Seplat’s gross revenue falls by 26%

Seplat’s gross revenue falls by 26%

Seplat’s gross revenue falls by 26%

The gross revenue of Seplat Petroleum Development Company Plc, an indigenous independent oil and gas exploration and production company, fell by 26 per cent in the 2015 financial year, figures provided by the oil company showed.

Its gross revenue for the full-year stood at $570m, down by 26 per cent year-on-year. Net profit for 2015 stood at $67m and cash flow from operations before movements in working capital stood at $190m against capital investments of $152m.

The firm’s cash at bank and net debt at year end stood at $326m and $573m, respectively. At the end of 2015, the net Nigerian Petroleum Development Company receivables balance stood at $435m, down from $463m at the end of 2014.

The oil company presented its “facts behind the figures” for its audited full-year 2015 results at the Nigerian Stock Exchange on Monday.

Presenting the details of full-year 2015 performance, ahead of its Annual General Meeting scheduled for June 1, 2016, the Chief Executive Officer of the company, Austin Avuru, and the Chief Financial Officer, Roger Brown, informed stakeholders that working interest 2P reserves at the end of 2015 had increased by 71 per cent year-on-year to 480 million barrels of oil equivalent, with a further 98mboe recognised as 2C resources.

Total reserves were reported as 578mboe. Average working interest production during 2015 averaged 43,372 barrels of oil equivalent per day, ahead of guidance and up 41 per cent year-on-year.

Within this, oil and condensate production accounted for 29,003bopd (up 20 per cent year-on-year) and natural gas production was 86 million standard cubic feet per day (up 119 per cent year-on-year). All of the natural gas production was supplied to the domestic market, the firm claimed.

The company said, “Although financials reflect the low oil price environment, the company remains on a sound financial footing – revenue $570m; net profit $67m; cash from operations (before working capital) $190m.

“2016 production guidance is set at 41,000 to 48,000 boepd and capital expenditure around $130m.”

In a significant step forward for its gas business, during mid-year 2015, Seplat said it successfully completed the Oben gas plant phase I expansion. This expansion saw the company’s overall gross processing capacity double to 300mscfd.

“The Oben gas plant phase II 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 525mscfd. Alongside the significant increase in gas production, the positive financial impact of the company gas business was evident as revenues from gas sales increased 185% year-on-year to $77m,” it added.

Although production was up year-on-year, the significantly lower oil price realisation and downtime of third party operated infrastructure, according to the oil company, adversely impacted revenue, more than offsetting the increased contribution of the gas business.

Further receipts post period end have reduced the net NPDC receivables balance to a current level of around $350m. The board of directors of Seplat, therefore, recommended a final dividend of $0.04 per share, bringing the total dividend payment for 2015 to $0.08 per share. Subject to the approval of the shareholders, the final dividend will be paid on or shortly after the AGM.

Commenting on the company’s 2015 results, Avuru said, “In 2015 we delivered on what was in our control, posting best-in-class reserves and production growth and taking our gas business across a transformational threshold with further expansion still to come.”

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