Seplat Energies Plc has announced a significant financial performance for the first half of 2024, reporting a 134.07% increase in profit after tax to ₦20.57 billion, compared to ₦8.79 billion in H1 2023. The company’s revenue surged by 92.98% to ₦529.94 billion, up from ₦274.60 billion in the corresponding period last year, driven by higher sales and operational efficiency.
Thank you for reading this post, don't forget to subscribe!The cost of sales also saw a sharp rise of 94.32% to ₦465.53 billion, which resulted in a gross profit of ₦64.42 billion, up 83.86% from ₦35.03 billion in H1 2023. Seplat’s gross margin slightly contracted to 12.2% from 12.8%, reflecting increased cost pressures.
Other income for the period soared by 253.00% to ₦6.96 billion, while the company managed to maintain its operating margin at 6.6%, compared to 5.6% in the previous year. Despite a significant increase in selling and distribution expenses, which grew by 238.99% to ₦7.42 billion, and administrative expenses rising by 61.42% to ₦28.94 billion, Seplat’s profit from operating activities more than doubled, reaching ₦35.01 billion, a 126.35% increase.
Finance income rose by 172.35% to ₦3.41 billion, while finance costs also increased by 142.00% to ₦7.84 billion, leading to a net finance cost of ₦4.43 billion, a 122.93% increase from the previous year.
After accounting for income tax expenses, which more than doubled to ₦10.00 billion, Seplat reported a profit after tax of ₦20.57 billion. Basic earnings per share (EPS) also saw a dramatic increase to ₦60.58, up 134.08% from ₦25.88 in H1 2023.
On the balance sheet, Seplat’s total assets grew by 34.64% to ₦505.04 billion, from ₦375.12 billion at the end of December 2023. This was driven by significant increases in trade and other receivables, up by 58.01% to ₦251.61 billion, and inventories, which rose by 32.91% to ₦98.23 billion. Cash and cash equivalents also improved by 15.46% to ₦101.79 billion, indicating strong liquidity.
Total liabilities increased by 36.94% to ₦436.89 billion, with trade and other payables seeing a 53.62% jump to ₦328.91 billion. Seplat’s borrowings remained relatively stable, with a slight decrease of 2.14% to ₦82.73 billion. The company’s total shareholders’ equity grew by 21.54% to ₦68.16 billion, reflecting the overall positive financial performance.
Seplat Energies’ stock price stood at ₦388.9, with a 52-week high of ₦388.9 and a low of ₦346.5. The company’s price-to-earnings ratio was recorded at 6.42x, with an earnings yield of 15.58%, signaling a strong return on investment for shareholders. Return on equity (ROE) was impressive at 30.2%, while return on assets (ROA) stood at 4.1%.
The company has not announced any interim dividends or corporate actions at this time. Overall, Seplat Energies Plc has demonstrated strong financial health and growth potential amidst Nigeria’s challenging economic landscape.
