Seplat Energy PLC on Tuesday reported strong profit growth as it prepares to bring several key projects into operation.
The Nigeria-focused energy supplier said in the first half that ended June 30, pretax profit doubled to $178.9 million from $85.4 million the previous year, as operating profit grew 77% to $209.1 million from $118.4 million.
Revenue declined 23% to $421.6 million from $547.0 million, amid a 4.7% fall in average production to 48,407 barrels of oil equivalent per day from 50,805 boepd.
The average realised oil price over the period increased 7.6% to $85.55 per barrel from $79.54.
Seplat maintained its second-quarter dividend at 3.0 US cents per share, bringing the total for the first half to 6.0 cents, unchanged from last year.
Chief Executive Officer Roger Brown said: ‘In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024... In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production.’
‘In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.’
In June, the company was notified that court proceedings brought by Nigerian National Petroleum against Mobil Producing Nigeria and its affiliates had been terminated.
Proceedings related to proposed plans announced in February 2022 for Seplat to acquire Exxon Mobil Corp’s stake in MPNU for $1.28 billion, encompassing the entire offshore shallow water business of the company in Nigeria.
A settlement was reached in May and Seplat is working with relevant regulatory officials to progress the transaction.
Production guidance for the year remains unchanged at 44,000 to 52,000 boepd.
Seplat shares were down 2.8% to 192.50 pence each in London on Tuesday afternoon.
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