The firm’s unaudited financial statement for the three
months ended March 31, 2023, which was filed with the Nigerian Exchange Limited
on Thursday, stated that its core annual dividend target was raised by 20 per
cent to US 12 cents with a quarterly dividend of three cents.
The growth in revenue during the period under review was
underpinned by increased crude production, thus limiting the impact of lower
oil prices.
According to the firm, the total crude volume lifted for the
period was 3.6 MMbbls, up 63.6 per cent from the 2.2 MMbbls in Q1 2022, while
the average pipeline loss factor for the group was 3.5 per cent.
Similarly, gas revenue rose by 29.1 per cent to $33.0
million (Q1 2022: $25.6 million) driven by the simultaneous increase in
realised gas prices and sales volume.
The average realised gas price was higher at $2.88/Mscf (Q1
2022: $2.76/Mscf), while gas production increased by 15.5 per cent to 11.2 Bscf
(Q1 2022: 9.7 Bscf).
Seplat claimed that the improvement in average realised gas
price reflected the impact of upward price revisions with gas customers.
Pretax profit surged by 69 per cent to $198.3m from N117.3m
in Q1 2022 at a margin of 60 per cent, compared to 48 per cent in the first
three months of 2022.
“Overall, improved production across gas and liquids
reflects the positive impact of the Amukpe-Escravos Pipeline, which has reduced
downtime and enabled stronger liquids and associated gas production. In
addition, the completed Oben-34 gas well provided further boost to gas
production,” it stated.
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 the first gas. We continue to engage with all relevant
parties in the proposed acquisition of MPNU and are confident of a successful
outcome.
Omiyi noted that despite the leadership crisis the company
had been embroiled in recently, members of staff 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”.
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