Latest news with #Seplat
Zawya
04-06-2025
- Business
- Zawya
Oando Profit-After-Tax up 267% to N220 billion in FY2024 Audited Results
Oando PLC ( Africa's leading integrated energy company listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), posted robust Audited Full Year (FY) 2024 financial results with a 44% increase in revenue to N4.1trillion compared to N2.9 trillion in FY 2023. In the upstream, Oando's production witnessed a 3% increase to 23,727 boepd; made up of crude oil production which increased by 27% to 7,558 bopd, while NGL production and gas decreased respectively by 35% to 156 bpd, and 5% to 16,013 boepd. The company's 2P reserves grew 95% year-on-year to 983 MMboe (2023: 505 MMboe), representing a 188% reserves replacement ratio and underscoring the strength of the company's upstream portfolio post-acquisition. The company also reported a sustained operational uptime of 86%, supporting off-take reliability and reducing deferred production. Similarly, other indigenous players have also reported significant revenue growth following the recent wave of International Oil Company divestments. Seplat recorded a revenue of ₦1.65 trillion, representing a 137% increase from 2023, while Aradel posted ₦581.2 billion in revenue, a 162% increase compared to the previous year. Speaking on the company's upstream performance, Group Chief Executive, Oando PLC, Wale Tinubu said, ' 2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series and the doubling of our working interest in the assets from 20% to 40%, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels.' In the downstream, Oando's trading subsidiary reported that it sold 20.7 million barrels of crude oil in 2024; a 37% decline from 2023 due to structural changes in the Nigerian oil market. Additionally, refined product volumes declined by 64% to just over 599 kMT, due to weakened domestic demand, driven by the challenging macroeconomic in-country. Projections for global oil prices and demand in 2025 remain uncertain due to persistent macroeconomic and trade policy uncertainties. JP Morgan pegs Brent to peak at $66/bbl in 2025 and $58/bbl in 2026 while the U.S. Energy Information Administration's (EIA) predictions project Brent crude oil prices to fall from an average of $81 per barrel (b) in 2024 to $74/b in 2025 and $66/b in 2026 citing an increase in global production coupled with slower global demand growth. Within its renewable energy business, the company continued to advance its clean energy agenda recording measurable progress across multiple verticals. By the end of 2024 the electric mass transit programme had covered 121,145 km, transported over 205,000 passengers, displacing 163,546 kg of CO₂ emissions and saving more than 60,000 litres of diesel. Other notable achievements include signing MoUs for wind projects with Cross River and Edo State as well as launching a geothermal feasibility study in collaboration with NNPC, exploring the conversion of mature wells to renewable power assets. As the company continues to integrate its expanded portfolio following its most recent strategic acquisition, current projections show it's gone into 2025 with strong momentum and clear ambition. Tinubu remarked 'Looking ahead, 2025 will be our year of execution. Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimization, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations. In our bid to ramp up production towards achieving our target of 100,000 bopd and 1.5 tcf of gas by 2029, we shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program. We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa's evolving energy landscape.' The published audited FY 2024 results also include approximately four months of contribution from Nigerian Agip Oil Company (NAOC), following the completion of the acquisition on August 22, 2024. Following this, the company has set a production guidance of 30,000–40,000 barrels of oil equivalent per day (boepd) in its 2025 outlook. This aligns with its post-acquisition optimisation plans to maximise portfolio value and supports its four-year target of reaching 100,000 barrels per day. It is evident that local players, particularly those that have become operators following the recent IOC divestments, are increasingly well-positioned to drive the future of the Nigerian energy sector. These indigenous companies possess unique insights and contextual experience that enable them to more effectively manage onshore and shallow water assets. This shift is expected to generate a ripple effect across the economy by increasing local employment, enhancing capacity development, and improving government revenue through taxes retained within the country, revenue that was previously repatriated to the home countries of the International Oil Companies (IOCs). Distributed by APO Group on behalf of Oando PLC.
Bloomberg
06-05-2025
- Business
- Bloomberg
Nigeria LNG Plant May See Gas Supplies Climb 12% on Seplat Deal
Africa's biggest liquefied natural gas plant, whose operations have been hobbled by fuel theft, is set to see gas supplies jump once a deal with Seplat Energy goes into effect, an executive said. Under the terms of a preliminary agreement, Seplat will send more than 150,000 tons of gas a month to the Nigeria LNG Ltd. plant, said Effiong Okon, who heads a Seplat subsidiary that operates a key gas project north of the facility. That's more than 12% higher than last year's monthly average.
Zawya
18-03-2025
- Business
- Zawya
Seplat's yield helps convince investors: IFR
Nigerian oil and gas company Seplat Energy squeezed pricing on a US$650m five-year non-call two bond issue on Thursday to nearly 30bp inside the sovereign's curve as investors overlooked the possible pitfalls of a recent acquisition to earn the carry on a trade that was part of a liability management exercise. The bonds were priced at par to yield 9.125%, at the tight end of IPTs of low to mid 9s. That final level was about 30bp inside where Nigeria's US$1.25bn 7.143% February 2030s were trading around the time of pricing. The sovereign's bonds had sold off during the course of the day, following further broader market volatility thanks to more tariff threats from US president Donald Trump, having opened around the 9.2% mark. The coupon on the new bond issue was much more attractive to investors than on the outstanding Seplat notes that were subject to a buyback as part of the transaction. Proceeds from the issuance will go towards an any-and-all tender offer for the company's US$650m of 7.75% senior unsecured notes due April 2026. "The tender was a nice technical," said a lead banker. The bond offering was Seplat's first since completing the US$800m acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil in December. While that deal helps Seplat (B/B–) diversify offshore and will lead to bigger production volumes and reserves, the company's cost structure will increase, with significant capex needs. Moreover, the company's outlook is clouded by which tax regime the MPNU assets will fall under – whether that is Nigeria's Petroleum Profits Tax regime, under which there's an 85% tax on chargeable profit, or whether they will be transferred to the more attractive Petroleum Industry Act tax regime, where the rate is 60%. "There's no clear picture on the potential conversion of licences from PPT to PIA, with management saying discussions for onshore started in 2022 and [are] only now reaching approval stage ... and only now starting discussions on offshore," said an EM credit analyst after the mandate was announced. If the offshore conversion is potentially still a few years away then that would have an impact on the company's free cashflow, he said. The conversion is "quite crucial to improving the free cashflow profile of the acquired assets via building a tax shield", he said. It was an issue brought up by investors during the roadshow, said the lead, and there was a realisation that, as Exxon hadn't recently invested in the assets, "capex will be high". However, he thought that Seplat was in a position to cope, saying: "Their leverage is low and the free cashflow generation of the business is high. The cashflows will be able to absorb the higher capex." The uncertainty over which fiscal regime the assets will ultimately fall under were, though, reflected in the pricing. Ideally, Seplat hoped that investors would use Angola's Azule Energy, which printed in mid-January at 8.125% a US$1.2bn five-year non-call two bond issue, which is still bid around reoffer, as their main reference point. "We tried to comp to Azule," said the banker. "It was a recent trade, decent size, fairly liquid." However, Azule's assets are all offshore, which is why it trades more than 250bp inside the Angola sovereign, while the fiscal regime in the Southern African nation is much more favourable to business interests. Seplat, in contrast, still has sizeable onshore assets, so while the company is "low levered and operated well, [it] is still highly exposed to Nigeria risk", said the EM analyst. He therefore thought the Nigeria sovereign was the best comparison. Another potential reference point was Kosmos Energy, though less so than Nigeria and Azule with its asset base offshore Ghana, Equatorial Guinea, and Gulf of Mexico. "Seplat has a bigger reserve base, higher reserve life, and stronger credit metrics," said Fitch analysts in the run-up to the deal. However, "these strengths are offset by Kosmos's more diversified asset base and more stable operating environment compared with Seplat's high exposure and concentration on areas characterised by geopolitical and security risk."
