📢 Lagos and London, 12 December 2024Â
Seplat Energy Plc, Nigeria’s foremost indigenous energy company, has reached a significant milestone with the completion of its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil. This transformative transaction has doubled the company’s production capacity and solidified its position as a key player in the energy sector.
The acquisition crowns an eventful year for Seplat Energy, characterized by strategic growth, robust financial performance, and operational excellence.
2024 Financial and Operational Highlights
1. Strong Revenue Growth
Seplat Energy reported significant revenue gains in 2024, driven by higher crude oil prices and increased production. Year-to-date (YTD) revenue grew by 36% compared to 2023, with key contributions from its oil and gas operations.
2. Earnings Performance
Seplat’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin remained robust at 60%, reflecting operational efficiency and cost management. Net profit for the year is projected to grow by 42%, driven by expanded production and favorable market dynamics.
3. Dividend Payouts
The company maintained its commitment to rewarding shareholders, declaring a total dividend of $0.10 per share for 2024, representing a 20% increase over the prior year. This underscores Seplat’s dedication to delivering shareholder value.
4. Operational Efficiency
Seplat achieved an average daily production of 57,200 boepd prior to the MPNU acquisition, surpassing guidance despite industry challenges. With MPNU’s contribution, this figure will rise significantly, positioning the company for a stronger 2025.
5. Debt Management and Liquidity
Seplat reduced its net debt by 15% YTD, leveraging strong cash flows to strengthen its balance sheet. The company also retained a healthy cash balance, providing the financial flexibility to invest in growth opportunities like the MPNU acquisition.
Strategic Significance of the MPNU Acquisition
The completion of the MPNU acquisition is a game-changer for Seplat. Key highlights include:
- Expanded Asset Portfolio: MPNU adds 409 MMboe of 2P reserves and an additional 670 MMboe of 2P + 2C reserves and resources, making Seplat a top-tier producer in Nigeria.
- Increased Production: Average daily production will more than double to 71.4 kboepd in 2025, ensuring stable output to meet market demand.
- Enhanced Infrastructure: The acquisition includes world-class operational assets, enabling cost-efficient production and long-term sustainability.
2024 Market Performance
Despite global volatility in the energy markets, Seplat Energy’s stock has performed strongly on both the Nigerian Exchange (NGX: SEPL) and the London Stock Exchange (LSE: SEPL).
- Stock Price Growth: Seplat’s shares gained 18% YTD on the NGX and 20% YTD on the LSE, outperforming industry averages. This reflects strong investor confidence in the company’s strategy.
- Analyst Ratings: Seplat maintained a consensus “Buy” rating among analysts, with a mean target price of ₦1,550 per share, signaling further upside potential in 2025.
Seplat Energy’s 2025 Outlook
With the MPNU acquisition complete, Seplat is well-positioned for accelerated growth in 2025. Near-term priorities include:
- Seamless Integration: Ensuring a smooth transition of MPNU staff into Seplat’s operations.
- Production Growth: Targeting an increase in production through organic opportunities within the MPNU asset base.
- Sustainability Initiatives: Reducing emissions and maintaining Seplat’s leadership in environmental stewardship.
Guidance for 2025 will be provided with Seplat’s full-year 2024 results in February 2025.
A Year to Celebrate
Roger Brown, CEO of Seplat Energy, stated, “2024 has been a year of transformation for Seplat Energy. Our strong financial performance, operational achievements, and strategic acquisitions have set the stage for a promising future. We remain committed to delivering affordable, reliable energy for Nigeria while generating attractive returns for our stakeholders.”
Investor Conference Call
Seplat will host an Investor Call today at 12:00 pm GMT (1:00 pm WAT). The call will provide insights into the MPNU acquisition and 2024 performance. Access details are available at www.seplatenergy.com.
Key Metrics
- 2024 Revenue Growth: +36%
- 2024 Net Profit Growth: +42%
- Dividend Growth: +20%
- Production Post-Acquisition: 71.4 kboepd
- Stock Performance: +20% YTD (LSE), +18% YTD (NGX)
Seplat’s journey in 2024 showcases its resilience and strategic foresight, culminating in one of the most transformative acquisitions in Nigeria’s energy sector. The company is poised for a bright 2025, driving growth, sustainability, and prosperity for all stakeholders.
Leave a Reply