Seplat Petroleum Development Company, on Tuesday, published its Q1 unaudited financials showing that although revenue dropped, just like cost of sales and the negative other income, the effect of which was mitigated by the tax rebate that helped net profit to 59.41% rise.
According to the financials presented to the Nigerian Stock Exchange (NSE), revenue dropped from N55.236bn in the 2018Q1 to N48.941bn, representing a decrease of 11.4%. A breakdown of the numbers showed that crude oil sales dropped to N36.132bn from N43.138bn; while gas sales revenue was flat at N12.809bn from N12.098bn. By geographical markets, crude oil sales in Nigeria amounted to N3.665bn, while gas sales stood at N12.809bn; while crude oil and gas sales in Switzerland contributed N32.132bn and N12.809bn respectively.
Cost of sales dropped by 10.73% to N23.955bn from N26.833bn; the bulk of which was the N8.252bn royalties, which dropped from N9.758bn; followed by the N7.004bn depletion, depreciation and amortization, which also fell from N9.704bn; while crude handling fees remained at N4.459bn, slightly lower than the previous N4.567bn; just as operations and maintenance expenses climbed from N2.217bn to N3.577bn. Gross profit, therefore, slipped 12.03% from N28.403bn to N24.986bn.
Other income was negative at N5.031bn, representing 2,628% drop from N2.628bn income in the first quarter of 2018; just as general and administrative expenses climbed 47.58% up from N4.25bn to N6.272bn; just as fair value movement in contingent consideration grew by 116.94% to N3.753bn, compared to the previous first quarter’s N1.73bn; just as operating profit slipped to N9.974bn, down from 61.07% from N25.623bn.
Finance income, being interest income on bank deposits, jumped by 98.86% from N437m to N869m; finance charges dropped by 39.48% from N8.073bn to N4.886bn, driven mainly by the N4.534bn interest on bank loans, down from N7.35bn.
Profit before tax, therefore, suffered 66.88% slide to N5.957bn, compared to N17.987bn in the preceding Q1; while tax rebate stood at N4.065bn, all of which was derived from the crude oil business segment, as against the N11.7bn expense of prior Q1. Profit after tax, therefore, grew to N10.022bn from N6.287bn, out of which crude oil sales recorded a loss of N996m, up from a profit of N452m; while net profit from gas sales stood at N11.018bn, compared to the N5.835bn in 2018Q1. The net profit represented Earnings Per Share of N17.03, compared to N10.68.