Seplat Energy revenue hits N1.65trn in 2024

Seplat Energy, an independent energy company, says it generated a revenue of $1.116 billion (N1.652 trillion) for the 2024 financial year.

The figure represented 5.2 percent increase when compared to $1.061 billion (N696.9 trillion) recorded in 2023.

The company disclosed this in its audited results for the year ended Dec. 31, 2024, sent to the Nigeria Exchange Ltd. on Tuesday in Lagos.

According to the company, the growth is fueled by increased production and the successful acquisition of Mobil Producing Nigeria Unlimited (MPNU).

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The company’s profit before tax surged by 98.4 per cent to $379.4 billion( N174.52 trillion)  reflecting strong operational performance despite rising costs.

The acquisition, now rebranded as Seplat Energy Producing Nigeria Unlimited (SEPNU), is a major milestone in Seplat’s expansion strategy, adding significant oil and gas reserves and boosting production capacity.

Seplat Energy’s revenue increase was supported by a 10.9 per cent rise in oil production to 52,947 barrels of oil equivalent per day (boepd), compared to 47,758 boepd in 2023.

The company’s onshore production averaged 48,618 boepd, while SEPNU contributed an additional 4,329 boepd in its first 19 days of operation.

However, the company faced challenges in gas production, which dropped 2.1 per cent to 40.8 billion cubic feet (Bcf), primarily due to maintenance-related slowdowns.

In spite this, average realised gas prices rose by 5.5 per cent to $3.06 (N1,408) per thousand standard cubic feet (Mscf), contributing to stable revenue from gas sales.

However, in spite of the revenue increase, gross profit fell by 9.8 per cent to $479.9 billion (N220.73 trillion), reflecting higher operating expenses and acquisition-related costs.

Seplat’s cash generated from operations declined by 26 per cent to $384 billion (N176.64 trillion), largely due to timing of crude liftings, one-off SEPNU acquisition costs, and increased working capital requirements.

The company’s production operating expenses rose 45 per cent to $15.2 (N6,992) per barrel of oil equivalent (boe), while onshore unit production costs increased 17 per cent to $12.3 (N5,658)/boe.

Roger Brown, Chief Executive Officer of Seplat Energy, said that the acquisition of SEPNU by the company was a transformational step that significantly expanded the company’s asset base.

“While we faced higher costs in 2024, we are confident that this investment will drive long-term growth and value creation for our stakeholders.

“2024 was truly a defining year for Seplat Energy. In addition to delivering key growth projects in our existing onshore business, we closed out 2024 by completing the acquisition of SEPNU, the largest in the Company’s history, which adds significant scale and attractive low-cost growth potential.

“In the first few months since the acquisition, it has already become clear that there is significant prize in the offshore shallow water, operating a closed loop system from well-head production to hydrocarbon sales at the terminal.

“This year, we will focus on re-opening previously shut in wells in SEPNU, alongside another full drilling campaign for our onshore assets and we look forward to delivering first gas at ANOH.

“We will also accelerate the subsurface work and contracting needed to commence an infill drilling campaign at SEPNU,” he said.

On the company’s dividend, Brown said “Our confidence in the future trajectory for the enlarged business, combined with our strong financial position, means that we are delighted to declare a special dividend again for 2024.

“lifting the total dividend for 2024 to $16.5 (N7,590) cents per share, an uplift of 10 per cent from 2023.

“The Seplat Energy team is rightly proud of its achievements in 2024, and we fully intend to continue our mission to create significant shared value and enhance prosperity for all our stakeholders in Nigeria and beyond.”

The company declared a total dividend of $16.5 (N7,590) cents per share, representing a 10 per cent increase from the previous year.

This includes a special dividend of $3.3 (N1,518) per share, which reflects confidence in the company’s financial position.