London listed Nigeria Seplat curbs losses by 35.8% in half year operating results

Seplat Petroleum Development Company Plc., a leading Nigerian indigenous oil and gas company listed on both the Nigerian and London Stock Exchanges, has announced an operating after tax loss of N8 billion, down 35.8 percent from the N13 billion loss reported in the corresponding period of 2016.

In its consolidated half-yearly financial results for the period ended 30 June 2017 released Thursday, the company reported that gross profit for the first six months was US$54 million (₦16 billion), a decrease of 22% compared to the same period in 2016 (H1 2016: US$69 million / ₦15 billion). It added that the movement was primarily driven by the reduction in oil revenues recorded in the period, but partially offset by the higher gas revenues and lower cost of sales.

Gas revenue for the period was US$54 million (₦17 billion), a 15 percent increase from the same period in 2016 (H1 2016: US$47 million / N10 billion) but crude revenue (after stock movements) was US$77 million (N24 billion) for the first six months, a 27 percent decrease from the same period in 2016 (H1 2016: US$106 million / ₦22 billion).

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Direct operating costs were reported to have decreased to US$28 million (₦9 billion) in the period (H1 2016: US$39 million/N8 billion), principally as a result of force majeure limiting production activities. Rig related and other field expenses, which form part of direct operating costs decreased by 34 percent compared to the same period in 2016 at US$28 million (N6 billion) as a result of lower operation & maintenance costs.

Operating profit for the first six months was US$7 million (N2 billion), compared to an operating loss in the same period in 2016 (H1 2016: US$42 million / N10 billion).

The Group, however, declared a loss after tax US$28 million (₦8 billion) for the period under review, compared to a loss in the same period in 2016 (H1 2016: US$61 million, ₦13 billion).

Net finance charges stood at US$34 million ((₦10 billion) compared to US$16 million (₦3 billion) for the same period in 2016 principally as a result of interest accruable on NPDC and NGC receivables recognized as finance income in the prior period.