Seplat Energy PLC (CHIX:SEPLl)
£ 2.335 -0.065 (-2.71%) Market Cap: 1.55 Bil Enterprise Value: 2.17 Bil PE Ratio: 12.43 PB Ratio: 1.14 GF Score: 76/100

Full Year 2024 Seplat Energy PLC Earnings Call Transcript

Mar 04, 2025 / 12:00PM GMT
Release Date Price: £1.95 (-0.76%)

Key Points

Positve
  • Seplat Energy PLC (SEPLF) successfully completed the acquisition of MPNU, significantly increasing oil production and reserves.
  • The company reported strong adjusted EBITDA of $539 million, with a substantial contribution from both onshore and SEPNU operations.
  • Seplat Energy PLC (SEPLF) increased its dividend from $0.15 to $0.165 per share, reflecting confidence in business stability.
  • The company achieved a 200% organic reserve replacement ratio, indicating strong asset management and future production potential.
  • Seplat Energy PLC (SEPLF) has a motivated workforce post-acquisition, with 1,000 employees from SEPNU eager to expand and grow the assets.
Negative
  • The company faced significant one-off costs related to the acquisition, impacting cost of sales and G&A expenses.
  • There are concerns about the high historical tax rates on the MPNU asset, which the company aims to optimize in 2025.
  • Seplat Energy PLC (SEPLF) needs to refinance its notes and RCF by mid-2025, which could pose financial challenges.
  • The company is dealing with aging infrastructure and bottlenecking issues in some of its offshore assets.
  • Operational costs are expected to be higher in 2025 due to maintenance and integrity work, impacting short-term profitability.
Operator

Good morning, and welcome to Seplat Energy PLC full-year results 2024. (Operator Instructions) I would like to remind everyone that this call is being recorded.

I will now hand over to James Thompson, Head of Investor Relations, to open the presentation. Please go ahead.

James Thompson
Seplat Energy PLC - Head of Investor Relations

Thank you, Christa. Hello, everybody. Good afternoon. Good morning. Welcome to Seplat Energy's financial results for the full-year 2024, and our first since the completion of the acquisition of MPNU. On the call today, are our CEO, Roger Brown; CFO, Eleanor Adaralegbe; and COO, Samson Ezugworie.

After the presentation, we will move straight to the Q&A. Before we just start, I'll just draw attention to the forward-looking statement on slide 2.

And now I'll pass the call over to Roger. Over to you.

Roger Brown
Seplat Energy PLC - Chief Executive Officer, Executive Director

Thank you, and good morning, good afternoon, everyone. And we're delighted to come

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