REG - Seplat Energy PLC - Unaudited Results for Six Months to 30 June 2024

Seplat EnergyAnnouncement

30/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240730:nRSd3114Ya&default-theme=true

RNS Number : 3114Y  Seplat Energy PLC  30 July 2024

Please see the Full Audited Results in attached PDF

http://www.rns-pdf.londonstockexchange.com/rns/3114Y_1-2024-7-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3114Y_1-2024-7-29.pdf)

 

Unaudited results for the six months ended

30 June 2024

30 July 2024

 

Lagos and London, 30 July 2024: 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 six months ended 30 June 2024.

Operational highlights

 ·         Production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of
           guidance (44,000 boepd - 52,000 boepd).
 ·         Pipeline losses of 3.1% in 6M 2024, highlights an improving environment for
           stable operations on the Niger Delta. Average deferments also improved to 24%
           (6M 2023: 26%).
 ·         ANOH gas project on track to reach first gas by end 3Q 2024. Critical
           infrastructure progressed well in 2Q 2024; spur line achieved mechanical
           completion and progress on OB3 pipeline tunnelling means both infrastructure
           projects are on track for completion during 3Q 2024.
 ·         Abiala-1 workover activity complete, second well commenced, first oil on track
           for 3Q 2024.
 ·         Sibiri-1 and Sibiri-2 onstream and producing at a combined rate of c.3,000
           bopd (gross).
 ·         Carbon emissions intensity: 28.6 kg CO2/boe (6M 2023: 26.3 kg CO2/boe).
 ·         Achieved more than 4.9 million hours without Lost Time Injury ("LTI") at
           Seplat-operated assets in 6M 2024.

Financial highlights
 ·         Revenue $421.6 million from $547.0 million in 6M 2023 (6M 2024 reported
           underlift of $55.8 million, 6M 2023 reported overlift of $59.4 million).
 ·         Average realised oil price $85.55/bbl (6M 2023: $79.54/bbl); average realised
           gas price $2.95/Mscf (6M 2023: $2.87/Mscf).
 ·         Unit production opex stable at $9.7/boe, (6M 2023: $9.6/boe).
 ·         Adjusted EBITDA rose 13.3% to $267.3 million in 6M 2024 (6M 2023: $235.8
           million), benefitting from lower costs.
 ·         Cash generated from operations of $226.0 million in 6M 2024, down from $260.0
           million in 6M 2023. Cash generated from operations in 2Q 2024 improved
           sequentially rising to $209.2 million (1Q 2024: $16.8 million).
 ·         Capex invested of $102.4 million (6M 2023: $88.8 million).
 ·         Balance sheet cash at 6M 2024, $371.8 million (3M 2024: $335.6 million), $128
           million Mobil Producing Nigeria Unlimited (MPNU) deposit not included.
 ·         Net debt at end June $366 million, down from $385 million at end 1Q 2024.
           $19.3 million of Reserve-Based Lending (RBL) borrowings were repaid in 6M
           2024. Net Debt to EBITDA was 0.76x.
 ·         Q2 2024 dividend declared of US$3.0 c/share. 6M 2024 total declared dividends
           US$6.0 c/share (6M 2023: US$6.0 c/share)

Corporate updates

 ·         Full year guidance unchanged. Production 44,000-52,000 boepd. Capex $170
           million - $200 million.
 ·         On 14 June 2024, we announced that we had been notified of a settlement
           reached between Nigerian National Petroleum Company Limited (NNPCL) and MPNU
           with regards to the MPNU transaction as well as the termination of the court
           proceedings. Seplat is focused on securing regulatory approvals in the near
           term.

Roger Brown, Chief Executive Officer, said:

"Seplat Energy delivered a solid performance in the first half of 2024.
Continued operational strength positions us well for the second half of the
year, which is set to be an active one for the company. Reported cash
generation was softened by the underlift in the period, but this is largely a
timing effect and our cash generation and balance sheet remain strong.

In May we were honoured to receive President Tinubu for the commissioning of
the ANOH gas plant and associated pipelines, and the project remains on track
for first gas in 3Q 2024. We thank our government partners for their efforts
towards completion of critical pipeline infrastructure in recent weeks. In 2H
2024 we also look forward to first gas on the Sapele gas plant, which
alongside debottlenecking activities at Oben should further enhance gas
production. We are well on our way to increasing gas production in support of
Nigeria's 'Decade of Gas'.

In our oil business, early results from Sibiri have been modestly ahead of
expectations, as well, having completed the first of two planned wells,
production at Abiala should commence in the coming weeks, finally we look to
higher production at Ohaji once stable operations on the Trans Niger Pipeline
are achieved. Combined with growth in our gas business, and we are looking
forward to a strong second half with momentum to carry into 2025.

During the quarter a number of important steps were made that support
completion of our proposed acquisition of MPNU. We are confident and committed
to its completion and continue to work with regulators, government, and other
parties to ensure its successful completion."

Summary of performance

                                      $ million                       ₦ billion
                                      6M 2024  6M 2023  % Change      6M 2024  6M 2023
 Revenue *                            421.6    547.0    (22.9%)       575.1    278.3
 Gross profit                         181.5    276.3    (34.3%)       247.5    140.6
 EBITDA **                            267.3    235.8    13.3%         364.5    120.0
 Operating profit (loss)              209.1    118.4    76.7%         285.2    60.2
 Profit (loss) before tax             178.9    85.4     109.5%        244.0    43.5
 Cash generated from operations       226.0    260.0    (13.1%)       308.2    132.3
 Working interest production (boepd)  48,407   50,805   (4.7%)
 Oil volumes produced (MMbbls)        5.40     5.47     (1.3%)
 Oil volumes lifted (MMbbls)          4.21     6.07     (30.7%)
 Average realised oil price ($/bbl.)  $85.55   $79.54   7.6%
 Average realised gas price ($/Mscf)  $2.95    $2.87    2.8%
 LTIF (operated assets)               0        0
 CO2 emissions intensity              28.6     26.3     11.4%

 from operated assets, kg/boe

* 6M 2024 revenue excludes an underlift of $55.8m, 6M 2023 revenue includes an
overlift of $59.4m

** Adjusted for non-cash items (impairments, fair value loss, and exchange
gain)

Responsibility for publication

This announcement has been authorised for publication on behalf of Seplat
Energy by Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy PLC.

Signed:

 

 

 

Eleanor Adaralegbe

Chief Financial Officer

 

 Important notice

 The information contained within this announcement is unaudited and deemed by
 the Company to constitute inside information as stipulated under Market Abuse
 Regulations. Upon the publication of this announcement via Regulatory
 Information Services, this inside information is now considered to be in the
 public domain.

 Certain statements included in these results contain forward-looking
 information concerning Seplat Energy's strategy, operations, financial
 performance or condition, outlook, growth opportunities or circumstances in
 the countries, sectors, or markets in which Seplat Energy operates. By their
 nature, forward-looking statements involve uncertainty because they depend on
 future circumstances and relate to events of which not all are within Seplat
 Energy's control or can be predicted by Seplat Energy. Although Seplat Energy
 believes that the expectations and opinions reflected in such forward-looking
 statements are reasonable, no assurance can be given that such expectations
 and opinions will prove to have been correct. Actual results and market
 conditions could differ materially from those set out in the forward-looking
 statements. No part of these results constitutes, or shall be taken to
 constitute, an invitation or inducement to invest in Seplat Energy or any
 other entity and must not be relied upon in any way in connection with any
 investment decision. Seplat Energy undertakes no obligation to update any
 forward-looking statements, whether because of new information, future events
 or otherwise, except to the extent legally required.

 

Investor call

At 12:00 GMT / 12:00 WAT today, Tuesday 30 July 2024, the Executive
Management team will host a conference call and webcast to present the
Company's results.

The presentation can be accessed remotely via a live webcast link and
pre-registering details are below. After the meeting, the webcast recording
will be made available and access details of this recording are also set out
below.

A copy of the presentation will be made available on the day of results on the
Company's website at https://seplatenergy.com/ (https://seplatenergy.com/) .

 

 Event title:                  Seplat Energy Plc: Full year results
 Event date                    12:00pm (London) 12:00pm (Lagos) Tuesday 30(th) July 2024
 Live Event Registration Link  Seplat Energy Plc Half Year Results 2024
                               (https://www.lsegissuerservices.com/spark/SeplatPetroleumDevelopmentCo/events/5682ba38-880f-43c6-b921-bbf228cbf377)

 

The Company requests that participants dial in 10 minutes ahead of the call.
When dialling in, please follow the instructions that will be emailed to you
following your registration.

Enquiries:
 Seplat Energy Plc
 Eleanor Adaralegbe, Chief Financial Officer                      +234 1 277 0400
 James Thompson, Head of Investor Relations                       +44 203 725 6500
 Ayeesha Aliyu, Investor Relations
 Chioma Afe, Director, External Affairs & Social Performance

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

                                                                  seplatenergy@fticonsulting.com

 Citigroup Global Markets Limited
 Peter Brown / Peter Catterall                                    +44 207 986 4000

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

About Seplat Energy

Seplat Energy PLC (Seplat) is Nigeria's leading indigenous energy company.
Listed on the Nigerian Exchange Limited (NGX: SEPLAT) and the Main Market of
the London Stock Exchange (LSE: SEPL), we are pursuing a Nigeria-focused
growth strategy in oil and gas, as well as developing a Power & New Energy
business to lead Nigeria's energy transition.

Seplat's energy portfolio consists of seven oil and gas blocks in the prolific
Niger Delta region of Nigeria, which we operate with partners including the
Nigerian Government and other oil producers. We also have a financial interest
in OML 55. We operate a 465MMscfd gas processing plant at Oben, in OML4, and
are building the 300MMscfd ANOH Gas Processing Plant in OML53 and a new
90MMscfd gas processing plant at Sapele in OML41, to augment our position as a
leading supplier of gas to the domestic power generation market.
https://www.seplatenergy.com/ (https://www.seplatenergy.com/)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IR XKLLLZDLEBBD