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 was $477 million, down 2% year-over-year after underlift adjustment; reported revenue was $421.6 million, a 22.9% decline due to lower oil liftings.

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

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

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

Financial highlights

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

• Net profit: $49.9 million (6M 2023: $82.6 million); EPS $0.07/share.

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

• Net debt stood at $366 million, with gross cash at $372 million at period end.

• Dividend maintained at $0.03/share for Q2 2024, with a $0.12 annualized commitment.

Outlook and guidance

• Full-year production guidance maintained at 44,000–52,000 boepd; capex guidance reaffirmed at $170–$200 million, with $102 million spent in H1.

• Operating cost guidance of $9.5–$10.5/boe, with H1 at $9.7/boe.

• ANOH first gas expected in Q3 2024, with Sapele Gas Plant operational in H2.

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

• MPNU acquisition targeted for completion by year-end 2024.