29th Oct 2024 13:54
(Alliance News) - Seplat Energy PLC on Tuesday said its profit more than doubled in the third quarter of 2024, as average oil and gas prices increased.
The Nigeria-focused energy supplier said pretax profit for the nine months that ended September 30 was USD245.0 million, more than doubling from USD106.5 million the year before.
Revenue, however, fell 12% to USD715.3 million from USD810.4 million last year, which the group said was largely due to overlift reported for the first nine months of 2023. Adjusting for this overlift, Seplat Energy explained, revenue for the first nine months of 2024 was USD724 million, a 6.0% rise from an adjusted revenue of USD683 million in 2023.
Working interest production averaged 47,525 barrels of oil equivalent per day for the nine-month period, around the midpoint of its guidance and down 1.3% from 48,152 barrels of oil equivalent per day last year. The company narrowed its annual production guidance to between 46,000 and 50,000 barrels of oil equivalent per day, from between 44,000 and 52,000 barrels of oil equivalent per day.
Meanwhile, average realised oil price rose 0.2% to USD82.89 per barrel from USD82.76 per barrel, and average realised gas price increased 11% to USD3.18 per thousand standard cubic feet from USD2.87 per thousand standard cubic feet.
Seplat Energy declared an interim dividend of 3.60 cents per share, up 20% from 3.00 cents in the second quarter and 3.00 cents in the third quarter of 2023.
Shares in the company were down 0.9% at 229.00 pence each in London on Tuesday afternoon.
Chief Executive Officer Roger Brown said: "The first nine months of 2024 has seen Seplat Energy deliver a strong operational performance. Production has been consistent, drilling has improved and our main maintenance activities have been executed successfully. We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant. Further delays to the start up at ANOH are frustrating, but we have been pleased to see the commitment of our government partner in tackling the technically challenging river crossing. Based on the latest estimates received, and maintaining a cautious stance on any risk of further delays, we update our guidance for first gas to the second quarter of 2025.
"Commodity prices remained supportive, combined with operational uptime and timely cash calls from our joint venture partner, helped cash generation improve year over year, enhancing our balance sheet position. As a result, we are pleased to announce a 20% increase in the core quarterly dividend and note that this is reflective of the strength of the underlying business. The increase does not factor in the organic, ANOH, and inorganic, Mobil Producing Nigeria Unlimited, growth opportunities that the company is currently pursuing.
"We were delighted in recent days to receive Ministerial consent for the acquisition of Mobil Producing Nigeria Unlimited. The transaction will be transformational for Seplat Energy, and every effort is now on completing the transaction."
By Emily Parsons, Alliance News reporter
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