Analysts have noted that Seplat Energy Plc leveraged the rebound in oil prices to boost revenues in the first nine months of 2021.
This was disclosed at the Nairametrics ‘On the Money’ series held on the social media app, Clubhouse, on Saturday, October 30, 2021. While commenting on companies’ recent earnings, analysts noted that Seplat performed exceptionally, posting strong sales figures owing to the steady growth in oil prices during the period.
Seplat Energy Plc, a leading Nigerian energy company dual-listed on the Nigerian Exchange and London Stock Exchange, recently filed its nine months financial statement for the period ended September 30, 2021, which revealed impressive gross earnings appreciating by over 34.70% from N135.62 billion in 2020 to N182.68 billion in the current period.
Highlights
- Gross profit for the nine months recorded impressive gains of 83.44% from N31.69 billion to N58.13 billion.
- Operating profit surged to N62.61 billion from a loss of N27.44 billion in the previous year period.
- The post-tax profit for the period appreciated massively by 141.26% from a loss of N33.68 billion to record a profit of N13.90 billion
- The shareholders’ equity increased by N42.21 billion YtD to stand at N674.55 billion.
What you need to know
The company’s top-line earnings arose from revenue from contracts with customers which are divided into two segments: Crude oil sales and Gas sales.
A cursory look at the notes to account revealed that the energy company made the most sales from Crude oil, which yielded over N146 billion, roughly 80% of the total revenue, during the period under review, which can be attributed to the rebound in global oil prices.
It is worthy of note that the major off-takers for Seplat’s crude oil are foreign companies, Mercuria, the parent company of Mercuria Energy Group in Switzerland; and Shell Western, a subsidiary of Royal Dutch Shell.
During the period, global oil prices spiked from around $48.73 per barrel in January to around $72.80 per barrel in September, reflecting a 49.39% growth.
Seplat Energy Plc currently trades at N731.50 per share as at the time of writing this article. The share price has appreciated significantly by 81.83% from N402 at the start of the year to its current price of N731.50.
The company previously announced plans to start paying shareholders quarterly dividends and have kept their words. In the last quarter, the company paid 2.5 cents to its shareholders and has also declared a Q3 dividend of 2.5 cents, bringing the total of dividends for both quarters to 5.0 cents.
Seplat Energy Services has improved on its earnings, profitability in recent times. Change of name come with changes in results for 3rd quarter. Hope they will sustain such in the near future.