Seplat Energy Plc posted a pre-tax profit of N140.5 billion in the second quarter of 2024, marking a 3,480% year-on-year growth from N3.9 billion posted in Q2 2023.
According to the company’s financial statements for the period ending June 30, 2024, Seplat posted a revenue of N306.4 billion during the quarter, marking a 142.5% YoY growth from N126.3 billion as of Q2 2023.
The company’s financials for 2024 have been significantly affected by the devaluation of the Naira, as its oil exports carried out in USD, have translated to higher earnings in Naira terms.
For example, in dollar terms, Seplat’s revenue in the first half of 2024 declined by 23% year-on-year to $421.6 million, from $547 million as of H1 2023. However, in the Naira term, there was a 106% year-on-year appreciation.
In the first half of 2024, Seplat Energy posted a pre-tax profit of N244 billion, marking a 462% year-on-year growth from H1 2023.
The company recorded a net profit of N68.1 billion during the 2024 half-year, featuring a N2.9 billion net loss in the first quarter, and a N70.9 billion net profit in the second quarter.
Key Highlights Q2 2024 vs Q2 2023
- Revenue: N306.4 billion, +143% YoY
- Cost of sales: N122.8 billion, +60% YoY
- Gross profit: N183.7 billion, +271% YoY
- Other income: N23.4 billion, +290% YoY
- Operating profit: N162.8 billion, +1195% YoY
- Net finance cost: N23.7 billion, +173% YoY
- Profit before tax: N140.5 billion, +3480% YoY
- Profit for the period: N70.9 billion, +355% YoY
- Total assets: N4.7 trillion, +55% YoY
Commentary: In the 2024 half year, Seplat recorded a net cash inflow of N235.2 billion from operating activities. In the 2024 half year, Seplat recorded a cash and cash equivalents of N547 billion, marking a 91% appreciation from N287 billion as of H1 2023. The group recorded a realized FX gain of about N41.3 billion during the half-year.
During the second quarter, Switzerland was Seplat’s largest customer, as the company posted an oil revenue of N98.9 billion. The company sold oil worth N83 billion to the Bahamas and oil worth N68.8 billion to England.
Nigeria was the group’s only gas customer, as it posted a gas revenue of N40.2 billion from Nigeria during the quarter.
However, during the 2024 half-year, the company posted a revenue of N174.5 billion from Switzerland.
As of June 30, 2024, Seplat had a total loans and borrowings of about N1.25 trillion, featuring a 7.75% N1.1 trillion liability. The company also owes N41.9 billion to Stanbic IBTC Bank and N41 billion to the Mauritius Commercial Bank Limited.
During the quarter, the company’s net profit was driven by gas sales, as it recorded a net profit of N120.8 billion, in contrast with the N49.8 billion net loss posted from the sale of oil.
In Q2 2024, Seplat’s revenue from gas appreciated by 133.% year-on-year to N40.2 billion, from N17.3 billion as of Q2 2023.
During the second quarter of the year, Seplat recorded an overlift of N8.2 billion; during the half-year, the company recorded an under lift of N76.1 billion.
