Seplat Energy declares N182.7bn revenue in 9 months

Seplat Energy plc has declared 18.7 percent increase in revenue to the tune of N182.7 billion from January to September 2021. As contained in its unaudited results for the nine months ended September 30, 2021, it also reported an operating profit of N62.6 billion, representing a rise by 299 percent year-on-year. Further detail of the […]

Seplat Energy declares N182.7bn revenue in 9 months
Roger Brown

Seplat Energy plc has declared 18.7 percent increase in revenue to the tune of N182.7 billion from January to September 2021.

As contained in its unaudited results for the nine months ended September 30, 2021, it also reported an operating profit of N62.6 billion, representing a rise by 299 percent year-on-year.

Further detail of the report shows that the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose to N105.7 billion from N71.9 billion, depicting a growth of 29.6 percent in the period.

The company’s gas production also increased by 13 percent to 113MMscfd, while liquids production decreased by 16.6 percent year-on-year at 27,804bopd.

Seplat is a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, and has reported a nine-month Q3’ 2021 revenue of N182.7 billion, representing a rise of 18.7 percent year-on-year.

Roger Brown, CEO, Seplat Energy plc, commenting on the results, said production had recovered strongly since the outage at Forcados Oil Terminal (FOT), with an average production of nearly 33kbopd liquids throughout October.

According to Brown, the company took a decision to bring an end to the uncertainty of the Access Bank legal dispute regarding Cardinal Drilling Services, which completes the Board-mandated removal of Related Party Transactions.

He said, “Now that production has normalised, we expect production to be in the range 48-50 kboepd for the year, provided uptime on the Forcados Pipeline and FOT remains above the budgeted 80%. I’m pleased to report that our new wells at Gbetiokun are performing strongly, and we will soon commence drilling the exciting Sibiri prospect on OML40.

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“Although we maintain our previously stated position that legal action against the Company was wholly without merit, the risk of significant disruption to our operations and other opportunities from a long, drawn-out legal case brought us to a negotiated settlement with Access Bank. We have therefore acquired the four Cardinal rigs and we are now focusing on fast tracking their deployment in future drilling campaigns.

“Our business model is robust, despite setbacks in the third quarter, thanks to the prudent and flexible approach we have taken to managing the business. With an increased focus on efficiency in our operations, improving uptime by opening up the Amukpe to Escravos Pipeline and driving further cost reduction across our portfolio, this will provide the bedrock allowing us to operate effectively in fluctuating commodity prices and generate returns for shareholders. I am optimistic that the coming year will be much stronger, with many of the problems of the past put behind us.

“After we set out our future strategy in July’s Capital Markets Day and launched our new corporate name of Seplat Energy plc, complete with its new branding, we are now focusing on building out and executing the energy transition that is right for Nigeria.”

Speaking further, he talked on plans to bring on stream the ANOH gas project in the first half of the year 2022. The project, according to him, will strengthen gas delivering to an energy poor market.

“Our three-pillar strategy is designed to ensure we balance carbon emission reduction with the essential social agenda for undeniably the most under-electrified, youngest and fastest growing population on earth. Seplat Energy’s focus is clear: “Reliable energy, limitless potential,” he said.

Seplat outlook for 2021 shows a narrow production of 48-50kboepd subject to market conditions, with Capex now expected to be $167 million for the full year.