1. Overall, would you say the performance of the business for the 2024 financial year met the Board’s expectations? (Chairman)
Yes, I believe the performance of the business met our expectations. The year was truly transformational for the development of our business. Our core business delivered another year of safe and reliable operations, achieving key targets for production and operating efficiency, which supported another year of strong cash flow generation and shareholder returns.
We completed the transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU), which more than doubled our production and increased our reserves. The acquired assets have a world-class history as some of Nigeria’s most important oil fields, and, as the new operator of these assets, we intend to invest to increase production for the benefit of all our stakeholders.
- Yes, the performance of the business met the Board’s expectations
- We delivered a year of strong production, with revenues over one billion dollars, at $1.116 billion. This was achieved through safe and reliable operations, with 11 million man-hours without any lost-time injury (LTI)
- It was also a transformational year for the development of our business due to the completion of the acquisition of Mobil Producing Nigeria Unlimited (MPNU) on the 12th of December, 2024
- This acquisition more than doubled our production and increased our reserves
2. Does this align with Seplat Energy’s ambition to be Nigeria’s leading independent energy company? (Chairman)
That ambition was significantly advanced when we completed our acquisition of the entire share capital of MPNU in December 2024. Merging the business, which we now call Seplat Energy Producing Nigeria Unlimited (SEPNU), with Seplat Energy has created a Nigerian energy powerhouse. I am especially pleased to report that the closing cash consideration of $800 million at completion was funded entirely from cash, new and available debt facilities, with no dilution of shareholdings. This speaks volumes to the strength of our business.
- The acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) significantly advances this ambition.
- Merging the business, which we now call Seplat Energy Producing Nigeria Unlimited (SEPNU), with Seplat Energy has created a Nigerian energy powerhouse with pro-forma production of 118 thousand barrels of oil equivalent per day and pro-forma combined reserves of 886 million barrels of oil equivalent, an increase of 85% on reserves reported by Seplat Energy at the beginning of 2024
3. Given the progress seen in the last one year, what does the future hold for Seplat Energy, and how sustainable is the business given its recent growth and recorded successes? (Chairman)
We believe the future is very bright for the newly enlarged Seplat Energy. We plan to invest in both our Onshore and SEPNU businesses to increase production in both divisions, at the same time investing in maintenance and integrity activities to ensure the infrastructure will continue to support production well into the future. Our gas division will grow rapidly with the enormous gas resources offshore as well as the already established gas business onshore.
- We believe the future is very bright for the newly enlarged Seplat Energy group.
- We plan to invest in both onshore and SEPNU businesses to increase production.n
- We also plan to invest in maintenance and integrity activities to ensure the infrastructure will continue to support production well into the future.
- We plan to outline our operational strategy for the Group at the Capital Markets Day in Q3 2025
- To ensure the long-term sustainability of our business, we continue to focus on three key areas which are driving social development, focusing on environmental care, and reporting, and lastly, maximizing returns for all stakeholders.
- These key areas ensure that the business can be financially sustainable while caring for the environment in which we operate and the communities of stakeholders with whom we interact.
4. What does the complete acquisition of the entire share capital of MPNU mean to Seplat Energy going forward? (CEO)
The increased reserves and production that the Seplat Energy Producing Nigeria Unlimited (SEPNU) assets add to Seplat Energy’s operations is significant, enabling us to consolidate on our position as the leader, and this is a significant responsibility of stewardship of Nigeria’s natural resources, which we do not take lightly.
Along with the oil and gas producing assets we gain operating control of dedicated shallow water infrastructure and three export terminals, namely Qua Iboe Terminal, Bonny River Terminal and the Yoho Floating Storage and Offloading (FSO) facility, as well as Natural Gas Liquids (NGL) plants at East Area Project (EAP) and Oso.
5. Can you speak on the expansion of the business from an onshore-focused asset base to shallow waters/offshore, given the new SEPNU assets? (CEO)
From being a 100% onshore operator, now approximately 70% of our production is offshore, and exported through three terminals, which Seplat operates. The improved security and higher volumes passing through Qua Iboe and Yoho will improve revenue assurance and diversify our export infrastructure in the Niger Delta.
To ensure excellent execution in production operations, we are joined by about a thousand very highly skilled staff who I know are excited to become part of the Seplat Energy family, and together we will work tirelessly to increase production and maximize the value of these assets for all our stakeholders.
A new integration project has been launched following the successful coming together of Seplat and SEPNU. This marks the beginning of an exciting chapter for Seplat Energy as we unify two exceptional teams, cultures, and visions into one organization. The integration process aims to enhance our capabilities, drive sustained growth, and maximize the potential of our combined strengths.
The Integration Management Office (IMO) has been established to serve as the hub for this process.
Finally, we will set out the future for the business when we host a Capital Markets Day in the third quarter of 2025, outlining our operational strategy for the Group.
5. Internally, how has Seplat Energy driven sustainability given its diverse workforce and enlarged structure today? (CEO)
Beyond our social and environmental interventions in the communities where we operate and in Nigeria as a whole, we are also looking inwards. The Company recently launched our culture framework in 2024, called SF-InPACT (Seplat First, Inclusivity & Respect, Performance-driven, Agility, Confidentiality, and Trust), which was the result of extensive internal workshops and reviews.
We designed the new culture framework to strengthen our business through greater employee engagement, collaboration, and transparency. I’m pleased to say that this resulted in an improved employee engagement score in our annual staff survey. From a business perspective, we continued to review various projects within our New Energy division, and while we elected not to make an investment decision in 2024, this was largely due to the timing of the completion of the MPNU acquisition. We will continue to explore opportunities in power generation and renewable energy that have the potential to add value to our core operations.
6. Seplat Energy, no doubt, is very much in the business of transforming lives. You want to run through the various intervention programs in your communities? (CEO)
Our vision — transforming lives through energy — goes far beyond powering homes, transport, and industry. We are deeply committed to creating social value that enhances lives by improving education and healthcare, and by fostering entrepreneurship in our communities.
By embedding social development goals into our strategy, we not only contribute to improving Nigeria’s energy landscape but also help to drive progress in healthcare, education, and personal empowerment.
As part of our long-term social development initiatives in healthcare and education, we reached the notable milestones of conducting 100,000 eye tests in our Eye Can See program, and over one thousand teachers were supported through our various educational programs.
In 2024, we launched the Youth Entrepreneurial Program (YEP) as part of our social investment initiatives, equipping young people with hands-on training in renewable energy systems to prepare them for sustainable careers in the clean energy sector. The YEP is a pathway to real economic opportunities, enabling participants to contribute to Nigeria’s energy transition while securing economic empowerment for themselves and their communities.
The program also highlights our strategic commitment to increasing access to energy and fostering local enterprise, aligning with Sustainable Development Goal Target 13.3—building knowledge and capacity to tackle climate change.
7. What were your production figures in 2024, and what has been the journey so far with SEPNU in the mix? (COO)
2024 was a year of significant achievement across the entire spectrum of our existing business, topped up with the addition of SEPNU Assets in December.
Following Change-in-Control on December 12th, 2024, we included 19 days of production from the SEPNU asset, which had our full year combined business delivering 52,947 boepd working interest (Guidance (46-52Kboe), 11% higher than 2023.
Our legacy business contributed an average daily working interest production of 48,618 boepd, modestly aided by a confluence of several positive catalysts including good performance of the new wells in the 2024 drilling campaign, commencement of gas production from Sapele Integrated Gas Plant (SIGP), improved gas production from Oben following turnaround maintenance, and continuation of the efficiency at the Trans Niger Pipeline (TNP). SEPNU production contributed an annualized average production of 4,329 kboepd.
In 2025, our production guidance to the market is 120,000 -140,000 boepd working interest, and as seen from our Q1 results, we reported 131,561 boepd, which is in line with our guidance.
We are focused on reviving existing wells in the SEPNU asset, investing in more drilling campaigns in our onshore assets, and increasing gas volumes with the activities at SIGP.
8. Can you share an update on the ANOH Gas Plant? (COO)
Of course, you know that the ANOH gas plant achieved mechanical completion on 29th December 2023 without recording any Lost Time Incident (LTI) across 11 million hours. The ANOH gas plant is now ready to receive commissioning gas. The river crossing element of the OB3 line in H2 2024 has continued to prove technically challenging for NGIC, and at the year-end end the tunnelling operations remained at 1.12 km of the 1.85 km of the river crossing. Significant additional equipment has been delivered to the site, and tunnelling has recently restarted with a target completion in Q2 2025.
This is a top priority for the government, and we monitor progress on a continuous basis as a key pipeline infrastructure, which is critical to the commencement of full operations of the 300 MMscfd joint-venture-operated ANOH Gas Plant. We remain optimistic that full operations will commence in the latter half of 2025.
9. What are the major highlights of the 2024 financial results? (CFO)
2024 was a strong year for the company because, in addition to the strong oil and gas production from our onshore business, we completed the transformational acquisition of MPNU in December 2024, an acquisition of the entire shallow water operations of Exxon Mobil in Nigeria.
For our financial results, 2024 results benefited from higher production, particularly oil production from the consolidation of SEPNU for the final 19 days of the year; total revenue reached a record of $1.116 billion(N1.652 trillion), reflecting a higher output partially offset by modestly lower oil price realizations. The group adjusted EBITDA reached $539 million(N796bn), including $99 million contribution from SEPNU, and this represented a 20.3% increase on 2023.
After taxes of nearly $235 million, our net profit was approximately $145 million. We generated $383 million in cash from operations, and our Net debt increased to $898 million following the completion of the acquisition of MPNU, but despite this, our pro forma net leverage of 0.7 times was flat in 2023 as the company maintained its strong balance sheet.
We maintained good credit ratings in international markets, and this helped us to refinance our $650 million bond in March 2025, where our yield was priced inside the comparable Nigerian Government Sovereign bond, a first for Seplat. We look forward to further improvements in key financial metrics in 2025 as a bigger company.
10. Seplat Energy has remained consistent in dividend payments to shareholders. 2024 was remarkable with a special dividend. Compared to 2023, what changed? (CFO)
The Board approved/recommended a core dividend of US$ 3.6 cents per share (N55.27 per share) for the final quarter of 2024, subject to appropriate withholding tax (WHT). This brings the total core dividend declared for 2024 to US$ 13.2 cents per share (N202.66 per share), a 10% increase on 2023.
In addition, following a review of Seplat’s operational performance and business outlook, the Board has decided to declare an additional special dividend of US$ 3.3 cents per share (N46.06 per share) (subject to appropriate WHT).
The 4Q 2024 and special dividends will be paid to shareholders whose names appear in the Register of Members as at the close of business on 9 May 2025 (LSE) and 12 May 2025 (NGX). This brings the total dividend declared for 2024 to US$ 16.5 cents per share (N253.33 per share), a 10% increase on 2023. The payment of the special dividend reflects the Board’s continued confidence in the outlook for the Company and is underpinned by a strong balance sheet. The Company will review its dividend policy through 2025 as part of the overall capital allocation policy of the enlarged Group.
11. What were the Company’s credit ratings in 2024? (CFO)
Seplat maintains corporate credit ratings with Moody’s Investor Services (Moody’s), Standard & Poor’s Rating Services (S&P), and Fitch Ratings (Fitch). The current corporate ratings are as follows: (i) Moody’s Caa1 (positive), (ii) S&P B (stable), (iii) Fitch B (stable). In April 2025, Fitch upgraded our corporate rating to B from B- (positive). This was linked to an upgraded outlook for the Nigerian sovereign long-term rating and the agency’s view of a stronger business profile post the completion of the MPNU acquisition. Our ratings with S&P and Moody’s were reaffirmed in April 2025 and March 2025, respectively.
