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Seplat Energy Plc has recorded its first net loss since 2o20 as rising tax liabilities wiped out all the gains from higher sales, hindering the upstream oil and gas giant from benefiting from an uptick in crude oil price.
The unaudited financial statement of the company shows it posted a loss after tax of N2.84 billion as at March 2024 from N26.42 billion as at March 2023.
That’s the worst results since 2020 when it recorded a net loss of N34.62 billion, a period that concomitant with the Covid-19 crisis saw crude oil price hit record lows as the pestilence paralyzed business activities and forced governments across the globe to impose restriction on movement.
The net loss in the period under review is due to 712.06 percent sure in significant deferred income charge, but the good news is that income tax liabilities are a one off event.
Operating profit margin increased to 45.55 percent in March 2024 from 31.34 percent the previous year.
However, Seplat performance is impressive at the operating level. The company’s operating profit surged by 156.86 percent to N122.37 billion a at March 2024 from N47.64 billion the previous year.
Operating profit margin increased to 45.55 percent in March 2024 from 31.34 percent the previous year.
“Seplat Energy continued its trend of strong operational performance in the first quarter. Oil production on OMLs 4, 38, 40 and 41 outperformed expectations, benefiting from low pipeline losses and deferments, which were ahead of plan. Cash flow was down in the first quarter, but this is largely due to the timing difference of lifting oil from the terminals. The business remains strong, production is firmly on track this year and price realisations remain supportive of cash generation,” said Roger Brown, CEO of Seplat Energy.
“In our FY 2023 results we outlined several growth opportunities for 2024. The first of these to start generating revenue for Seplat is Sibiri, which came on stream just a few weeks after the FDP approval was received from NUPRC. At Abiala (a marginal field within OML 40), the drilling programme is on track to start during 2Q. We were delighted to see resumption of operations on the Trans Niger BPipeline in April, approximately four months ahead of plan. Access to the pipeline will enable us to increase production from OML53, as well as providing the primary export route for condensate from AGPC, which remains on track for first gas in 3Q 2024,” said Brown.
There are positive prognosis for the company as oil prices are expected to rise this year on the back of geopolitical tensions in the Middle East and some analysts see the price hit $100 a barrel.
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