- $1b turnover, dividend excite shareholders
Seplat Energy Plc, a leading indigenous energy company that accounts for about 25 per cent of the country’s gas-to-power supply, yesterday reaffirmed its commitment to long-term investments and strategic initiatives aimed at deepening the nation’s quest for sustainable energy.
Highlighting its landmark $1 billion turnover and President Bola Tinubu’s commissioning of its the ANOH Gas Processing Plant, Seplat Energy said it was committed to delivering sustainable values to the nation and its shareholders.
At the annual general meeting, shareholders approved the payment of a total dividend of US 15 cents for the 2023 business year, including a special dividend of US 3 cent per share and a core dividend of US 12 cent per share.
Chairman, Seplat Energy Plc, Mr. Udoma Udo Udoma, said the company has made significant progress on several of its growth projects, underlining its willingness to not just deliver value today but to plan for tomorrow.
He said the company delivered robust financial results in 2023, including 11.5 per cent increase in total revenue to $1.06 billion, crossing the $1.0 billion mark for the first time.
According to him, Wednesday’s commissioning of the company’s ANOH Gas Processing Plant by President Bola Tinubu was a strategic milestone for Seplat Energy and the nation, putting the company in stronger stead to increase its gas production capabilities and support Nigeria’s energy transition efforts.
“We delivered a strong set of results in 2023, against a weaker oil price environment. Despite the 17 per cent decline in average price of Brent crude, we grew our oil and gas revenue by 11.5 per cent to $1.06 billion, crossing the $1.0 billion mark for the first time, supported by improved production and asset availability.
“Our average daily production also increased by 8.3 per cent in 2023, to 47,758 boepd (barrels of oil equivalent per day), from 44,104 bopd in 2022, with revenue from oil and gas sales for 2023 rising to 11.5 per cent to $1.061 billion from $952 million in 2022. This excludes the reported $98.9 million overlift. We also completed 14 new wells across our operated and non-operated assets,” Udoma said.
Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, underlined the company’s commitment to sustainability and energy transition, outlining initiatives aimed at increasing its contribution to Nigeria’s power sector by providing lower carbon and renewable energy solutions.
According to him, the company recognises its duty to minimise the impact of operations on the environment.
He said the company aims at creating increasingly sustainable energy solutions to provide access and meet increasing energy demand, while addressing the critical challenge of climate change for society and its business.
He added that the company has been positioned for decarbonisation through several strategic initiatives with a key focus being the aggressive programming to eliminate gas flares by 2025, which is a significant part of its commitment to achieving net zero by 2050.
“We are also exploring using solar power where feasible and have initiated a diesel replacement programme to increase the use of gas, a less carbon-intensive fuel, for power generation in our operations. To support these decarbonisation efforts, Seplat Energy has committed substantial financial resources.
“In 2023, we allocated $5.7 million towards projects to end routine flares in operations. This includes installing gas compression facilities and incineration at various flow stations. Upon completing these projects, we expect to significantly improve our gas handling capacity and reduce flares, thus monetising flare gas in alignment with our corporate strategy and national initiatives,” Brown said.
Chief Financial Officer Designate, Seplat Energy Plc, Mrs. Eleanor Adaralegbe, said the dividend payment underscored the company’s strong financial performance and the confidence in its future outlook.
According to her, the payment of the special dividend reflects the board’s continued confidence in the future of the business and is underpinned by a strong balance sheet, crystalizing Seplat’s commitment to delivering value to its investors.
Chief Operating Officer, Seplat Energy Plc, Mr. Samson Ezugworie, who provided insights into the company’s operational performance and strategic initiatives, said the company has, till date, achieved a cumulative 10.6-million-man hours since last LTI recorded on the 13th of October 2022.
“Safety remains our top priority. Several training sessions on incident management, process safety management training for operations, engineering, maintenance, wells, and HSE team members were conducted over the past year to ensure our teams in the various asset locations are updated on the latest procedures on Safety.
“In addition to these, the company is on a path to achieving ISO 45001 and 14001 standards certifications, demonstrating its commitment to top-tier safety and environmental performance. These certifications are globally acknowledged benchmarks for occupational health and safety management systems and environmental management systems, respectively,” Ezugworie said.
Shareholders who spoke at the meeting commended the board and management for the growth in the operations of the company.
President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said Seplat Energy has proven to be exemplary in value creation for the shareholders and the country.
“I am happy to say that Seplat Energy has been helping the nation in the sense that the tax that we are paying the government is very significant, not to talk of the dividend that we have been getting in dollars, which has never gone down.
“Also, this is one of the three companies that I have seen in the capital market having many independent directors, and this is good for corporate governance. Seplat’s dual listing is accompanied by the highest level of corporate governance adherence and this is good,” Umar said.
Another shareholder, Mr. Patrick Ajudua said the performance of the company was a reassurance that investors needed to continue to invest in the company.
“I want to commend also the financial performance which saw the gross earnings grew up significantly. I want to state that the company has been doing well. I also commend Seplat on the ANOH project. We pray that the company continues to thrive despite the challenges in the industry,” Ajudua said.
A shareholder, Mrs. Oludewa Thorpe commended the company on its smooth leadership succession since its inception, noting that such smooth transition “is very good for the company and for corporate governance”.
