Seplat Energy Plc’s shareholders have approved the payment of US 15 cents per share recommended by the company’s board of directors.
The approval was given at the company’s 11th Annual General Meeting (AGM) held virtually.
This comprises a special dividend of US 3 cents per share for the 2023 business year aside from the core dividend of US 12 cents per share.
The Chairman of the Board, Seplat Energy, Mr. Udoma Udo Udoma, in his address to shareholders and other stakeholders during the AGM, said that the company delivered strong results in 2023 amid a weaker oil price environment.
Udo Udoma noted that despite the 17.0% decline in the average price of Brent crude, the company grew its oil and gas revenue by 11.5% to $1,061.3 million, crossing the $1.0 billion mark for the first time, supported by improved production and asset availability.
“We also made significant progress on several of our growth projects, showing a willingness to not just deliver value today but to plan for tomorrow.
“Our average daily production also increased by 8.3% in 2023, to 47,758 boepd (barrels of oil equivalent per day), from 44,104 bopd in 2022, with revenue from oil and gas sales for 2023 rising to 11.5% to $1,061.3 million from $952.0 million in 2022. This excludes the reported $98.9 million overlift. We also completed 14 new wells across our operated and non-operated assets,” he said.
Seplat Energy’s Chief Financial Officer-designate, Eleanor Adaralegbe stated that the payment of the special dividend reflects the board’s continued confidence in the future of the business and is underpinned by a strong balance sheet, crystalizing Seplat’s commitment to delivering value to its investors.
Sustainable energy solutions
The CEO of Seplat Energy, Mr. Roger Brown, said that as Nigeria’s leading indigenous energy company, the firm recognises its duty to minimise the impact of its operations on the environment.
Brown noted that the company aims to create increasingly sustainable energy solutions to provide access and meet increasing energy demand while addressing the critical challenge of climate change for society and its business.
He said the company is positioned for decarbonisation through several strategic initiatives and continues in its role of leading Nigeria’s domestic gas supply, which accounts for about 25% of the country’s gas-to-power supply.
“A key focus for us has been the aggressive program to eliminate gas flares by 2025, which is a significant part of our commitment to achieving net zero by 2050.
“We are also exploring using solar power where feasible and have initiated a diesel replacement program to increase the use of gas, a less carbon-intensive fuel, for power generation in our operations. To support these decarbonisation efforts, Seplat Energy has committed substantial financial resources.
“In 2023, we allocated $5.7 million towards projects to end routine flares in operations. This includes installing gas compression facilities and incineration at various flow stations. Upon completing these projects, we expect to significantly improve our gas handling capacity and reduce flares, thus monetising flare gas in alignment with our corporate strategy and national initiatives,” he said.
Shareholders’ voice
A shareholder, Mr. Patrick Ajudua, commended the dividend declaration by the company, noting that it is a reassurance that investors needed to continue to invest in the company.
“I want to commend also the financial performance which saw the gross earnings grow significantly. I want to state that the company has been doing well. I also commend Seplat on the ANOH project. We pray that the company continues to thrive despite the challenges in the industry.”
Another shareholder, Mr. Faruk Umar said: “I am happy to say that Seplat has been helping the nation in the sense that the tax that we are paying the government is very significant, not to talk of the dividend that we have been getting in dollars, which has never gone down.”