Seplat Energy Plc · LSE:SEPL
Seplat Energy — FY2022 Earnings Presentation
24 slides from Seplat Energy's earnings presentation, Feb 28, 2023
Slide 1: Investor Presentation: Audited full-year results for 2022
INVESTOR PRESENTATION Audited full-year results for 2022 28th February 2023 reliable reliable energy, energy, limitless limitless potential potential
Slide 2: Important Notice: Disclaimer
IMPORTANT NOTICE Disclaimer FORWARD-LOOKING STATEMENTS This presentation may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control and all o
Slide 3: Introduction
INTRODUCTION ROGER BROWN CHIEF EXECUTIVE OFFICER reliable energy, limitless potential 3 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023
Slide 4: Group Highlights
GROUP HIGHLIGHTS Strong financial performance enables special dividend FINAL DIVIDEND FY 2022 achievements US 7.5 cents ▪ Continue to pursue approvals for acquisition of entire share capital of MPNU Including special dividend of US 5 cents Total 15 cents for 2022 ▪ Finalised New Energy investment pl
Slide 5: Sustainability: Towards Net Zero
SUSTAINABILITY: TOWARDS NET ZERO Inaugural Climate Risk & Resilience Report under TCFD guidelines Corporate initiatives Emissions ▪ New corporate scorecard links remuneration to achieving ▪ Target to achieve net zero by 2050 sustainability goals ▪ Flares Out initiative on schedule to end routine fla
Slide 6: Operating Review
OPERATING REVIEW SAMSON EZUGWORIE CHIEF OPERATING OFFICER reliable energy, limitless potential 6 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023
Slide 7: A Strategy for Growth
A STRATEGY FOR GROWTH Strong focus on maximising cash generation through improved operations UPSTREAM MIDSTREAM GAS NEW ENERGY Develop our Upstream business by selectively Develop Nigeria’s gas resources to accelerate the Develop gas-to-power to provide baseload expanding our asset base, optimising
Slide 8: Upstream: Reserves Development
UPSTREAM: RESERVES DEVELOPMENT Reserves fall by 19 MMboe on production and Ubima divestment 457.0 ▪ Reserves decreased by 19 MMboe 500 438.0 - Production of 9 MMbbls and 41.0 Bscf gas (7 MMboe) 400 - Divestment of Ubima 300 237.8 231.6 - Reclassifications and revisions ▪ 2C resources decreased by 7.
Slide 9: Sibiri Discovery Showing Promise
SIBIRI DISCOVERY SHOWING PROMISE Appraisal wells suggest Oil In-Place may be on high side of initial estimates ▪ Sibiri-1 discovery well drilled in Q1 2022 - Eight oil-bearing reservoirs, 353ft gross oil, 229ft net pay - Post discovery Oil In-Place estimated in range 24-34-94 MMbbl ▪ Extended Well T
Slide 10: Upstream: Operating Performance
UPSTREAM: OPERATING PERFORMANCE Liquids production affected by outages on Forcados export route PRODUCTION Historic production 2012 – 2022 (boepd) ▪ Drilling programme delivered 13 wells (including 2 wells for the 60,000 Liquids Gas 51,183 ANOH gas processing plant), largely below budget 49,867 47,6
Slide 11: Upstream: Increasing Export Options
UPSTREAM: INCREASING EXPORT OPTIONS Improving revenue assurance by developing more secure and reliable route to market from major assets ▪ OMLs 4, 38, 41 - AEP now performing well, 1.6 MMbbls exported through AEP in 2022 after commissioning in July 2022 1 - Offers more secure and reliable route, sig
Slide 12: Midstream Gas: Increase Capacity and Sales
MIDSTREAM GAS: INCREASE CAPACITY AND SALES Delivering long-term visibility and stability of cash flows from gas sales and ANOH, unlock value through spin-out Oben ANOH Sapele Improve revenues and cash generation by Deliver strong incremental cash flow through Deliver incremental cash flow from incre
Slide 13: Financial Review
FINANCIAL REVIEW EMEKA ONWUKA CHIEF FINANCIAL OFFICER reliable energy, limitless potential 13 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Year to 31 December 2022 TOTAL REVENUES OIL PRICE GAS PRICE $951.8m $101.6m $2.82 /Mscf 1.1% 29.8% 44.1% UNIT OPEX EBITDA TOTAL DIVIDEND $10.3 /boe $416.9m US 15 cents 4.4% 12.1% 50.0% CASH AT BANK NET DEBT CAPEX $404.3m $365.9m $163.3m 14.1% 3.9% 24.6% 14 SEPLAT ENERGY 2022 FUL
Slide 15: FY 2022 Financial Results
FY 2022 FINANCIAL RESULTS Strong increase in revenues and profitability $ million FY 2022 FY 2021 Change Notes Realised oil price ($/bbl) $101.67 $70.54 44.1% ▪ Sustained higher price owing to Ukraine crisis ▪ Text Oil revenue 839.3 618.4 35.7% ▪ Driven by higher oil price more than offsetting lower
Slide 16: Capital Expenditure
CAPITAL EXPENDITURE Achieving reductions in well costs ▪ Capex funded 13 wells, of which 11 delivered in 2022 ▪ 35% reduction in well costs over last two years - Targeting $10m cost of future land wells 4.6 ▪ Engineering - Oil: projects including gas lift optimisation, pump replacement, Drilling new
Slide 17: Strong Cash Generation
STRONG CASH GENERATION Nearly $500m generated from operations despite disrupted production; cash position is after $140m M&A deposits $ million 17 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023 reliable energy, limitless potential
Slide 18: Robust Liquidity Position
ROBUST LIQUIDITY POSITION Conservative financial policies and strong cash generation underpin sound capital allocation to maximise returns Liquidity ($m) Approach to capital management $600 • Minimum $100m cash balance (Covenants specify $75m) $404m Net debt / LTM CONSERVATIVE • Maintain 70% cash in
Slide 19: Special Dividend
SPECIAL DIVIDEND Financial strength and robust balance sheet enables payment of US 5 cent special dividend Dividends paid ($m) ▪ Seplat has paid steady dividends to shareholders $80 $73.4 over the past few years $73.2 $71.8 $70 - Current policy is US2.5 cents quarterly (10 cents / year) ▪ Elevated o
Slide 20: Outlook
OUTLOOK ROGER BROWN CHIEF EXECUTIVE OFFICER reliable energy, limitless potential 20 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023
Slide 21: Capex for 2023
CAPEX FOR 2023 Expenditure planned 41 Development & production Location Wells Notes $160 Asset integrity & maintenance 3 oil 7 million 3 gas 113 Exploration & other projects OML 4, 38, 41 8 1 water disposal 1 exploration OML 53 1 Oil 4 oil Priorities for 2023 OML 40 5 1 appraisal ▪ Main focus will b
Slide 22: Outlook for 2023
OUTLOOK FOR 2023 ▪ Production guidance of 45 – 55 kboepd for 2023 - Excludes ANOH, MPNU ▪ ANOH first gas expected Q4 2023 ▪ Midstream Gas – plans for standalone business ▪ New Energy and power generation - Identified potential investments for consideration and progression to FID late in 2023 ▪ Conti
Slide 23: Contact Us
CONTACT US Lagos London reliable energy, limitless potential 23 SEPLAT ENERGY 2022 FULL-YEAR RESULTS, 28 FEBRUARY 2023
Slide 24: ANOH Progress in Pictures
ANOH PROGRESS IN PICTURES ANOH PLANT 95% MECHANICALLY COMPLETE AT 31/12/22 (Pictures from November 2022) JOULE THOMPSON (JT) VALVES SKID - TRAIN 1 JOULE THOMPSON (JT) VALVES SKID - TRAIN 2 GLYCOL FLASH VESSEL GAS FEED COOLER OUTLET SEPARATOR LOW TEMPERATURE SEPARATOR, COALESCER & FUEL GAS SKID RESID