Seplat Energy, Nigerian energy tycoon, ABC Orjiako, exceeds $1 billion in turnover

by MMC
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Seplat Energy Plc, the leading energy group co-founded and part-owned by Nigerian energy tycoon Ambrosie Bryant Chukwueloa Orjiako (ABC Orjiako), announced its impressive results for the 2023 financial year, achieving a revolutionary milestone by surpassing the billion dollars in turnover.

Renowned for its focus on the oil and gas sector of the Niger Delta region of Nigeria, Seplat Energy has consolidated its position as the largest energy group listed on the Nigerian Stock Exchange, under the strategic leadership of ABC Orjiako and its co- founder Austin Avuru.

Nigerian energy giant Seplat Energy achieves impressive 11.5 percent revenue growth

The recently revealed financial results for fiscal year 2023 presented a strong performance, with revenues exceeding $1.06 billion, an increase of 11.5 percent. This remarkable growth was mainly due to an 11.7 percent increase in crude oil revenues, which reached $937.9 million. The increase in revenue can be attributed to increased oil production, reduced pipeline losses and increased overcapacity during the period under review.

Despite a drop in the average realized price of oil from $101.67 per barrel in 2022 to $83.3 per barrel in 2023, Seplat Energy managed to consolidate its balance sheet. The group’s gross profit witnessed a commendable rise of 14.4% from $464.7 million in 2022 to $532.0 million in 2023, fueled by increased production activities during the period. .

Demonstrating financial resilience in a challenging oil market, Seplat Energy saw its year-end cash reserves reach $450 million, up from $404 million in 2022, while simultaneously reducing its year-end debt to $306 million compared to $366 million the previous year.

Although the group’s pre-tax profit saw a slight decline of 6.4%, amounting to $191.2 million from $204.4 million in 2022, its after-tax profit saw a significant increase of 18 .3%, reaching $123.9 million in 2023 from $104.7 million in 2022. This increase in profit can be attributed to a substantial reduction in tax liabilities, which decreased by 32.4 percent.

Board Proposes Final, Special Dividends Amid Strong Financial Results

Given its impressive financial performance, Seplat Energy’s board of directors has proposed a final dividend of $0.03 per share, as well as an exceptional dividend at the rate of $0.03 per share. This proposal is subject to shareholder approval at the annual general meeting scheduled for May 16, 2024.

With ABC Orjiako and Austin Avuru holding 6.43% and 8.2% of the energy company’s shares respectively, substantial dividends are expected from their investments in Seplat Energy.

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