Seplat Energy Plc, the leading energy group co-founded and partly owned by Nigerian energy magnate Ambrosie Bryant Chukwueloa Orjiako (ABC Orjiako), has announced its impressive fiscal year 2023 results, achieving a groundbreaking milestone by surpassing the $1-billion revenue mark.
Renowned for its focus on Nigeria’s Niger Delta region’s oil and gas sector, Seplat Energy has solidified its position as the largest listed energy group on the Nigerian Exchange, under the strategic guidance of Orjiako and co-founder Austin Avuru.
Nigerian energy giant, Seplat Energy, achieves impressive 11.5-percent revenue growth
The recently unveiled fiscal year 2023 financial results showcase a robust performance, with revenue exceeding $1.06 billion, indicating an 11.5-percent increase. This remarkable growth is primarily driven by an 11.7-percent rise in crude oil revenue, soaring to $937.9 million. The surge in revenue can be attributed to escalated oil production, reduced pipeline losses, and increased overlift during the reporting period.
Despite experiencing a decrease in the average realized oil price from $101.67 per barrel in 2022 to $83.3 per barrel in 2023, Seplat Energy has successfully fortified its balance sheet. The group’s gross profit has witnessed a commendable 14.4-percent rise, climbing from $464.7 million in 2022 to $532 million in 2023, fueled by intensified production activities during the period.
Demonstrating financial resilience amidst a challenging oil market, Seplat Energy has seen its year-end cash reserves swell to $450 million, up from $404 million in 2022, while simultaneously reducing year-end debt to $306 million from $366 million in the previous year.
Although the group’s profit before tax experienced a slight decline of 6.4 percent, amounting to $191.2 million compared to $204.4 million in 2022, its profit after tax witnessed a significant surge of 18.3 percent, reaching $123.9 million in 2023 from $104.7 million in 2022. This increase in profit can be attributed to a substantial reduction in tax expenses, which declined by 32.4 percent.
Board proposes final and special dividends amid strong financial results
In light of its impressive financial performance, Seplat Energy’s board of directors has proposed a final dividend of $0.03 per share, along with a special dividend at a rate of $0.03 per share. This proposal is subject to approval by shareholders at the annual general meeting scheduled for May 16, 2024.
With Orjiako and Austin Avuru holding a 6.43-percent and 8.2-percent stake in the energy firm respectively, substantial dividends are anticipated from their investments in Seplat Energy.
