Seplat Petroleum Development Company Plc, a leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has declared an interim dividend of $29 million.
In its unaudited results for the nine months which ended 30 September 2019 and was released to the NSE and LSE, the company indicated that its gross profit increased by 54 per cent to US$265 million in the period under review as against US$306 million made in the previous corresponding year.
The company recorded a revenue of US$495 million for the third quarter of 2019 as against US$568 million made in Q3 2018, reflecting lower production and sales year-on-year together with lower price realisations of US$64.22/bbl and US$2.8/Mscf; gas tolling revenue of US$67 million also recognised in relation to the processing of NPDC’s gas at the Seplat sole risk funded Oben gas plant 375 MMscfd expansion between June 2015 and end 2018.
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The result also highlighted Profit for the period US$185 million (2018: US$91 million) positively impacted by a 37 per cent year-on-year reduction in finance costs reflecting de-leveraging of the balance sheet early in the year when the outstanding balance on the 2022 RCF was ultimately reduced to zero.
The company declared a $29m interim dividend to shareholders and highlighted that its recent £382m cash acquisition of Eland Oil and Gas Plc would create more value opportunities for shareholders going forward.
Working interest production averaged 47,163 boepd for the period and reflects slippage to the intended production drilling programme as a result of rig mobilisation delays and availability.
Cash generated from operations stood at US$306 million versus capex incurred US$64 million. Full-year 2019 capex spend expected to be around US$120 million; gross debt of US$350 million at 30 September consists solely of the 2023 senior notes with undrawn headroom of US$225 million available through the 2022 RCF. Cash at bank as at 30 September was US$455 million resulting in a net cash position of US$105 million.
Commenting on the result, the Chief executive Officer, SEPLAT, Mr Austin Avuru, said: “2019 so far has seen us make significant progress towards furthering our ambitious growth strategy. Our core business remains highly cash generative and with four rigs now operational in the field we expect to quickly regain momentum. This is reflected in our decision to declare an interim dividend of US$29 million.”
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