Seplat Energy this morning dropped its results for the 9 months ended September 2024. That means January to September 2024.

What does Seplat do?

Seplat was formed in June 2009 through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ventures Limited. The firm plays in the upstream oil and gas space in Nigeria.

The company is listed on the London and Nigerian stock Exchanges.

9M 2024 numbers

Revenue declined by 11.7% compared to the previous year, decreasing from $810 million in 2023 to $715 million in 2024.

The first nine months of 2024 accounted for an underlift of $8.2 million, while the same period in 2023 included an overlift of $127.8 million.

Operating profit was up 77.5% from $154.8 million in 2023 to $274.8 million in 2024.

Operational update

CEO Roger Brown gave an update on operations

We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant. Further delays to the start up at ANOH are frustrating, but we have been pleased to see the commitment of our government partner in tackling the technically challenging river crossing. Based on the latest estimates received, and maintaining a cautious stance on any risk of further delays, we update our guidance for first gas to Q2 2025.

Abiala

Abiala is a marginal field located in the OML 40 area. Elcrest (45% owned by Seplat Energy) owns a 95% equity farm-in and is the operator. First oil was achieved on 15th September. The second producing well, Abiala-02 well has been completed with well clean-up currently in progress. Evacuation of the crude for sale is expected to commence at the end of October 2024. The Company expects the field to reach a gross production rate of c.5,000 bopd by Q1 2025.

Sapele Gas Plant

The Sapele Gas Plant is an 85 MMscfd plant, capable of processing both Non-Associated Gas (NAG) and Associated Gas (AG) which meets export specifications and LPG processing module which would supply LPG to the domestic market.

First gas from the first 30 MMscfd module is expected in Q4 2024. Subsequent modules will be commissioned in 2025 to enable the plant to ramp up to full capacity.

Interim dividend increased by 20%

The firm has proposed an interim dividend of 3.6 cents per share up by 20% from the previous quarter.

An interim dividend is one paid before the end of a company’s financial year. Seplat is the only firm on the NGX that pays a dividend every quarter.

Qualification date is the close of business November 12 on the NGX while payment will be on or around November 27, 2024.