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Seplat Energy Announces Full Year 2023 Financial Results


Seplat Energy, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, announces its audited results for the twelve months ended 31 December 2023.

Financial highlights   

  • Revenue $1,061.3 million up 12% from $951.8 million in 2022.
  • Average realised oil price $83.39/bbl (2022: $101.67/bbl); average realised gas price $2.90/Mscf (2022: $2.82/Mscf).
  • Unit production opex of $10.4/boe, (2022: $10.3/boe).
  • Cash generated from operations of $520 million, down 10% on 2022, funding capex of $184 million and enhanced shareholder returns.
  • Balance sheet strengthened, year-end cash at bank $450 million (2022: $404 million), excluding $128.3 million MPNU deposit.
  • Net debt at year end 2023 reduced to $306 million (YE 2022: $366 million). Net Debt to EBITDA 0.7x.

Operational highlights

  • Production averaged 47,758 boepd, up 8% from 2022 (44,104 boepd), and within original guidance.
  • Year end 2023 independently audited 2P reserves up 9% to 478 mmboe (YE 2022: 438 mmboe), 47% liquids.
  • Drilled and completed 14 wells in 2023 (of which 6 completed in 4Q 2023), in line with our revised well program.
  • ANOH gas plant achieved mechanical completion on 29th December 2023. Our government partner recently announced the tunnelling operations on the Niger river crossing portion of the OB3 pipeline have begun. Seplat's first gas guidance of 3Q 2024 is unchanged.
  • Carbon emissions intensity: 27.9 kg CO2/boe (2022: 23.9 kg CO2/boe).
  • Achieved more than 8.7 million hours without Lost Time Injury (LTI) on Seplat-operated assets in 2023.

Special Dividend & Board Changes

  • Board recommends a special dividend of US 3c/shr, in addition to Q4 23 declared dividend of US 3c/shr.
  • Core dividend declared for 2023 of US 12 c/shr, up 20% on 2022. Total dividend declared US 15c/shr.
  • Mr. Udoma Udo Udoma elected as Chairman of the Board and will assume office on 1st April 2024, when he succeeds Mr.Basil Omiyi.
  • Mr. Bello Rabiu elected as Senior Independent Non-Executive Director (SINED) and will succeed Dr. Charles Okeahalam effective 1st April 2024.

2024 Outlook

  • 2024 production guidance of 44-52 kboepd. Guidance assumes availability of TNP from 3Q 2024, and assumes ANOH contribution in line with guidance.
  • Initial 2024 capex guidance $170-200 million. Drilling capex flat on 2022 (13 wells in base plan). Seplat will fund capex on Abiala, a marginal field development tied into OML40.
  • In February 2024 we received regulatory approval for the full lifecycle Field development plan (FDP) for the Sibiri oil discovery on OML40
  • Seplat remain highly confident that President Tinubu's administration will approve the company's acquisition of Exxon Mobil's share capital of Mobil Producing Nigeria Unlimited (MPNU).

Roger Brown, Chief Executive Officer, said:
"Seplat Energy's 2023 results illustrate the Company's ability to deliver production growth, fortify our balance sheet and reward shareholders despite facing some unexpected challenges during the year.

Operational performance was strong, production increased 8% over 2022 and we recorded the lowest level of reconciliation losses seen in recent years, a testament to the improving security efforts on the Niger Delta. Drilling yielded positive results, and I'm pleased to report strong 2P reserves growth, up 9% on prior year estimates. Our revenue exceeded $1bn, and while costs increased, our proactive approach meant we generated more than $260m of free cash flow in the year, allowing us to continue rewarding our shareholders and further reduce net debt.

Our strong financial position, excellent operational performance and robust outlook means that we are delighted to declare a special dividend again this year, lifting the total dividend for the year to US$15 cents.

In 2024, we look forward to a number of key growth events. We are moving forward on both the Sibiri and Abiala developments on OML40. Clear progress is also being made on the important ANOH gas project, with first gas expected in 3Q 2024. Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year.

I'm delighted to welcome Mr.Udoma as Seplat Energy's new Chairman and Mr. Rabiu as SINED and wholeheartedly thank Mr.Omiyi and Mr. Okeahalam for their longstanding support and guidance. Nigeria's Oil & Gas industry is going through a generational change and as we reach our tenth year as a listed company, we fully intend to play an important role as Nigeria's leading independent company."

KeyFacts Energy: SEPLAT Nigeria country profile

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