Seplat Petroleum Development Company Plc, a foremost Nigerian indigenous oil and gas company registered on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has recorded a jump of 146 per cent in profit after tax (PAT) for the half-year ended June 30, 2019.
Although revenue grew slower from N105 billion to N109 billion, a significant decline in finance cost boosted the bottom-line. Financing cost was reduced from N12.67 billion to N7.61 billion, while PAT soared from N14.844 billion to N37.49 billion in 2019.
Commenting on the company’s financial performance, the Chief Executive Officer, Seplat Petroleum Development Company, Mr. Austin Avuru, said: “Today’s results further emphasise the strong cash generation potential of our low-cost production base and the good progress we are making at the large scale Assa North/Ohaji South (ANOH) gas and condensate development project.
“Our H1 work programme has been impacted owing to unforeseen delays from rig contractors as well as the need to undertake higher levels of maintenance and asset integrity work for the longer-term benefit of the assets. Both have affected production during the H1 but we have now secured the necessary rig capacity for the second half to implement the revised work programme which will drive us towards a 2019 exit working interest production rate of 62,000 barrels of oil equivalent per day (boepd) and bring annualised production within the unchanged guidance range of 49,000 to 55,000 boepd.
“Meanwhile, we remain on an extremely solid financial footing and concentrated on furthering our growth strategy as we target both organic and inorganic opportunities to grow shareholder returns.”
According to the company, average working interest production during H1 2019 was 48,004 boepd (compared to 51,099 boepd in H1 2018) and comprised 22,974 bopd liquids and 145 MMscfd gas. Production uptime in the period was 88 per cent while reconciliation losses are expected to be finalised at levels consistent with prior periods.
The company said the full year 2019 production guidance is maintained at 49,000 to 55,000 boepd on a working interest basis, comprising 24,000 to 27,000 bopd liquids and 146 to 164 MMscfd (25,000 to 28,000 boepd) gas production.
Seplat explained that alongside its oil business, it has also prioritised the commercialisation and development of the substantial gas reserves and resources identified at its blocks and is today a leading supplier of processed natural gas to the domestic market in Nigeria.
“With overall operated gas processing capacity standing at 525 MMscfd, the company is actively engaged with counterparties to increase contracted gas sales with the intention of taking gross production towards the 400 MMscfd level on a consistent basis,” it stated.