Seplat Grew Revenue By 16.8% to $152.4M in Q1 2021

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29 April 2021: Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, today announces its unaudited results for the three months ended 31 March 2021.

Operational highlights

  • Working-interest oil and production within guidance at 48,239 boepd
  • Average daily volumes of nearly 54,000 boepd achieved in the first 21 days of April
  • Liquids production of 28,541 bopd in Q1 2021
  • Gas production of 114 MMscfd (19,698 boepd)
  • Low unit cost of production of $8.70/boe
  • Oben-50 gas well now producing, Oben-51 drilled and completed with gas expected to flow in May
  • Safety record extended to more than 17 million hours without LTI on Seplat-operated assets

Financial highlights

  • Board adopts quarterly dividend policy; declares Q1 2021 dividend of US2.5 cents per share
  • Revenue up 16.8% to $152.4 million
  • EBITDA of $77.8 million
  • Cash at bank $236.3 million, net debt of $458.1 million
  • The 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
  • Total capital expenditure of $32.6 million

Fitch Affirms Seplat at 'B-'; Outlook Positive
Fitch Affirms Seplat at ‘B-‘; Outlook Positive –

Corporate updates

  • Seeking shareholder approval at the AGM on 20 May 2021 to change name to Seplat Energy PLC to reflect the evolving strategy
  • ANOH project now fully funded following successful $260 million debt issue
  • Plan to host Capital Markets Day on 29 July 2021


  • Expected production unchanged at 48-55 kboepd for full year, subject to market conditions
  • Capex guidance unchanged, expected to be $150 million for the full year
  • 5.0MMbbls hedged at $35-$45/bbl from Q2 to Q4 2021

Roger Brown, Chief Executive Officer, said:

“We have made a progressive start to the year, delivering oil and gas production volumes of 48,239 boepd, within our guidance range. With the Gbetiokun field at OML40 now back in production, we are currently achieving average daily volumes of nearly 54 kboepd so far in April and we will build on this as we add additional oil and gas wells this year.

Our flagship ANOH gas project is proceeding as planned and was fully funded in February when our joint venture company, AGPC successfully raised $260 million of debt financing. In addition, the success of our $650 million Eurobond issuance in March demonstrates investor confidence in our prudent financial management and the exciting future ahead for the Company and its stakeholders.

As we drive forward our strategy of being a low-cost energy provider delivering reliable, affordable and sustainable energy to the young, fast-growing population of Nigeria, energy transition – which delivers on Nigeria’s social development goals in tandem with the climate agenda – is essential.

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This is the backbone of Seplat’s strategy and we will be communicating how we plan to achieve this over the coming months. To that end, the Board took the decision to change our name to Seplat Energy PLC, which more adequately reflects our ambitions of providing a broader energy mix. We will present the name change to our shareholders for approval at the AGM on 20 May 2021.”

Outlook for 2021

For 2021 we expect to produce an average of 48,000 – 55,000 boepd, taking into account the impact of OPEC+ quotas. We continue to hedge against oil price volatility and expect a higher proportion of revenues to come from long-term gas contracts at stable prices.

Read Also:  Seplat appoints 2 Independent Non-Executive Directors

We have significant cash resources and will continue to manage our finances prudently in 2021, expecting to invest $150 million of capital expenditure across the full year, with nearly $33 million already invested. We remain confident that our ongoing cost-cutting initiatives and prudent management of cash will enable further reductions in debt, whilst supporting dividend payments and investment for growth.

Following its successful funding, the completion of the ANOH project remains a major priority. Although we expect some COVID-19 related delays to push completion into early 2022, following a cost optimisation programme we now expect the project to cost no more than $650 million, substantially below the $700 million budget previously stated at Final Investment Decision.

Read Also:  Google Partners To Expand Digital Skills Program To Children In Nigeria, And Across SSA

Proposal to change the name to Seplat Energy PLC

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We are seeking shareholder approval to change our name to Seplat Energy PLC to reflect the future direction of the Company. The change of name will be accompanied by a new corporate brand identity that we plan to unveil at the Seplat Energy Summit in September. Before that, we intend to host a Capital Markets Day on 29 July 2021 to outline the Company’s strategic direction and its plans to develop its New Energy business.

Adoption of quarterly dividend

On 28 April 2021, the Board approved the payment of quarterly dividends, commencing with an interim dividend of US2.5 cents, in a change to Seplat’s previous policy of declaring dividends twice a year in the Q3 results and the full-year results. The change in policy is intended to provide more frequent returns to shareholders.

Seplat — A Silver Lining Amidst The Uncertainty

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