Seplat Petroleum Records N1.6bn Post -Tax Loss in Nine Months

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Seplat Petroleum Development Company Plc has reported a loss after tax of N1.6 billion for the nine months ended September 30, 2017.

This however represents a significant reduction in loss position when compared with a loss of N24.1 billion in the corresponding period of 2016.

The petroleum exploration firm has dual listing on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE).

An analysis of the performance showed that the company recorded revenue of N85.2 billion, up from N49.9 billion in 2017, while cost of sale fell from N30.7 billion to N47.1 billion in 2017. Operating expenses fell marginally from N17.6 billion to N17.2 billion. But net finance cost jumped from N8.3billion to N17 billion.

The company ended the period with loss after tax of N1.6 billion, compared with N24.1 billion in 2016.

Commenting on the results, Chief Executive Officer of Seplat, Austin Avuru said: “I am pleased to report a sharp improvement in Seplat’s operational and financial performance which has resulted in a welcome return to profitability during the third quarter. The improved cash flow is translating into a stronger balance sheet and, based on current levels of production and sales, we maintain full year production guidance of 35,000 to 38,000 boepd. Looking ahead, we plan to build on this performance in the coming quarters focusing on regular and predictable revenues as we start to unlock further value from our portfolio of production and development opportunities.”

According to the company, its gas business is expanding increasing its contribution to revenue by 11 per cent.

The company said peak daily output reached 352 MMscfd (gross) in Q3. New gas sales agreements being agreed to increase offtake and diversify counterparties, while significant progress made in formalising an incorporated joint venture relationship between Seplat and government to deliver the 300 MMscfd ANOH gas processing plant.

Seplat has given full year working interest production guidance of 17,000 to 19,000 bopd and 105 to 115 MMscfd (or 35,000 to 38,000 boepd).

“Uptime on the Trans Forcados System during Q3 was 84 per cent, average reconciliation losses in Q3 significantly reduced to below three per cent3 from previous average of around 10 per cent. Amukpe to Escravos pipeline commercial contracts in advanced stage with scope of work and costs of connection to the terminal agreed. The pipeline will be under joint management between the pipeline owners Pan Ocean/NAPIMS and the Seplat/NPDC JV,” the company said.