Indigenous upstream poster child, Seplat Energy Plc, lives up to its performance reputation with impressive third quarter financials that project massive jumps in operating income, associated margins and rewards to investors.
The company which has remained vehement with its growth Agenda right from inception declared in its unaudited results for the nine months ended 30 September 2022 that profit before tax jumped by 90.3 percent to N77.5 billion from N38.6 billion year-on-year.
The company also said it generated cash from its operations to the tune of N154 billion from N64.9 billion year-on-year, rising by 124.7 percent.
Seplat further declared that it grew its revenue by 34.4 percent to N258.7 billion from N182.7 billion year-on-year; as its gross profit soars by 93.5 percent to N118.5 billion from N58.1 billion year-on-year.
With significant cash fluidity, Seplat Energy is paying third quarter dividend of US2.5 cents per share, taking 9M 2022 total to US7.5 cents per share ($44.1 million paid in the period).
In providing details of its operations, Seplat advanced excellent safety records of 30.5 million hours without lost-time injury at operated assets.
Within the period, the company completed eight wells c, plans to drill another seven wells in fourth quarter.
Meanwhile the company has become a reliable production conduit provider to the wider industry with the commissioning of the newly conceived Amukpe-Escravos Pipeline which commenced commercial operations in August with 700,000 (700 kbbls) so far lifted in October.
In providing the details of its financial performance in the period, Seplat said revenues up 34.4 percent to $618.6 million ($678.9 million including underlift), driven by higher realized oil prices of $108.25 per barrel.
Other major points of the financial performance include 27 percent rise in EBITDA to $337.9 million upon adjustment.
Cash generation was $368.1 million and capital expenditure or capex stood at $110.3 million in the period in which the company said it maintained a strong balance sheet with $304.8 million cash at bank and a net debt of $452.2 million.
In demonstrating its profitability margins, Seplat said that it produced at the cost of $9.3 per barrel of oil equivalent (boe) resource at time of international price of over $100 per boe.
The company stated that average realized gas pricing sustained at $2.80 per 1000 standard cubic feet ($2.80/ Mscf) despite pricing pressure on domestic gas delivery obligation.
It also received $13.4 million out of a total of $55 million in accordance with Ubima divestment agreement.
In stating commitment to shareholder returns on investment, Seplat declared third quarter dividend of $2.5 cents per share, taking nine months’ of 2022 total to $7.5 cents per share or significant $44.1 million paid in the period.
In the highlights of its operations in the period, Seplat posted strong safety record of 30.5 million hours without lost-time injury even as 43,337 boepd of its production was impacted by oil theft and outages of key infrastructure.
“Full-year guidance adjusted downwards to 40-44 kboepd owing to pipeline and export terminal outages, which were materially worse in THIRD QUARTER; capex maintained at $160 million, capex per well lower due to improved drilling performance,” the company stated.
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc, said: “Despite an unusually challenging quarter for the Nigerian oil and gas industry, with key export routes being unavailable because of force majeure, we have demonstrated that we have a resilient business. The Amukpe-Escravos Pipeline has been operational since August and we have had our first oil export this month. The Trans Forcados Pipeline has now resumed operations and we continue to increase our use of alternative export routes, giving us confidence that the final quarter of the year will show some improvement in volumes.”