As part of its commitment to boost profitability and improve shareholders value, Seplat Petroleum Development Company Plc has announced plans to exceed $500 million capacity investment in gas business by the end of 2016.
The company has also set full year production guidance target of 41,000 to 48,000 barrel per day with capital expenditures of about $130 million.
Addressing shareholders during the company’s yearly general meeting in Lagos yesterday, the Chairman of the company, Dr ABC Orjiako explained that the company’s investment in gas business in 2014 stood at $300 million.
“Our gas commercialisation is what distinguishes us from others. We are dually listed which makes us an international brand, visible to internatiional scrutiny with high level of corporate governance
“This enables the company become attractive entities to investors in all parts of the world and have quick access to capital for project execution”.
The chairman pointed out that the company in 2015 completed and commissioned the Oben gas plant phase 1 expansion programme which doubled its gross processing capacity to 300 MMscfd (million standard cubic feet) while assuring shareholders that the company would continue to deliver good returns, amid harsh operating environment.
“The Oben gas plant phase 11 expansion is underway with additional processing modules ordered. Once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 MMscfd,” he said.
Concerning the Niger- Delta unrest, he said that the company would continue to engage its host community to avoid disruption of its operations, adding that company had restrategised to mitigate export of resources through alternative channels.
Also speaking at the event, the company’s Chief Executive Officer, Austin Avuru said that the company in 2015 acted quickly and decisively in response to the weak oil price environment by adjusting on its work programmes and cost structures.
Avuru, however noted that the company’s 2016 full year production expectation had been impacted by the current shut-in of the Forcados terminal.
He expressed optimism that the company is well positioned currently to withstand interruptions than in prior years. He said that the company would focus on protecting the business and managing value through effective cost reductions, optimising operations, deleveraging and strengthening the balance sheet.
Avuru added that the strategies would position the company to take advantage of opportunities that would inevitably follow the current downturn.
The company’s revenue declined by 35 per cent in the first quarter to N16.59 billion from N25.56 billion while profit before tax also dipped by 161.7 per cent from N4.83 billion to a loss before tax of N2.98 billion.
The directors of the company are however, recommending a final dividend of N7.92 ($0.04) per share, bringing the total dividend payment for 2015 to N15.84 ($0.08) per share.
Also, for the year ended December 2015, its gross revenue stood at N112.86 billion ($570 million), down 26 per cent year-on-year, while net profit for 2015 stood at N13.27 billion ($67 million) and cash flow from operations before movements in working capital stood at N37.62 billion ($190 million) against capital investments of N301 billion ($152 million).
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