Nigerian independent energy company, Seplat Energy Plc, has posted impressive to N278.3 billion in unaudited half year result for the year, adding that gross profit for the period rose to N140.6 billion.

According to Seplat which is listed on both the Nigerian Exchange Limited and the London Stock Exchange, the revenue performance for the six months ended 30 June 2023 represents a 3.8 percent rise from N219.2 billion in the same period last year. Half year profit also rose from N114.1 billion in the same period in 2022.

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The company also declared a Q2 2023 dividend of US 3 cents per share, in line with higher core annual dividend of US 12 cents.

The solid operating performance for the period reflected 2.0 percent increased output from OML40, availability of the Amukpe-Escravos Pipeline and consequent reduced losses on its Western Asset.

Revenues surged from clear management of operating cost and optimization of returns from the market on all its outputs under the prevailing international prices for both oil and natural gas.

The company reported unit operating expenditure of $9.6 per barrel of oil equivalent (boe) against average oil price $79.54 per barrel (bbl) and average gas price $2.87 per 1000 standard cubic feet (Mscf).

The commodity price for the period, according to the statement, represents significant reduction from the average oil price of $107.35/bbl and improvement in average gas price of $2.76/Mscf in 2022.

Revenues jumped by 3.8% to $547.0 million including overlift of $59.4m on improved production, offset by lower oil price. The company also reported cash generation of $259.1 million which supported capital expenditure (capex) of $88.8 million and improved shareholder returns.

Seplat stated that it retains a strong balance sheet with $381.0 million cash at bank despite impact of the devaluation of the Naira on USD cash balances. Its net debt now remains at $380.0 million excluding the $128 million cash deposit for acquisition of assets from Mobil Producing Nigeria Unlimited.

The company also posted additional $3.3 million payment receipt on the disposal of its Ubima asset, pushing total proceeds from the deal up to $21.9 million.

Chief Executive Officer of Seplat Energy, Mr. Roger Brown, said: “Seplat Energy’s continuing strong performance puts us on track for an excellent year that will support the increased quarterly dividends we announced in April, and our balance sheet remains strong despite the impact of the recent Naira devaluation. We are benefiting greatly from use of the new Amukpe-Escravos Pipeline, which has supported our robust cash generation this year, and remain focused on improving operations, reducing costs where possible and further derisking the business. We continue to strengthen our Company in the knowledge that our efforts to improve governance and sustainability are widely supported by Nigerian and international investors.

“The distraction of frivolous legal actions is receding, and we are focused on developing our assets and launching our joint venture ANOH Gas Processing Plant, which will significantly boost our cash generation in the coming years. We expect that this will enable us to fund additional investment in Nigeria’s energy infrastructure and return higher dividends to shareholders.

“We remain confident that our proposed and transformational acquisition of MPNU will be approved, enabling us to scale into a significant energy supplier with diverse and productive assets that have potential to generate substantial benefits for Nigeria. We wholly align and support the recent government efforts to make Nigeria a more attractive place to invest and continue to focus on delivering affordable and reliable energy for Nigeria’s young, entrepreneurial and rapidly growing population.”