Nigerian magnate Austin Avuru’s Seplat Energy rebounds from loss as revenue surges above $460 million

Nigeria’s largest energy group, Seplat Energy, has rebounded from last year’s loss, as profit in the first nine months of 2021 surged above the $35-million mark on the back of a double-digit growth in revenues.

Figures contained in Seplat’s latest quarterly filings revealed that the group posted a profit of $35.02 million compared to the loss of $96 million that was reported in 2020.

The triple-digit growth in profit during the accounting period was delivered on the back of an 18.7-percent growth in revenues, as the leading energy group benefitted from the surge in crude oil prices despite lower oil volumes.

However, the group’s gas revenue, which represents nearly 20 percent of total turnover, increased by 10.6 percent to $90.9 million from $82.2 million in 2020 due to higher gas sales volumes of 30.8 bcf* compared to 27.5 bcf* during the same nine-month period in 2020.

The management noted that the increase in gas sales volumes is reflective of the new gas wells brought on stream during the period and the full operations of the Oben gas plant, which underwent turnaround maintenance in the first half of 2020.

Seplat Energy CEO Roger Brown said the growth in profit and revenue was delivered by a robust business model coupled with the prudent and flexible approach taken to manage the business, despite setbacks in the third quarter.

He noted that the group will continue to operate effectively with an increased focus on efficiency in operations, as actions will be taken to improve uptime by opening the Amukpe-Escravos pipeline to further drive cost reduction across its portfolio.

Seplat Energy continues to maintain a leadership position on the Nigerian equity market and in the country’s energy sector.

Austin Avuru and Ambrosie Orjiako, who co-founded the company, both retain a substantial shareholding in the leading energy group.

The group maintains a market valuation of N430.4 billion ($1.05 billion), making it one of the most capitalized entities on the local bourse.

In line with the resilient financial results, the board approved a third-quarter 2021 interim dividend of $0.025, payable to shareholders on Nov. 15.

As of press time, Oct. 28, shares were worth N731.5 ($1.781) on the Nigerian Exchange, 81-percent higher than their opening price of N402.30 ($0.9794) at the beginning of the year.

*bcf or billion cubic feet is a standard unit used in measuring gas