Seplat returns to profit, adopts quarterly dividend policy
Seplat Petroleum Development Company Plc has reported a profit before tax of N10.6 billion ($28 million) for the quarter ended Mar. 31, 2021, compared with a loss before tax of N31.1 ($95.7 million in the same period of 2020.
The Nigerian independent oil firm posted a net profit of $24.9 million for Q1 2021, compared with a net loss of $106.6 million in the same period last year.
Its revenue rose by 16.8 percent to $152.4 million, according to its unaudited financial statements released on Thursday.
Seplat said its board had adopted a quarterly dividend policy and declares Q1 2021 dividend of $2.5 cents per share.
The Chief Executive Officer, Roger Brown, said, “We have made a progressive start to the year, delivering oil and gas production volumes of 48,239 boepd, within our guidance range.
“With the Gbetiokun field at OML40 now back in production, we are currently achieving average daily volumes of nearly 54 kboepd so far in April and we will build on this as we add additional oil and gas wells this year.”
According to him, Seplat’s flagship ANOH gas project is proceeding as planned and was fully funded in February when its joint venture company, AGPC, successfully raised $260 million of debt financing.
Brown said, “In addition, the success of our $650 million Eurobond issuance in March demonstrates investor confidence in our prudent financial management and the exciting future ahead for the company and its stakeholders.
“As we drive forward our strategy of being a low-cost energy provider delivering reliable, affordable and sustainable energy to the young, fast-growing population of Nigeria, energy transition – which delivers on Nigeria’s social development goals in tandem with the climate agenda – is essential.”
The company expects to produce an average of 48,000 to 55,000 boepd in 2021, taking into account the impact of OPEC+ quotas.
It said it would continue to hedge against oil price volatility and expect a higher proportion of revenues to come from long-term gas contracts at stable prices.
“We have significant cash resources and will continue to manage our finances prudently in 2021, expecting to invest $150 million of capital expenditure across the full year, with nearly $33 million already invested,” Seplat added.
The company said it remained confident that its ongoing cost-cutting initiatives and prudent management of cash would enable further reductions in debt, while supporting dividend payments and investment for growth.
