Seplat Power Plc has kicked off 2025 with a formidable efficiency, as its acquisition of Seplat Power Manufacturing Newco Limitless (SEPNU) continues to bear fruit.
In its first quarter outcomes for the interval ended March 31, 2025, the corporate reported spectacular progress throughout key monetary metrics, led by a greater than threefold surge in pre-tax revenue.
Revenue earlier than tax soared by 203.97% YoY to N314.646 billion ($207 million) pushed by a formidable income progress.
Income rose sharply by 356.97% year-on-year to N1.228 trillion ($804 million), in comparison with N268.618 billion in Q1 2024.
Key Highlights (Q1 25 vs Q1 2024)
- Income: N1.228 trillion, +356.97% YoY: |$809 million + 350.04% YoY
- Value of gross sales: N692.079 billion +237.92% YoY: |$456 million +232.79% YoY
- Gross revenue: N535.433 billion + 739.07% YoY: |$353 million +726.39% YoY
- Working revenue: N361.262 billion + 195.20% YoY:| $238 million +190.74% YoY
- Revenue earlier than tax: N314.646 billion + 203.97%: |$207 million + 199.38%
- Revenue after tax: N35.384 billion +1,331.18%
The large leap in Seplat’s efficiency got here primarily from producing much more oil and gasoline and mixing the total outcomes of the brand new firm it purchased (SEPNU) into its personal.
- Oil manufacturing (crude and condensates) greater than tripled, rising by 224% to 9 million barrels, in comparison with simply 2.8 million barrels this time final 12 months.
- Gasoline manufacturing additionally grew strongly, going up 50% to 14.9 billion commonplace cubic ft, up from 10 billion final 12 months.
- On prime of that, they produced 304,000 barrels of pure gasoline liquids (NGLs) within the quarter.
Whenever you add every little thing collectively oil, gasoline, and NGLs Seplat’s whole manufacturing rose by 164% to 11.8 million barrels of oil equal, in comparison with 4.5 million a 12 months earlier.
Seplat acknowledged that this sturdy manufacturing efficiency displays the transformational affect of the SEPNU consolidation and enhancements throughout its onshore belongings.
Dividend enhance
Reflecting its confidence within the sustainability of its earnings and money flows, the Board has authorized a quarterly dividend of US$ 4.6 cents per share for the primary quarter 2025.
This can be a 28% enhance on This autumn 2024 core dividend, and a 53% enhance on the equal core dividend in Q1 2024.
The corporate clarified within the report that on the premise of sustaining this stage by means of 2025 it would lead to a complete dividend of $18.4 cents per share, an 11% enhance within the whole dividend declared for 2024 ($16.5 cents per share).
Steadiness sheet evaluation
Seplat Power’s stability sheet stays in strong form, underpinned by its oil and gasoline properties, which account for over half of the corporate’s whole belongings.
On the finish of Q1 2025, the corporate reported gross debt of N1.662 trillion ($1.08 billion), down from N2.100 trillion ($1.38 billion) a 12 months earlier. Money on the bank stood at N514.1 billion ($334.6 million), serving to to cut back internet debt to N1.148 trillion ($747 million).
This represents a 17% discount in internet debt, achieved by means of a mixture of debt repayments and powerful free money move era in the course of the quarter, in keeping with administration.
Outlook
Seplat Power reaffirmed its 2025 manufacturing, capital expenditure, and value steering following a robust first-quarter efficiency.
On manufacturing, it nonetheless maintained its full-year manufacturing goal at 120,000–140,000 barrels of oil equal per day (kboepd):
- Onshore is forecast at 48,000–56,000 kboepd (7% YoY progress).
- SEPNU belongings are projected at 72,000–84,000 kboepd (12% YoY progress).
On CAPEX, capital spending stays on monitor, with $260 million–$320 million earmarked for strategic drilling and reliability initiatives to maintain future manufacturing progress.
On OPEX, whereas working prices are projected to rise modestly as a result of offshore restoration efforts, the elevated prices in Q1 2025 have already put strain on revenue margins.
That is evident within the decline in margins, with the working revenue margin falling by 35% to 29.43%, and the pre-tax margin lowering by 33.48% to 26.63%.
Though administration expects prices to average after 2025 as manufacturing volumes enhance, which may assist enhance profitability and stabilize margins transferring ahead.
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