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Seplat Energy total revenue rise by 29.8% in 2022

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The board chairman of Seplat Energy Plc, Basil Omiyi has disclosed that Seplat Energy’s total revenue rose by 29.8 per cent to $951.8 million while profit before tax rose by 15.3 per cent to $204.4 million for 2022 full year.

Omiyi disclosed this at the company’s 10th year Annual General Meeting which was held recently in Lagos with shareholders, regulators and company directors.

Omiyi explained that the company’s oil business started the year on a strong footing, with working interest production of 29,078 barrels of oil per day (bopd) and 30,338bopd in Q1-2022 and Q2-2022 respectively.

He added that: “However, in the third quarter, production was impacted negatively by evacuation problems at the Forcados Oil Terminal, FOT, not being available for a period.
“Thankfully, the much-delayed launch of the Amukpe-Escravos Pipeline , AEP, provided some relief as we were able to flow c.10,100bopd (working interest production) during the period.

“The AEP is now a major export route for our largest assets at OMLs 4, 38 and 41. As a result, our reliance on the Trans Forcados Pipeline and FOT is significantly lower, reducing risks of downtime while providing a solid base for stronger export volumes and revenues.”

According to Omiyi, Seplat Energy’s gas business has remained strong through the year, as good progress was made with the construction of the ANOH Gas Processing Plant, which now awaits the completion of third-party infrastructure before it can commence operations, projected for the final quarter of 2023.

“The positive impact of renegotiated Gas Sales Agreements, GSAs, in H2-2022 provided healthy support for revenue growth and profitability and we continue to focus on increasing capacity utilisation at our Oben Gas Processing Plant,” he said.

The shareholders also commended and appreciated the board for the consistent dividend payment and ensuring a generous reward to the shareholders.

Mr. Patrick Ajudua, the National Chairman of New Dimension Shareholders Association of Nigeria, said: “I want to commend the company for the special dividend of 5 cents, in addition to the final dividend of 2.5 cents, bringing the total to 15 cents. We are, indeed, very grateful and we appreciate the Board for being consistent in dividend payment and ensuring a generous reward to the shareholders at a very difficult time, when most companies are even finding it difficult to maintain profitability.”

Asserting to this, Mr Matthew Akinlade, President, Noble Shareholders Solidarity Association, said: “I wish to commend the Board and management for a good performance, in spite of the challenges of year 2022, a you were able to raise revenue by about 38 per cent and cost of sales at just 18 per cent, which shows an effective management of the company’s cost.”

The shareholders at the meeting approved the dividend payout, which will be made on or around 16 May 2023 to shareholders whose names appear in the Company’s Register at the close of business on 18 April 2023.