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Seplat Energy Grows Revenue by 32 Percent to $308.8 million in H1 2021

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Seplat - Investors King

Seplat Energy Plc grew revenue by 32 percent in the first half of 2021 to $308.8 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $178.9 million.

The company generated $125.8 million cash from operations and successfully issued $650 million 7.75 percent senior notes to redeem existing $350 million at 9.25 percent senior notes. 

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, announces its unaudited financial statements period ended 30 June 2021.

Seplat Energy Financial Highlights

Operational

• Working-interest oil and gas production within guidance at 50,786 boepd
• Liquids production of 30,028 bopd in H1 2021
• Gas production up 21% to 120 MMscfd
• Oben-50 and 51 gas wells completed in the period and producing
• Safety record extended to more than 20.5 million man hours without LTI on Seplat-operated western assets
• First liftings from Amukpe-Escravos Pipeline expected Q4 2021

Financial
• Revenue up 32% to $308.8 million
• EBITDA of $178.9 million
• Cash generated from operations $125.8 million
• Cash at bank $298.8 million, net debt of $456.4 million
• Successful issue of $650 million 7.75% senior notes to redeem existing $350 million 9.25% senior notes and repay $250 million drawn on $350 million RCF
• Refinanced $100 million Westport RBL facility; raised a $50 million offtake linked to the RBL in July
• Total capital expenditure of $57.5 million

Corporate Actions
• Interim dividend of US2.5 cents per share in line with Seplat’s quarterly dividend distribution timetable
• Mr. Damian Dodo, SAN, and Lord Mark Malloch-Brown, both Independent Non-Executive Directors retired from the Board; replaced by Prof. Fabian Ajogwu and Mr. Bello Rabiu effective July 9, 2021.

Corporate updates
• Name changed to Seplat Energy Plc to reflect evolving strategy
• ANOH project now fully funded following successful $260 million debt issue

Outlook
• Expected production unchanged at 48-55 kboepd for full year, subject to market conditions
• Capex now expected to be $180 million for the full year
• ANOH project remains on track for H1 2022 first gas
• 4.0 MMbbls hedged at $35-$50/bbl for H2 2021

Speaking on the company’s performance in the first six months, Roger Brown, Chief Executive Officer, said: “Seplat continues to deliver a robust performance despite the ongoing pandemic. Our second-quarter volumes were significantly higher that the first three months and we remain confident of a good outcome to the year as we drive improvements across our operations.

The strength of our balance sheet was demonstrated in March when we were able to refinance at considerably lower cost through the issue of $650 million senior notes. We have since committed to quarterly dividend payments providing more frequent returns to shareholders. For the second quarter, we have declared a dividend of US2.5 cents per share.

In May we announced a change of name to Seplat Energy, reflecting our belief that we must diversify our business so we can offer the optimal mix of energy for Nigeria’s future needs. Having established ourselves as one of Nigeria’s most successful indigenous independent oil and gas companies, we will now build on that strong base and accelerate our domestic gas business, expanding along the gas value chain into LPG and CNG. As part of Nigeria’s energy transition, we will selectively target opportunities in gas to power and solar energy, critical to providing an alternate to expensive diesel generated electricity”.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nintendo to See 8% Increase in Revenue Despite Recent Decline

Nintendo saw a 5% decline in its Q2 results

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Nintendo

Video game sales have recently declined in revenue. It is suspected that this downturn comes as a result of people spending less time on gaming and more time going out. This fall in quarterly revenue also comes just after many lockdown restrictions have been lifted.

As the industry begins to falter this causes many to wonder, will gaming continue with its downward trajectory?

Mr.Gamble took a closer look at the most recent quarterly earnings for video game giants, Microsoft, Sony and Nintendo to determine the next quarter’s revenue predictions. Research took into account the Q2 and total 2021 earnings as well as the most recent quarterly earnings of 2022 and its decline in percentage.

Company

2021 total year earnings

2021 Q2

quarter earnings

Most recent 2022

quarterly earnings

% decline in 2022 Q2

Next quarter’s revenue predictions

(average)

Microsoft

£10.5 billion

£3.9 billion

£3.8 billion

7%

£3.85 billion

Sony

£14.9 billion

£8.8 billion

£3.7 billion

2%

£6.25 billion

Nintendo

£6.6 billion

£2.2 billion

£1.9 billion

5%

£2.05 billion

According to the recent financial statement published by Microsoft, its revenues saw a huge depreciation of 7%. This is largely due to the company’s sales of Xbox consoles declining. The company also saw a 2 billion decrease compared to its Q2 revenue of £3.9 billion last year.

Despite the loss in revenue, our study predicts that Microsoft could see a slight increase from the £3.8 billion it received this quarter to £3.85 billion by its next quarterly review.

Although Sony witnessed just a 2% decline in sales for its most recent quarter, its operating profits saw a more disastrous downturn, plunging to almost 37%. However, in spite of this gloomy outlook the company could still see a healthy turnover of £6.25 billion next quarter, almost a 2.6 billion increase from its current financial state.

Nintendo saw a 5% decline in its Q2 results. According to the Japanese company, this weak performance comes as a result of not being able to sell as many Switch consoles as it wanted due to a global semiconductor shortage. Though this may have been the case, it is still possible for Nintendo to see a decent 7.8% increase in revenue in its next quarter to £2.05 billion.

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Oil Spill: Shell Spills 5 Barrels of Oil in Bodo Community Rivers State

Shell has spilled five barrels of crude oil from its Trans Nigeria Pipeline (TNP) into the Bodo community in Gokana Rivers state

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One of the world’s leading energy companies, Shell has spilled five barrels of crude oil from its Trans Nigeria Pipeline (TNP) into the Bodo community in Gokana Rivers state.

The oil spillage was reported by Joint Investigation Visit (JIV) approved by the host community, Rivers state Ministry of Environment, the National Oil Spill Detection and Response Agency (NOSDRA) and Shell Petroleum Development Company (SPDC).

JIV is an organisation that investigates oil spills, pipeline leakages, causes and their impact on the community.

Shell’s Trans Nigeria Pipeline spilled about 98% of water and 2% of crude oil into the Bodo community due to the ongoing flushing of the TNP with 5 barrels of leftover crude oil.

The spokesperson for Shell Petroleum Development Company (SDPC), Michael Adande, however, explained that the effect of the oil spill on the community was minimal since the TNP has not transported crude oil since June 2022.

According to him, the JIV will release an up-to-date report on the situation. 

Micheal said, “The spill from the Bomu-Bonny section of the Shell petroleum development company JV’s TNP in Bodo community, in the local government area of Gokana, Rivers State was largely water (98 per cent) from the ongoing flushing of the TNP, with the leftover crude oil of about five barrels as established and signed by the JIV led by regulators and involving representatives of the Rivers State Ministry of Environment and the community.

“Owing to the high level of theft, Shell petroleum Development Council has not processed crude oil through the TNP since mid-June 2022.

“Cleanup of the affected area and repair work on the pipeline are underway.”

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Cement Manufacturers on NGX Pays N115.782 Billion Income Tax in H1 2022

Cement manufacturing companies paid N115.782 billion in income tax in the first half (H1) of 2022

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Lafarge, Bua Cement and Dangote Cement

Cement manufacturing companies listed on the Nigerian Exchange Limited (NGX) paid N115.782 billion in income tax in the first half (H1) of 2022.

Their unaudited financial statements obtained by Investors King revealed.

Dangote Cement Plc, Nigeria’s most capitalised company and the largest cement manufacturing company in sub-Saharan Africa, paid N92.786 billion in income tax in H1 2022, up from N89.624 billion paid in the same period of 2021.

The company reported a 10.2% decline in profit after tax to N172.104 billion, down from N185.692 billion reported in the corresponding period of 2021. Dangote Cement realised N808.037 billion in revenue during the period.

BUA Cement Plc, Nigeria’s second-largest cement manufacturer, remitted N13.527 billion in income and deferred taxes to the Federal Inland Revenue Service in the first 6 months of the year.

The cement manufacturing company generated N188.562 billion in revenue and reported a 41.40% increase in profit after tax to N61.364 billion.

Lafarge Africa, another key player in the cement industry, reported revenue of N186.587 billion in the first half of the year. The company then paid N9.468 billion in income tax before declaring a profit after tax of N37.410 billion for the period under review.

Therefore, the firms paid (Dangote Cement – N92.786 billion; BUA Cement – N13.527 billion and Lafarge Africa remitted N9.468 billion) a combined N115.782 billion in income tax to the federal government in H1 2022.

Together, the three cement manufacturing companies realised N1.183 trillion in combined revenue and reported a total profit after tax of N172.202 billion.

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