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Seplat Energy grows revenue by 36.9% amid crisis


Seplat Energy grows revenue by 36.9% amid crisis

Indigenous energy company, Seplat Energy Plc, grew its revenue by 36.9 per cent to $331m in the first quarter of 2023 compared to $241.8m in the first quarter of 2022.

This was disclosed in its unaudited results for the three months ended 31 March 2023, which was filed with the Nigerian Exchange Limited on Thursday.

Also, its core annual dividend target was raised by 20 per cent to US 12 cents with quarterly dividend of three cents.

While revenue grew 37 per cent, the company’s financial performance revealed that gross profit surged by 69 per cent to $198.3 m from N117.3m at a margin of 60 per cent, compared to 48 per cent in the first three months of 2022.

In its statement to the Nigerian Exchange Limited and London stock exchange, Seplat’s Chairman, Basil Omiyi, said, “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the Board to increase our annual core dividend target from US 10 cents to US 12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.

“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil. On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.

“I wish to thank all our staff for remaining focused on delivering this strong performance, united in their support of Seplat’s management team, against a backdrop of unnecessary distractions that will not derail our progress and ambition to become Nigeria’s leading energy supplier.

“The Board announced its Succession Forward Plan earlier this month and I look forward to steering this national energy champion in my final year as Chairman, fully resolved to implement the strong corporate governance that will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”

In a statement on Thursday, a communications specialist, Edgar Oche, noted, “It is clear the company remains extremely professionally managed, despite recent complaints from a handful of malcontents in the shareholder register, who between them own less than 700 shares in the company out of almost 600 million shares in issue.”

Seplat has been in the news recently over allegations of racism levelled against its Chief Executive Officer, Roger Brown. On Tuesday, it was revealed that an Independent Non-Executive Director of the Seplat Board, Professor Fabian Ajogwu, had announced his resignation, “citing recent events and deliberate external interferences which have prevented him from effectively discharging his fiduciary and statutory duties as an Independent Non-Executive Director to the highest standards of corporate governance he has written and subscribed to.”

Seplat has denied claims made against the firm and officers.

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