The Nigerian leading indigenous oil and gas company, Seplat Petroleum Development Company Plc has recorded growth at the end of 2018 financial year, posting profit of N73 billion .
The figure indicating 480 per cent increase from N13 billion which the company made over the same period in 2017.
The company also gave assurance that in the current year it will grow production, drive increased shareholder yield and capital appreciation.
The Company reiterated its commitment to stronger growth in the oil and gas sector during its sixth Annual General Meeting in Lagos.
Seplat also recorded N228 billion revenue in its full year 2018 financial result , representing an increase of 65 per cent from the N137 billion the company made in the 2017.
A review of Seplat 2018 results indicates positive performance across all financial indices, confirming the Company’s position as one of the well managed indigenous oil firms in Nigeria. The gross profit for the period grew by 84 per cent to N120billion from N65 billion reported in December 2017. Operating profit stood at N95billion, representing a growth of 177 per cent over N34billion recorded in the corresponding period of last year. Seplat’s net profit after tax dipped by 45 per cent from N81billion recorded as at December 2017 to N45 billion in December 2018.
Addressing shareholders at the annual General meeting, the Chairman, Seplat Petroleum, Dr. Ambrosie Orjiako, said the company’s 2018 operational and financial performance reflected the significantly higher year-on-year levels of production uptime at its core oil producing assets combined with a firmer, albeit still volatile, oil price and increased contribution from the company’s gas business.
According to him “As you are aware, our results from the previous two years were characterised by the extended period of force majeure at the Forcados terminal from February 2016 to June 2017.
“As we enter 2019, our reliable production base, low unit cost of production and discretion over capital commitments will allow the business to remain highly free cash flow generative and profitable. In the absence of any major interruption or force majeure event, this will enable Seplat to honour its dividend policy and provide an attractive yield to our shareholders in addition to the potential for capital appreciation.”
Also speaking at the AGM, the Chief Executive Officer of Seplat Petroleum, Mr. Austin Avuru, said: “Seplat has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation providing us with an extremely solid foundation for growth in the coming years. At our core assets in the West, OMLs 4, 38 and 41, the extension of the license to 2038 means that we can confidently plan and invest long into the future to realise the full potential of those blocks.
