Seplat posts $33m Q1 profit

Seplat Petroleum Development Company Plc has posted a net profit of $33 million in the first operation ended 31 March 2019after adjusting for a tax credit of US$13 million. – Amukpe to Escravos pipeline is anticipated to be operational in Q2 2019.

The results showed positive impact of the 2018 debt refinancing and subsequent deleveraging, which resulted in a 38 per cent year-on-year reduction in finance costs to $16 million (2018: $26 million), the firm said.

According to the firm’s General Manager, External Affairs and Communications, Dr. ChiomaNwachuku, Seplat Petroleum is a leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange and London Stock Exchange, adding that information contained in this statement is un-audited and is subject to further review.

Seplat’s Chief Executive Officer, Austin Avuru, said: “Our operations have continued to perform in line with expectation, with the phasing of our 2019 work programme such that the production uplift will be felt throughout the second half of the year as we step up drilling activities to focus on capturing the numerous high margin and short-cycle cash return opportunities within our current portfolio.

“The next phase of growth for our gas business is now gathering pace following FID for the Assa North-Ohaji South (ANOH) project, with governments first tranche of equity investment received. We have continued to deleverage the balance sheet and self-fund investments into the existing portfolio from operational cash flow, while retaining the financial flexibility and available resources that will enable Seplat to capitalise on what we expect to be an increasingly busy pipeline of inorganic growth opportunities that fit our acquisition criteria.”

Production uptime in first quarter stood at 85%; reconciliation losses are yet to be finalised but are expected to remain at levels consistent with prior periods. Full year 2019 production guidance maintained at 49,000 to 55,000 barrels of oil equivalent per day (boepd) on a working interest basis, comprising 24,000 to 27,000 barrels of oil per day (bopd) liquids and 146 to 164 million standard cubic feet per day (MMscfd), which is about 25,000 to 28,000 boepd gas production.