Seplat Energy Plc has announced its audited results for the full year ended December 31, 2021, recording a 128.9 per cent growth in its gross profit to hit N114.2bn.
It also announced a 38.2 per cent rise in its 2021 full-year revenue to N293.6bn, and a growth in profit before tax by 321.1 per cent to N71bn.
Commenting on the oil firm’s 2021 financial results, its Chief Executive Officer, Roger Brown, said, “Seplat Energy announced a major acquisition last week and despite a challenging year for Nigerian oil and gas, the robust results delivered today clearly show how our increasing financial strength has made such an acquisition possible.
“This is without the need to dilute shareholders, by giving international financial partners the confidence to invest in our vision.”
The firm stated that the addition of Mobil Producing Nigeria Unlimited nearly trebled its production and doubled its reserves on a pro forma 2020 basis.
“Our 2021 performance was affected by outages at Forcados Terminal that will no longer have such an impact when we switch to the new Amukpe-Escravos Pipeline, which we expect to inaugurate in March,” Brown stated in a statement issued by Seplat.
He added, “This is part of our strategy to diversify and derisk routes to market, assuring higher revenues from significantly better uptime and lower reconciliation losses.
“Furthermore, once we have completed our acquisition of MPNU, we will add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses.”
He noted that the oil firm’s financial strength was matched by the skills and ambitions of its staff, adding that Seplat looked forward to welcoming more than 1,000 highly trained colleagues from MPNU and would work with them to ensure their smooth onboarding into Seplat Energy.
“Together we will build a sustainable, world-class company that generates attractive returns for stakeholders and delivers energy transition for one of the world’s largest and most rapidly growing populations,” Brown stated.
On Seplat’s outlook and plans for 2022, the company stated that its full-year production guidance for 2022 was set at 50,000 to 60,000 barrels of oil per day on a working interest basis.
This, it said, comprised 30,000 to 35,000 barrels of oil per day liquids and 116 to 150 million standard cubic feet per day (20,000 to 25,000 bpd) gas production.
He noted that this guidance did not include any contribution from MPNU and the ANOH Gas Plant.
“Capital expenditure for 2022 is expected to be around $160m. We expect to drill a minimum of 10 wells, including the Sibiri exploration well and one appraisal well, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas,” the firm stated.
