Seplat Eyes growth, Targets First Gas From ANOH In 2021Q4

The board of leading Nigerian independent energy company, Seplat Petroleum Development Company Plc, at the weekend said its ambitious expansion into midstream gas processing is continuing, as part of efforts to reduce carbon emissions by displacing inefficient and expensive diesel-generated electricity

This, it said in a statement, will ensure that Seplat remains at the forefront of Nigeria’s exciting energy transition and provide sustainable energy for a young and rapidly growing population, as it moves to prioritize completion of the ANOH project in the last quarter of 2021.

Meanwhile, despite the Coronavirus (COVID-19) pandemic outbreak, the directos are offering a $0.05 dividend payout to shareholders for the nine-month ended September 30, 2020, just as in the preceding year.

This, the statement noted, expressing confidence that its cost-cutting initiatives and prudent management of cash would enable further reductions in debt, and support dividend payments and investment for growth.

The results presented to both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), the company said showed increased operational efficiencies and further reduction in costs.

It quoted Roger Brown, its Chief Executive, as saying that the score-card “has again demonstrated the resilience of our business in challenging times and in addition to voluntarily reducing our debt leverage by US$100m…

“We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year.

“We have strengthened our oversight with the appointment of two independent directors, Arunma Oteh and Xavier Rolet, who bring considerable local and international business and governance expertise to the board. 

“I have taken over the leadership of Seplat at a challenging time for our industry, but I am confident that our actions to increase operational efficiencies, further reduce costs and continue our expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel generated electricity, will ensure that Seplat remains at the forefront of Nigeria’s exciting energy transition and provide sustainable energy for a young and rapidly growing population.” 

According to highlights of the results, the board said is the strong cash balance of US$213m after US$100m RCF repayment, US$29 million 2019 final dividend,  and US$109 million capex; just as net debt remains steady at US$480m with most maturities after 2021.

According to the numbers released through the NSE Seplat reported a 10.7% slip in revenues from N151.877bn in the corresponding period of last year to N135.622bn; while cost of sales increased from N70.654bn to N103.936bn.

The interim dividend proposed is despite the loss before tax of N45.487bn, representing a 180.21% slump from the previous N56.713bn profit; even tax rebate left an after-tax loss at N33.682bn, as against the prior N56.658bn net profit.

Sign In

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.