Seplat Energy Plc · LSE:SEPL
Seplat Energy — Q1 2024 Earnings Presentation
25 slides from Seplat Energy's earnings presentation, April 2024
Slide 1: Seplat Energy 3M 2024 Results
SEPLAT ENERGY 3M 2024 RESULTS reliable energy, limitless 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: Seplat Energy at a Glance
SEPLAT ENERGY AT A GLANCE reliable energy, limitless potential 3 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION
Slide 4: Seplat Energy at a Glance
SEPLAT ENERGY AT A GLANCE 2P RESERVES OF 478 MMBOE DUAL LISTED IN LONDON AND US$1.2BN MARKET CAP (end 2023) LAGOS (at 26th April 2024) Tickers: SEPLAT – NGX SEPL – LSE 3M PRODUCTION 49,258 BOEPD NIGERIA’S LEADING NET DEBT $385m (3M 2024, 62% OIL, 38% GAS) INDEPENDENT ENERGY COMPANY (at 3M 2024) CORE
Slide 5: Celebrating Years as a Listed Company
CELEBRATING 10 YEARS AS A LISTED COMPANY The journey to becoming Nigeria’s leading independent energy supplier JULY 2010 MAY 2012 JUNE APRIL 2014 MARCH 2017 MARCH 2018 DECEMBER 2019 MARCH 2021 FEBRUARY 2022 FEBRUARY Acquired OMLs 4, Drilled first of 2013 225 MMscfd Oben Successfully Completed acquis
Slide 6: Strategic Focus 10 Years On From IPO
STRATEGIC FOCUS 10YRS ON FROM IPO Seplat has delivered significant value enhancing strategic, operational and financial achievements in 10 years as a listed company OBJECTIVES AT 2014 IPO ACHIEVEMENTS UP TO 2023 • 2023 gross production averaged 106 kboepd Maximise production and • 85 kboepd gross op
Slide 7: Q1 2024 Summary
Q1 2024 SUMMARY reliable energy, limitless potential 7 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION
Slide 8: Q1 2024 Summary: Operational and fiscal performance
SEPLAT ENERGY Q1 2024 SUMMARY Operational and fiscal performance Q1 2024 SUMMARY Strong Operational Performance: Q1 2024 DAILY PRODUCTION (2) - Production of 49,258 boepd upper end of 2024 guidance, maintained 49,258 BOEPD at 44,000 boepd - 52,000 boepd 6% - Capex $47m, in line with plan. FY 2024
Slide 9: Q1 2024 Operational Highlights
Q1 2024 OPERATIONAL HIGHLIGHTS reliable energy, limitless potential 9 SEPLAT ENERGY PLC Q1 2024 INVESTOR PRESENTATION
Slide 10: Upstream: Operating Performance
UPSTREAM: OPERATING PERFORMANCE 2024 YTD production averaged 49.3 kboepd Historic production 2012 – 2024 YTD (boepd) PRODUCTION HISTORY 60,000 In Q1 2024, working interest production rose 5.8% q/q to 49,577 as Liquids Gas 49,867 51,183 the business recovered from 2023 drilling delays. Down 4.8% re
Slide 11: Midstream Gas Business Model
MIDSTREAM GAS BUSINESS MODEL Reliable partner, key supplier of gas in Nigeria’s domestic gas market. Gas production and revenues – diversification and future growth GAS BUSINESS FUNDAMENTALS Gas revenues reached 16% underlying group Revenues in 2023. STRONG 250 Seplat Gas Revenue 145 136 160 All
Slide 12: A Rich Portfolio of Oil & Gas Assets
A RICH PORTFOLIO OF OIL & GAS ASSETS Seven onshore blocks in the prolific Niger Delta, ideally located for oil exports and internal gas demand centres OIL BUSINESS GAS BUSINESS Lagos Industry New Export Pipeline Papalanto (CNL) Existing Power/Industries OML4 Abuja 4Q3 Wagp OML40 Egbin/AES Omotosho (
Slide 13: Capex Programme
CAPEX PROGRAMME 2024 drilling programme focused on our Western Asset Q1 2024 Capex Delivery 2024 capex programme Total capex for Q1 2024 was $47.1m $37.4 million was invested in drilling projects, $8.9 million on engineering projects, and $0.7 million on other assets. Exploration activities at
Slide 14: Diversified Routes to Market
DIVERSIFIED ROUTES TO MARKET Improved revenue assurance Seplat has actively worked to increase evacuation options for our onshore crude oil production in recent year S/N Facility (Operator) Assets Pipeline (Operator) Buyer Served (Subsidiary) 1 Forcados Terminal OML 4, 38, 41 (Seplat Trans Forcado
Slide 15: Q1 2024 Financial Summary
Q1 2024 FINANCIAL SUMMARY reliable energy, limitless potential 15 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Quarter to 31 March 2024 OIL PRICE GAS PRICE ADJ. REVENUES $86.2/bbl $3.11/Mscf $236m(1) 8% (3M 2023, $82.3/bbl) 5% (3M 2023, $2.88/Mscf) 8% (3M 2023, $256m) ADJ. EBITDA PRE-TAX CFFO NET DEBT $123m(2) $17m $385m 12% 88% (3M 2023, $140m) (3M 2023, $145m) (YE 2023, $306m) 26% PRE-
Slide 17: Q1 2024 Financial Results
Q1 2024 FINANCIAL RESULTS Robust operations and tax savings offset higher costs $ million Q1 2024 Q1 2023 Change Notes Realised oil price ($/bbl) $86.17 $82.32 4.7% Realised oil price benefitted from lifting crude later in Q1 2024 Oil revenue 150.8 297.9 (49.4%) Lower revenue recorded due to low
Slide 18: Cash Flow Waterfall
CASH FLOW WATERFALL Cash generation weakened in Q1 2024 as cash for liftings during the period were received at the end of the accounting period Naira $ million Devaluation 18 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION reliable energy, limitless potential
Slide 19: Balance Sheet Conservative & Well Managed
BALANCE SHEET CONSERVATIVE & WELL MANAGED At 31st March 2024 GROSS CASH Strong Capital Structure $336m(1) Net Debt $385m, up 26% on Q1 2023 Net Debt/LTM EBITDA up to 0.9x from 0.7x at Q423 25% (YE23, $450m) Current ratio inside target range (1.2x-2.0x) Ratio Seplat Energy Debt Covenant GROSS D
Slide 20: Liquidity & Debt Profile Provides Flexibility
LIQUIDITY & DEBT PROFILE PROVIDES FLEXIBILITY Limited near-term debt maturities. Strong liquidity supports strategy Debt facility maturities to 2027 (at 31st Mar 2024) Debt facility details - $737m drawn (at 31st Mar 2024) 800 Drawn Initial Size Amount 700 Ranking Pricing ($m) ($m) Maturity 600 500
Slide 21: Rewarding Shareholders
REWARDING SHAREHOLDERS Strong history of returning cash to investors with cumulative dividends of $575m paid till date Material: Historical Cash Dividend Payments (2014 – 2023) Material $120 15c/shr declared for 2023, inclusive of $100 $99 12c/shr core and 3c/shr special $80 $73 $72 $73 3c/shr d
Slide 22: Outlook & Growth Potential
OUTLOOK & GROWTH POTENTIAL reliable energy, limitless potential 22 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION
Slide 23: 2024 Growth Opportunities
2024 GROWTH OPPORTUNITIES Significant suite of opportunities to materially enhance portfolio scale and diversification while reducing emissions intensity Sapele Gas Acquisition of MPNU ANOH Gas Abiala Sibiri Plant Increase gas, LPG Potential to more than double Seplat Potential to double Seplat Low-
Slide 24: Guidance & Priorities for 2024
GUIDANCE & PRIORITIES FOR 2024 2024 guidance reiterated Delivering Guidance Target 13 new wells to deliver production and maintain output 2024 KEY GUIDANCE ITEMS Maintain Fiscal Strength Continue to strengthen our balance sheet ahead of planned 2023 Q1 2024 2024 MPNU acquisition Actual Actual Gu
Slide 25: Contact Us
CONTACT US Lagos London reliable energy, limitless potential 25 SEPLAT ENERGY Q1 2024 INVESTOR PRESENTATION