Seplat Energy earnings per share declines by 54%

Seplat Energy Plc will pay its shareholders $0.75 cent as earnings per share fell sharply by 54 per cent in the financial year 2022, the company audited statement show.

Consequently, its share price traded flattish in the Nigerian Exchange as investors ignore unimpressive earnings performance.

Though revenue came strong in the year, other income line items in its report went down strongly year on year. At the same, the company reported it shared a large amount of loss on Joint Venture operations.

In 2022, about a 76 per cent spike in tax expenses wormseed Seplat energy’s profitability in addition to the fact that the company has to reverse an impairment gain reported in the financial year 2021.

Overall, Profit After Tax (PAT) declined by 5.32 per cent in the year, according to its audited statement filed with the Nigerian Exchange. Meanwhile, the company’s total assets expanded to about N1.6 trillion.

Detail from the financial statement shows that Seplat Energy achieved N86.7 billion as Profit before Tax, 22.11 per cent above N71.028 billion posted in 2021.

The energy company grew its revenue by 37.56 per cent per cent to N403.9 billion from N293.6 billion year-on-year. Its gross profit increased to N197.2 billion from N114.2 billion recorded in 2021, rising by 72.67 per cent.

Also, Seplat Energy is paying a 7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounts to a full-year dividend of 15 cents, representing a dividend yield of around 11 per cent at the current London Stock Exchange (LSE) share price.

The company’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in third quarter.

The company completed 13 wells, including two wells for the ANOH gas processing plant. ANOH Gas Processing Plant is 95 per cent mechanically complete and is awaiting third-party infrastructure completion.

The board recommends a special dividend of five cents per share in addition to the final dividend of 2.5 cents per share, detail from regulatory filing show.