Seplat Plc posts N228bn turnover, N73bn profit before tax

A leading indigenous Nigerian oil and gas company, Seplat Petroleum Development Company Plc, has posted N228billion turnover and N73 billion profit before tax for the period ended, December 31st, 2018, with an assurance to grow production, drive increased shareholder yield and capital appreciation.

The N228billion turnover represents an increase of 65 per cent from the company’s ₦137billion turnover in 2017.

Seplat Plc, listed on both the Nigerian Stock Exchange and London Stock Exchange, also recorded ₦73 billion profit before differed tax, indicating 480 per cent increase from ₦13 billion in 2017.

A review of Seplat’s 2018 results indicates positive performance across all financial indices, confirming the Company’s position as one of the well managed indigenous oil firms in Nigeria. The gross profit for the period grew by 84 per cent to ₦120billion from ₦65billion reported in December 2017. Operating profit stood at ₦95billion, representing a growth of 177 per cent over ₦34billion recorded in the corresponding period of December 2017. Seplat’s net profit after tax dipped by 45 per cent from ₦81billion recorded as at December 2017 to ₦45 billion in December 2018.

Addressing shareholders during the sixth Annual General Meeting (AGM) in Lagos on Thursday, the Chairman, Seplat Petroleum, Dr A.B.C. Orjiako said the company’s 2018 operational and financial performance reflected the significantly higher year-on-year levels of production uptime at its core oil producing assets combined with a firmer, albeit still volatile, oil price and increased contribution from the company’s gas business.

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“As you are aware, our results from the previous two years were characterised by the extended period of force majeure at the Forcados terminal from February 2016 to June 2017.

“As we enter 2019, our reliable production base, the low unit cost of production and discretion over capital commitments will allow the business to remain highly free cash flow generative and profitable. In the absence of any major interruption or force majeure event, this will enable Seplat to honour its dividend policy and provide an attractive yield to our shareholders in addition to the potential for capital appreciation,” he said.

He added that “Seplat remains an ambitious growth-orientated company that is in a position of strength to capture inorganic opportunities where we can leverage our competitive advantages to seek out carefully considered, price disciplined and value accretive acquisitions. Finally, I would like to thank all our employees and wider stakeholders for their efforts and continuing support and I look forward to updating all of our stakeholders on our progress throughout the year ahead.”

Also speaking at the AGM, the Chief Executive Officer of Seplat Petroleum, Mr Austin Avuru, said: “Seplat has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation provides us with an extremely solid foundation for growth in the coming years. At our core assets in the West, OMLs 4, 38 and 41, the extension of the license to 2038 means that we can confidently plan and invest long into the future to realise the full potential of those blocks.

“As Seplat continues to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the Final Investment Decision to invest in the large scale ANOH gas and condensate development which will form the next phase of transformational growth for our gas business. Disciplined capital allocation continues to remain at the core of our activities evidenced by our continual deleveraging of our debt levels to the current balance of $350m.”

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