Seplat Petroleum continues to record strong financial performance

Seplat 31Seplat Petroleum Development Company Plc, a Nigerian independent oil and gas company, continues to record strong financial performance and sustained profitability, with the revenue boosted to US$568mn for the nine months ended on 30 September 2018, up from US$279mn in the same period in 2017

The working interest production of 50,834 boepd remains within guided range. Full-year working interest production guidance of 48,000 to 55,000 boepd is maintained, said the company.

Uptime on the Trans Forcados System during Q3 was 88 per cent, while average reconciliation losses stood at seven per cent.

Rig-based work on recompletion of Ohaji South oil production wells on OML 53 and one new gas production well at Oben on OMLs 4,38 and 41 set to commence in Q4 2018.

According to Seplat, the robust free cash flow translates to balance sheet strength with de-leveraging post period end to optimise capital structure:

Nine months cash generated from operations US$386mn versus capex incurred of US$29mn; Net cash at 30 September 2018 US$84mn; gross debt US$550mn and cash at bank US$634mn; Post period end, issued notice to the 2022 RCF lending banks to reduce the outstanding balance on the facility to US$100mn thereby reducing overall gross debt to US$450mn.

Extended hedging programme with dated Brent puts covering two mmbbls at an average strike price of US$55/bbl in H1 2019. The Q4 2018 hedges comprise dated Brent puts covering 1.5 mmbbls at an average strike price of US$50/bbl.

Following a review of Seplat’s operational, liquidity and financial position the Board has decided to declare an interim dividend of US$0.05 per share in line with our normal dividend distribution timetable. This in effect makes the April 2018 dividend a special dividend payment to normalise returns to shareholders after the board had suspended dividends for 2016 and 2017.

Project Updates

ANOH: Signed a Shareholder Agreement and Share Subscription Agreement in August with the Nigerian Gas Processing and Transportation Company (NGPTC) for it to subscribe for fifty per cent of the shares in ANOH Gas Processing Company Limited (AGPC) that will process future wet gas production from the upstream unitised gas fields at OML 53 and OML21, which is operated by Shell. The agreements are an important precursor to the Final Investment Decision (FID) for the ANOH project which is still expected in Q4 2018.

Amukpe to Escravos Pipeline (AEP): Based on information provided by the pipeline owners and contractor undertaking completion works and connection to the Escravos terminal and offshore export pipeline the Company maintains its expectation of completion by year-end.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W:

twn Are you sure that you want to switch to desktop version?