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Seplat Energy’s Operating Profit Rises to N285.2bn in H1 2024

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Seplat Energy’s Operating Profit Rises to N285.2bn in H1 2024

          … Declares US 6 Cents Total Dividend Per Share for H1 2024

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Seplat Energy PLC, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has announces its unaudited results for the for the six months ended 30 June 2024, declaring US 6 Cents total dividend per share for the period.

The foremost energy company grew its profit before tax (PBT) to N244bn from N43.5bn Year-on-Year with cash generated hitting N308.2bn.

The company’s production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd).

In the same vein, Seplat Energy advanced its operating profit to N285.2bn from N60.2bn Year-on-Year.

It achieved more than 4.9 million hours without Lost Time Injury (LTI) at Seplat-operated assets in 6M 2024.

Operational highlights

• Production averaged 48,407 boepd (6M 2023: 50,805 boepd), at midpoint of guidance (44,000 boepd – 52,000 boepd).

• Pipeline losses of 3.1% in 6M 2024, highlights an improving environment for stable operations on the Niger Delta.

Average deferments also improved to 24% (6M 2023: 26%).

• ANOH gas project on track to reach first gas by end 3Q 2024. Critical infrastructure progressed well in 2Q 2024; spurline achieved mechanical completion and progress on OB3 pipeline tunnelling means both infrastructure projects are

on track for completion during 3Q 2024.

• Abiala-1 workover activity complete, second well commenced, first oil on track for 3Q 2024.

• Sibiri-1 and Sibiri-2 onstream and producing at a combined rate of c.3,000 bopd (gross).

• Carbon emissions intensity: 28.6 kg CO2/boe (6M 2023: 26.3 kg CO2/boe).

• Achieved more than 4.9 million hours without Lost Time Injury (“LTI”) at Seplat-operated assets in 6M 2024.

Financial highlights

• Revenue $421.6 million from $547.0 million in 6M 2023 (6M 2024 reported underlift of $55.8 million, 6M 2023 reported overlift of $59.4 million).

• Average realised oil price $85.55/bbl (6M 2023: $79.54/bbl); average realised gas price $2.95/Mscf (6M 2023: $2.87/Mscf).

• Unit production opex stable at $9.7/boe, (6M 2023: $9.6/boe).

• Adjusted EBITDA rose 13.3% to $267.3 million in 6M 2024 (6M 2023: $235.8 million), benefiting from lower costs.

• Cash generated from operations of $226.0 million in 6M 2024, down from $260.0 million in 6M 2023. Cash generated from operations in 2Q 2024 improved sequentially rising to $209.2 million (1Q 2024: $16.8 million).

• Capex invested of $102.4 million (6M 2023: $88.8 million).

• Balance sheet cash at 6M 2024, $371.8 million (3M 2024: $335.6 million), $128 million Mobil Producing Nigeria Unlimited (MPNU) deposit not included.

• Net debt at end June $366 million, down from $385 million at end 1Q 2024. $19.3 million of Reserve-Based Lending (RBL) borrowings were repaid in 6M 2024. Net Debt to EBITDA was 0.76x.

• Q2 2024 dividend declared of US$3.0 c/share. 6M 2024 total declared dividends US$6.0 c/share (6M 2023: US$6.0 c/share)

Corporate updates

• Full year guidance unchanged. Production 44,000-52,000 boepd. Capex $170 million – $200 million.

• On 14 June 2024, we announced that we had been notified of a settlement reached between Nigerian National  Petroleum Company Limited (NNPCL) and MPNU with regards to the MPNU transaction as well as the termination of the court proceedings. Seplat is focused on securing regulatory approvals in the near term.

Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy, said: “Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company. Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.

“In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024. We thank our government partners for their efforts towards completion of critical pipeline infrastructure in recent weeks. In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production. We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas’.

“In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.

“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion.”

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GOVERNOR ODODO FLAGS OFF 20KM OBAJANA-URO-AKU RURAL ROAD

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GOVERNOR ODODO FLAGS OFF 20KM OBAJANA-URO-AKU RURAL ROAD

HAMZAT ACHIMOGU LOKOJA

SPONSORED BY: H&H

Kogi State Governor, Ahmed Usman Ododo has flagged off construction of the 20KM Obajana-Uro-Aku rural road linking parts of Lokoja and Adavi local government areas.

The project is part of interventions by the Rural Access and Agricultural Marketing Project (RAAMP) supported by the World Bank Group and other stakeholders in the agricultural development value chain and it is the first phase of the over 65KM network of rural roads in the state intended create access to farms, farming communities and markets to ensure food security in the state.

Governor Ododo who performed the Flag-off at a ceremony in Apata near Obajana emphasized the pivotal role of rural roads in the development agenda of his administration, adding that the rural roads will not only enhance transportation but also serve as catalyst for rural economic growth and food security in the state.

He noted that the roads will also provide access and connectivity to farmers and traders as part of his administration’s broader strategy to enhance rural development and bring governance closer to people in local communities.

While appealing to benefiting communities to take ownership of the project, Governor Ododo gave a stern warning to contractors handling the project not to divert project funds, urging them to demonstrate high level of integrity and professionalism in project delivery.

On his part, the State Commissioner for Rural and Energy Development, Engineer Abdulmutalib Mohammed said the project is meant to benefit farmers especially by reducing cost of transportation and accessibility for both farmers and traders in the state.

In his remarks, the National Co-ordinator of RAAMP, Engineer Aminu Bodinga represented by Mrs Joy Amadi commended Governor Ododo for his unwavering commitment to rural development which she noted would enhance connectivity and access to markets, social services and opportunities that were previously out of reach by rural dwellers.

Similarly, the State Coordinator of the project, Sheidu Obansa says the network of rural roads will expose the communities to opportunities and promote agricultural development in the state.

Speaking on the development, the Olu of Oworo, Muhammed Adoga Baiyerohi who commended Governor Ododo on the road project, noted that the project will enhance agricultural development and will also reduce vehicular traffic along Obajana road.

Other traditional rulers who spoke on the development commended Governor Ododo for the initiative to help rural dwellers who are mostly farmers and traders in the state.

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Eyong, El Aynaoui, Bala Usman, Tijjani confirm attendance at Realnews 12th Anniversary Lecture       

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Prominent Africans and Nigerians have confirmed their participation in the Realnews 12th Anniversary Lecture on Tuesday, November 19, at the Sheraton Hotel starting at 10 am. 

They include Ms. Beatrice Eyong, UN Women’s Country Representative; Karim El Aynaoui, Executive President, Policy Center for the New South, Rabat, Morocco; Mrs. Hadiza Bala Usman, Special Adviser to the President of Nigeria on Policy & Coordination and Head, Central Delivery Coordination and Engr. Shehu Tijjani, Managing Director, Amal Technologies Ltd.

Ms. Eyong, a Cameronian national, will chair the lecture that will be delivered by Ambassador Prof. Ibrahim Agboola Gambari, former chief of staff of former President Muhammadu Buhari and former Permanent Representative of Nigeria at the United Nations. She will also moderate the discussion session featuring Bala Usman who doubles as a special guest and discussant along with Tijanni.  El Aynaoui will also keynote the Lecture. 

In her acceptance message dated September 10, 2024, Eyong, who has  has over 35 years professional working experience in the international organisations in promoting gender equality and women’s empowerment, said: “I intend to attend the lecture….” She holds a Master of Science degree in Agricultural Extension from the University of Reading, United Kingdom; a Diploma in Women, Extension workers and Agriculture from the Larenstein International Agricultural College – Deventer, the Netherlands; and a Diploma in Integrated Rural Development, from the Pan African Institute for Development West Africa, Buea – Cameroon.

Also, El Aynaoui from Morocco, emailed on May 10, 2024, stating: “Thank you very much for your very kind invitation which I accept gladly.

 I am very honored”. He is also executive vice-president of Mohammed VI Polytechnic University and Dean of its Humanities, Economics, and Social Sciences Cluster, and an economist. From 2005 to 2012, he worked at the Central Bank of Morocco where he held the position of Director of Economics, Statistics, and International Relations. 

At the Central Bank of Morocco, he was in charge of the Research Department and equally a member of the Governor’s Cabinet. Previously, he worked for eight years at the World Bank as an Economist for its regional units in the Middle East and North Africa, and Africa. 

Karim El Aynaoui has published books and journal articles on macroeconomic issues in developing countries.  

On her part, Bala Usman, who has a Bachelor’s degree in Business Administration and Master’s degree in Development Studies from the University of Leeds, UK, sent a message on July 13, 2024, stating: “I will be there and I have sent to my team to schedule”. Bala Usman was the former managing director of the Nigerian Ports Authority (NPA), an activist and a politician.

Similarly, Tijjani, described as a technologist, innovator, visionary leader and entrepreneur dedicated to transforming Nigeria’s technological landscape, said in his message: “Thank you for the honour.

I shall be in attendance by the grace of God.” Tijjani is a First Class graduate in Information Technology and Business Information Systems from Middlesex University with a background in hardware and firmware engineering.

The Management of Realnews Magazine and Publications Limited, publishers of Realnews Magazine Online, had announced the lecture would be on “Africa in World Shifting Geopolitics: Matters Arising on Demography, Technology, Artificial Intelligence, Natural Resources”.

Maureen Chigbo, the publisher of Realnews, said there will be an induction of all the speakers into The Realnews Hall of Fame immediately after the Lecture. Chigbo explained that the Realnews Hall of Fame was established to honour only those who played key roles during the anniversary lectures. 

Realnews, a general interest magazine, is an online publication that thrives on investigative journalism. 

We have expertise in reporting the oil and gas sector with its attendant environmental challenges. We aim to unearth exclusive stories about real people and the challenges they face in their day-to-day activities. 

We do this bearing in mind that government can only act to influence the lives of people positively if they are aware of their true situation.

Hence, our objective is to use our investigative skills to ferret out information in the sectors we focus on and produce an unbiased report that will actually influence the government and decision-makers to take actions that will make society better.

Realnews is populated by seasoned journalists who believe strongly in the tenets and ethics of the profession. 

The online publication believes that journalism as the fourth Estate of the Realm can contribute its quota towards building a fair and just society where fundamental human rights are respected and citizens have the freedom to pursue their interests anywhere in the world without hindrance. 

Its editors have a combined experience of several decades in active journalism practice and are highly dedicated to serving humanity. Hence its motto: “For God and Humanity.”

Realnews Anniversary Lecture Series was established to commemorate the best minds in our society and to tap from them to enrich the discourse in our national development.

Realnews Anniversary Lecture Series was established to commemorate the best minds in our society and to tap from them to enrich the discourse in our national development.

The 11th Anniversary Lecture in 2023 on The Threats of Illicit Funds Flow to the African Economy was delivered by Dr. Edwin W. Harris Jr., Director-General, ECOWAS Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). 

The 10th Anniversary lecture in 2022 on “Drug Abuse among Youths in Africa: Implication for Nigerian Economy and 2023 Elections” was delivered by Brig General Buba Marwa, Chairman, and Chief Executive Officer of the National Drug Law Enforcement Agency, NDLEA;  9th Anniversary Lecture of Realnews in 2021 was delivered by Engr. Simbi Kesiye Wabote, Executive Secretary of the Nigerian Content Development and Monitoring Board on “Nigeria in the Unfolding Integration of the African Market: The Oil and Gas Perspective”; 2020 Eighth Anniversary Lecture of Realnews was delivered by Boss Mustapha, Secretary to the Government of the Federation and Chairman of the Presidential Taskforce on COVID-19 on Managing COVID-19 Pandemic in Africa: The Nigeria Experience; Former President John Dramani Mahama of Ghana gave the 2019 Lecture on Beyond Politics: An Economic Narrative for West Africa while Prof. Mahmood Yakubu spoke on Political Transitions and Africa’s Economic Development: Preparations for Nigeria’s 2019 General Elections at the 2018 Lecture. The 2017 Fifth Anniversary Lecture on African Leadership in a Turbulent Era was delivered by Dr. Oby Ezekwesili, former minister of Education and former World Bank Vice President. 

The 2016 Fourth Anniversary Lecture on Security and National Development in Plural Democratic Society was delivered by Dr. Mohamed Ibn Chambas, former United Nations Secretary General’s Special Representative to West Africa and Sahel; the 2015 Realnews Third Anniversary Lecture was delivered by Professor Chukwuma Charles Soludo, former Governor of the Central Bank of Nigeria (CBN) on November 19, 2015, under the theme: It’s The Nigerian Economy, Stupid? The Second Realnews Anniversary Lecture on Nigerian Democracy: Getting it Right in 2014 was delivered by Professor Maurice Iwu, former Chairman of the Independent National Electoral Commission (INEC).

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NASENI Kicks-off Virtual ASPEN Plus Training Across Development Institutes

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NASENI Kicks-off Virtual ASPEN Plus Training Across Development Institutes

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The National Agency for Science and Engineering Infrastructure (NASENI) has launched a week-long intensive training on ASPEN Plus, a process simulation software, at the agency’s Virtual Manufacturing Lab at its headquarters in Abuja.

The hybrid training which was held across NASENI’s Development Institutes, marks a significant step forward in NASENI’s commitment to advancing technical capacity in renewable energy and engineering design.

The opening ceremony featured remarks from Dr. Chika Ezeanyanso, Deputy Director of the Nano Science Department and representative of the Executive Vice Chairman (EVC) of NASENI. In her address, she emphasized NASENI’s dedication to providing its staff with cutting-edge knowledge to drive innovation in renewable energy.

Dr. Ezeanyanso, on behalf of the participants, expressed her gratitude to the EVC for his approval that championed this initiative and his steadfast commitment to ensuring that NASENI personnel remain at the forefront of technological advancement in biogas and other renewable energy sectors.

The Special Adviser to the EVC on Science and Engineering Commercialization Engr. Anas Yazid Balarabe encouraged participants by emphasizing the value of bridging research and commercialization.

He stressed that the knowledge gained from the training would advance renewable energy solutions and promote innovation, helping NASENI transform research into marketable products that meet national energy needs and support sustainable development.

This training is a follow-up to the successful conclusion of NASENI’s Biogas and Biomethanol Plant Design Training, held in collaboration with SRH Berlin University. It was recommended as part of the agency’s broader strategy to enhance the technical expertise of its staff in the design and commercialization of renewable energy solutions.

The ASPEN Plus training, aimed at empowering 50 carefully selected NASENI Engineers and biochemists who participated in the last training, provides advanced tools for process design, optimization, and simulation, further equipping the team to contribute to Nigeria’s sustainable energy goals.

The participants are expected to leverage this training to design and develop more efficient biogas plants, as well as other sustainable energy solutions. She encouraged the trainees to make good use of the opportunity and apply it for the growth and development of the Agency and Nigeria at large.

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