Seplat Energy (SEPL) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 was $715.3m, down 11.7% year-over-year, mainly due to prior year overlift; adjusted revenue rose 6% to $724m.

• Adjusted EBITDA increased 25% to $383.0m, with cash from operations up 17% to $423.3m.

• Net profit fell 56% to $35.3m due to a sharp rise in tax expense (effective tax rate 86%).

• Net debt reduced to $270m (0.5x Net Debt/EBITDA), with $433.9m cash on hand.

• Quarterly dividend increased 20% to US3.6c/share; total 2024 declared dividends at US9.6c/share.

• Received Ministerial Consent for MPNU acquisition, targeting completion by year-end.

Financial highlights

• Oil realised price averaged $82.89/bbl (flat year-over-year); gas price rose 11% to $3.18/Mscf.

• Adjusted gross margin improved to 51% (from 36% in 9M 2023).

• Capex rose to $157.0m, reflecting higher drilling activity.

• Operating profit surged 77.5% to $274.8m, aided by FX gains and lower G&A costs.

• Net cash from operations was $361.8m, up from $296.3m in 9M 2023.

Outlook and guidance

• 2024 production guidance narrowed to 46,000–50,000 boepd; capex expected at top end of $170m–$200m range.

• First gas at ANOH now expected in Q2 2025 due to OB3 pipeline delays.

• Key milestones ahead: MPNU acquisition completion, Sapele Gas Plant commissioning, crude evacuation from Abiala, and ending routine flaring in 2H 2025.