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

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”.