Seplat Energy Plc (SEPL) Earnings Call Transcript & Summary

Good morning, distinguished ladies and gentlemen. I welcome you all to the 11th Annual General Meeting of Seplat Energy plc. Based on the information provided by the registrars, and confirmed by the Company Secretary. There is a quorum for this Annual General Meeting, and I hereby declare the meeting open. But before we commence the business for today, can we have the National Anthem. [Presentation]

May I now call on a shareholder to lead us in prayer. Can I see which shareholders are.

Let us free. Let us free, but in the name of Jesus. Almighty God, we thank you for another opportunity to come together to look at the scorecard of our company Seplat. Further operate that you take as well control in the name of Jesus, Lord God, we pray, that information that would transform this company for better. Let's be disseminated at this meeting this morning in the name of Jesus. At the end of the call, [indiscernible] glorify in Jesus precious name I pray. In the name of Jesus. Amen. Thank you.

Amen. I believe that was Dr. Alex Adieu. Thank you. Thank you very much. Dear shareholders, this meeting is being held virtually in compliance with the Business Facilitation Miscellaneous Provisions Act of 2023. This act is aimed at promoting the ease of doing business, enhanced productivity, and ensure transparency in Nigeria. Section 11 of the Business Facilitation Miscellaneous Provisions Act 2022 amended Section 240 subsection 2 of the Companies and Allied Matters Act, which empowers public companies to hold their annual general meetings electronically. Therefore, in compliance with the amended provisions of the law, this meeting is being held virtually. With the link published in the notice of this meeting, and on the company's website. Also note that this AGM is being streamed live and can be viewed by all in real time. We would like to assure all our distinguished shareholders, that the proceedings for this meeting will be conducted in a timely manner. At this point, let me proceed by introducing members of the Board of Seplat Energy plc, some of whom are present here with us, and others by virtual participation. I start with Mr. Roger Brown, the Chief Executive Officer. Thank you. Then Mr. Samson Ezugworie, who is the Chief Operating Officer. Thank you very much, Samson. Then next is Mrs. Eleanor Adaralegbe. She is the Executive Director and Chief Financial Officer, designate. Then next is Dr. Bello Rablu, who is the senior Independent Non-Executive Director. Then next is Mr. Olivier de Langavant, Non-Executive Director. Then next is Mr. Ernest Ebi, who is a Non-Executive Director. The next is Mr. Kazeem Raimi, another Non-Executive Director. Then next is Madam Nathalie Delapalme, a Non-Executive Director. The next is Mrs. Bashirat Odunewu, Independent Non-Executive Director. Thank you. Then next is Dr. Emma FitzGerald independent Non-Executive Director. The next is Ms. Koosum Kalyan, Independent Non-Executive Director. Then next is Mr. Christopher Okeke, Independent Non-Executive Director. Then Mr. Babs Omotowa, Independent Non-Executive Director. And finally, I get to myself. My name is Udoma Udo Udoma, your Independent Non-Executive Chairman. I would also like to introduce the company's Secretary, Mrs. Edith Onwuchekwa. We also have representatives from the following regulators and professional bodies with us online. You are first Ms. Brenda Duke from the Nigerian Exchange Limited. Then you have Mr. Graham Omenka from the Securities and Exchange Commission. Then you have Mr. Hussaini Ishaq Magaji, the Registrar General Corporate Affairs Commission. We're indeed honored to have you present in in-person. Thank you very much. We also have Ms. Abisola Atitebi from PwC, our external auditors and our registrars, DataMax Registrars Limited who are our Nigerian registrars and Computershare investor services, who are our U.K. registrars. Also joining us online are members of the Statutory Audit Committee for the year 2023 as follows: Mr. Mr. Abayomi Adeyemi, who is a Shareholders' Representative and who is the Chairman. Then you have Mr. Nornah Awoh, Shareholders' Representative. Then you have Hajia Hauwa Umar, also a Shareholders' Representative. The 2 Board representatives have already been introduced. They are Mrs. Bashirat Odunewu, and Mr. Mr. Kazeem Raimi. Dear shareholders to facilitate the smooth and effective conduct of this meeting, which, as I said earlier, is being streamed live. We appeal to everyone to please observe the following rules of engagement. One, if you wish to speak please indicate by clicking on the raise hand icon because if you don't do that, I will not see you and I will not be able to call you. So please indicate by clicking on the raise hand icon. When called upon to speak. Please take your first name and seam before you proceed to make your comments. This is important so that it can be properly recorded. Kindly keep your comments and questions brief so as to ensure that other people are giving a fair opportunity to also participate. If you encounter any issues during this meeting, please click on the chat box and our representatives will be on hand to assist you. We'll be monitoring the chat box. So please just click on it. The Registrar of Directors shareholding and the record of attendance as well as the annual reports are available on the company's website. Please note, distinguish shareholders that there will be an opportunity to second each resolution put to the meeting. At this stage, May I call on the Company Secretary to read the notice of the meeting.

Thank you, Mr. Chairman. Dear ladies and gentlemen, the notice of this meeting is on Page 297 of the 2023 annual report and is accompanied by the list of unclaimed dividends. The notice was published in the following 2 national dailies, the Leadership Newspaper and The Nation Newspaper both dated 23rd April 2024 in accordance with Section 46 of the Companies and Allied Matters Act 2020. With your kind permission and approval, Mr. Chairman, may I take the notice of meeting as duly read.

Permission is granted, Mrs. Onwuchekwa. The notice of meeting is hereby taken as read. In line with Section 248 of the Companies and Allied Matters Act 2020. The resolutions for this meeting will all be taken by poll, except the resolution for the election of members of the Statutory Audit Committee, which shall be conducted electronically, reflecting a show of hands. Proxy forms duly submitted to the registrars prior to this meeting have been collected by the registrars, indicating that some shareholders have already voted on the resolutions. I will now invite the registrars to explain the voting process. Registrars, please.

Thank you, Mr. Chairman. Esteemed shareholders, please be informed that we have captured valid voting details. [indiscernible] 264 shareholders received by way of proxy, totaling 307,182,037 units of shares, representing 52.2% of the company's issued share capital. As you vote on the resolutions that will be announced by the Chairman, [indiscernible] that the voting results would be inclusive of this recaptured votes. We have put it together a short video that would guide you on how to use the online voting platform. Please watch. [Presentation]

Thank you very much to our registrars for that detailed explanation. Distinguished ladies and gentlemen, we will now proceed to the first item on the agenda, which is to receive the company's 2023 annual reports and accounts. This includes the directors' report, auditor's report for the year ended 31st December 2023, and the audit committee report. The 2023 annual reported accounts have been circulated to all of you ahead of this meeting. I hereby lay before this meeting that the 2023 Annual reports and accounts for the year ended 31st December 2023, together with the reports of the directors, auditors and the Statutory Audit Committee report. Will a shareholder kindly receive the reports on behalf of the meeting? Can I call some names Eric Akandu.

Thanks Mr. Chairman. Good morning, Mr. Chairman. Good morning, my fellow shareholders, and good morning regulators, particularly shareholders that are watching us all over the world. My name is Eric Akandu. Firstly, Mr. Chairman, I need to congratulate you and to welcome you into this highest post in Seplat. One thing I know is that, we are not [ in movies ] in the capital markets. You're coming to these slots, definitely, I believe we have our company not only that able to have a very robust most relationship with all the stakeholders. So Mr. Chairman, I welcome you into this Seplat. And also Mr. Chairman, I need to congratulate the President of Nigeria, His Excellency, Bola Ahmed Adekunle Tinubu GCFR, and our company Seplat, even the entire shareholders for the commissioning of a ANOH gas processing plant yesterday. In fact, this was -- this was a very milestone development in the history of our company. So I believe that this plant, will create more jobs for Nigeria and not only that more gas apply into the power sector of our economy. So I really comment this our company for taking this serious step and for the achievement of this great fit by company. And briefly, Mr. Chairman, I only have a few questions which I want to ask you and only just before that, Mr. Chairman. Looking at our annual reports this year, I realize that this is the first time that we are having the report of the outgoing Chairman and the incoming Chairman together in one annual report. This is very commendable and it's very good for corporate governance and for wish shareholders to know that we have a good relationship with the outgoing and the incoming. So I commend the leadership of this company for that. And quickly Mr. Chairman to Page 219, note 26, 23. I read it dare that we downsized our workforce from 531 to 432 almost taking about 100 people into the labor market. I wanted to explain to us, Mr. Chairman, despite the fact that we are making progress and we are expanding. Why do we have to downsize our staff to that level? And also Mr. Chairman, on Page 28, note 22.1 million. I read it there that we have an intercompany payable to Seplat West Limited to the tune of NGN $2.3 billion from NGN 879.997 million last year. So Mr. Chairman, I will need more explanation on this. And also on the concluding part, Mr. Chairman, what are we doing to increase our sustainable energy. As a way to reduce the impact of our operations on the environment, particularly our plan towards eliminating of gas players in Nigeria. So I want you to throw more light on this, Mr. Chairman. And finally, Mr. Chairman, on the payment of dividend, I want to commend our company for regular payment of dividend and the conversion ratio. But I want the registered to be up doing because when you look at the rate of the claim dividend, is getting higher every day. So let the registrar tried to put some machineries in place to ameliorate, the pace the base of shareholders in getting their dividends as declared. On this note, Mr. Chairman, I appreciate you for giving me the opportunity. Thank you.

Thank you very much. Your questions have been noted, but this wasn't actually the time for questions, but they have been noted. And at the appropriate time, answers will be given. And I thank you for the welcome. A very warm welcome you gave to me, and I thank you for the comments you made about the ANOH gas commissioning yesterday. We are very grateful for the support and the favorable comments. Now being cognizant of time constraints, with your permission, may I consider the 2023 annual report and accounts, including the directors' report as duly read. I would like to call on a shareholder to please adopt the report as duly read. And please note, just to adopt the report. No questions at this time. Thank you. Can I call on Mrs. Adebisi Bakare to please adopt the report. Thank you.

Thank you, Mr. Chairman. Hello, can you hear me, sir? Hello, sir.

We can hear you very clearly.

Okay. Thank you very much, Mr. Chairman, for the opportunity. And I want to appreciate and commend the entire Board, management, and staff of Seplat Energy for having today's meeting as virtual meeting. This is highly commendable. This kind as to do all that is today in our office immediately after today's meeting. So we encourage all the hand companies to join this virtual meeting. Having said that, Mr. Chairman, I'll send my questions to the -- through the Director Company Secretary. That is Madame Company Secretary. I sent my questions to her. So I'm going to be very, very brief. I'm not going to take much of your time. My first question is going to be that, what is your 2024.

Do we still have you online, Mrs. Bakare? Is just to indicate that since you've sent your questions, what I was asking for was to adopt the report as duly read? Do I take it that you have done so? So that we can proceed.

I'm very sorry, Mr. Chairman. It's like I didn't get you very well. I second on the motion. Sorry, sir.

Thank you very much. Mrs. Bakare for adopting the report. It is now time to read the Chairman's statement. Distinguish shareholders, the Chairman's statement is on Pages 20 to 22 of the report. And with your permission, I shall consider the Chairman statement and directors report as duly read, in line with Section 388 subsection 2 of the Companies and Allied Matters Act. I will now call on the representative of PwC to present the auditor's report for the year ended 31st December 2023. Please proceed PwC. Thank you.

Good morning, Mr. Chairman. My name is Abisola Atitebi, a partner at PricewaterhouseCoopers, PwC, Independent auditor's reports, the members of Seplat Energy plc, report on the audit of the consolidated and separate financial statements. Our opinion, in our opinion, the consolidated and separate financial statements give a true and fair view of the consolidated and separate financial position of Seplat Energy plc, the company and its subsidiaries together the group as at 31st December 2023 and of their consolidated and separate financial performance and their consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act and the Financial Reporting Council of Nigeria and Amendment Act 2023. What we have audited, Seplat Energy plc consolidated and separate financial assessments comprised the consolidated and separate statements of profit and loss, and other comprehensive income for the year ended December 31, 2023. The consolidated and separate statements of financial position as of December 2023. The consolidated and separate statements of changes in equity for the year then ended. The consolidated and separate statements of cash flows for the year then ended, and the notes of the consolidated and separate financial statements, which comprise a solely of material accounting policies. We conducted our audit in accordance with international standards of auditing, IAASB. Our responsibilities on that those standards are further described in the auditor's responsibilities of the audit of the consolidated and separate financial statements of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion. That is our opinion, Mr. Chairman.

Thank you very much, Mrs. Atitebi for presenting the reports of the auditors. Before I entertain questions, I would also like to call on the Chairman of the Statutory Audit Committee to present the committee's report to the shareholders. So Mr. Adeyemi, please can you present your report. Thank you.

Thank you very much, Chairman. Good morning, fellow shareholders. The statutory audit committee report is on Page 162 of the annual report and accounts. Please join me as I read the report. In the financial year ended 31st December 2023, the committee had held for meetings, dates and attendance records for which can be seen in the table, and in compliance with Section 404 sub section 7 of the Companies and Allied Matters Act, 2020, we, the members of the Statutory Audit Committee reviewed the financial statements of the company for the year ended 31st December 2023 and the reports thereon, and confirm as follows: one, the accounting I report our reporting policies of the company in compliance with legal requirements and agreed ethical practices. Two, the scope and planning of audit requirements were in our opinion, adequate and compliant with legal requirements and best practice. Three, we have reviewed the findings on management later in junction with the external auditor, and we are satisfied with the response of management in dealing with such findings. Four, the company's systems of accounting and internal controls are in compliance with legal requirements and best practice. And we have in responses to these matters, meet the required recommendations to the auditors of the company. And in addition to forgery, we are the members of the Statutory Audit Committee conducted the following business during the year. We reviewed the 2023 external audit plan and the 2024 internal audit plan, including an assessment of the external auditor's independence. And we also reviewed the proposed 2024 budget and work program. These reports we signed on behalf of the Statutory Audit Committee by me, Abayomi Adeyemi. Thank you very much, Chairman.

Thank you very much, Mr. Adeyemi for presenting the reports of the Statutory Audit Committee. Now before we take any questions on the company's 2023 annual reports and accounts. I would like to inform our shareholders that yesterday, the company had the pleasure of having the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu GCFR commission the ANOH gas processing plant. Most of us were there, I was there personally the Managing Director, the top management. We were really delighted that this project has been commissioned by Mr. President himself. So we all look forward to first gas on the third quarter. As you know, the mechanical completion of the ANOH gas processing plant, we had announced that have been completed on the 29th December 2023. And we look forward to first gas in the third quarter. Secondly, Seplat is currently engaging with the federal government as well as the NNPC to resolve all the issues relating to the completion of the Mobil Producing Nigeria Unlimited acquisition, and we are making progress. We are aware that the federal government is very keen on increasing production levels in the country. So we believe that very soon, the acquisition will be completed. At this point, I would be pleased to answer any questions that any of you shareholders may have on the annual reports and accounts of the company before we proceed any further. Just some housekeeping. Please, if you want to ask a question, indicate your interest by raising your hand electronically, and I will call upon you to ask your question. When called upon, please state your name clearly, and endeavor to be brief. Please endeavor to be brief. I humbly urge each person who asks a question, please do not repeat what has been said or asked before. All the questions will be taken together and responses provided accordingly. So if you are please indicate electronically.

Can I call on Patrick Ajudua to ask the first question.

Good morning. My name is Patrick Ajudua. I want to welcome you and the entire Board and management to this AGM, and to state our joy, that the company Seplat has been recording a lot of significant progress despite so many challenges on their way. I want to comment our former Chairman, Mr. Basil Omiyi for the great work that he has done because he has achieved so much more during this time in ensuring that corporate governance is accelerated accentuating productivity by more than 80%, and of course, ensuring consistent dividend payments. We want to wish in good luck in his future endeavor. And to you, Mr. Chairman, we welcome you. We ask the Almighty God to assist you to sail the ship of the company to greater heights. We would forget the Company Secretary, who I will call a great general Mrs. Edith Onwuchekwa. She's an epitome of greatness. She knows what you call engagement with shareholders. And of course, our team work with all our staff have ensured a smooth AGM that we're having today, we celebrate you and we thank you Mrs. Edith Onwuchekwa. We welcome Mr. [ Bello Rabiu ] and Mrs. Eleanor both replacing Mr. Okeahalam and Mr. Emeka Onwuka. We paid that you coming on Board, we add value to the company. Mr. Chairman on Page 21 I will be asking you, the outline, to outline your growth opportunities for 2024, starting from the Sibiri [indiscernible] just a few weeks after the FDP approval. Also, how far is the resumption of operation on the trust Niger Pipeline with reference to OML 53. Mr. Chairman, on Page 21, I want to comment the dividend declaration of $0.3 by Seplat. The area giving us a special dividend of to $0.03, what an footing, and this is a reassurance that investors needed to continue to invest in the company. Mr. Chairman, on the divestment of our investment with Nigerian Upstream Petroleum Regulatory Commission. We are then, as you have stated that to fast track will be due in order for us to commence completion. This deal will turn around the company to a greater level. I want to comment also the financial performance we saw the gross earnings grew up to [ $696 billion. ] I want to state that the company has been doing well -- and also, there is also a provision for the commissioning, which will be acting you to explain more to us. Our trade receivable also increases showing us the need to also improve our productivity while we should try to reduce our exposure. Mr. Chairman, I want to comment the issue of the oil test, which are reduced in Niger Delta. It's also a source of concern to us, but we are very hopeful that with still has that journey together we will be able to achieve a greater level of sanity in terms of security of the pipeline. Finally, Mr. Chairman, I want to commend you and the Board for what -- for the ANOH project, would you have stated. We hope that we'll continue to sustain this positive trend and also to ensure that we continue to expand into the mainstream of gas processing, which is aimed at reducing carbon emission. Our anticipation of shareholders is that the company will continue to grow more stronger despite the difficult economic challenges that we have now. Thank you, and God bless you sir.

Thank you very much, Mr. Ajudua. Your questions are noted, and they will be answered together with other questions. Thank you very much. I'd like to call on Hamza Ridwan to ask the next question.

Thank you very much, Mr. Chairman. Good morning, everybody. My name is Prince Hamza Ridwan. Mr. Chairman, I would not like to repeat what [indiscernible] have said, including, but not limited to welcoming you and congratulating us, especially on your appointment, your humble self being an indefatigable attorney as well as our indefatigable Company Secretary, which Patrick refer referred to us in general. I must comment the organization of this and all general meetings as well as the spirits with which the company secretariat have been able to attack the many barrage of attacks from some people through the past years. Mr. Chairman, I will be very short and precise. And my question will be around this oil rig, Majestic oil rig that capsized last week -- last year. I think, around 15th of August or thereabouts. Mr. Chairman, I'd like to know what is Seplat's percentage holding in that oil rig. Having said that, I would also like to ask what is -- what level of back kicks do we do on people or entities with whom we enter into contractual agreements. I think that will be all for now. Thank you very much and God bless.

Thank you very much, Hamza, for being precise and sticking to just 1 or 2 questions. Okay. I think I had called on Mrs. Bakare to support a motion, and she wanted to ask a number of questions. Let me called on how now to ask the questions that she wanted to ask. So please, this is the time to ask the question. Thank you. Okay. I think maybe she has having difficulty tuning in Lumi. Let me call on Olatunji Bunmi Deli to ask the question. What about Faruk Umar? Is Faruk Umar on?

Mr. Chairman. Good morning. Hello, Mr. Chairman.

Good morning. Good morning. We can hear you. Go on Faruk.

Thank you for giving me the opportunity. We have asked us not to repeat to what other shareholders have said. But on your appointment, I think it is desirable that I say, a word or 2, because you, at one time was the Chairman of Securities and Exchange Commission. So with that appointment with your our experience, we are happy today to have former Chairman of the Securities and Exchange Commission as our Chairman being legal practitioners. We believe you will give the Board befitting leadership and we welcome you to the Board. Mr. Chairman. I also want to comment on the quality of the Audit Committee. It would please you to know that the members we have on the Audit Committee, I would say without missing on that [indiscernible] was that which is 1 of the best we have in the industry. We have 2 members who are fellows of Icon. And then we have 1 of us on Nona who is very knowledgeable and who we believe in all the AGMs we attend, he has become a leader in analyzing accounts. I don't think we would ever have a better Audit Committee membership like we do have now. And also, as the Chairman, we have seen the mix. We have 2 males and a female on the audit committee. Mr. Chairman, I would also join one of our colleagues in thanking the company's secretary, who have been very, very accessible to us. We related with the company, she saw the book coming to Seplat. And when we so have been appointed at the Company Secretary, we were delighted, and we knew that Seplat had done the right selection. We pray good and will assist her incurring her assignment. So Chairman, I'm also happy to say that Seplat has been helping the niche in the sense that the tax we are paying the government is in billions of dollars. And with the current foreign exchange position the country is in, Seplat is really helping us in earning foreign exchange. Not to talk of the dividend that we have been getting in dollars, which has never gone down. So Mr. Chairman, we are also happy to see that -- we have -- this is 1 of the 3 companies I have seen in the capital market have been so many independent directors. And this is very good for corporate governance. Seplat been -- have been a dual listing, is a company that has the highest corporate governance adherence. I believe that we are very up-to-date on corporate governance, and I hope the company will keep it. Of course, everybody is happy that the President has commissioned the ANOH gas project. I commend the government because it appears that the government is focused and I believe by a year or 2, we will be able to address, government will be able to address the energy issue, electricity and so on. And I think this, again, will help us in our business. And finally, I also welcome the new directors. And believe me, Mr. Chairman, again, looking at the composition of the Board, will commend Seplat for the kind of directors that I brought on the Board. Thank you very much.

Thank you very much, Faruk. We'll just take one more. Oludewa Thorpe.

Thank you, Mr. Chairman, for giving me this opportunity. My name is Oludewa Thorpe. And as Chairman, as mentioned, I do not want to repeat any of the comments have been made by my fellow shareholders. In any case, I've also sent in two questions to the secretary and so I hope that those two questions would be answered along with the others. Well, I want to comment the company and management and the Board and management generally for the smooth transition that has taken place. If we look at Page 6 and 7, and 66 and 67 is tells give us the historical journey of the company from 2009 to 2024. From the founder, on our Chairman, MD, to the current independent Chairman and independent CEO. And when I looked at Page 66 and 67 I saw that there was only one member of the senior leadership team, who was there on in 2011. So I congratulate the board the way it is renewing the leadership team, the company really company way is renewing the leadership team, and that is very good for our company, for corporate governance, even for everything, I think that is a very good move. I have only one question, which I want to ask, which is different from the ones. I have written down. And that has to do with -- on Page 28 and Page 63. You set out there that the company pursues its good strategy through merger and acquisition, and I noticed that with the announcement of the divestment by the international oil companies, I saw somewhere, I think it's Page 64, where Seplat was reviewing two potential acquisition opportunities in the compressed natural gas and renewable power sector. I just wondered that this part of the divestment by the IOC, or is this a new acquisition that is different. So that's just a question I just want an answer. Thank you.

Thank you very much, and thank you all for all the questions. What I will do is I will call on the Managing Director. To take most of the questions and where necessary, get support from the Financial Director as well. And then at the end, I may make 1 or 2 comments. So please, over to the Managing Director.

Thank you, Mr. Chairman, and thank you, shareholders for those questions. So I'm going to start with the question that Mr. Eric Akandu. He asked at the start of the meeting. Okay. He asked specifically around Page 290 of the annual report which is on downsizing of -- his question was around downsizing of workforce. What I'd say is that the workforce hasn't been downsized. At 290 you're looking at the company and the company itself the holding company, if you reference Page 253 of the of the annual report, you will see the group staff numbers, and they are similar to last year. They are 588 staff versus 592 staff. So there's a very small reduction there, and it's a normal business operations. There's a question you had on Page 288 regarding the intercompany payable Seplat West. It's 100% owned by the Seplat Group. And that intercompany payable just relates to the interactions between the holding company and Seplat West. And obviously, being the biggest operation we have has the biggest balance. And the third question was around sustainable energy and the impact, it's a good question. What we're doing in under sustainability is where we put it part of our middle of our strategy. And the biggest thing that we are doing is obviously eliminating routine gas flares, and we have committed to completing that by H2 2025. And we're on track to deliver that. So we're confident we can do that, and that will have a very material impact in our carbon emissions into the atmosphere. And then the last comment, I think, was on payment of dividends and unclaimed dividends. And again, yes, we work very hard every year with our registrar to ensure unclaimed dividends are claimed. The second question, a bunch of questions were -- well, I will deal with -- is a DC Bakare first because she did send in her questions, and she has 4 questions. 1 are on trade receivables and referencing on Page 283 that trade receivables have increased. And if you look on the naira you will see a lot of balances have materially changed from 2022 to 2023. That's down to the weakening of the naira against the USD. Seplat's business is majority U.S. dollar-based business in terms of the gas and oil. First the gas. And therefore, when we translate into naira, you can see quite big swings in balances. But if you look in the dollar amounts, they're not materially different. He also asked a question on the 2024 outlook, which is another question that was asked elsewhere. And on the outlook itself, if you look at Q1 2024, we actually had a strong quarter in terms of our production. Our production is around 49,000 barrels of oil equivalent. It's at the upper end of our guidance range for this year, which is 44,000 barrels of oil equivalent to 52. And we expect that to continue through the quarter. So it's a strong start to the year for us as a business. And we'll continue in terms of our drilling, we're going to drill 13 wells. This year, we are on track with the forecasting of delivering those 13 wells by the end of the year. So then asked around portfolio diversification and what steps we're taking to diversify. And if you look at our strategy, which is laid out in the annual report, that strategy is a diversification strategy. And it's looking at from our upstream oil and gas business in Pillar 1 to our midstream gas processing business, which we are growing quite rapidly in Pillar 2. You can see that with the ANOH gas plant and the Seplat gas plants, which are coming on stream this year. And then the third one is branching out into electricity, both gas to power and also renewable energy, and that will then give us a diversified energy mix that is right for Nigeria, and that's an important point. And then the fourth question was around operational efficiencies. What are we doing to do this. And we have a very focused attention on cost reduction on the line item. So we try to do that. At the same time, as actually driving through our efficiencies, but bear in mind that what comes #1 for us is safety, health and safety, asset integrity and proactive maintenance of our assets and everything else, which obviously comes at a cost. So thank you for those questions. And my -- the third question came from Patrick Ajudua, and he's mentioned what's the 2024 outlook look like? And I've just answered it, we're on track for that. He asked specifically around the resumption of the Trans-Niger pipeline, and that is the one that takes our eastern production into the Bonny terminal. We're glad to say that the Trans-Niger pipeline is now open. It has been managed very carefully. And therefore, we expect that to ramp up into full flow in production over time. He then made some comments around dividends, MPU, commissioning, receivable, oil theft and the ANOH gas plant, which I think have been addressed. The next one question came from Mr. Hamza Ridwan. And he asked specifically around the Majestic incident in August last year and also around contractors. Let me just start by saying that this tragic incident in August last year, reminds us of the risks that we face in this oil and gas sector. I want to start by reiterating our thoughts and prayers to the affected families of the deceased and this incident was something that we treated extremely seriously. He asked specifically what was our shareholding in the rig, and the answer, simple answer to that is it's owned by debt-wise, Seplat has no shareholding in it. That said, we give everything of resource we could to support it, and we continue to give support to the regulator as the investigation is being completed and the findings from the investigation have now been implemented into our operations. And then let me just deal into the contractors. We have a very thorough contracting process. We have a vendor forum every year, which we outlined those. And that process is very robust, ensuring that the -- all our contractors go through a due diligence and an ongoing testing, and we're confident that, that is in compliance with all the regulations. We then move on to, I guess, the final to other questions from Mrs. Oludewa Thorpe, and she actually sent inner questions, so I'll just read the two questions specifically she asked and then he added a third one. Her question was around the events of Q2 last year, and what impact that had on our employees. And what we were doing about the employees to make sure that we kept morale in line with them. And let me just say that the events of last year Q2 are largely behind us. But obviously, the impact that has on employees is very critical. So what we have is every year, every October, we have a staff survey called the Seplat people voice and that looks into a whole range of attributes of our business where staff speak. And then we take that very seriously at the Board level and through the management and the senior leadership team. I'm glad to say that when we did that in October 2023, I think the results were better than previous years. But we've gone through a very extensive culture review using external parties at the leadership team and also through the other layers downwards. We have quarterly staff town halls and our style with that now is to have a much more open forum where staff can ask questions. And we have a number of groups where we're working through to address any issues that the staff have. One of which is the GCC, which are our monthly meetings where we engaged with the corporate staff. So we take this very seriously and ensuring that staff morale has kept high. So then I had a specific question around the gas business and around sometimes in the report, you'll see our gas business into power is 25%, sometimes it's 30%. The reason why is because if we look back, what we estimate is that the gas to power in Nigeria is around 4 to 5 gigawatts effective on a daily basis. And with Seplat's gas supply into that, if you do the range, it goes between 25 to 30%. So we're quite a material gas supplier in the country. And then the last question before I hand back to Chairman was around the divestments of majors and then specifically around the CNG and renewable energy opportunities. They are not divestments of majors. There are new opportunities, and we are looking through those to see if they fit within our strategy. So thank you very much. Back to you, Chairman.

Thank you very much, Roger, for the detailed responses and clarifications provided. I believe you've covered all the questions that were asked. What I would like simply to say is to thank the shareholders, thank all the shareholders for the very, very warm welcome I have received. And thank you for the nice things and the kind things you've said about me. I want to assure you that I intend as Chairman to build on the successes of Seplat. We will continue our position and as the leading energy provider in Nigeria. We'll also ensure that we make -- continue to make good returns to all our shareholders. That is the commitment I make coming in as your Chairman. Thank you very much. I hereby propose that the 2023 annual reports accounts, directors' report, auditor's report for the year ended 31st December 2023, and the Audit Committee report be adopted as presented. For a shareholder, please second the motion. Can I call on Ismail Adamu, is Ismail there?

Yes. I second the motion for the adoption of the report of the directors, auditors and Statutory Audit Committee reports. Thank you very much, sir.

Thank you, Mr. Ismail Adamu. At this stage, I'd like to call on shareholders, please to cast your vote while the registrars proceed with the voting process. Over to you, registrars. Please cast your votes while the registrars carries on with the voting process.

Thank you, Mr. Chairman. Esteemed shareholders, if you have already logged on to the voting platform, kindly ensure to refresh your voting page. If you are yet to log into the platform, take a look at your e-mails received, click on the voting link, enter your personalized voting token to continue and wait for the prompt to cast your vote. You have only 1 minute to vote on each of the resolutions. Voting will now commence. Please cast your vote in line with your voting decision. Please cast your votes. We have 10 seconds more. [Voting]

Voting has now ended. At the end of this voting, we have 292 votes, representing 303,969,252 units of shares voting in favor of the resolution. Thank you, Mr. Chairman.

Thank you, registrars. With that result, I hereby declare the motion unanimously carried. The second item of the agenda is to declare a final dividend recommended by the Board of Directors of the company in respect of the financial year ended the 31st December 2023. During the Board meeting held on 28th February 2024. The Board of Directors recommended a final dividend of USD 0.03. which is the equivalent of NGN 39.30 are the exchange rate as of 25th April 2024. In addition to the final dividend that was stated. The Board also declared a special dividend in the amount of USD 0.03, which is the equivalent of NGN 39.30 at the exchange rate as of 25th April 2024. The special dividend shall be paid separately with a final dividend to all shareholders on or around the 29th May 2024. This will amount to a total of NGN 78.60 dividend per share for each shareholder. So I hereby propose that the final dividend of $0.03, which is the equivalent of NGN 39.30 per share. recommended by the Board of Directors, be accepted by the shareholders as a final dividend for the year ended 31st December 2023, and that's an additional special dividend of USD 0.03, which is the equivalent of NGN 39.30 at the exchange rate as of 25th April 2024. Can a shareholder please second the motion. Okay. I call on Kabiru Tambarin to please second the motion. Please proceed, I can hear you.

Okay. Mr. Chairman.

Please proceed. I can hear you.

Okay. Mr. Chairman. My name is Kabiru Abdullahi Tambarin. I have seconded the continued motion for the final dividend of NGN 39.30. Thank you.

Thank you very much. Shareholders, please cast your votes while the registrars proceeds with the voting process. So over to you, registrar. Thank you.

Thank you, Mr. Chairman. Voting will now commence. Please cast your votes. Yes, 30 seconds to end the voting process. [Voting]

Voting has now ended. At the end of those votes, we have 307 votes, representing 307,446,986 units of shares, 100% of the votes in favor of resolution. Thank you, Mr. Chairman.

Thank you very much. It's my experience that for dividend vote is always 100%. So I hereby declare the motion unanimously carried. The third item on the agenda is the reappointment of PricewaterhouseCoopers. PwC as the auditors of the company in accordance with Section 401 of CAMA. This provision states that the retiring auditor shall be reappointed without passing a resolution. If such auditor is not disqualified on the Section 401 subsection 2 of CAMA. In the present case, PwC is the auditor of the company and is scheduled for retirement at this meeting. They have, however, indicated their willingness to continue as the auditors of the company. Consequently, PwC is hereby reappointed as the auditors of the company onto the conclusion of the next Annual General Meeting. The fourth item on the agenda is to authorize the Board of Directors to determine the remuneration of the auditors in accordance with Section 408, subsection 1b of CAMA. I hereby move the motion that the Board of Directors be authorized to determine the remuneration of the auditors for the year ending 31 December 2024. I need a shareholder to second the motion. Can a shareholder second the motion? Can I call on Dr. Alex Adieu to please second the motion? Thank you.

Mr. Chairman, I so do. Dr. Alex Adieu. Thank you, sir.

Thank you very much Shareholders, please cast your votes while the registers proceed with the voting process. Over to you, registers.

Thank you, Mr. Chairman. Voting will now commence. You may continue to vote. We have 30 seconds left for the end of this process. We have 10 seconds left to voted. [Voting]

At the end of this process, we have 308 votes representing 307,385,471 units of shares. 100% voted for the resolution. Thank you, Mr. Chairman.

Thank you, registers. I hereby declare the motion unanimously carried. Now for the next resolution, which relates to the approval of my appointment as an independent Non-Executive director on the separate Board. I will hand over the meeting to Mr. Adeyemi, an independent Non-Executive Director to conduct the process. Over to you, Mr. Adeyemi.

Thank you, Mr. Chairman for giving me this profound privilege, Dear, ladies and gentlemen, the fifth item on the agenda is the resolution to approve the appointment of Mr. Udoma Udo Udoma as an independent Non-Executive Director of the company in accordance with Section 274 1 and 2 of CAMA 2020 Mr. Udoma was appointed to the Board effective first December 2023. Details of his profile is on Page 112 of the annual report while further details can be accessed on our website. I hereby proposed that the appointment of Mr. Udoma as an Independent Non-Executive Director of the company be approved by the shareholders. Will a shareholder please second the motion. Can I call on Mr. Adebayo Adeleke to second the motion.