Seplat Energy demonstrated a robust performance in the 2024 financial year, exceeding the Board's expectations, according to the Chairman. The year was marked by safe and reliable operations within its core business, achieving crucial production and efficiency targets that fueled strong cash flow generation and shareholder returns. Revenue for the year reached a significant $1.116 billion, underpinned by consistent operational delivery, including a notable achievement of 11 million man-hours without any lost-time injury.
A pivotal moment in 2024 was the completion of the acquisition of Mobil Producing Nigeria Unlimited (MPNU) in December. This transformational acquisition more than doubled Seplat Energy's production and significantly boosted its reserves. The Chairman emphasized the world-class history of the acquired assets and the company's commitment to investing in them to increase production for the benefit of all stakeholders.
Becoming Nigeria's Leading Independent Energy Powerhouse
The acquisition of MPNU has significantly propelled Seplat Energy towards its ambition of becoming Nigeria's leading independent energy company. The merger of MPNU, now known as Seplat Energy Producing Nigeria Unlimited (SEPNU), with Seplat Energy has created a formidable Nigerian energy powerhouse. The Chairman highlighted the successful funding of the $800 million closing cash consideration through existing cash reserves and new debt facilities, without diluting shareholder equity, underscoring the company's financial strength.
This strategic move has resulted in a pro-forma production capacity of 118 thousand barrels of oil equivalent per day and pro-forma combined reserves of 886 million barrels of oil equivalent, representing an impressive 85% increase in reserves compared to the beginning of 2024.
A Bright Future with Sustainable Growth at the Forefront
Looking ahead, the Chairman expressed strong optimism for the newly enlarged Seplat Energy. The company plans strategic investments in both its onshore and SEPNU businesses to further increase production. Simultaneously, investments in maintenance and infrastructure integrity will ensure sustained production capabilities for the long term. The gas division is also poised for rapid growth, leveraging substantial offshore gas resources and the established onshore gas business.
To ensure the long-term sustainability of the business, Seplat Energy remains focused on three key pillars: driving social development, prioritizing environmental care and reporting, and maximizing returns for all stakeholders. This holistic approach aims to create a financially sustainable business that operates responsibly within its environment and positively impacts its communities. The company plans to outline its detailed operational strategy for the enlarged Group at its Capital Markets Day in the third quarter of 2025.
The Strategic Significance of the MPNU Acquisition
The complete acquisition of MPNU's share capital holds significant implications for Seplat Energy's future trajectory. According to the CEO, the substantial increase in reserves and production from the SEPNU assets solidifies Seplat Energy's leadership position in the Nigerian energy sector. The CEO emphasized the company's commitment to responsible stewardship of Nigeria's natural resources.
Beyond the oil and gas producing assets, the acquisition also grants Seplat Energy operating control of crucial shallow water infrastructure and three export terminals: the Qua Iboe Terminal, Bonny River Terminal, and the Yoho Floating Storage and Offloading (FSO) facility. Additionally, Seplat Energy now operates Natural Gas Liquids (NGL) plants at the East Area Project (EAP) and Oso.
Expanding Horizons: From Onshore to Offshore Operations
The acquisition marks a significant shift in Seplat Energy's operational landscape, expanding its focus from a purely onshore asset base to include substantial shallow water and offshore operations. The CEO highlighted that approximately 70% of the company's production is now offshore and exported through three terminals operated by Seplat Energy. This diversification of export infrastructure in the Niger Delta, coupled with improved security and higher volumes through the Qua Iboe and Yoho terminals, is expected to enhance revenue assurance.
To ensure seamless integration and operational excellence, Seplat Energy has welcomed approximately one thousand highly skilled staff from SEPNU. A dedicated Integration Management Office (IMO) has been established to oversee the unification of the two teams, cultures, and visions, aiming to enhance capabilities, drive sustained growth, and maximize the combined strengths of the organization.
Driving Internal Sustainability Through Culture and Strategic Review
Internally, Seplat Energy is actively fostering sustainability through its diverse workforce and enlarged structure. The recent launch of the company's culture framework, SF-InPACT (Seplat First, Inclusivity & Respect, Performance-driven, Agility, Confidentiality, and Trust), is a testament to this commitment. This framework, developed through extensive internal workshops, aims to strengthen the business through enhanced employee engagement, collaboration, and transparency, which has already resulted in an improved employee engagement score.
In its New Energy division, Seplat Energy continues to strategically review potential projects in power generation and renewable energy. While no investment decisions were made in 2024 due to the timing of the MPNU acquisition, the company remains committed to exploring opportunities that can add value to its core operations.
Transforming Lives Through Energy: Community Intervention Programs
Seplat Energy's vision extends beyond energy production to actively transforming lives within its operating communities and Nigeria as a whole. The company is deeply committed to creating social value by improving education and healthcare and fostering entrepreneurship.
Significant milestones in long-term social development initiatives in healthcare and education were achieved in 2024, including conducting 100,000 eye tests through the "Eye Can See" program and supporting over one thousand teachers through various educational programs.
The launch of the Youth Entrepreneurial Program (YEP) in 2024 further underscores Seplat Energy's commitment to social investment. This program equips young people with hands-on training in renewable energy systems, preparing them for sustainable careers in the clean energy sector and contributing to Nigeria's energy transition while fostering economic empowerment.
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| L-R: Mrs. Eleanor Adaralegbe, CFO Seplat Energy Plc; Mr. Roger Brown, CEO; Mr. Udoma Udo Udoma, Chairman; Mrs. Edith Onwuchekwa, Director Legal and Company Secretary; Mr. Samson Ezugworie, COO; and Mrs. Bashirat Odunewu, Senior Independent Non-Executive Director, at the 12th Annual General Meeting (AGM) of Seplat Energy Plc held virtually … on Wednesday. |
Strong Production Figures and the Impact of SEPNU
The Chief Operating Officer (COO) highlighted 2024 as a year of significant achievement across Seplat Energy's existing business, further bolstered by the addition of SEPNU assets in December. Including 19 days of production from SEPNU, the full-year combined working interest production reached 52,947 boepd, exceeding the guidance and representing an 11% increase compared to 2023.
The legacy business contributed an average daily working interest production of 48,618 boepd, benefiting from new well performance, the commencement of gas production from the Sapele Integrated Gas Plant (SIGP), improved gas production from Oben, and continued efficiency at the Trans Niger Pipeline (TNP). SEPNU contributed an annualized average production of 4,329 kboepd during its partial inclusion in 2024.
Looking ahead to 2025, Seplat Energy has issued production guidance of 120,000 - 140,000 boepd working interest, with Q1 results already aligning with this target at 131,561 boepd. The company's focus remains on reviving existing wells in the SEPNU asset, investing in further drilling campaigns in onshore assets, and increasing gas volumes through activities at SIGP.
Update on the ANOH Gas Plant
The COO provided an update on the ANOH Gas Plant, which achieved mechanical completion in December 2023 with an impressive safety record of 11 million man-hours without any Lost Time Incident (LTI). The plant is now ready to receive commissioning gas. However, the river crossing element of the OB3 line, being undertaken by NGIC, has faced technical challenges, with tunnelling operations still ongoing. Despite these challenges, significant additional equipment has been delivered to the site, and tunnelling has recently restarted with a target completion in Q2 2025.
The completion of the OB3 pipeline is a top priority for the government and is critical for the full operation of the 300 MMscfd joint-venture-operated ANOH Gas Plant. Seplat Energy remains optimistic that full operations will commence in the latter half of 2025.
Key Highlights of the 2024 Financial Results
The Chief Financial Officer (CFO) emphasized that 2024 was a strong financial year for Seplat Energy, driven by robust oil and gas production from its onshore business and the transformational acquisition of MPNU. The consolidation of SEPNU for the final 19 days of the year significantly contributed to the financial results.
Total revenue reached a record $1.116 billion, reflecting higher output partially offset by slightly lower oil price realizations. The group's adjusted EBITDA increased by 20.3% to $539 million, including a $99 million contribution from SEPNU. After taxes of nearly $235 million, the net profit stood at approximately $145 million. Cash flow from operations remained strong at $383 million. While net debt increased to $898 million following the MPNU acquisition, the pro forma net leverage of 0.7 times remained stable compared to 2023, demonstrating the company's strong balance sheet.
Seplat Energy also maintained good credit ratings in international markets, which facilitated the successful refinancing of its $650 million bond in March 2025 at a yield inside the comparable Nigerian Government Sovereign bond, a first for the company. The CFO expressed confidence in further improvements in key financial metrics in 2025 as a larger entity.
Consistent Dividend Payments and a Special Dividend for Shareholders
Seplat Energy has maintained a consistent track record of dividend payments to its shareholders. In 2024, the Board approved a final core dividend of US$ 3.6 cents per share, bringing the total core dividend for the year to US$ 13.2 cents per share, a 10% increase compared to 2023.
Furthermore, recognizing the company's strong operational performance and positive business outlook, the Board declared a special dividend of US$ 3.3 cents per share. This brings the total dividend declared for 2024 to US$ 16.5 cents per share, representing a 10% increase over the previous year. The payment of the special dividend reflects the Board's confidence in the company's future prospects and is supported by a robust balance sheet. The company plans to review its dividend policy in 2025 as part of the overall capital allocation policy for the enlarged Group.
Strong Credit Ratings Reflect Financial Health
The CFO also provided an update on the company's credit ratings in 2024. Seplat Energy maintains corporate credit ratings with Moody’s Investor Services (Moody’s), Standard & Poor’s Rating Services (S&P), and Fitch Ratings (Fitch). The current ratings are Moody’s Caa1 (positive), S&P B (stable), and Fitch B (stable). Notably, in April 2025, Fitch upgraded Seplat Energy's corporate rating to B from B- (positive), citing an improved outlook for the Nigerian sovereign long-term rating and a stronger business profile following the completion of the MPNU acquisition. The ratings with S&P and Moody’s were reaffirmed in April and March 2025, respectively, further highlighting the company's solid financial standing.