… to end routine flaring by 2024
Seplat Energy Plc has reported a rise of 238% in its half year 2022 profit before tax (PBT) to $209.9m from $62.1m year-on-year. The company also maintained a strong balance sheet with $350m cash at bank.
In the company’s unaudited results for the six months ended 30 June 2022, revenue for the period under review also appreciated by 71% to $527m from $308.8m year-on-year, with a dividend of US$2.5 cents per share declared.
The indigenous energy company also reported a 208.5% rise in gross profit to $274.3m from $88.9m year-on-year, and has committed to stopping routine flaring by the end of 2024.
Commenting on the results, which were released to the NSE and LSE on Thursday, Roger Brown, Chief Executive Officer, Seplat Energy Plc said: “Production increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe-Escravos Pipeline.
Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95% interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.
“We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.
“We have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states. All of these initiatives demonstrate our strategic commitment to build a sustainable company that delivers energy transition for the benefit of all Nigerians.”
As regards the company’s outlook, it stated: “Full-year production guidance for 2022 reflects expected third party downtime and the derecognition of Ubima and has been narrowed to 50,000 to 54,000 boepd on a working interest basis, comprising 30,000 to 33,000 bopd liquids and 116 to 121 MMscfd (around 20,000 to 21,000 boepd) gas production.
“Capital expenditure expectation for 2022 remains at around $160 million. The Company expects to drill four additional oil wells in the coming quarter to arrest decline and support production growth across the asset base, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas.”