Seplat assures shareholders of sustainable growth despite global headwinds

SEPLAT Petroleum Development Company Plc, a Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has said it remained a resilient business that generates significant free cash flow from a low cost production base; has a balanced portfolio split evenly between oil and gas, thus focused on delivering shareholder returns through regular dividend distributions and capital growth.

At the company’s 7th Annual General Meeting held in Lagos, Chairman of the company, Dr. Orjiako has said gave the assurance while addressing shareholders and other stakeholders, just as the board announced a dividend distribution for shareholders with US$59 million paid out in the 2019 calendar year (10 cents per share).

According to Dr Orjiako, amidst the current headwinds occasioned by the prevailing global coronavirus pandemic and low oil prices, Seplat will continue to maintain strict financial discipline over investment decisions, while also embedding high standards of corporate governance and transparency; strong commitment sustainable business; and effective management of risks with a strong HSE culture.

“I believe that Seplat has an important role to play throughout the energy transition that is set to occur in the years and decades ahead, not least through the impact we can have by scaling up our domestic gas supply business and displacing imported diesel fuels that are being burned for power generation and helping Nigeria benefit from the social and economic multiplier effects that reliable and affordable power availability can bring,” he said.

Against this backdrop, Dr. Orjiako said Seplat plans to position itself for an ambitious next phase of growth which would see the expansion of its footprint in terms of energy business activities, a plan to pursue offshore assets acquisition, as well as opportunity driven entry into different geographies.

He added: “Looking forward, one of the main challenges facing the independent E&P sector is to remain relevant as the world makes the transition to a lower carbon future. The oil and gas industry face considerable challenges given that oil in particular plays such a significant part in today’s energy supply mix, with demand for the commodity still growing. A key part of my role as Chairman of the Board is to steer the Company through these transitions.

“The Board believes that such a corporate transition would require a different kind of organisational structure, people skills set and mentality to compete well in the expanded space. In view of this, over the course of 2020 we will be reviewing the current organisational and systems structure.”

The Seplat Chairman assured that the fundamentals of the company’s core business remain strong and through the effective integration of the Eland acquisition, the combined business will have greater scale and value creation opportunities to capture.

Also addressing shareholders at the AGM, the Chief Executive Officer, Seplat, Mr Austin Avuru, described 2019 as a solid year in which the robust fundamentals of the business once again kept the company on an extremely solid footing. “The strong cash generation we realised from our low-cost production base meant that our capital expenditures, debt service obligation and dividend distributions to shareholders were more than covered by cash generated from operations by a comfortable margin.”

From a strategic perspective, Mr Avuru said 2019 will prove to be an inflection point in the company’s history, as it took a final investment decision (FID) for the 300 MMscfd ANOH midstream gas processing project in March.

On the outlook or 2020, Mr Avuru said Seplat faces the same challenges as the rest of industry in terms of managing oil price volatility and other macro risks, adding that the emergence of the COVID-19 pandemic has thrown in another variable that has impacted the global economy. “As these factors are not in our control we can only make sure that we have plans in place that can mitigate and de-sensitise the business to these risks as far as is possible.

Commenting on the company’s planned transition, Mr. Avuru said: “I am extremely honoured to have led Seplat for the past ten years, and I am proud of the role it has played in promoting indigenous participation in the Nigerian oil and gas space. My ultimate goal in the transition of the CEO role is for Seplat to achieve even greater things in the next decade, creating a blueprint for others to follow.”

 

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

Apple Music Appoints Florence Otedola (Aka) DJ Cuppy Its First Radio Show Host In Africa
The biggest company in the world, Apple Music, is launching its first radio show in Africa on Sunday and DJ Cuppy whose real name is Florence Ifeoluwa Otedola is its host. The streaming platform announced Thursday that “Africa Now Radio with Cuppy” will debut Sunday and will feature a mix of contemporary… Read full story

21 Years Of Civil Rule: Gains, Pains And Prospects
MOST Nigerians remain nostalgic about the epochal, extraordinary transformation that was heralded in the defunct Western Region of Nigeria in the First Republic under visionary and dynamic leadership. In just eight years of the pragmatic and purposeful leadership, imbued with vision, the region shocked the… Read full story

Economy: Many Miles Crossed, Many Miles Lie Ahead
Politics and economy are entangled. Politics determines the economic direction while the economy determines the strength of the polity. If the economy is ailing, so will be the polity and vice versa. But the interplay between politics and the economy is choreographed by politicians… Read full story

COVID-19: We’re Yet To Receive Promised Ventilators From US ― Minister
The Minister of Information, Culture and Tourism, Alhaji Lai Mohammed, has said the Federal Government is yet to receive the promised ventilators from the United States of America (USA). The minister said this at the Presidential Task Force (PTF) on Coronavirus (COVID-19) daily news conference… Read full story

Sokoto Bandit Attacks: Buhari Orders ‘Fierce’ Military Operation
President Muhammadu Buhari has directed the military to embark of a fierce operation to dislodge bandits terrorising people in Sokoto State. While condoling with families who lost loved ones in an attack by bandits in Sabon Birni Local Government it the state, he prayed for the quick recovery of those that sustained injuries… Read full story

COVID-19: Ogun Govt Lifts Lockdown
The Ogun State Government has lifted the lockdown order pronounced on the state, since the outbreak of coronavirus pandemic to combat the spread of the disease from Monday to Friday. This was contained in the address of the State Governor, Prince Dapo Abiodun, on Thursday, while updating the efforts… Read full story

Osinbajo Heads Use Of Toilet Campaign Committee
Vice President Yemi Osinbajo on Thursday inaugurated the Steering Committee of the “Clean Nigeria: Use the Toilet Campaign,” which he leads as chairman. Tribune Online reports that the committee comes as stakeholders continue to ramp up efforts to contain the spread of the COVID-19 pandemic in the country… Read full story

Doctors Refusing To Treat Patients Of Other Ailments Over Fear Of COVID-19, Says PTF
More deaths are being recorded in patients with other ailments because medical institutions in the country are refusing to handle cases because of fear of contracting coronavirus, the Presidential Task Force (PTF) on the pandemic has observed… Read full story

Malami Explains Why Buhari Signs Executive Orders
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), on Thursday, said the Presidential Executive Orders are aimed at complementing existing legislation and ensure inter-agency coordination in the process of implementation… Read full story

You might also like
Comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More