Seplat Petroleum Development Company Plc recorded a 68.5 per cent drop in gross profit at $124.6m (N44.8bn) in 2020, down from $395.7m (N121.5bn) in 2019.
Its total revenue fell by 24 per cent to $530.5m (N190.9bn) in 2020, against $697.8m (N214.2bn) recorded in 2019.
The company also reported a 3.6 per cent decrease in cash flow from operations at $329.4m (N118.6bn) in 2020, down from $341.6m (N104.7bn) in 2019.
It also noted that its production volume was about 40 per cent ahead of 2019 but the benefit was offset by lower crude prices in 2020.
According to the firm, Seplat had to revalue downwards its oil and gas assets by $114.4m to reflect the lower crude oil prices of 2020 which reversed the operating profit of $82.7m to a loss for the year of $85.3m.
Commenting on the results, Seplat’s Chief Executive Officer, Roger Brown, said 2020 was a challenging year for the company, but noted that the company was able to increase capital investment from the $330m of cash generated from operations.
He added that Seplat invested in ANOH and voluntarily paid down $100m of debt, further deleveraging the balance sheet.
Brown stated, “Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.
“We have made progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before year-end, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650m.”
For 2021, Seplat said it expected to produce an average of 48,000–55,000 boepd, subject to market conditions and forecast a full-year capex of around $150m with focus on gas projects and an exploration well to meet reserves replacement targets.
In this article: