May 26, 2024

Seplat Energy first half 2023 revenues hit $547m, boosted by increased production, strong cash generation -Analysis

Seplat Energy

Oredola Adeola


Seplat Energy, a leading indigenous energy company in Nigeria, has announced its unaudited results for the six months ended 30 June 2023, reporting a revenue increase of $547 million (3.8% increase) which includes an overlift of $59.4 million due to improved production.


Seplat Energy also generated $259.1 million in cash and funded a capex of $88.8 million, improving shareholder returns, despite the lower oil prices.

This was contained in Seplat’s unaudited results for the six months ended 30 June 2023, released by the company and obtained by EnergyDay on Friday.


According to the leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, the unaudited results for the six months ended 30 June 2023, even as the Q2 2023 dividend of US 3 cents per share, in line with a higher core annual dividend of US 12 cents. 


EnergyDay analysis showed that the company reported a second-quarter (Q2) 2023 dividend of US 3 cents per share, equivalent to N23.73 per share, and a higher core annual dividend of US 12 cents (N94.92), based on the exchange rate for July 28, 2023(1 US dollar at N790.99).

The company achieved a 2% increase in production, supported by reduced losses on its Western Asset. This improvement was attributed to the availability of the Amukpe-Escravos Pipeline and increased output from OML40.

Financially, Seplat Energy saw a 3.8% increase in revenues, reaching $547.0 million (including an overlift of $59.4 million), driven by improved production.
EnergyDay’s analysis however showed that the company’s operating profits were impacted by lower oil prices and the non-cash impact of the devaluation of the Naira.


Despite these challenges, Seplat Energy maintained a strong balance sheet with $381.0 million cash at bank. The company also received $3.3 million as part of the Ubima disposal, bringing the total proceeds to $21.9 million.

Additionally, Seplat Energy declared a Q2 2023 dividend of US 3 cents per share, in line with its higher core annual dividend of US 12 cents.

In terms of operations, EnergyDay gathered that Seplat Energy achieved a 1.8% increase in working interest production, reaching 50,805 barrels of oil equivalent per day (boepd), which falls within its guidance range of 45-55 kboepd.

The Amukpe-Escravos Pipeline continued to provide alternative evacuation, resulting in lower downtime overall. The company also completed five new wells, boosting liquids production at OML 40

EnergyDay’s review of Seplat Energy’s commitment to sustainability and reducing carbon emissions, showed that the company achieved over 4.2 million hours without a Lost Time Injury (LTI) at its operated assets and reported a carbon intensity figure of 26.3 kg/boe.
The commencement of Sapele Power gas offtake in the second half of 2023 being handled by the company based on checks by our correspondent, is expected to further reduce emissions by approximately 40% .

In terms of corporate updates, EnergyDay gathered that Seplat Energy extended the Share Sale and Purchase Agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU) to preserve the transaction. The company also announced the appointment of Eleanor Adaralegbe as CFO-designate, who will succeed Emeka Onwuka as CFO in 2024.

Roger Brown, Chief Executive Officer of Seplat Energy,  in his remark on the 6months performance expressed confidence in the company’s performance and its ability to support increased dividends and strengthen the balance sheet.

The Seplat’s CEO emphasized the benefits of the Amukpe-Escravos Pipeline and the upcoming launch of the ANOH Gas Processing Plant, which is expected to significantly boost cash generation. Brown also highlighted Seplat Energy’s commitment to improving operations, reducing costs, and supporting Nigeria’s energy infrastructure.

EnergyDay’s comprehensive analysis of Seplat Energy’s financial performance and market conditions showed that the company recorded a solid operating performance between January and June 2023, despite challenges in the oil market, demonstrating the company’s resilience and strategic focus on growth and sustainability.