Seplat Energy’s revenue grew significantly by 72.53%
year-on-year (YoY) to NGN696.87bn in 2023FY.
This exceptional performance was fueled by a substantial
increase in crude oil production (72.90% YoY), which offset the decline in
crude oil prices (Average of 82.71 in 2023FY vs Average of USD100.93pb in
2022FY).
The company also saw significant growth in gas revenue stream
(+69.74% YoY). The surge in earnings across these revenue streams can be
attributed to an 8% rise in average production to 47,758 barrels of oil
equivalent per day (boepd) compared to 44,104 boepd in 2022FY.
This production boost was driven by the completion of 14 oil
wells throughout 2023, resulting in a 77.13% YoY increase in gross earnings to
NGN349.33bn.
Operating profit remained strong during the period,
experiencing a robust growth of 40.43% YoY to NGN163.73bn. This was primarily
driven by a solid performance in revenue, despite facing increased costs.
Specifically, administrative expenses saw a significant surge
of 61.72% YoY, totaling NGN94.28bn, along with other operating activity losses,
which rose by 423.24% YoY to NGN80.07bn. Net finance costs also increased by
37.77% YoY to NGN39.16bn.
Despite these challenges, both profit before tax (PBT) and
profit after tax (PAT) for the period showed strong growth, increasing by
44.75% YoY to NGN125.54bn and 83.04% YoY to NGN81.33bn, respectively.
We remain optimistic about Seplat Energy's prospects barring
any significant plunge in crude oil prices. The company's recent investments,
including 14 new oil wells that have boosted production across all revenue
segments, and the recently approved full lifecycle field development plan (FDP)
for the Sibiri oil discovery on OML 40, positions them well for sustained
revenue growth.
Furthermore, positive sentiment surrounds the potential
approval of Seplat's acquisition of Exxon Mobil's share capital in Mobil
Producing Nigeria Unlimited (MPNU). This acquisition is expected to
significantly expand Seplat's production capacity and market share.
