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Seplat Energy Reports Remarkable 483% Profit Growth in Q3 2024; Declares US$3.6 Cents Dividend
Seplat Energy Reports Remarkable 483% Profit Growth in Q3 2024; Declares US$3.6 Cents Dividend
Seplat Energy has released its unaudited Q3 2024 results, revealing a staggering 532.15% year-on-year (YoY) increase in profit before tax (PBT), reaching an impressive N122.663 billion. This outstanding performance not only reinforces Seplat’s position in the energy sector, but also demonstrates the company’s ability to thrive in the face of difficult market conditions.
Key Financial Highlights: A Closer Look
The numbers speak for themselves. Seplat Energy’s Q3 2024 revenue soared by 148.18% YoY to N495.845 billion, up from N199.796 billion in Q3 2023. For the nine-month period, revenue reached N1.071 trillion, reflecting a commendable 124% YoY increase. Such growth is a testament to the company’s operational efficiency and strategic initiatives.
Breakdown of Key Metrics (Q3 2024 vs. Q3 2023)
Revenue: N495.845 billion (+148.18% YoY)
Cost of Sales: N211.814 billion (+123.52% YoY)
Gross Profit: N284.031 billion (+170.43% YoY)
Operating Profit: N126.163 billion (+305.54% YoY)
Earnings Per Share: N3.91 (+31.21% YoY)
Total Assets: N5.235 trillion (+71.45%)
While the figures in Naira are impressive, it’s crucial to note that the currency effects played a significant role. The depreciation of the Naira inflated the value of revenues and profits, which, while impressive, masks a more complex reality when looked at through the lens of constant currency.
Dividend Declaration: A Commitment to Shareholders
In a move that underscores its commitment to delivering shareholder value, Seplat Energy has declared a dividend of US$3.6 cents per share, marking a 20% increase from previous payouts. The company has committed to maintaining this dividend level through Q4 2024, resulting in a total core dividend of US$13.2 cents per share for the year, a 10% increase over 2023.
Roger Brown, Chief Executive Officer of Seplat, emphasized the company’s solid operational performance during the first nine months of 2024, stating, “We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant.” This proactive approach to expansion and infrastructure development positions the company for further growth.
Navigating Market Challenges
Despite the impressive revenue growth, Seplat Energy faced increased tax liabilities, which ultimately led to a loss after tax of N15.284 billion. However, the company’s ability to declare increased dividends amidst these challenges suggests a strong underlying business and management’s confidence in its long-term prospects.
The balance sheet remains robust, characterized by a solid liquidity position and a lower equity multiple of 1.87, indicating that the company is well-equipped to navigate complex market dynamics.
Looking Ahead
As Seplat Energy gears up for the final quarter of 2024, the company remains focused on its operational goals, including the startup of new projects and the enhancement of existing facilities. Brown noted the commitment of their government partners in addressing the technical challenges that have delayed the ANOH project startup, projecting first gas to Q2 2025.
Conclusion
Seplat Energy’s Q3 2024 results paint a picture of a company not only surviving but thriving in a competitive landscape. With a remarkable profit growth of 483% YoY and a commitment to shareholder returns, Seplat Energy is poised for continued success in the coming quarters. For investors and stakeholders, this is a clear signal of a company that is not just about numbers, but about growth, resilience, and a vision for a sustainable future in the energy sector.
Stay tuned for more updates on Seplat Energy as they continue to navigate the complexities of the market and work towards delivering exceptional value to their shareholders.
