Seplat Energy Plc has announced an impressive pre-tax profit of N561.4 billion for the fiscal year ended 31 December 2024, representing a remarkable 347.21% increase from the N125.5 billion recorded in the previous year.
This exceptional growth comes on the back of robust revenue generation, which saw the company’s total revenue soar to N1.6 trillion, up from N696.8 billion in 2023.
The sharp revenue growth was driven primarily by crude oil sales, which contributed 88% of total earnings at N1.4 trillion. Gas sales followed as the next largest revenue stream, bringing in N184.8 billion, while natural gas liquids added N389 million.
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Seplat Energy also declared a final dividend of US 3.6 cents per ordinary share and a special dividend of US 3.3 cents for the 2024 fiscal year, both subject to withholding tax. These dividends will be paid to shareholders registered as of May 9, 2025. The company highlighted that on the London Stock Exchange, the Associated Record Date would also be May 9, 2025, with the Ex-Dividend date set for May 8, 2025.
- Financial Performance Highlights (2024 vs 2023)
- Revenue: N1.6 trillion (+137% YoY)
- Cost of sales: N941.4 billion (+170.90% YoY)
- Gross profit: N710 billion (+103.27% YoY)
- Other income: N54.9 billion (-168.64% YoY)
- General and administrative expenses: N217.8 billion (+131.05% YoY)
- Operating profit: N647.9 billion (+295.73% YoY)
- Finance income: N19.5 billion (+211.05% YoY)
- Finance costs: N136.5 billion (+200.44% YoY)
- Pre-tax profit: N561.4 billion (+347.21% YoY)
- Post-tax profit: N214.2 billion (+163.43% YoY)
- Total Assets: N9.8 trillion (+221.64% YoY)
- Retained Earnings: N319 billion (+38.28% YoY)
Asset Position
In terms of assets, Seplat reported a significant increase, with total assets reaching N9.8 trillion in 2024, up from N3 trillion in 2023. The company’s oil and gas properties, valued at N5 trillion, were the primary drivers of this growth.
Current assets also rose sharply to N2.8 trillion, with trade and receivables making up over 40% of this category. This strong asset base enhances Seplat’s capacity to invest in future growth initiatives or weather potential market disruptions.
Sector Growth and Economic Impact
The oil sector in Nigeria has witnessed over 3% growth, with a notable 15% increase in production. This sectoral performance not only boosts government revenue through higher tax collections by the Federal Inland Revenue Service (FIRS) but also enhances employment opportunities. As Seplat continues to expand, more Nigerians will gain employment, contributing to personal income taxes and broadening the national tax base.
Additionally, Seplat’s efficiency is underscored by its cost of production at $15 per barrel of crude oil, significantly lower than the Nigerian National Petroleum Corporation’s (NNPC) cost, which exceeds $25 per barrel. This disparity raises critical questions about operational efficiency and cost management within Nigeria’s oil industry.
Impact on Shareholders
The impressive financial performance and declared dividends present a positive outcome for shareholders. The final and special dividends reflect Seplat’s strong profitability and strategic financial management, offering investors both a return on investment and confidence in the company’s stability. Shareholders may benefit from not only the dividend payouts but also potential gains in stock value, as robust financial performance often boosts market sentiment.
Impact on the Oil and Gas Sector
Seplat’s strong showing comes at a crucial time for Nigeria’s oil and gas sector, which continues to navigate challenges such as fluctuating crude oil prices and regulatory changes. The significant increase in crude oil sales suggests that Seplat is effectively leveraging market opportunities. This performance is expected to boost investor confidence in Nigeria’s oil and gas sector, which has witnessed mixed results amid operational and fiscal pressures.
The company’s robust financials contribute positively to Nigeria’s economy by potentially enhancing revenue inflows to the government through taxes and royalties. Additionally, Seplat’s growth might stimulate economic activities in related sectors, including logistics, services, and employment.