Seplat Petroleum Development Company Limited has reported a 480 per cent growth in its pre-tax profit for the 2018 financial year.
The financial statement, which was made available to the Nigerian Stock Exchange and London Stock Exchange on Wednesday, showed that the profit before tax increased from $41m in 2017 to $238m in 2018.
The full-year revenue of the company was reported as $746m, while its operating profit grew by 177 per cent to $310m from the $112m recorded in 2017.
After adjusting for deferred tax of $91m, net profit after tax stood at $147m while $502m was reported as cash flows from operations.
The board of directors recommended a final dividend of $0.05 per share.
The report read in part, “The higher oil production together with higher oil price realisations positively impacted oil revenue, which stood at $590m.
“Alongside this, gas revenue reached a new record of $156m. In March the company successfully concluded a refinancing of the existing $300m revolving credit facility with a new four-year $300 RCF at LIBOR +6 per cent and issued a debut $350m bond priced at 9.25 per cent.
“Proceeds of the refinancing were used to repay and cancel pre-existing indebtedness and also to settle crude oil prepayments entered into during 2016 and 2017.”
It added that the August bond issuance on the International Securities Market of the London Stock Exchange, in addition to the original listing on the Euro MTF market of the Luxembourg Stock Exchange, diversified its long-term capital base by further raising its profile in the international capital markets.
The Chief Executive Officer, Seplat Petroleum, Austin Avuru, said, “Seplat has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation, providing us with an extremely solid foundation for growth in the coming years.
“At our core assets in the West ― Oil Mining Leases 4, 38 and 41 ― the extension of the licence to 2038 means that we can confidently plan and invest long into the future to realise the full potential of those blocks.
“As we continue to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the final investment decision to invest in the large scale Assa North/Ohaji South gas and condensate development, which will form the next phase of transformational growth for our gas business.”
Source: The Punch