Seplat Energy, Conoil others generate N1.18trn revenue amid Tinubu’s reforms

With the President Bola Tinubu reforms in the oil & gas sector that drive activiitiies,, Seplat Energy Plc, Conoil Plklc, and two others petroelium marketing companied listed on the Nigerian Exchange Limited (NGX) reported N1.18 trillion revenue in half year ended June 2024, about 115per cent increase from N547.74 billion reported in half year ended June 30, 2023.

The other two companies are TotalEnergies Marketing Nigeria Plc and MRS Oil Nigeria Plc.

From the result and accounts, Seplat Energy declared N306.43billion revenue, about 142.5 per cent growth from N126billion reported in H1 2023, while Totalenergies Marketing Nigeria announced N529.9 billion revenue in H1 2024, a growth of 93 per cent from NN274.6 billion in H1 2023.

As Conoil reported N180.57 billion revenue in H1 2024, about 107 per cent increase from N87.1billiion in H1 2023, MRS Oil posted N161.97billiion revenue in H1 2024, a growth of 171.5per cent from N59.65 billon reported in H1 2023. 

Chief Executive Officer, Seplat Energy, Mr. Roger Brown in a statement said: “Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company.

“Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.

“In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024.

“We thank our government partners for their efforts towards completion of critical pipeline infrastructure in recent weeks. In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production. We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas’.

“In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.

“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion.”

As gathered by WESTERN POST, the four companIies generated N291.3 billiion profiit before tax in H1 2024, a growth of 329per cent from N67.9 billion reported in H1 2023.

In the global market, the average price of crude per barrel as of June 30, 2024 stood at $86.59 compared to the average price of the same products stood at $76.14 as of June 28, 2023

Consequently, the Nigerian market has witnessed an increase in price of Premium Motor Spirit (PMS) or petrol for the month of June 2024 was N750.17, indicating a 37.44per cent increase when compared to N545.83 recorded in June 2023, according to the National Bureau of Statistics (NBS).

NBS stated that “the average retail price of Automotive Gas Oil (Diesel) paid by consumers increased by 79.32per cent on a year-on-year basis from a lower cost of N815.83 per litre recorded in the corresponding month of last year (i.e., June 2023) to a higher cost of N1462.98 per litre in June 2024.

“On a month-on-month basis, an increase of 4.20per cent was recorded from N1403.96 in the preceding month of May 2024 to an average of N1462.98 in June 2024.”

Capital market attributed the oil & gas companies’ performance to margin increase in price of petrol, diesel and lubricant, stressing that the impact is felt in the NGX Oil & Gas Index that has outperformed NGX Banking Index.

Reacting to profit before tax growth by these oil firms, the Vice President, Highcap Securities Plc, Mr Daviid Adnori, attributed the growth in oil and gas to the crisis between Russia and Ukraine that has caused a global shortage of supply of oil and gas.

According to him, “This has created a snowball effect in the world, created demand, and therefore the price of oil went up.

“This also has its effect on us here. If you look at the period, you will discover that was the period when the oil price was above $100 per barrel.

“This means the oil companies are getting a sweet windfall. And therefore, they should be making more money.”