Nigeria’s leading independent energy company, Seplat Energy Plc, has announced its unaudited results for the three months (Q1) ended 31 March 2023, posting a strong financial performance that shows the company’s profit before tax rising by 3.2 per cent to N39.5bn from N34.7bn year-on-year.

The company which is listed on both the Nigerian Exchange Limited and the London Stock Exchange, also reported that its core annual dividend target has been raised by 20 per cent to US 12 cents; declaring a Q1 dividend payout of US 3 cents per share.

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The company’s Q1 revenue also jumped by 36.9 per cent to N152bn from N100.6bn year-on-year, driven by higher production volumes; as its gross profit for the period soars to N91.1bn from N48.8bn year-on-year, rising by 69 per cent.

Corporate spokesperson, Dr Chioma Nwachuku stated in a press release that Seplat Energy recorded a strong Q1 cash generation of $139.9 million and capex of $44.7 million; with Balance Sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million.

She clarified that the company’s $130 million cash deposit trapped in the acquisition of joint venture interest being divested by ExxonMobil’s local affiliate, Mobil Producing Nigerian Unlimited, is not included in the company’s declared balance sheet.

In its operations, Seplat Energy stated that its working interest production increased by 8.6 per cent to 51,720 boepd, in upper half of guidance range for the period.

It said that its built and operated Amukpe-Escravos Pipeline (AEP) now supports higher export volumes from key Western Assets; and that the new OP-15 well is boosting liquids production at OML 40, with Oben-34 well also boosting gas production.

The Company declared more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1. It retained full year production target at 45-55 kboepd, and carbon intensity figure at 26.4kg/boe.

In providing its financial highlights, Seplat declared that  37% jump in revenue to $331.0 million, including overlift of $75.4 million, was driven by higher production volumes; adding that the period also witnessed high revenues and low expenditure which generated significant income.

The company pointed at strong cash generation of $139.9 million with capital expenditure of $44.7 million; and a balance sheet that strengthened with $459.7 million cash at bank.

The company’s net debt has been blown down to $288.2 million despite the $130 million MPNU cash deposit.

Operating cost was at $9.0/boe at average realized oil price of $82.32/bbl and average realized gas price of $2.88/Mscf following price renegotiation with clients leading to upward price adjustments.

The company’s working interest production increased by 8.6% to 51,720 boepd in the period, remaining in upper half of guidance range. The operated Amukpe-Escravos Pipeline (AEP) supported higher export volumes from key Western Assets, and the new OP-15 well boosted liquids production at OML 40, with Oben-34 well boosting gas production.

Commenting on the impressive results, Mr. Basil Omiyi, Independent Chairman, said: “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the Board to increase our annual core dividend target from US 10 cents to US 12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.

“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil. On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.

“I wish to thank all our staff for remaining focused on delivering this strong performance, united in their support of Seplat’s management team, against a backdrop of unnecessary distractions that will not derail our progress and ambition to become Nigeria’s leading energy supplier.

“The Board announced its Succession Forward Plan earlier this month and I look forward to steering this national energy champion in my final year as Chairman, fully resolved to implement the strong corporate governance that will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximizes returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”