Seplat’s H1 Profit Appreciates by 15% to N37bn
Seplat Petroleum Development Company Plc, a leading Nigerian indigenous oil and gas company, has declared an increase of 15 per cent in its half-year profit before deferred tax.
In its unaudited consolidated half-yearly financial results for the period ended, 30th June, 2019 made available to the NSE and LSE on Tuesday. Seplat reported a profit before deferred tax of $121m (N37bn) from $105m (N32bn) reported in the first half of 2018.
The Company’s turnover for the period also rose by four per cent to $355m (N109bn), which is greater than the 2018 half-year figure of $343m (N105bn).
On a similar note, the oil firm’s gross profit rose by 19 per cent to $207m (N64bn) from $174m (N53bn) reported in 2018 half-year.
Operating cash flow hit $255m from $245m, indicating a four per cent appreciation year-on-year.
Commenting on the company’s financial performance for the period, the Chief Executive Officer, Seplat Petroleum Development Company, Mr. Austin Avuru, said: “Today’s results further emphasise the strong cash generation potential of our low-cost production base and the good progress we are making at the large scale Assa North/Ohaji South (ANOH) gas and condensate development project.
Work is on-going at the Sapele Gas Plant upgrade and which is expected to be completed in H2 2020.
The project will comprise a Phase One 300 MMscfd midstream gas processing plant with accommodation space for significant future expansion. ANOH Gas Processing Company (“AGPC”), an incorporated joint venture owned 50:50 by Seplat and the Nigerian Gas Company (“NGC”), a wholly owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”) is delivering the midstream development and to date have each made an equity investment of US$150 million (US$300 million combined).
The total project cost is budgeted at US$700 million. Seplat and NGC will each contribute a further US$60 million equity investment (US$120 million total) over the remainder of 2019 and Q1 2020 with US$280 million of debt funding to be finalised and for which very strong demand in excess of the funding target has been indicated.
