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Seplat Energy Plc, Nigeria’s largest oil and gas explorer, expects first-half revenue to exceed last year’s $1.1 billion after ramping-up production.
“Our revenue last year was $1.1 billion. In the first quarter, our revenue was $809 million, so in the second quarter, it will likely exceed the total revenue for all of last year,” Chief Executive Officer Roger Brown told investors at an annual general meeting in Lagos on Wednesday.
Seplat has seen a significant boost in production since acquiring assets from the Nigerian unit of Exxon Mobil Corp late last year. It predicted at the time that the deal could nearly triple output to more than 200,000 barrels a day.
To guard against a global oil slump, Seplat has hedged five million barrels of crude per quarter at $55 a barrel and initiated cost controls to protect the business, Brown said.
US trade tariffs and higher OPEC+ output have caused oil prices to fall 11% this year to $66.27 per barrel.
The hedging allows Seplat to sell crude at the pre-determined price and volume in 2025, even if oil prices fall below the threshold.
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