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 (N2.9 billion), reflecting a 103% year-on-year decline from the $57.5 million (N26.4 billion) net income posted in Q1 2023.
- In Naira terms, the company’s pre-tax profit hit N103.5 billion during the quarter, marking a 162% YoY increase from the N39.5 billion PBT posted in Q1 2023.
- During the quarter, the group incurred a deferred taxation charge of $57.3 million (N85.6 billion), thus pushing its tax expense to $71.2 million (N106.4 billion).
- 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.
- The company’s finances were greatly affected by the drop in the Naira’s value as most of its operations were conducted in Nigeria.
- When considering constant currency values, specifically 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 price 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 oil 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 $3.11/Mscf (thousand standard cubic feet) in Q1 2024 from $2.88/Mscf in Q1 2023.
