Seplat Energy PLC, a leading Nigerian independent energy company, has reported a strong performance for the first half of 2023. The company achieved a 2% increase in production, supported by reduced losses on its Western Asset and increased output from OML40. Despite lower oil prices and the non-cash impact of the devaluation of the Nigerian Naira, Seplat Energy’s revenue remained strong.
The company’s solid operating performance puts it on track for an excellent year and supports the increased quarterly dividends announced in April. Despite the impact of the recent Naira devaluation, Seplat Energy’s balance sheet remains strong. The company attributes its robust cash generation to the use of the new Amukpe-Escravos Pipeline, which has significantly benefited its operations.
Seplat Energy is focused on improving operations, reducing costs, and further derisking the business. The company’s efforts to improve governance and sustainability have received support from Nigerian and international investors. Additionally, Seplat Energy is looking forward to the development of its assets and the launch of its joint venture ANOH Gas Processing Plant, which is expected to significantly boost cash generation in the coming years.
The company is confident that its proposed acquisition of MPNU, a transformational move, will be approved. This acquisition will enable Seplat Energy to scale into a significant energy supplier with diverse and productive assets, generating substantial benefits for Nigeria. The company fully aligns with and supports the recent government efforts to make Nigeria a more attractive place for investment. Seplat Energy remains committed to delivering affordable and reliable energy for Nigeria’s young, entrepreneurial, and rapidly growing population.
In conclusion, Seplat Energy’s strong 6-month performance, supported by increased production and robust cash generation, positions the company for a successful year and higher dividends for shareholders. The company’s focus on improving operations, developing assets, and increasing cash generation through the ANOH Gas Processing Plant and the proposed acquisition of MPNU demonstrates its commitment to sustainable growth in the Nigerian energy sector.
