The shareholders of Seplat Energy Plc yesterday approved a total dividend payout of $0.10 per share dividend.
The shareholders gave their approval at the company ninth Annual General Meeting (AGM)in Lagos.
Speaking to shareholders, the chairman of Seplat Energy, Dr Ambrosie Orjiako said that "Our operational and financial performance in 2021 reflects the challenges of our business in Nigeria. Our average working interest production was 47,693 boepd including 29,091 bopd of liquids and 107.9 MMscfd of gas (18,602 boepd)."
According to him, "Our robust operational performance, despite our operational challenges meant that we were able to meet our dividend commitment and, with the Board having approved a Q4 dividend of $0.025 per share, we once again returned $0.10 per share to our shareholders for the 2021."
He pointed out that "Since we raised $535 million at our initial public offering in May 2014, we have returned over $400 million to shareholders in the form of dividends."
He explained that "The performance of our oil business was impacted by two lengthy shut-ins at one of the third-party operated export routes that we rely upon. This underscores the need for alternative export routes to mitigate this risk.
"We drilled five oil wells and three gas wells during the year; the oil wells have a combined gross potential of 17.5 kbopd and the gas wells have a combined gross rate of 130 MMscfd of gas and 5.2 kbpd of condensate. I am particularly proud of our strong safety record which saw us reach 24 million hours without any Lost Time Injury (LTI) from our operated assets in 2021."
He explained that the company introduced hydrocarbons into the Amukpe-Escravos Pipeline (AEP) and are poised to launch this alternate export route which will enable the company to evacuate up to 40 kbopd gross from our OMLs 4, 38 and 41.
According to the chairman, this is an achievement worthy of note and this performance translated into revenues of $733 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $372 million, up 38 per cent and 40 per cent respectively, from 2020, as our business recovered from the worst of the COVID-19 pandemic.
"Our cash position remained strong as we ended the year with $341 million in cash and a net debt of $426 million. We have certainly delivered on that vision of building a business that is now the leading Nigerian independent and a major provider of natural gas to the domestic market."
On his decision to retire as Chairman and Director of Seplat Energy, he noted that, "In fulfilment of a promise we made long ago to have an Independent Non-ExecutiveChairman, I decided that it was essential to retire from the Board and as Chairman of Seplat Energy.
"It is therefore a promise kept in the overall interest of the Company. I have now served as Chairman of Seplat Energy for 12 years and it has been an honour and a privilege to do so. I am proud of what we have been able to achieve, as we established ourselves as the largest indigenous independent energy company in Nigeria through operational excellence,the acquisition of eight oil and gas assets, the expansion of our domestic gas business and the dual listing on both the Nigerian and London Stock Exchanges, the first by a Nigerian company. These achievements are down to our excellent team and our strong, collaborative relationships with our stakeholders.
With the recently announced proposed acquisition, we are going to be in an even better position to drive transformational growth and profitability for all our stakeholders, meet our vision of delivering Nigeria's energy transition and become the Nigerian energy champion. I am leaving the Board of Directors with a sense of fulfilment, not only in co-founding Seplat Energy, but also steering it to an enviable position."
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On the outlook for Seplat Energy, chief executive officer of Seplat Energy, Roger Brown said "The energy industry in Nigeria has a bright future and as Nigeria's indigenous energy leader we are going to be powering the country's energy transition and future prosperity.
"We intend to develop the onshore assets we have owned for years; develop the assets we have acquired with Mobil Producing Nigeria Unlimited (MPNU) and create new opportunities in renewables and other energy products. This is how we will build a sustainable business and deliver energy transition and if we can become the largest energy provider in a country with a population expected to exceed 400 million by 2050, that will make Seplat Energy a truly global force."
