Seplat post $746m revenue in 2018, as operating profit stands at $310m

SEPLAT Petroleum Development Company Plc,  a leading Nigerian indigenous oil and gas company, for it’s 2018 full year financial result has posted a revenue of $746 million just as its operating profit stood at $310 million.

Seplat, listed on both the Nigerian Stock Exchange and London Stock Exchange, in a statement announced its full year 2018 financial results and provides an operational update, which indicated that the company’s profit before deferred tax for the period stood at US$238 million; after adjusting for deferred tax of US$91 million, net profit after tax stood at US$147 million

The board of the company has therefore recommended a final dividend of US$0.05 per share even as Cash flow from operations hits US$502 million significantly ahead of capital expenditures of US$88 million.

Seplat also announced that it successfully concluded debt refinancing in Q1 2018, including debut US$350 million bond which diversifies the long-term capital base and new four year US$300 million RCF, leaving Cash at bank at US$585 million and gross debt US$450 million resulting in a net cash position of US$135 million at end 2018.

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Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said: “Seplat has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation providing 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 we continue 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,” Avuru said.

He noted that disciplined capital allocation continued to remain at the core of the company’s activities evidenced bycontinual deleveraging of debt levels to the current balance of US$350m.

“ In 2018, we reinstated the dividend, increased capital investments and with the resources and headroom in our capital structure, we are equipped to capitalise on organic and inorganic growth opportunities as they may arise,” he added.