Seplat Energy Profit Shrinks by 56%, Dividend Increases
Seplat Energy Plc has reported about 56% year-on-year decline in net profit which settled at $35.254 million from $79.545 million in the comparable period in 2023. The energy company’s profit fell on the back of reduced revenue reported in nine months of financial statements filed on the Nigerian Exchange.
The company’s came in at $715.339 million at the end of the third quarter of 2024, 11.7% below $810.367 million in the comparable period in 2023. The topline weakness reflects the Seplat’s overlift position of 9M’23, which led to an underlift in 9M’2024, CardinalStone analysts said.
On the gas front, revenue dipped by 4.0% to $90.2 million, as the 11.1% year-on-year decline in production to 103.6 MMscfd masked the increase reported in gas price. The company’s cost of sales also declined by 8.6% year-on-year to $360.3 million from $394.075 million in the comparable period in 2023.
Details from the unaudited financial statement of Seplat Energy showed that the company’s gross profit went down by 14.7% year on year to $355.1 million from $416.292 million. SEPLAT reported an increase of 77.5% year on year in operating profit, which settled at $274.8 million from $154.781 million 12 months ago.
The significant increase in the company’s operating profit despite under lifting activities was bolstered by FX gains worth $17.1 million at the end of 9-montsh of financial year 2024.
This was in a stark contrast with $27.8 million FX loss that Seplat reported 12 months ago. Due to financing activities amidst high interest rate environment, Seplat net finance costs increased.
Its unaudited financials showed that net finance costs grew by 4.6% year on year to $50.268 million from $48.079 million. This was basically as a result of a surge in finance costs. Finance costs which grew by 6.8% masked 24% year on year growth in finance income.
AT the end of nine months of financial year 2024, Seplat Energy profit was about 130% higher than profit reported in the similar period in 2023. Seplat reported $244.957 million profit at the end of Sept 2024 from $106.536 million in the comparable period.
Tax expenses surged by 676.9% year on year to $209.73 million versus $26.991 million last year. This significant growth in tax expenses eclipsed the performance and cause profit after tax to drop by about 56% year on year to $35.254 million.
Still, Seplat Energy increased its quarterly dividend by 20.0% to 3.6 cents per share from Q3’24, backed by an 11% increase in cash to $433.9 million. Net debt came in lower at $270 million from $366 million in 12 months. Naira Rises against US Dollar Ahead of Sept. FX Auction
