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Seplat Energy Records N140.6bn Gross Profit In 2023 H1 



Seplat Energy grows 2021 full-year gross profit by 128.9% to N114.2bn

… Declares US 3 cents Q2 dividend per share

Rashidat Okunlade Writes

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its unaudited results for the six months ended 30 June 2023, recording a rise in revenue by 3.8 per cent to N278.3bn from N219.2bn year-on-year.

The company also declared a Q2 2023 dividend of US 3 cents per share, in line with higher core annual dividend of US 12 cents.

The energy Company’s also grew its 2023 H1 gross profit to N140.6bn from N114.1bn year-on-year. The Company, in its announcement, described the operating performance for the period as solid, given a 2 per cent increase in production, helped by reduced losses on its Western Asset, which is benefitting from the availability of the Amukpe-Escravos Pipeline and increased output from OML40.

Seplat Energy extended the Share Sale and Purchase Agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU) to preserve the transaction, pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals; and will continue to work with all parties to achieve a successful outcome.

The full-year production guidance was retained at 45-55 kboepd whilst Capex guidance range at $160 – $190 million (previously $160 m) to support the Group’s objectives for the year.

Following the Company’s previously announced Board succession plan (25 April 2023), it announced that Eleanor Adaralegbe, currently Vice-President Finance, has been appointed CFO-designate and will succeed Emeka Onwuka as CFO in 2024.

Financial highlights

  • Revenues up 3.8% to $547.0 million (including over lift of $59.4m), on improved production, offset by lower oil price
  • Cash generation of $259.1 million, funding capex of $88.8 million, and improved shareholder returns
  • Balance sheet remains strong, $381.0 million cash at bank, despite the impact of the devaluation of the Naira on USD cash balances, net debt now at $380.0 million ($128 million MPNU cash deposit not included)
  • Further $3.3 million received as part of the Ubima disposal, total proceeds up to $21.9 million
  • Unit production opex of $9.6/boe
  • Average oil price $79.54/bbl (6M 2022: $107.35/bbl); average gas price $2.87/Mscf (6M 2022: $2.76/Mscf)
  • Q2 2023 dividend declared of US 3 cents per share, in line with higher core annual dividend of US 12 cents

Operational highlights

  • Working interest production increased by 1.8% to 50,805 boepd, in the middle of our 45-55 kboepd guidance
  • Amukpe-Escravos Pipeline (AEP) continued to provide alternative evacuation resulting in lower downtime overall
  • Completed five new wells, boosting liquids production at OML 40
  • Island section of grouting operations on OB3 pipeline complete. ANOH gas plant mechanical completion and partner operated key project milestones expected by end 2023
  • Achieved more than 4.2 million hours without Lost Time Injury (LTI) at Seplat-operated assets
  • Carbon intensity figure of 26.3 kg/boe. Sapele Power gas offtake expected to commence in 2H23, this is expected to reduce emissions by approximately 40%

Corporate updates

  • Extended the Share Sale and Purchase Agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU) to preserve the transaction, pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals; we continue to work with all parties to achieve a successful outcome
  • Full-year production guidance retained at 45-55 kboepd
  • Capex guidance range at $160 – $190 million (previously $160 m) to support the Group’s objectives for the year
  • Following our previously announced Board succession plan (25 April 2023), we are pleased to announce that Eleanor Adaralegbe, currently VP Finance, has been appointed CFO-designate and will succeed Emeka Onwuka as CFO in 2024

Commenting on the impressive results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy said: “Seplat Energy’s continuing strong performance puts us on track for an excellent year that will support the increased quarterly dividends we announced in April, and our balance sheet remains strong despite the impact of the recent Naira devaluation. We are benefiting greatly from use of the new Amukpe-Escravos Pipeline, which has supported our robust cash generation this year, and remain focused on improving operations, reducing costs where possible and further derisking the business. We continue to strengthen our Company in the knowledge that our efforts to improve governance and sustainability are widely supported by Nigerian and international investors.

“The distraction of frivolous legal actions is receding, and we are focused on developing our assets and launching our joint venture ANOH Gas Processing Plant, which will significantly boost our cash generation in the coming years. We expect that this will enable us to fund additional investment in Nigeria’s energy infrastructure and return higher dividends to shareholders.

“We remain confident that our proposed and transformational acquisition of MPNU will be approved, enabling us to scale into a significant energy supplier with diverse and productive assets that have the potential to generate substantial benefits for Nigeria. We wholly align and support the recent government efforts to make Nigeria a more attractive place to invest and continue to focus on delivering affordable and reliable energy for Nigeria’s young, entrepreneurial, and rapidly growing population.”


Unity Bank Grows Gross Earnings To N27.5 Billion In H1’2023 



Mrs. Tomi Somefun, Managing Director of Unity Bank Plc.

Rashidat Okunlade Writes

Retail lender, Unity Bank Plc grew its deposits to N333.38 billion, representing a marginal increase of 2% compared to N327.42 billion recorded in H1’22 in its Half-Year unaudited financial statement submitted to the Nigeria Exchange Group Limited.

The growth in deposits demonstrates incremental gains by the lender from its commitment to deepening its retail footprint through a well-diversified banking product suite that caters to different segments of the retail market.

Other highlights of the unaudited financial statement include gross income and total assets which recorded N27.5 billion as against N27.4 billion and N512.1 billion from N510.1 billion respectively within the period under review. The net loans portfolio reduced significantly by 31% to N198.6 billion as of 30 June 2023 from N289.4 billion as at 31st December 2022. The Bank’s NPL Ratio remained moderate at below 3% while the liquidity ratio stood strong at over 45%.

However, the Bank’s profit for the period was impacted by foreign exchange revaluation on the back of Nigeria’s recent FX liberalization policy, resulting in a slide in our position.

Notwithstanding, the retail lender grew its FX trading income significantly by 17% to N239.8 million from N204.4 million in the corresponding period of 2022, underscoring the Bank’s strategic focus on diversifying and growing its earnings portfolio.

Similarly, fees and income commission also witnessed a 10% growth to N3.5 billion from N3.2 billion compared to the corresponding period of 2022, on the strength of the growing popularity of its digital banking platforms and customers’ acquisition in the retail space.

Commenting on the financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun noted that the significant disruptions that characterized the operating environment have impacted the positions of the Bank to the extent that we have constraints in income generation on the back of revaluation of the bank’s net foreign liabilities occasioned by the Naira devaluation during the period.

Mrs. Tomi stated: “In the light of the prevailing FX revaluation in the financial system, what we have is a market-driven impact which is adjustable and envisaged from the positive economic outcomes of the government policies in the near term. Be that as it may, the negative shareholders’ fund has improved considerably through the injection of N135billion which moderated the negative shareholders’ fund from (-ve) N275Billion in the December 2022 financial year-end to (-ve) N178Billion at the end of June 2023, after absorbing the FX revaluation loss suffered in Q2/2023. We are, however, focused on clear-cut plans to close out on our recapitalization programme very soon to enable us to do business as expected in the fast-growing markets in Nigeria”

She further stated that while we remain optimistic that the government’s policy initiatives will lead to correction in the market, the Bank has accelerated measures to ramp up asset creation and liability generation in the short and medium term. The Bank is aggressively driving its retail growth in every segment of the market, expanding strategic partnerships; and growing commercial banking business to develop new and sustainable income lines for the Bank as well as pay sufficient attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and product marketing to enhance value creation in the market.

Analysts are of the view that notwithstanding the market shocks currently being experienced, the Bank is still on course given the resilience it has demonstrated over time.

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Shell Plc Second Quarter 2023 Euro And GBP Equivalent Dividend Payments



Shell Starts Production At Vito In US Gulf Of Mexico

Rashidat Okunlade Writes

The Board of Shell plc today announced the pounds sterling and euro equivalent dividend payments in respect of the second quarter 2023 interim dividend, which was announced on July 27, 2023, at US$0.331 per ordinary share.

Shareholders have been able to elect to receive their dividends in US dollars, euros, or pounds sterling. Holders of ordinary shares who have validly submitted US dollars, euros, or pounds sterling currency elections by August 25, 2023, will be entitled to a dividend of US$0.331, €0.3046, or 26.12p per ordinary share, respectively.

Absent any valid election to the contrary, persons holding their ordinary shares through Euroclear Nederland will receive their dividends in euros at the euro rate per ordinary share shown above. Absent any valid election to the contrary, shareholders (both holding in certificated and uncertificated form (CREST members)) and persons holding their shares through the Shell Corporate Nominee will receive their dividends in pounds sterling, at the pound sterling rate per ordinary share shown above.

Euro and pounds sterling dividends payable in cash have been converted from US dollars based on an average of market exchange rates over the three dealing days from August 30 to September 1, 2023. This dividend will be payable on September 18, 2023, to those members whose names were on the Register of Members on August 11, 2023.


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Fidelity Bank Records Highest Earnings Per Share On NGX For H1 2023



Fidelity Bank records highest earnings per share on the NGX for H1 2023

Rashidat Okunlade Writes

For the second year running, leading financial institution, Fidelity Bank Plc, has emerged as the company with the highest earnings per share on the Nigerian Exchange Limited (NGX) based on half-year financial figures.

According to a report by BusinessDay, Fidelity Bank, Seplat Energy, Total Energies, Okomu oil, Presco, Dangote Cement, MTN Nigeria, BUA Foods, First City Monument Bank (FCMB) and Geregu Power emerged as the companies with the highest earnings per share within the review period.

Earnings per share (EPS) is a company’s net profit divided by the number of common shares it has outstanding.

It also indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.

A higher EPS indicates greater value because investors will pay more for a company’s shares if they think the company has higher profits relative to its share price.
Fidelity Bank recorded an earnings per share of N184 in the first half of 2023 from N79 in the first half of 2022.

The shares outstanding stand at 32.01 million, with a price which stood at N7 and a traded volume of 32.15 million as of 12:59 p.m. on Friday.

The bank’s profit for the period stood at N53.3 billion in the first half of 2023 from N22.84 billion in the similar period of 2022.

Fidelity Bank’s cash and cash equivalents rose to N501.54 billion in the first half of 2023 from N276.07 in the first half of 2022.

It would be recalled that the bank’s shareholders recently approved a capital raising exercise via a Public Offer for up to 10 billion Ordinary Shares and Rights Issue of up to 3.2 billion Ordinary Shares representing one new share for every 10 shares held to new and existing shareholders respectively.

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