Seplat Energy said its revenue for January through March galloped at the pace of 73.7 per cent compared to a year earlier even though production level was weaker, but the cash it expended on taxation forbade the growth from impacting profit positively.
Nigeria’s biggest oil and gas firm owed the bumper earnings jump to a “higher oil pricing,” its unaudited financial statement noted. And that was the buffer needed to cushion the shock of lower activity from the Trans Forcados Pipeline, which has seen recurrent outages after a force majeure was declared in the wake of a blast.
Turnover climbed to N100.6 billion from N57.9 billion, the amount recorded for the first quarter of last year.
Seplat Energy attributed the leap to a near double surge in earnings from crude oil sales in the notes to the financials, helping to offset the effect of a slight drop in gas sales – the corporation’s other income stream.
Profit before taxation stood at N34.7 billion, 226 per cent higher than the figure for the first three months of 2021.
The sum of N26.4 billion was incurred in income tax compared to N1.2 billion a year ago, the surge resulting from a deferred tax expense coming to N19 billion.
It weighed on after-tax profit, forcing it down by 58.3 per cent to N8.3 billion.
“The acquisition (of Mobil Producing Nigeria Unlimited shallow water assets) will reinforce our leadership of Nigeria’s indigenous energy sector and enabling us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns,” CEO Roger Brown.
“It will also bring a significant undeveloped gas resource base which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.”
Seplat pays dividend four times a year in each quarter, and has announced an interim dividend of US2.5 cents per share to be paid to shareholders whose names appear in the company’s register of members by the close of business on May 30. Payment has been set for June 24.
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