Shareholders of Seplat Energy Plc have praised the company’s impressive financial performance for the 2022 fiscal year, with a profit of $204.4 million and a dividend of 15 cents per share.
The energy company, which is listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), held its 10th Annual General Meeting (AGM) virtually, with stakeholders from around the world in attendance.
During the AGM, Mr. Basil Omiyi, the Chairman of the Board, highlighted the company’s achievements. Seplat Energy recorded a significant increase in total revenue, which rose by 29.8 percent to $951.8 million. Profit before tax also experienced a healthy growth of 15.3 percent, reaching $204.4 million.
Impressed by the financial performance, the Seplat Energy Board recommended a special dividend of 5 cents per share in addition to the final quarterly dividend of 2.5 cents per share, resulting in a total dividend of 15 cents per share for the year.
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The shareholders present at the meeting approved the dividend payout, which is scheduled to be disbursed to shareholders whose names are on the company’s register by May 16, 2023.
Mr. Omiyi acknowledged the challenges faced by the company’s oil business during the year. Production was negatively impacted in the third quarter due to evacuation problems at the Forcados Oil Terminal (FOT).
However, the launch of the Amukpe-Escravos Pipeline (AEP) provided some relief, allowing for a working interest production of approximately 10,100 barrels of oil per day (bopd).
The AEP now serves as a major export route for Seplat Energy’s largest assets, reducing reliance on the Trans Forcados Pipeline and FOT.
The gas business of Seplat Energy remained strong throughout the year. The construction of the ANOH Gas Processing Plant progressed well, and operations are projected to commence in the final quarter of 2023, pending the completion of third-party infrastructure. Renegotiated Gas Sales Agreements (GSAs) in the second half of 2022 supported revenue growth and profitability in the gas sector.
Over the past year, Seplat Energy has focused on fulfilling its new purpose and vision for energy transition. The company aims to increase the supply of natural gas to power Nigeria’s electricity grid, displacing the use of diesel in power generation. Additionally, Seplat Energy’s New Energy business is dedicated to developing power and renewable energy sources.
Mr. Omiyi emphasized the company’s commitment to addressing climate change and reducing carbon emissions. Seplat Energy adopted a Climate Change Policy and launched the Flares Out initiative, which aims to eliminate routine flaring by the end of 2024, six years ahead of Nigerian regulatory requirements and the World Bank’s initiative. The company’s efforts align with the goals of the Paris Agreement and Nigeria’s pathway to carbon neutrality by 2060.
As part of its commitment to transparency and climate risk evaluation, Seplat Energy published its first Climate Risk and Resilience Report, outlining its approach to climate change risk in accordance with the Taskforce on Climate-related Financial Disclosures and the requirements of the London Stock Exchange.
Shareholders expressed their satisfaction with the company’s performance and dividend payout. Mr. Patrick Ajudua commended Seplat Energy for its consistency in dividend payments, particularly during challenging times. Mr. Matthew Akinlade, President of the Noble Shareholders Solidarity Association, praised the effective management of the company’s costs despite the challenges faced in 2022.
Speaking at the meeting, the Acting Chief Executive Officer, Mr. Samson Ezugworie, highlighted Seplat Energy’s commitment to becoming a leading supplier of lower-carbon and renewable energy.
Mr. Ezugworie emphasized the company’s plans to expand into new markets and explore opportunities in the renewable energy sector.
One of the key strategies is to provide more gas to Nigeria’s power sector, reducing the nation’s reliance on carbon-intensive imported diesel fuel.
“We are dedicated to reducing carbon emissions and creating a sustainable energy future,” said Mr. Ezugworie.
“In addition to supplying gas to the power sector, we are also considering hybrid systems that combine renewable technologies like solar power with gas, providing reliable baseload power at all times.”
Seplat Energy’s focus on sustainability and decarbonization aligns with global efforts to combat climate change and transition to cleaner energy sources.
By investing in renewable energy and reducing routine flaring, the company aims to contribute to Nigeria’s environmental goals and support the objectives of the Paris Agreement.
The virtual AGM provided an opportunity for shareholders, regulators, company directors, and the media to come together and discuss Seplat Energy’s performance and future plans.
Despite the challenges faced by the energy industry, the company’s strong financial results and commitment to sustainability have earned praise from shareholders and industry experts.
Seplat Energy’s success not only reinforces its position as a leading Nigerian independent energy company but also demonstrates its ability to adapt and thrive in a rapidly changing energy landscape.
With a solid financial foundation, a focus on sustainable practices, and a vision for the future, Seplat Energy is well-positioned to drive positive change in the energy sector and contribute to Nigeria’s economic growth.
