Seplat Petroleum Development Company Plc., a leading player in the upstream sector (exploration and production) of Nigeria’s Oil and Gas Industry, released its half-year result for 2019 to the investing public on Tuesday, 30th July 2019.
The Group’s revenue rose by 4.0% from ₦104.8bn in H1’18 to ₦109.0bn in H1’19. The growth occurred majorly as a result of ₦20.5bn gotten from Gas tolling, a new revenue stream in its gas business which was absent in H1’18 as both crude oil and gas sales suffered a 15.8% and 15.1% drop in revenue to ₦66.3bn and ₦22.2bn respectively in H1’19. This was due to a 6% fall in crude oil & gas volume produced (SEPLAT working interest) from 51,099 boepd to 48,004 boepd as well as a 6% & 10% dip in realized crude oil and gas prices to US$65.2/bbl and US$2.75/Mscf in H1’19 from US$69.1/bbl and US$3.04/Mscf in H1’18 respectively.
The Group posted an impressive Gross profit which grew by 19.2% to ₦63.5bn owing to an 11.75% reduction in the cost of sales. However, Operating Profit/EBIT declined by 11.89% to ₦42.7bn caused by the dual impact of the loss of financial asset which surged by 2428.5% to ₦12.3bn as against 529mn in H1’18 and Other income which dropped by 68.9% to ₦2.6bn from ₦8.5bn recorded in H1’18.
Irrespective of this, the group’s Profit After Tax (PAT) rose by 152.6% to ₦37.5bn in H1’19 as a result of a 39.3% reduction in finance cost to ₦7.6bn and a 98% reduction in tax to 437mn in H1’19 respectively.
Consequently, EPS improved, rising to ₦64.2 as against ₦26.1 achieved in the corresponding period of 2018.