Seplat Energy generates PBT of N34.7b, confirms progress on Mobil acquisition

Damilola Olufemi

Against N10.6 billion attained in the preceding year of 2021, Seplat Energy Plc has published a Profit Before Tax (PBT) of N34.7 billion in its first-quarter performances report, demonstrating an increase of N24.1 billion.

The gross profit of the energy company also increased from N20.1 billion to N48.8 billion, indicating 122.3 per cent growth.

According to the company’s unaudited results for the first three months in 2021, it indicated 197.8 per cent

It also generated cash from its operations to the tune of N74.4 billion from N1.7 billion year-on-year, representing a 197.8 per cent increase, while revenue grew by 58.6 per cent to N100.6 billion, from N57.9 billion posted in 2021.

According to the Chief Executive Officer of the company, Roger Brown, he confirmed that the company gained significantly from global oil price spike which, according to him, cushioned the negative effect of the company’s unstable crude oil production experience in the aftermath of the Trans Forcados Pipeline.crisis.

He said, “However, the alternative Amukpe-Escravos Pipeline is now mechanically complete and once we have signed the commercial agreements, we expect Chevron to commence lifting our oil through the Escravos Terminal in the third quarter.”

On the Mobil Producing Nigeria Unlimited (MPNU), he said “We are awaiting the necessary approvals from government and regulators and expect the transaction to be complete in the second half of this year.

The effective date of January 1, 2021 means we will benefit from higher recent oil prices and as we have previously reported, the addition of MPNU will triple our production and double our reserves on a pro rata 2020 basis.”

Mr. Roger also disclosed that the acquisition will strengthen the firm’s leadership of Nigeria’s indigenous energy sector but generally boost the country’s profile for future divestments by multinational oil companies.

“It will also bring a significant undeveloped gas resource base, which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.

“We announce the decision to divest the Group’s interest in the Ubima marginal field for a consideration of $55 million, which marginally reduces the company’s 2P reserves by 2 MMboe to 455 MMboe.”

He said the revenue generated has shown the company has the monetary stability and value to entice global finance into Nigeria’s energy sector.

He said, “This will help us in our aim to deliver energy transition and provide cleaner, more reliable and more affordable energy for Nigeria’s vibrant and growing population.”