Seplat Energy Plc · LSE:SEPL
Seplat Energy — FY2021 Earnings Presentation
23 slides from Seplat Energy's earnings presentation, Feb 28, 2022
Slide 1: Audited Results 2021
AUDITED RESULTS 2021 28 February 2022 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 reliable energy, limitless potential 3 SEPLAT ENERGY 2021 AUDITED RESULTS
Slide 4: Corporate Highlights
CORPORATE HIGHLIGHTS A year of transition and robust performance FY 2021 achievements 25 February 2022 ▪ Strong safety record extended to 24m man hours with no LTI TRANSFORMATIONAL $1,283 MILLION ACQUISITION OF MPNU, on Seplat Energy operated assets EXXONMOBIL’S SHALLOW WATER BUSINESS IN NIGERIA ▪ L
Slide 5: Group Performance 2021
GROUP PERFORMANCE 2021 Production affected by outage at Forcados Oil Terminal GROUP PRODUCTION 2012 - 2021 2022 OPENING RESERVES AND FY 2021 PRODUCTION BY ASSET 60,000 Liquids Gas W.I. 2P reserves * W.I. production FY 2021 51,183 49,867 Oil Gas Total Oil Gas Total 50,000 17,469 47,693 24,198 46,498
Slide 6: Operations Review
OPERATIONS REVIEW EFFIONG OKON OPERATIONS DIRECTOR reliable energy, limitless potential 6 SEPLAT ENERGY 2021 AUDITED RESULTS
Slide 7: HSE Update
HSE UPDATE Focus on safety and environmental protection underpins business Health Environment ▪ Effective management of COVID-19 pandemic with zero fatality ▪ Focused implementation of Environmental Compliance Monitoring and no disruption to business continuity. Program to ensure environmentally saf
Slide 8: Liquids Performance
LIQUIDS PERFORMANCE H2 force majeures hit otherwise good performance ▪ Average working interest production of 29,091 bopd Average daily liquids production by asset (bopd) (2020: 33,714 bopd) 40,000 35,000 Average 29,091 30,000 ▪ TFS uptime of 75% for the full year 25,000 - 88 days downtime (57 days
Slide 9: AEP Launch Will Boost Exports
AEP LAUNCH WILL BOOST EXPORTS More secure and reliable route to market from major assets ▪ Launch of Amukpe-Escravos Pipeline is now imminent ▪ Mechanical completion in January 1 ▪ Hydrocarbons introduced into line in December 21 Benin River valve station Ampuke to Escravos Terminal ▪ Finalising cru
Slide 10: Gas Performance
GAS PERFORMANCE Focus on gas well development ▪ Average working interest production of 107.9 MMscfd Average daily gas volumes (2020: 101 MMscfd) 130 129 127 - Associated Gas station units put on standby 120 122 123 125 due to FOT outage 110 Average 107.9 112 MMscfd 109 100 101 101 ▪ Average selling
Slide 11: Delivering ANOH Gas Processing Plant
DELIVERING ANOH GAS PROCESSING PLANT Delays to third-party spur line likely to delay first gas to H1 2023 GAS PLANT DELIVERY PROGRESS COMMERCIAL & FUNDING ▪ All equipment fabricated for the project now in ▪ Completed funding with $260m loan (plus Nigeria with over 90% delivered to the project site a
Slide 12: Financial Review
FINANCIAL REVIEW EMEKA ONWUKA CHIEF FINANCIAL OFFICER reliable energy, limitless potential 12 SEPLAT ENERGY 2021 AUDITED RESULTS
Slide 13: FY 2021 Financial Highlights
FY 2021 FINANCIAL HIGHLIGHTS Year to 31 December 2021 TOTAL REVENUES 38% REALISED PRICE 77% UNIT OPERATING COSTS 11% $733 million $70.54 / bbl $9.9 / boe $747 million, adjusting for underlift Oil price recovered strongly Impacted by lower production FY 2020: $531 million FY 2020: $39.95 FY 2020: $8.
Slide 14: FY 2021 Financial Results
FY 2021 FINANCIAL RESULTS Strong recovery in revenues and profitability ▪ Oil revenues up on higher realised price $ million FY 2021 FY 2020 Change of $70.54/bbl (2020: $39.95/bbl) Oil revenue 618.4 417.9 48.0% ▪ Gas revenues up on 6.9% higher Gas revenue 114.8 112.5 2.0% production at $2.85/Mscf (2
Slide 15: 2021 Capital Investment $137m
2021 CAPITAL INVESTMENT Lower than planned owing to cost saving achieved in drilling and activity slippage into 2022 KEY CAPITAL PROJECTS 2 ▪ Drilled and completed 8 wells ▪ Preparation for Sibiri exploration well at OML 40 ▪ Cost reduction and production improvement initiatives ▪ Asset integrity pr
Slide 16: Strong Cash Generation
STRONG CASH GENERATION Cash position improved in 2021 * * Excludes restricted cash 16 SEPLAT ENERGY 2021 AUDITED RESULTS reliable energy, limitless potential
Slide 17: Robust Liquidity Position
ROBUST LIQUIDITY POSITION More than $700m liquidity available Liquidity ($m) $400 $340.5 $200 $0 $11m drawn -$110 of $50m UNDRAWN -$200 -$400 -$350 Net debt -$600 $426m -$650 -$800 Cash 7.75% senior notes RBL (Westport) Offtake-linked RBL (Westport) RCF 17 SEPLAT ENERGY 2021 AUDITED RESULTS reliable
Slide 18: Outlook
OUTLOOK ROGER BROWN CHIEF EXECUTIVE reliable energy, limitless potential 18 SEPLAT ENERGY 2021 AUDITED RESULTS
Slide 19: An Exciting Year Ahead
AN EXCITING YEAR AHEAD ▪ Strengthening leadership in a growing energy market Capital expenditure planned in 2022 ▪ Delivering on new strategy outlined in 2021 ▪ Transformational impact of MPNU 30 - Completion of MPNU acquisition expected H2 2022 - Prospectus in development for RTO and relisting - Ne
Slide 20: Appendix
APPENDIX reliable energy, limitless potential 20 SEPLAT ENERGY PLC 2021 AUDITED RESULTS
Slide 21: Quarterly Performance
QUARTERLY PERFORMANCE Results impacted by shut in of FOT in Q3 $ million Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 FY 2020 FINANCIAL Realised oil price ($/bbl) 60.77 69.25 73.61 75.72 70.54 39.95 Realised gas price ($/Mscf) 2.76 2.85 2.88 2.80 2.85 2.87 Revenue 152 156 152 273 733 531 EBITDA 78 100 77
Slide 22: Details of Hedging
DETAILS OF HEDGING Hedging policy aims to guarantee appropriate levels of cash flow assurance in times of oil price weakness and volatility. ▪ 5.0 MMbbls hedged through Q3 2022 at an average premium of $1.41/bbl as follows: - Q1: 1.0 MMbbls @ $50/bbl & 1.0MMbbls @ $55/bbl; - Q2: 2.0 MMbbls @ $55/bbl
Slide 23: Contact Us
CONTACT US Lagos London reliable energy, limitless potential 23 SEPLAT ENERGY 2021 AUDITED RESULTS