SEPLAT release Consolidated Half-Yearly Financial Results

Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), today announces its consolidated half-yearly financial results for the period ended 30 June 2019 and provides an operational update. Information contained within this release is un-audited and is subject to further review. Details of the Webcast and conference call are set out on page seven of this release.

Half-yearly results highlights

Financial performance summary

· Revenue of US$355 million up 4% year-on-year with gas tolling revenue of US$67 million recognised for the first time in relation to the processing of NPDC’s gas through the Seplat sole risk funded Oben Gas Plant 375MMscfd expansion between June 2015 and end 2018

· Gross profit of US$207 million represents a 58% margin (up from 51% in H1 2018) while operating profit of US$139 million is down 12% year-on-year after adjusting for a US$40 million impairment of NDPC receivables

· Significantly lower finance costs of US$25 million (down 39% year-on-year) have kept profit before tax flat year-on-year at US$120 million with net profit from continuing operations standing at US$119 million

Robust balance sheet and cash flow generation

· Cash at bank at 30 June 2019 US$433 million; gross debt US$350 million and net cash US$83 million with US$225 million un-drawn headroom on the four year revolving credit facility

· Net cash flow from operations in H1 2019 stood at US$255 million against capex of US$28 million; FY 2019 capex guidance revised downwards to US$150 million

· FY 2019 capex guidance revised downwards to US$150 million; three planned exploration / appraisal wells targeting longer term oil and gas production together with the Oben and Sapele LPG projects have been deferred into 2020 with the current focus on shorter term oil and gas production gains

Working interest production

· Overall working interest production in H1 across all blocks stood at 22,974 bopd and 145 MMscfd, or 48,004 boepd with production uptime of 88% in the period

· FY 2019 guidance reiterated at 49,000 to 55,000 boepd on a working interest basis, comprising 24,000 to 27,000 bopd liquids and 146 to 164 MMscfd (25,000 to 28,000 boepd) gas production, as impact of H2 weighted work programme takes effect and drives working interest production to a planned exit rate of 34,000 bopd liquids and 162,000 MMscfd gas (or 62,000 boepd)

Gas business performance summary

· FID taken for the large scale ANOH gas and condensate development in March and followed by capital markets days in London and Lagos (see separately released materials on the Company website); Project to comprise of a first phase 300 MMscfd midstream gas processing development with first gas targeted for Q1 2021

· Equity investment of US$150 million from government received with US$150 million equity funding from Seplat also made into ANOH Gas Processing Company (“AGPC”)

· Gas sales of US$72 million in H1 2019 and tolling fees of US$67 million take total gas derived revenue for the period to US$139 million

Project Updates

· Commissioning phase of the 160,000 bopd Amukpe to Escravos pipeline underway with hydro testing commencing in early July. Completion and export of oil to the permitted capacity of 40,000 boepd expected in Q4 2019

Board and Company Secretary changes

· Non-executive director Macaulay Agbada Ofurhie retired from the Board effective 30 July 2019, replaced by Non-executive director Madame Nathalie Delapalme ; Edith Onwuchekwa appointed as Company Secretary effective 24 June 2019

Source / More : Seplat Petroleum Development Company Plc


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