According to Seplat Energy Plc, its gross profit increased by 69% in the first quarter of 2023, from N48.8 billion in the same time the previous year to N91.1 billion in the first quarter, ad captioned by Entrepreneurng report.
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The energy company’s unaudited results for the three months ending March 31, 2023, which were made public from report, also showed a 3.2% increase in profit before tax, to N39.5 billion from N34.7 billion year over year.
The Independent Chairman, Basil Omiyi, offered the following assessment of the results: “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production costs down, and strong cash generation enabling the board to increase our annual core dividend target from US10 cents to US12 cents per share, paid in equal quarterly dividends. We consequently declared a US 3 cent per share dividend for Q1 2023.
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The year has gotten off to a fantastic start, and we are now reaping the rewards of the AEP, which allows us to export a sizable amount of oil.
Our partners have delivered the OB3 and Spur pipelines, as well as the requisite gas wells, to the ANOH gas plant in excellent time during the quarter, and we maintain Q4 2023 for first gas. We remain in contact with all pertinent parties about the potential purchase of MPNU and are optimistic about the outcome.
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However, due to greater production volumes, the energy company’s Q1 revenue increased by 36.9% to N152 billion from N100.6 billion in the prior year. However, it reported strong Q1 cash generation of $139.9 million and capex of $44.7 million, and its balance sheet was strengthened by $459.7 million in cash on hand and $288.2 million in net debt (excluding Mobil’s $130 million cash deposit).
Seplat said that its working interest output climbed by 8.6% to 51,720 barrels of oil equivalent per day (boepd), which is in the upper end of the period’s target range.
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The Amukpe-Escravos Pipeline (AEP) is supporting increased export volumes from significant western assets, the new OP-15 well is increasing liquids production at Oil Mining Lease (OML) 40, and the Oben-34 well is increasing gas output, according to the report.
In conclusion, the business reported that throughout the time period, its assets went more than 3.8 million hours without a Lost Time Injury (LTI).
Source: The GuardianÂ
