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Nigeria: Seplat’s 9-Month Profit Jumps 144 Percent to N34 Billion Amid Oil Price Boom

Seplat says in a separate document seen by PREMIUM TIMES it will pay an interim dividend of US2.5 cents per share to stockholders.

Nigeria’s biggest quoted oil and gas company Seplat Energy Thursday posted a net profit of N34 billion ($618.6 million) for the year to September, 144 per cent stronger than the figure reported a year ago in a period during which crude prices averaged $108.3.

Revenue grew to N258.7 billion from N182.7 billion, 86.5 per cent of that contributed by crude oil sales and the rest by gas.

Yet, the quarter from July through September was a kick in the teeth for Seplat, given that turnover shrivelled by 36.5 per cent as operations took a battering from damage and theft in a period CEO Roger Brown described as “unusually challenging.”

Seplat is listed on the Nigerian Exchange as on London Exchange.

Cost of sales for the nine months rose 12.5 per cent to N140.2 billion, while general and administrative expenses soared by more than a half to N33.2 billion.

The corporation committed $110.3 million to capex, with earnings before interest, taxes, depreciation and amortisation (EBITDA) climbing 27 per cent to N141.3 billion.

“We remain confident that our transformational acquisition of MPNU will be approved and are working closely with all the relevant stakeholders to achieve a successful outcome for all parties,” Brown said.

“The acquisition will add significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.”

Seplat announced late September it had successfully refinanced its existing $350 million revolving credit facility (RCF) expiring in December 2023, with a new $350 million RCF of a three-year tenor falling due in June 2025.

Profit before tax for the review period scaled up to N77.5 billion, 101 per cent higher than a year earlier. Net profit improved by 143.7 per cent, standing at N33.9 billion.

Seplat said in a separate document seen by PREMIUM TIMES it will pay an interim dividend of US2.5 cents per share to stockholders whose names appear in the register of member as of the close of business on 10 November.

It will bring its total payout so far this year to US7.5 cents per share equivalent to a cumulative dividend of $44.1 million paid for the period January to September.

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