Seplat Energy PLC shares perked up on Thursday afternoon, as it reported increased production and upped its dividend despite a challenging year.
The stock was up 6.1% at 143.00 pence in London.
The Nigeria-focused oil and gas producer said revenue rose 12% in 2023 to $1.06 billion from $951.8 million the prior year. Production averaged 47,758 barrels of oil equivalent per day, up 8.3% from 44,104 barrels and ‘within original guidance’.
However, pretax profit decreased by 6.4% to $191.2 million from $204.4 million.
The average realised price of oil dropped 18% over the period, Seplat said, to $83.39 per barrel from $101.67 per barrel a year ago. Cash generated from operations fell 9.5% to $519.9 million from $574.6 million the year before.
Seplat declared a final dividend of 12 US cents per share for the year, up from 7.5 cents the year before. It also declared a special dividend of 3 cents. This brought the total 2023 payout to 15 cents per share, unchanged from the prior year.
‘Seplat Energy’s 2023 results illustrate the company’s ability to deliver production growth, fortify our balance sheet and reward shareholders despite facing some unexpected challenges during the year,’ commented Chief Executive Officer Roger Brown.
He added that Seplat ‘recorded the lowest level of reconciliation losses seen in recent years, a testament to the improving security efforts on the Niger Delta’.
For 2024, Seplat is guiding for production between 44,000 and 52,000 barrels of oil equivalent per day.
Also on Thursday, Seplat announced the appointment of Udoma Udo Udoma as its new independent non-executive chair, effective from April 1. Udoma, currently an independent non-executive director, will succeed current Chair Basil Omiyi, who plans to retire on March 31.
Seplat said Udoma ‘is an accomplished lawyer and seasoned board administrator’. He retired from active legal practice in early 2020 and has previously served as chair of UAC Nigeria PLC and Union Bank PLC, before joining Seplat’s board on December 1.
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