Seplat Energy (SEPL) H1 2024 earnings summary

Executive summary

• H1 2024 production averaged 48,407 boepd, down 4.7% year-over-year but within guidance, with oil/gas mix stable at 61%/39%.

• Adjusted revenue reached $477 million, down 2% year-over-year after underlift adjustment; reported revenue was $421.6 million.

• Adjusted EBITDA rose 13% to $267 million, reflecting strong cost discipline and operational efficiency.

• Net profit fell 39.6% to $49.9 million, mainly due to a significantly higher effective tax rate of 72%.

• Major strategic progress on the ANOH gas project and the MPNU acquisition, with ANOH commissioning and regulatory process ongoing.

Financial highlights

• Adjusted revenue: $477 million (6M 2023: $488 million); adjusted EBITDA: $267 million (6M 2023: $236 million), margin 63.4%.

• Operating profit surged 77% year-over-year to $209.1 million, aided by FX gains and lower G&A expenses.

• Net profit after tax was $49.9 million, with EPS of $0.07/share, unchanged year-over-year.

• Net debt stood at $366 million at June 2024, Net Debt/EBITDA at 0.7x.

• Cash flow from operations was $226 million; closing cash balance at $372 million.

Outlook and guidance

• Production guidance maintained at 44,000–52,000 boepd for 2024.

• CAPEX guidance reaffirmed at $170–$200 million; $102 million spent in H1.

• ANOH first gas expected in Q3 2024; Sapele Gas Plant and OB3 pipeline on track for H2 2024.

• Commitment to end routine flaring by H2 2025, with key projects on schedule.

• Core dividend guidance maintained at $0.12/share for 2024.