Seplat Energy Earnings Per Share Tumbled by 54%

Seplat Energy Plc will pay its shareholders $0.75 cent as earnings per share fell sharply by 54% in the financial year 2022, the company audited statement show. Consequently, its share price traded flattish in the Nigerian Exchange as investors ignore unimpressive earnings performance.

Though revenue came strong in the year, other income line items in its report went down strongly year on year. At the same, the company reported it shared a large amount of loss on Joint Venture operations.

In 2022, about a 76% spike in tax expenses wormseed Seplat energy’s profitability in addition to the fact that the company has to reverse an impairment gain reported in the financial year 2021.

Overall, profit after tax declined by 5.32% in the year, according to its audited statement filed with the Nigerian Exchange. Meanwhile, the company’s total assets expanded to about N1.6 trillion.

Detail from the financial statement shows that Seplat Energy achieved N86.7 billion as Profit before Tax, 22.11% above N71.028 billion posted in 2021.

The energy company grew its revenue by 37.56% per cent to N403.9 billion from N293.6 billion year-on-year. Its gross profit increased to N197.2 billion from N114.2 billion recorded in 2021, rising by 72.67 per cent.

Also, Seplat Energy is paying a 7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounts to a full-year dividend of 15 cents, representing a dividend yield of around 11 per cent at the current London Stock Exchange (LSE) share price.

The company’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in third quarter.

The company completed 13 wells, including two wells for the ANOH gas processing plant. ANOH Gas Processing Plant is 95 per cent mechanically complete and is awaiting third-party infrastructure completion.

The board recommends a special dividend of five cents per share in addition to the final dividend of 2.5 cents per share, detail from regulatory filing show.

Mr Roger Brown, Chief Executive Officer (CEO) of Seplat Energy Plc expressed satisfaction with the company’s financial performance, according to a statement released by Dr Chioma Nwachuku, Director, External Affairs & Sustainability of Seplat Energy, on Tuesday.

Seplat Chief said the performance will enable the company to pay a 7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. Brown said that the year dividend of 15 cents represents a dividend yield of around 11 per cent at the current LSE share price.

He said: “As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year.

“Our gas business continues to develop, with first gas expected from ANOH in the fourth quarter this year, and we are now in the process of separating our Midstream Gas business from the upstream unit to unlock new value for shareholders.

“We are continuing to pursue the Presidential approval received on 8 August 2022 for the MPNU acquisition and we remain focused on concluding the transaction within the remaining term of President Buhari before a new president is sworn into office at the end of May 2023.

“We are implementing our roadmap to net zero and have made encouraging progress with a 35 per cent reduction in emission intensity last year.” The CEO noted that a major reduction in carbon emissions was routine flaring, saying, “We are on target to eliminate by the end of 2024”.

“Alongside these efforts, and as part of our stated strategy to become Nigeria’s energy champion across the entire value chain, we are planning to invest in gas-to-power and solar power projects with FID targeted for later this year if the projected returns meet our internal hurdle rates.

“We are confident in our outlook for 2023, with the new Amukpe-Escravos Pipeline working well, our drilling cost reductions and efficiencies being delivered.

“ANOH’s first gas expected in the fourth quarter once third-party infrastructure is completed, our business is on a firm footing to facilitate significant growth and higher returns for stakeholders,” Brown said. # Seplat Energy EPS Falls 54% as Profit Declines