Energy company, Seplat takes advantage of rebound in oil prices to post impressive gains in nine months – Nairametrics

Analysts noted that Seplat Energy Plc took advantage of the rebound in oil prices to increase revenue in the first nine months of 2021.

This was revealed during the Nairametrics ‘On the Money’ series held on the social media app, Clubhouse, on Saturday, October 30, 2021. While commenting on recent corporate earnings, analysts noted that Seplat had performed well. exceptional, posting strong sales figures due to the steady growth in oil prices during the period.

Seplat Energy Plc, a leading Nigerian energy company listed on the Nigeria Stock Exchange and the London Stock Exchange, recently filed its nine-month financial statements for the period ended September 30, 2021, which revealed impressive gross profits s ‘appreciating by more than 34.70% compared to N135. 62 billion in 2020 to N182.68 billion in the current period.

Strong points

  • Gross profit for the nine months recorded an impressive gain of 83.44%, from 31.69 billion naira to 58.13 billion naira.
  • Operating profit jumped to N62.61 billion from a loss of N27.44 billion in the period of the previous year.
  • Profit after tax for the period appreciated massively by 141.26%, from a loss of 33.68 billion Naira to a profit of 13.90 billion Naira
  • Equity increased by 42.21 billion naira to 674.55 billion naira.

What would you like to know

The main profits of the company come from revenue from contracts with customers which are divided into two segments: crude oil sales and gas sales.

A quick review of the account notes revealed that the energy company made the most sales of crude oil, which brought in more than 146 billion naira, or about 80% of total revenue, during the period under review, which can be attributed to the rebound in the oil price.

It should be noted that Seplat’s main buyers of crude oil are foreign companies, Mercuria, the parent company of Mercuria Energy Group in Switzerland; and Shell Western, a subsidiary of Royal Dutch Shell.

During the period, world oil prices climbed from around $ 48.73 per barrel in January to around $ 72.80 per barrel in September, reflecting growth of 49.39%.

Seplat Energy Plc is currently trading at N 731.50 per share at the time of writing. The share price has appreciated considerably by 81.83%, from 402 N at the start of the year to its current price of 731.50 N.

The company previously announced its intention to start paying quarterly dividends to shareholders and has kept its word. In the last quarter, the company paid 2.5 cents to its shareholders and also declared a dividend of 2.5 cents for the third quarter, bringing the total dividends for both quarters to 5.0 cents.

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