Nigeria’s independent energy company, Seplat Energy Plc, has declared a profit of N245.6 billion for the nine months ended 30 September 2023.

Seplat also recorded a rise in revenue by 31 per cent to N478.1 billion from N258.7 billion year-on-year.

The company, listed on both the Nigerian Exchange Limited and the London Stock Exchange, also declared a Q3 2023 dividend of US3 cents per share, in line with higher core annual dividend of US12 cents.

The energy company’s also grew its 2023 nine-month gross profit to N245.6 billion from N118.5 billion year-on-year whilst nine month production averaged 48,152 bepd, up 11 per cent on 9M 2022, with liquids production up 17 per cent.

Operations benefited from improved uptime at Forcados Oil Terminal and availability of the Amukpe-Escravos pipeline, supporting strong revenue, modestly offset by higher costs.

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Financial highlights

*Revenue up 31.0% to $810.4 million (including an overlift of $127.8 million) from $618.6m in 9M 2022 (including an underlift of $60.3 million). Adjusted revenue was flat YoY as improved production mitigated lower oil price realisations.

*Average realised oil price $82.76/bbl (9M 2022: $108.25/bbl); average gas price improved to $2.87/Mscf (9M 2022: $2.80/Mscf).

*Unit production opex of $9.7/boe, (9M 2022: $9.3/boe).

*Cash generation of $365.1 million, flat YoY, funding capex of $125.4 million.

*Balance sheet strengthened in the quarter, $391.0 million cash at bank (9M 2022: $305 million), $128 million MPNU cash deposit not included.

*Net debt at end September fell to $347.6 million (9M 2022: $452.2 million), a further $11 million of RBL borrowings were repaid in 3Q 2023 ($22 million YTD). Net Debt to TTM EBITDA improved to 0.9x.

*Q3 2023 dividend declared of US3 cents per share, in line with higher core annual dividend of US 12 cents.

Commenting on the impressive results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy said: “Seplat Energy’s operational performance was strong in the third quarter, particularly September which mitigated some of the outages experienced on third party infrastructure and supported production growth of 11% on the same period in 2022.

“Our balance sheet remains strong and thanks to higher commodity pricing and our proactive approach to cash management, we have generated more than $170m in free cash flow year to date. Our focus for the rest of 2023 is on safe and reliable operations, revenue assurance and cost management, all of which will deliver further strengthening of our cash position. This keeps us on track for an excellent year that will support the increased quarterly dividends we announced in April and allow us to continue our commitment to reward shareholders.”

The Star