The Seplat Energy Plc declares special dividend of $16.5 cents per share for its shareholders even as its revenue soars to N1.652 trillion, while its operating profit rises to N647.9 billion in 2024
By Edu Abade
The Seplat Energy Plc has announced its audited results for the 12 months ended December 31, 2024, with a strong operational and strategic progress in the year under review culminating in the acquisition of Mobil Producing Nigeria Unlimited (MPNU)-renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
For 2024, the confidence in Seplat Energy’s business outlook was underpinned by a special dividend, which lifted the total 2024 dividend to $16.5 Cents per share, up by 10 percent compared to 2023.
Seplat Energy grew its revenue for the period to N1.652tr from N696.9b Year-on-Year with cash generated from its operations rising to an impressive N567.5b from N340.6b Year-on-Year.
Production (onshore assets) averaged 48,618 barrels of oil equivalent per day (boepd), up 2 percent from 2023 (47,758 boepd) and within guidance. Including 19 days of SEPNU production (annualised average contribution of 4,329 kboepd), reported production reached 52,947 boepd, 11 percent higher than 2023.
The Company’s operating profit also rose to N647.9b from N163.7b Year-on-Year while profit before tax surged to N561.4b from N125.5b Year-on-Year, while gross profit hit N710.1b from N349.3b Year-on-Year, as the company achieved over 11.0 million hours (2023: 8.7 million hours) without Lost Time Injury (LTI) on its operated assets in 2024.
The operational highlights showed that production (onshore assets) averaged 48,618 boepd up 2 percent from 2023 (47,758 boepd) and within guidance, which included 19 days of SEPNU production (annualised average contribution of 4,329 kboepd), reported production reached 52,947 boepd, 11 percent higher than 2023.
Also 2024 independently audited 2P reserved up 85 percent to 886 MMboe compared to 478 MMboe in 2023, as well as 65 percent liquids, just as group 2P+2C increases by 125 percent to 1,217 MMboe (2023: 540 MMboe), 55 percent liquids, while organic reserve replacement ratio in Seplat’s onshore assets of 176 percent reflects positive drilling results.
Other operational assets are the ANOH gas plant planning to test with third party dry gas in 1H 2025, tunneling operations on OB3 resumed during 1Q 2025 just as its Trans Niger Pipeline (‘TNP’) resumed 24hr operations in fourth quarter (4Q) 2024 and OML 53 oil production grew by 60 percent in 2023 on improved export availability.
The Sapele Integrated Gas Plant (‘IGP’) was commissioned in 4Q 2024 and achieved first commercial gas sales in early 2025; Carbon emissions intensity for Seplat onshore assets: 32.3kg CO2/boe (2023: 29.4kg CO2/boe) while end of routine flaring on track for second half (H2) 2025.
Seplat also revealed that it achieved over 11.0 million hours (2023:8.7 million hours) without Lost Time Injury (LTI) on its operated assets in 2024.
Details of the financial highlights showed that it generated revenue of $1,116m up 5 percent from $1,061m in the previous year, including 19 days contribution from SEPNU while underlying adjusted revenue stabalised at $961m as against $962m in 2023.
Seplat Onshore unit production opex increased marginally to $12.3/boe in 2024 from $10.4/boe the previous year, just as cash generated from operations amounted to $384m, down 26 percent in 2023, impacted by timing of liftings, one-off costs predominately associated with SEPNU acquisition and working capital acquired on the consolidation of SEPNU.
“Cash capex reached $208m in 2024 up from $184m in 2023. Balance sheet remains robust, year-end cash at bank $469.9m as against $450.1m in 2023 excluding $132.2m restricted cash. Net debt at year end 2024 increased from $898m from $306m in 2023 with pro-forma ND/EBITDA at 0.7x,” the performance results further showed.
On SEPNU highlights post-acquisition, the company: “Strong production performance since completion, averaging net 81.1 kboepd 2024 average working interest production 69.4 kboepd. First 100 days integration plan is at advanced stage.
“2025 work programme and budget discussions with joint venture (JV) partner progressed but subject to final approval with strong alignment on increasing investment to improve integrity and reliability to strengthen the asset base for long-term growth,” it added.
On special dividend, the company declared $3.6c/share to shareholders, while total core dividend declared for 2024 rose 10 percent to $13.2c/share from 2023
The Board recommends a $3.3c/share special dividend for 2024, reflecting the strength of balance sheet and confidence in our outlook, while total dividend of $16.5c/share declared for 2024 also rose by 10 percent as against 2023.
For 2025 outlook, Seplat Energy maintained that it aimed at an average production guidance of 120-140 kboepd also comprised Seplat Onshore 48-56 kboepd and SEPNU 72-84 kboepd with an initial 2025 capex guidance of $260-320m.
Seplat Onshore is projected at $180-220m and SEPNU projected at $80-100m just as the company’s plan includes 13 new wells onshore, replacement of an inlet gas exchanger on East Area Project (EAP) NGL project offshore and other capex projects.
“Unit operating costs for the group are expected to be $14.0-15.0/boe. Strategic maintenance and integrity activities will be the focus for SEPNU in 2025. Targeting short cycle oil growth and laying a foundation for sustained improvements in uptime to support our longer term growth ambitions.
“We will detail our medium to long-term growth ambitions on Capital Markets Day in third quarter (3Q0 in 2025,” the results added.
Speaking on the results, Chief Executive Officer, Roger Brown said: “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.
“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 cents per share, an increase of 10 percent 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.”
