Its revenue strengthened by more than one-third to N403.9 billion year on year even when oil production was 6.8 per cent weaker
Nigeria's biggest public energy company, Seplat Energy, recorded record annual revenue in 2022 amid the global oil price increase occasioned by the Russia-Ukraine war.
Given Russia's significance as the world's third-biggest crude producer before the hostility broke out, the warfare involving the two neighbours is stoking a sharp oil supply gap, from which oil corporations around the globe are reaping big.
From BP, Exxon Mobil and Shell to Chevron, TotalEnergies and Equinor, big and mid-sized oil firms are turning in record profits, with some even doubling theirs.
Seplat, whose shares are quoted in London aside its primary listing in Lagos, is riding on the wave also even though that fortune has much eluded Nigeria, its base, on account of the government's trouble in curbing commonplace oil theft.
Its revenue strengthened by more than one-third to N403.9 billion year on year even when oil production was 6.8 per cent weaker, according to its earnings report issued Tuesday.
Seplat's operation in Nigeria's Niger Delta took a hit from force majeure of 146 days (most of them in the third quarter) on the Forcados Terminal, a key export point for crude pumped over 22 kilometres from the shore of Forcados River in southern Nigeria.
Cost of sales was up by N27.3 billion or 15.2 per cent, driven by royalties, while general and administrative expenses galloped by 81.8 per cent to N58.3 billion, hurting operating profit.
The company incurred N15.3 billion as another loss owing to the over-lift of crude above the agreed production quota, loss on foreign exchange, as well as loss on disposal of oil & gas assets.
Pre-tax profit scaled up 22.1 per cent to N86.7 billion, while profit for the year slid 5.3 per cent to N44.4 billion after spending on income tax surged to N42.3 billion from N24.1 billion one year prior.
"As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year," said CEO Roger Brown.
"Our gas business continues to develop, with the first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders."
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Seplat, backed by Paris-based Etablissements Maurel et Prom SA, cut carbon emissions by 35 per cent last year in faithfulness to its climate ambitions, he added.
Share Price
Meanwhile, the share price of SeplatEnergy struck its highest since September in London on Tuesday, after the oil driller said it would pay an unusual special dividend.
Priced at 119.5 GBX per unit at 15:00 WAT, the stock was trading 4.6 per cent up, whereas it did not move throughout trade in Lagos where it is quoted at N1,325.
The resolution by the board to compensate shareholders with a $29.4 million payout (5 cent pools per share), the first of its kind, is a marker of the dramatic prosperity the oil driller witnessed in 2022.
That added to the $14.7 million (2.5 cents per share) final dividend for the year brings the proposed dividend for the fourth quarter of 2022 to $44.1 million.
"The exchange rate for the Naira or Pounds Sterling amounts payable will be determined by reference to the relevant exchange rates applicable to the US dollar on 17th April 2023 and will be communicated by the Company on 18th April 2023," Seplat said in a note.
Eligible shareholders will receive the payment on or around 10 May, Seplat said in the document seen by PREMIUM TIMES if the move finds approval at the next AGM.
