The business performance of Seplat Energy Plc, for 2024 full-year met and exceeded the expectation of the Board of Directors, the Chairman, Senator Udoma Udo Udoma, has said.
Udoma said this on the sidelines of the company’s 12th Annual General Meeting (AGM) held virtually, pointing that Seplat Energy was able to complete the transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU) – now known as Seplat Energy Producing Nigeria Unlimited (SEPNU), which more than doubled the company’s production and significantly increased its reserves.
“Yes, I believe the performance of the business met our expectations. 2024 was truly transformational for the development of our business. Our core business delivered another year of safe and reliable operations, achieving key targets for production and operating efficiency, which supported another year of strong cash flow generation and shareholder returns. We delivered a year of strong production, with revenues over one billion dollars, at $1.116 billion. This was achieved through safe and reliable operations, with 11 million man hours without any lost-time injury (LTI), ” the Seplat Energy Chairman said.
Commenting on the SEPNU assets, he stated: “The acquired assets have a world-class history as some of Nigeria’s most important oil fields and, as the new operator of these assets, we intend to invest to increase production for the benefit of all our stakeholders. Seplat Energy has created a Nigerian energy powerhouse. I am especially pleased to report that the closing cash consideration of $800 million at completion was funded entirely from cash, new and available debt facilities, with no dilution of shareholdings. This speaks volumes to the strength of our business.”
Also speaking on the SEPNU acquisition, Mr. Roger Brown, CEO, Seplat Energy, said the increased reserves and production that the SEPNU assets add to Seplat Energy’s operations is significant, making the company to consolidate on its position as the leader in Nigeria’s indigenous energy space.
“This is a significant responsibility of stewardship of Nigeria’s natural resources, which we do not take lightly. Along with the oil and gas producing assets we gain operating control of dedicated shallow water infrastructure and three export terminals, namely Qua Iboe Terminal, Bonny River Terminal and the Yoho Floating Storage and Offloading (FSO) facility, as well as Natural Gas Liquids (NGL) plants at East Area Project (EAP) and Oso,” Brown explained.
The Seplat Energy CEO said from being a 100% onshore operator, now approximately 70% of the company’s production is offshore, and exported through three terminals which Seplat operates, adding that the improved security and higher volumes passing through Qua Iboe and Yoho will improve revenue assurance and diversify the firm’s export infrastructure in the Niger Delta.
He added: “To ensure excellent execution in production operations, we are joined by about a thousand very highly skilled staff whom I know are excited to become part of the Seplat Energy family, and together we will work tirelessly to increase production and maximize the value of these assets for all our stakeholders. A new integration project has been launched following the successful coming together of Seplat and SEPNU. This marks the beginning of an exciting chapter for Seplat Energy as we unify two exceptional teams, cultures, and visions into one organization. The integration process aims to enhance our capabilities, drive sustained growth, and maximize the potential of our combined strengths.”
Speaking on Seplat’s vision on ‘transforming lives through energy’, Roger said: “This goes far beyond powering homes, transport and industry. We are deeply committed to creating social value that enhances lives by improving education and healthcare, and by fostering entrepreneurship in our communities. By embedding social development goals into our strategy, we not only contribute to improving Nigeria’s energy landscape, but also help to drive progress in healthcare, education and personal empowerment.”
Also speaking, Mr. Samson Ezugworie, COO, Seplat Energy, said 2024 was a year of significant achievement across the entire spectrum of the company’sexisting business topped up with the addition of SEPNU Assets in December. “Following Change-in-Control on December 12th 2024, we included 19 days of production from the SEPNU assets which had our full year combined business delivering 52,947 boepd working interest, (Guidance (46-52Kboe), 11% higher than 2023.
“Our legacy business contributed an average daily working interest production of 48,618 boepd, modestly aided by a confluence of several positive catalysts including good performance of the new wells in the 2024 drilling campaign, commencement of gas production from Sapele Integrated Gas Plant (SIGP), improved gas production from Oben following turnaround maintenance, and continuation of the efficiency at the Trans Niger Pipeline (TNP). SEPNU production contributed annualized average production of 4,329 kboepd.”
In her remarks, Mrs. Eleanor Adaralegbe, CFO, Seplat Energy, described 2024 as a strong year for the company, maintaining that: “For our financial results, 2024 results benefited from higher production particularly oil production from the consolidation of SEPNU for the final 19 days of the year; total revenue reached a record of $1.116 billion(N1.652trillion) reflecting a higher output partially offset by modestly lower oil price realizations. The group adjusted EBITDA reached $539 million(N796bn) including $99 million contribution from SEPNU and this represented a 20.3% increase on 2023.
“After taxes of nearly $235 million, our net profit was approximately $145 million. We generated $383 million cash from operations and our Net debt increased to $898 million following the completion of the acquisition of MPNU but despite this, our pro forma net leverage of 0.7 times was flat on 2023 as the company maintained its strong balance sheet.
We maintained good credit ratings in international markets, and this helped us to refinance our $650 million bond in March 2025, where our yield priced inside the comparable Nigerian Government Sovereign bond, a first for Seplat. We look forward to further improvements in key financial metrics in 2025 as a bigger company.”
According to her, the Board approved/recommended a core dividend of US$ 3.6 cents per share (N55.27 per share) for the final quarter of 2024 subject to appropriate withholding tax (WHT). This brings the total core dividend declared for 2024 to US$ 13.2 cents per share (N202.66 per share), a 10% increase on 2023.
