Seplat Energy Reports 2.3 Million Hours Without Lost Time Injury in Q1 2024
Seplat Energy PLC, a prominent Nigerian independent energy firm listed on the Nigerian Exchange and the London Stock Exchange, has disclosed its unaudited results for the three months ended March 31, 2024. The company declared a dividend of US 3 Cents per share for the period.
During the reviewed period, Seplat Energy saw production average 49,258 barrels of oil equivalent per day (boepd), marking a 4.8% decrease from the previous period but surpassing Q4 2023 production by 5.7%. This production level falls within the upper range of the 2024 guidance of 44,000 boepd to 52,000 boepd.
An outstanding achievement for Seplat Energy in Q1 2024 is surpassing 2.3 million hours without a Lost Time Injury (LTI) at Seplat-operated assets.
The company commended the progressive initiatives led by President Bola Tinubu and industry regulators, including the signing of executive orders aimed at providing fiscal incentives in Nigeria’s gas and midstream sectors. Additionally, an executive order has been enacted into law, potentially enhancing the contracting process and efficiency levels, leading to cost reductions across the industry.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently raised the domestic gas price to $2.42/Mscf, supporting revenue generation and reaffirming the government’s commitment to gas resource development, aligning with Seplat Energy’s strategic objectives.
Regarding the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited (MPNU), Seplat Energy assured investors that dialogues with key parties are active and constructive, expressing confidence in reaching a conclusion on this significant acquisition.
Operational and Financial Highlights
- Production averaged 49,258 boepd, slightly lower than the prior period but in line with guidance.
- Ongoing pre-commissioning works for the ANOH gas plant with a target for first gas in 3Q 2024.
- Sibiri-1 commenced production shortly after FDP approval, with efforts underway for Sibiri-2 production commencement.
- Discovery of hydrocarbons in previously untested deep reservoirs at Sapele-37 and Okporhuru-9.
- Carbon emissions intensity at 29.4 kg CO2/boe, with End of Routine Flaring projects expected to reduce emissions intensity.
- Financially, revenue stood at $179.8 million, with adjusted revenues of $236.3 million after accounting for oil volumes.
- Average realized oil price was $86.17/bbl, and gas price was $3.11/Mscf.
- Unit production opex was $9.6/boe.
- Cash generated from operations totaled $16.8 million, with capex invested at $47.1 million.
- Balance sheet cash decreased to $335.8 million, and net debt increased to $385 million.
- Q1 2024 dividend declared at US 3.0 cents per share.
Corporate Updates and Post-Reporting Period Events
- Mr. Udoma Udo Udoma became Independent Non-Executive Chairman, and Mr. Bello Rabiu became Senior Independent Non-Executive Director on April 1, 2024.
- Mrs. Eleanor Adaralegbe will join the Board as an Executive Director on May 1, 2024, succeeding Mr. Emeka Onwuka as Chief Financial Officer on May 21, 2024.
- Full-year guidance remains unchanged, with production expected between 44,000-52,000 boepd and capex between $170 million – $200 million.
- Seplat Energy is working with NNPC and the government to conclude the acquisition of ExxonMobil’s share capital in MPNU.
Post-Reporting Period Events
- NMDPRA increased the domestic market gas price to $2.42/Mscf from $2.18/Mscf, effective April 1, 2024.
- Zone-6 of SPDC operated Trans Niger Pipeline resumed operations on April 14, 2024, ahead of management’s expectations.
Roger Brown, Chief Executive Officer of Seplat Energy Plc, expressed satisfaction with the operational performance in Q1 2024 and highlighted various growth opportunities for the future, emphasizing the company’s commitment to efficiency, sustainability, and strategic growth.
