Seplat Petroleum Development Company Plc (SEPLAT), leading Nigerian independent oil and gas company has recorded profit of $185 million for the nine months financial result ended September 30, 2019.
The amount represents a surge of 103. 29 per cent compared with $91 million reported the same period in 2018. The profit showed positive impact by 37 per cent year on year reduction in finance costs reflecting de-leveraging of the balance sheet early in the year when the outstanding balance on the 2022 RCF was ultimately reduced to zero.
The company declared a $29million interim dividend to shareholders and highlighted that its recent £382milliin cash acquisition of Eland Oil and Gas Plc would create more value opportunities for shareholders going forward.
Working interest production averaged 47,163 boepd for the period against 50,303 boepd made in 2018 and reflects slippage to the intended production drilling programme as a result of rig mobilisation delays and availability. Four drilling rigs are now operating across Seplat’s portfolio to drive liquids working interest production to an expected exit rate of 30,000 bopd.Production uptime stood at 91 per cent while average reconciliation losses for the first nine months stood at 13 per cent. This factor for the third quarter only, stands at one per cent while the factor for the first six month period is still under review and expected to be consistent with prior periods when finalised
Full year average working interest production guidance has consequently been revised downwards to 45,000 boepd to 48,000 boepd from 49,000 boepd to 55,000 boepd in the preceding year, comprising 23,000 to 25,000 bopd liquids and 128 to 133 MMscfd gas.
The 9M revenue of $495 million was recorded compared with $568 million reflects lower production and sales year-on-year together with lower price realisations of $64.22/bbl and $2.8/Mscf against US$71.14/bbl and US$3.06/Mscf in 2018; gas tolling revenue of $67 million also recognised in relation to the processing of NPDC’s gas at the Seplat sole risk funded Oben gas plant 375 MMscfd expansion between June 2015 and end 2018
Commenting on the result, the Chief executive Officer, SEPLAT, Mr. Austin Avuru, said: “2019 so far has seen us make significant progress towards furthering our ambitious growth strategy. Our core business remains highly cash generative and with four rigs now operational in the field we expect to quickly regain momentum. This is reflected in our decision to declare an interim dividend of $29 million.”
