Seplat reports 146% PAT growth, on track for 55,000 boepd production

Seplat Petroleum Development Company Plc (Seplat), an indigenous oil and gas company listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has recorded a rise of 146 percent in its half-year profit after deferred tax.

The company also noted that in spite of production challenges witnessed in the first half of the year, adequate preparations have been made to attain it’s forecast of 2019 year end 46,000 – 55,000 barrel of oil equivalent production per day.

In its unaudited consolidated half-yearly financial results for the period ended 30 June 2019 made available to the NSE and LSE on Tuesday, Seplat reported a profit after deferred tax of N36.5 billion from N14.9 billion reported in the first half of 2018.

Similarly, profit before deferred tax of N37 billion was reported for the review period against N32 billion reported in the first half of 2018.

The company’s revenue for the period also appreciated by four percent to N109 billion, which is higher than the 2018 half-year figure of N105 billion.
According to Austin Avuru, CEO Seplat, the improved revenue was with gas tolling revenue of $67m.

The gas revenue was recognised for the first time in relation to the processing of the Nigerian Petroleum Development Company’s (NPDC) gas, which was through the Seplat sole risk funded Oben gas plant 375 million standard cubic feet per day (MMscfd) expansion between June 2015 and 2018 end.

On a similar note, the oil firm’s gross profit rose by 19 percent to N64 billion from N53 billion reported in 2018 half-year.

Still commenting on the company’s financial performance for the period, Avuru, said: “Today’s results further emphasise the strong cash generation potential of our low-cost production base and the good progress we are making at the large scale Assa North/Ohaji South (ANOH) gas and condensate development project.

Our H1 work programme has been impacted owing to unforeseen delays from rig contractors as well as the need to undertake higher levels of maintenance and asset integrity work for longer-term benefit of the assets. Both have affected production during the H1 but we have now secured the necessary rig capacity for the second half to implement the revised work programme which will drive us towards an 2019 exit working interest production rate of 62,000 barrels of oil equivalent per day (boepd) and bring annualised production within the unchanged guidance range of 49,000 to 55,000 boepd.

“Meanwhile, we remain on an extremely solid financial footing and concentrated on furthering our growth strategy as we target both organic and inorganic opportunities to grow shareholder returns.”