Seplat declares $44m profit before tax

Seplat Petroleum Development Company Plc, an independent oil and Gas exploration and production company has recorded growth in its 2017 financial year as it declared profit before tax of $44 million.
The company said that the performance reflects the return to profitability in the third and fourth quarters of 2017 where net quarterly profit before tax of $24 million and $46 million respectively offset the $26 million loss reported at mid-year.
The company said that although global oil prices remained volatile in 2017 with Brent starting the year around the $55/bbl level and trading down to a low of around $45/bbl mid-year before recovering steadily thereafter to exit 2017 at the $67/bbl level, average daily productions rose considerably with the company’s average working interest production now standing at 36923 boepd, representing an overall increase of 43 per cent year on year.
Addressing financial Journalists on the company’s 2017 result at the Annual General Meeting press briefing , Chief Executive Officer of Seplat, Austin Avuru said ” I am Pleased to report that Seplat made return to full year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast, we were plagued through out most of the first half by force majeure at the forecados terminals…. Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business and that is well equipped to deliver long term value for our shareholders.”
He said that Gas was a key revenue driver underlining Seplat’s gas domestication strategy and demonstrating the robustness of gas as key source of growth and diversification, as well as delivering a much needed reliable supply of gas to the Nigerian Power sector.
According to him Seplat’s gas business made a record contribution with revenues of $124 million, which accounted for over 27 per cent of Seplat’s total revenues.
Avuru said that the complete commissioning of Phase II expansion of its Oben gas processing hub, which added 225 MMscfd of the processing capacity to 465 mmscfd of gross gas with 60 Mscfd capacity at the Sapele plant, now operates at 525 MMscfd of gross gas processing capacity.
Also speaking, the Chairman of the company, Mr A. B. C Orjiako while commenting on company’s return to profitability, emphasised the contribution of gas to overall growth and profitability. He said ” in 2017 we made good progress as we reviewed our vision, mission and strategy towards refocusing the company on our key priorities to de-risk future cash flows through diversification of oil export routes, invest in and scale up our domestic gas business, maintain a liquidity buffer while continuing to reduce debt, keep tight financial control with discretion in spending.

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