Seplat Energy Plc, a renowned Nigerian independent energy firm listed on the NGX and LSE, held its 10th Annual General Meeting (AGM) online with shareholders, regulators, company directors, and the media.
The Chairman of Seplat Energy, Mr. Basil Omiyi, told shareholders and other stakeholders at the AGM that the Company’s revenue climbed 29.8% to $951.8 million and profit before tax rose 15.3% to $204.4 million in 2022.
The Seplat Energy Board recommended a special distribution of US 5 cents per share in addition to the final quarterly payout of US 2.5 cents. The annual dividend is US 15 cents per share.
The meeting’s shareholders agreed on the dividend payout, which will be made on or around 16 May 2023, to shareholders whose names appear in the Company’s Register at the close of business on 18 April 2023.
Mr. Omiyi stated, “However, in the third quarter, output was impacted negatively by evacuation problems at the Forcados Oil Terminal (FOT), not being available for a spell.
The long-delayed Amukpe-Escravos Pipeline (AEP) allowed us to flow c.10,100bopd (working interest production) during the period. The AEP currently exports our biggest assets at OMLs 4, 38, and 41.
“As a result, our dependency on the Trans Forcados Pipeline and FOT is much lower, decreasing downtime while providing a solid platform for increased export volumes and revenues.”
The Seplat Energy Chairman reported that the Company’s gas business remained robust throughout the year as good work was done on the ANOH Gas Processing Plant, which currently awaits third-party infrastructure to begin operations in the fourth quarter of 2023.
“Renegotiated Gas Sales Agreements (GSAs) in H2-2022 offered solid support for revenue growth and profitability and we continue to focus on boosting capacity utilisation at our Oben Gas Processing Plant,” he added.
Mr Omiyi said the Company had scaled up its energy transformation efforts during the past year.
Midstream Gas company to boost natural gas supply to Nigeria’s electricity grid, replacing diesel power generation, while the New Energy business develops power and renewable energy.
“At the same time, we have enhanced our approach to understanding and evaluating climate risk, which we have re-designated as a major risk to our business,” Mr Omiyi said.
“We have adopted a new Board-approved Climate Change Policy and advanced a major component of our decarbonisation strategy: eliminating routine flaring by the end of 2024 through our Flares Out initiative, six years ahead of Nigerian regulatory requirements and the World Bank’s initiative to achieve Zero Routine Flaring by 2030.
“These initiatives are part of a transition plan that will align our business strategy with the Paris Agreement’s aim of limiting mean global temperature rise to well below 2°C and assist Nigeria’s road to carbon neutrality by 2060.
“This strategy is subject to examination, approval, and oversight of our Board and Management teams and is anchored by practical, specific measures for decarbonising our operations and strengthening the sustainability of our business model.”
The Chairman said that the Company had issued its first Climate Risk and Resilience Report. This detailed document defines its approach to climate change risk, in conformity with the Taskforce on Climate-related Financial Disclosures and its London Stock Exchange listing.
“I want to applaud the company for the special dividend of 5 cents, in addition to the final payout of 2.5 cents, bringing the total to 15 cents,” stated shareholder Patrick Ajudua. We appreciate the Board for consistently paying dividends and providing a large incentive to shareholders when most firms are struggling to stay profitable.”
I wish to commend the Board and management for a good performance; in spite of the challenges of the year 2022, you were able to raise revenue by about 38% and cost of sales by just 18%, which shows effective management of the Company’s cost’, said Noble Shareholders Solidarity Association President Matthew Akinlade.
At the conference, Seplat Energy Chief Operating Officer Samson Ezugworie remarked, “As part of Seplat Energy’s drive to become a leading supplier of lower carbon and renewable energy, we are exploring methods to expand into these new and fascinating sectors.
“The first and most obvious solution is to provide more petrol for Nigeria’s power industry to lessen its dependency on imported diesel fuel, which is carbon intensive and drains the nation’s riches.
We will also consider hybrid systems with solar or other renewable technology and gas, which will always offer baseload power.