Seplat Energy reports higher profit and declares special dividend
Seplat Energy PLC on Tuesday reported a sharp rise in full-year profit for 2024, supported by higher production and revenue growth, while announcing a special dividend.
The Nigerian oil and gas company said pretax profit nearly doubled to $379.4 million from $191.2 million the previous year. Revenue climbed 5.2% to $1.12 billion from $1.06 billion, driven by an 11% increase in working interest production to 52,947 barrels of oil equivalent per day.
Seplat declared a final dividend of 3.6 US cents per share and announced a special dividend of 3.3 cents, bringing the total payout for 2024 to 16.5 cents per share, up 10% from the prior year. The company expects a further 10% dividend increase in 2025.
Chief Executive Officer Roger Brown called 2024 a ‘defining year’ for Seplat, highlighted by the completion of its acquisition of Mobil Producing Nigeria Unlimited, now Seplat Energy Producing Nigeria Unlimited. He said the integration is progressing well and sees ‘significant prize’ in the offshore shallow water assets.
Looking ahead, Seplat expects production in 2025 to range between 120,000 and 140,000 boepd, including up to 56,000 boepd from its onshore operations. It also guided for capital expenditure of $260 million to $320 million, covering 13 new wells, maintenance, and infrastructure improvements.
The company ended 2024 with $469.9 million in cash and net debt of $898 million. It aims to reduce unit operating costs to $14.0 to $15.0 per boe in 2025 through strategic maintenance and efficiency measures.
Seplat will hold a capital markets day in the third quarter to outline its long-term growth strategy. Its shares were up 3.4% at 199.01 pence in London on Tuesday afternoon.
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