Company Results
Seplat Energy posts pre-tax profit of $69.3 million in Q1 2024
Seplat Energy Plc has released its unaudited financial statements for Q1 2024.
The company posted a pre-tax profit of $69.3 million, representing a 19.5% year-on-year decline from the $86.1 million pre-tax profit posted in Q1 2023.
However, due to an incurred deferred taxation charge of $57.3 million during the quarter, the company reported a net loss of $1.93 million, reflecting a 103% year-over-year decline from the $57.5 million net income posted in Q1 2023.
- During the quarter, the group incurred a deferred taxation charge of $57.3 million, thus pushing its tax expense to $71.2 million.
- The company recorded a revenue of $179.8 million during the quarter, marking a 45.7% YoY decline from the $331 million posted in Q1 2023.
- Taking into consideration the Naira, the group’s revenue hit N268.6 billion during the quarter, representing a 77% increase from the N152 billion posted in Q1 2023.
Key Highlights (Q1 2024 vs Q1 2023) in US Dollars
- Revenue: $179.8 million, -46% YoY
- Cost of sales: $137.1 million, +3% YoY
- Gross profit: $42.7 million, -78% YoY
- Operating profit: $81.9 million, -21% YoY
- Net finance cost: $15.4 million, -13% YoY
- Profit before taxation: $69.3 million, -19% YoY
- Income tax expense: $71.2 million, +150% YoY
- (Loss)/profit for the year: ($1.9 million), -103% YoY
- Total assets: $3.3 billion, -4% YTD
Key Highlights (Q1 2024 vs Q1 2023) in Naira
- Revenue: N268.6 billion, +77% YoY
- Cost of sales: N204.8 billion, +236% YoY
- Gross profit: N63.8 billion, -30% YoY
- Other income: N97.2 billion, +387% YoY
- Operating profit: N122.4 billion, +157% YoY
- Net finance costs: N23.0 billion, +182% YoY
- Profit before taxation: N103.5 billion, +162% YoY
- Income tax expense: N106.4 billion, +712% YoY
- (Loss)/Profit for the year: (N2.9 billion), -111% YoY
- Total assets: N4.6 trillion, +50% YTD
What you should know
Seplat Energy recorded an average realised crude oil price of $86.17/barrel in Q1 2024, despite the average Brent crude oil of $81.76/barrel recorded during the quarter.
- However, the company recorded a 49.4% YoY decline in crude oil revenue during the quarter, hitting $150.8 million in Q1 2024, against $297.9 million in Q1 2023.
- The drop in crude oil revenue was due to the 51% YoY drop in crude oil lifted during the quarter. In Q1 2024, Seplat produced 1.8 million barrels of oil, compared to 3.6 million barrels of oil.
- However, the company outlined the crude overlift recorded in Q1 2023.
- During the quarter, the company’s gas revenue decreased by 12.4% to $29.0 million compared to $33.1 million posted in Q1 2023.
The decline was attributed to delays in new gas wells. Despite a decrease in production, the average realized gas price rose by 8.0% to o $3.11/Mscf (thousand standard cubic feet) in Q1 2024 from $2.88/Mscf in Q1 2023.
