Seplat Energy Grew Revenue By 32% to $308.8M in H1 2021

Seplat energy Revenue declined by 10.7% to N136bn in Q3 2020 Results Brandspurng

29 July 2021: Seplat Energy Plc (Seplat Energy), a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, announces its unaudited results for the six months ended 30 June 2021. Seplat Energy’s total revenue for the period was $308.8 million, up 32.2% from the $233.5 million achieved in 2020.

Crude oil revenue was $244.8 million (H1 2020: $180.1 million) a 35.9% increase compared to 2020, reflecting higher realised oil prices of $64.69/bbl for the period (H1 2020: $35.94/bbl). A $59.9 million oil underlift was recorded under other income in the period, compared to $49.4 million in H1 2020 reflecting oil produced but not lifted in the period.

Based on the document made available to Brand Spur, Seplat Energy’s gross profit increased by 135.8% to $88.9 million (H1 2020: $37.7 million) because of higher revenues. The cost of sales in the period was $219.9 million (H1 2020: $195.9 million).

Production evacuation from the Gbetiokun fields resulted in barging costs of $4.7 million; the higher operational and maintenance costs of $54.1 million includes a combination of costs to support extensive asset integrity works carried out in the period and other production costs which were correctly classified in Q3 2020.

The profit before tax was $62.1 million (H1 2020: $145.3 million loss). The net finance charge was $47.5 million, and higher than planned due to costs associated with the debt restructuring in the period compared to $34.8 million in 2020.

The net profit for H1 2021 was $36.2 million (H1 2020: $110.2 million net loss). The resultant basic EPS was $0.10 in H1 2021, compared to $0.14 basic loss per share in H1 2020.

Financial Highlights

  • EBITDA of $178.9 million
  • Cash generated from operations $125.8 million
  • Cash at bank $298.8 million, net debt of $456.4 million
  • 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; raised a $50 million offtake linked to the RBL in July
  • Total capital expenditure of $57.5 million

Seplat energy Revenue declined by 10.7% to N136bn in Q3 2020 Results Brandspurng


  • Working-interest oil and gas production within guidance at 50,786 boepd
  • Liquids production of 30,028 bopd in H1 2021
  • Gas production up 21% to 120 MMscfd
  • Oben-50 and 51 gas wells completed in the period and producing
  • Safety record extended to more than 20.5 million man-hours without LTI on Seplat-operated western assets
  • First liftings from Amukpe-Escravos Pipeline expected Q4 2021

Q2 2021 interim dividend

Following a review of Seplat’s dividend policy, the Board has approved a Q2 2021 interim dividend of US2.5 cents per share (subject to appropriate WHT) to be paid to shareholders whose names appear in the Register of Members as at the close of business on 12th August 2021.

Roger Brown, Chief Executive Officer, said:

“Seplat continues to deliver a robust performance despite the ongoing pandemic. Our second-quarter volumes were significantly higher than the first three months and we remain confident of a good outcome to the year as we drive improvements across our operations.

The strength of our balance sheet was demonstrated in March when we were able to refinance at a considerably lower cost through the issue of $650 million senior notes. We have since committed to quarterly dividend payments providing more frequent returns to shareholders. For the second quarter, we have declared a dividend of US2.5 cents per share.

In May we announced a change of name to Seplat Energy, reflecting our belief that we must diversify our business so we can offer the optimal mix of energy for Nigeria’s future needs. Having established ourselves as one of Nigeria’s most successful indigenous independent oil and gas companies, we will now build on that strong base and accelerate our domestic gas business, expanding along the gas value chain into LPG and CNG.

As part of Nigeria’s energy transition, we will selectively target opportunities in gas to power and solar energy, critical to providing an alternative to expensive diesel-generated electricity”.

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.

We have significant cash resources and will continue to manage our finances prudently in 2021, expecting to invest more than $180 million of capital expenditure across the full year, with $57 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 and we expect this to be achieved in H1 2022, at a lower cost than originally estimated at FID.