… Declares US2.5 Cents Per Share for Q4
BY GODWIN OBI
Seplat Energy Plc, has released its audited results for the full year ended 31 December 2021, recording a growth of its 2021 full-year gross profit by 128.9 per cent to N114.2 billion.
The company also announced a 38.2 per cent rise in its 2021 full-year revenue to N293.6 billion and a growth in profit before tax by 321.1 per cent to N71 billion.
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc, said: “Seplat Energy announced a major acquisition last week and despite a challenging year for Nigerian oil and gas, the robust results delivered today clearly show how our increasing financial strength has made such an acquisition possible, without the need to dilute shareholders, by giving international financial partners the confidence to invest in our vision.
The addition of Mobil Producing asset nearly trebles its production and doubles the company’s reserves on a pro forma 2020 basis, reinforcing its leadership of Nigeria’s indigenous energy sector and enabling it to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns.
However, its 2021 performance was affected by outages at Forcados Terminal that will no longer have such an impact when it switches to the new Amukpe-Escravos Pipeline, which we expect to launch in March.
This is part of strategy to diversify and derisk routes to market, assuring higher revenues from significantly better uptime and lower reconciliation losses.
Once it completes acquisition of Mobil asset, Seplat will add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses.
The addition of the asset offers a significant undeveloped gas resource base which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.
Full-year production guidance for 2022 is set at 50,000 to 60,000 boepd on a working interest basis, comprising 30,000 to 35,000 bopd liquids and 116 to 150 MMscfd (20,000 to 25,000 boepd) gas production. This guidance does not include any contribution from MPNU and the ANOH Gas Plant.
“We expect production uptime of 75% for evacuation through the TFS and 90% for evacuation via the AEP, the latter being our preferred export route from OMLs 4, 38, & 41.
“Capital expenditure for 2022 is expected to be around $160 million. We expect to drill a minimum of ten wells, including the Sibiri exploration well and one appraisal well, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas. The 2022 drilling programme is designed to address production decline and along with completion of maintenance activities, will support long-term production levels from the assets. With the recovery in oil prices, rig-based and other project activities activity will ramp-up in 2022.” Brown said.
Facilities and engineering projects will focus on delivery of an upgraded integrated gas processing facility at Sapele and further upgrades to the liquid treatment facility to enable increased deliveries of dry crude. Towards its goal to end routine flaring by 2024, Seplat is focusing on Oben, Amukpe, Sapele & Jisike end of routine flaring projects, which will capture and monetise gas for productive use.
In OML 53, in addition to drilling, it plans to complete the Jisike flow station debottlenecking and gaslift compressor station and installation of the Ohaji South Lease Automatic Custody Transfer (LACT) Unit.
For the non-operated assets, in OML 40, in additional to the drilling plans, facilities and engineering work will focus on the Gbetiokun facilities upgrade to optimise the Gbetiokun barging operations; whilst it complete all front-end activities for the Gbetiokun to Adagbasa pipeline which will replace the barging of the produced crude.
In OPL 283, is planning one gas well re-entry for production testing and the Igbuku gas plant design (FEED). The delivery of the 2022 workplan will be underpinned by a strong commitment to safety, asset integrity, GHG emissions reduction and operational excellence.
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