational highlights
• Production averaged 49,258 boepd, down 4.8% on prior period (3M 2023: 51,720 boepd), but 5.7% above Q4 2023 production, and towards the upper end of 2024 guidance (44,000 boepd – 52,000 boepd).
• ANOH gas plant pre-commissioning works ongoing. Seplat maintains its first gas target in 3Q 2024.
• Sibiri-1 on stream a few weeks after FDP approval, work ongoing to commence production from Sibiri2.
• Discovery of hydrocarbons in previously untested deep reservoirs at Sapele-37 and Okporhuru-9.
• Carbon emissions intensity: 29.4 kg CO2/boe (3M 2023: 26.4 kg CO2/boe). End of Routine Flaring (“EORF”) projects are on track, with EORF expected in H2 2025, these will deliver a material reduction in emissions intensity.
• Achieved more than 2.3 million hours without Lost Time Injury (“LTI”) at Seplat-operated assets in Q1 2024.
Financial highlights
• Revenue $179.8 million, down from $331.0 million in 3M 2023 (after adjusting for underlift and overlift oil volumes, 3M 2024 adjusted revenues of $236.3 million, against $255.6 million in 3M 2023).
• Average realised oil price $86.17/bbl (3M 2023: $82.32/bbl); average realised gas price $3.11/Mscf (3M 2023: $2.88/Mscf).
• Unit production opex of $9.6/boe, (3M 2023: $9.0/boe).
• Cash generated from operations of $16.8 million, primarily due to timing of liftings, $95 million received in April for volumes lifted in March, down from $145.0m in Q1 2023. Capex invested of $47.1 million (3M 2023: $44.7 million)
• Balance sheet cash down to $335.8 million (YE 2023: $450.1 million), $128 million MPNU cash deposit not included.
• Net debt at end March increased to $385 million (Dec 2023: $305 million), a further $19.3 million of RBL borrowings were repaid in the quarter. Net Debt to EBITDA was 0.9x.
• Q1 2024 dividend declared of US3.0 cents per share.
A.I
Tags: Seplat
