Seplat Energy PLC on Friday said profit plunged in the first half year as costs increased, but that it will maintain its current full-year guidance.

The Lagos-based oil and gas firm with assets in Nigeria said in the six months to June 30, pretax profit fell by 50% to $43.5 million from $87.3 million. This was attributed to a 31% increase in the cost of sales to $137.7 million, as well as general administrative expenses rising by 74% to $33.5 million.

Revenue was $547 million, up 3.8% from $527 million the year before. Seplat said this was driven by the ‘positive effect of over lifts’ during the period, but reflects lower oil prices despite higher production.

Adjusted earnings before interest, tax, depreciation and amortisation for the half year fell 31% to $235.8 million from $342.7 million in the first half of 2022.

Seplat also declared an interim dividend of $3.0 cents per share, down 20% from $2.5 cents per share the year before.

Looking ahead, Seplat said it will maintain its 2023 guidance range at 45,000 to 55,000 barrels of oil per day. The year before, working interest production averaged 44,000 barrels. Capital expenditure guidance for the full year has been adjusted to between $160 million and $190 million, compared to $163.3 million the year before.

Chief Executive Officer Roger Brown said: ‘Seplat Energy’s continuing strong performance puts us on track for an excellent year that will support the increased quarterly dividends we announced in April, and our balance sheet remains strong despite the impact of the recent Naira devaluation.’

Shares in Seplat were down 3.4% at 137.24 pence each in London on Friday.

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