By Mike Abbah
Seplat Energy Plc has reported a pre-tax profit of N561.4 billion for the fiscal year (FY) ended 31 December 2024.
This represents a 347.21% increase from the N125.5 billion reported in the previous year, amid growth in the company’s overall revenue.
For FY 2024, Seplat’s total revenue reached N1.6 trillion, a significant rise from N696.8 billion the prior year, with crude oil sales constituting 88% of this revenue and gas sales following as the next largest contributor.
Additionally, Seplat Energy has declared a final dividend of US 3.6 cents per ordinary share and a special dividend of US 3.3 cents for the period ended 31 December 2024, both subject to withholding tax, for registered shareholders.
The company stated that the final dividend will be paid to shareholders listed in the Register of Members as of the close of business on May 9, 2025.
Elaborating on the qualification date, the company stated: “The qualification date is the close of business on May 9, 2025. Additionally, on the London Stock Exchange, the Associated Record Date will also be May 9, 2025, while the Ex-Dividend date is set for May 8, 2025.”
Seplat Energy’s full-year revenue haul of N1.6 trillion was driven by high crude oil sales which accounted for 88% of total sales at N1.4 trillion.
Similarly, gas sales contributed 11.19% at N184.8 billion, and natural gas liquids added a minimal N389 million.
However, the cost of sales increased significantly by 170.90%, reaching N941.4 billion, compared to N347.5 billion in the prior year.
Major drivers of this increase included Operations & Maintenance Costs at N318.5 billion, Depletion, Depreciation, and Amortisation at N265.3 billion, and Royalties totaling N216 billion.
Despite the higher costs, gross profit rose by 103.27% to N710 billion, up from N349.3 billion in FY 2023.
Seplat Energy plans to invest up to $320 million in new wells and infrastructure this year, aiming to more than double its oil output to as much as 140,000 barrels per day following its acquisition of Exxon Mobil’s Nigerian assets.
The company secured government consent last October to acquire 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, and 51% of the Bonny River natural gas liquids recovery plant previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local unit.
This acquisition is a large part of the projected production increase, which could take the company’s onshore and shallow water oil output from an average 48,618 bpd last year to up to 140,000 bpd, with the former Exxon assets contributing 60%.
“This year we will focus on re-opening previously shut-in wells in SEPNU (the former Exxon assets), alongside another full drilling campaign for our onshore assets,” Seplat CEO Roger Brown said while announcing the FY 2024 results.
