Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian indigenous oil and gas company listed on both the Nigerian Stock Exchange and London Stock Exchange, today announces its consolidated half-yearly financial results for the period ended 30 June 2017 and provides an operational update. Information contained within this release is un-audited and is subject to further review. Details of the Webcast and conference call are set out on page 8 of this release.
Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said:
“Since the resumption of exports via the Forcados terminal our production has recovered strongly providing us with sufficient confidence to reinstate guidance, which we expect to be in the region of 43,000 to 50,000 boepd net to Seplat in the second half of the year. After 18 difficult months, the Company is now well-placed to secure a long-term return to profitability and growth. We have continued to cut costs, strengthen the balance sheet and establish alternative export routes to insure us against future disruption at Forcados. I believe that we are now a fitter, stronger Company than at any time in our history and look to the future with renewed optimism. If the current operating environment continues, we expect to see a significant improvement in our performance.”
Half-yearly results highlights
Return to Strong Production
· Force majeure on exports from the Forcados terminal was subsequently lifted on 6 June.
· After downtime, overall working interest production in H1 across all blocks stood at 9,507 bopd and 101.3 MMscfd, or 26,383 boepd.
· Guidance reinstated with working interest production in H2 after forecasted downtime expected to average 25,000 to 29,000 bopd and 110 to 130 MMscfd (43,000 to 50,000 boepd)
Multiple Export Routes
· Upgrades and repairs now completed as planned on two jetties at the Warri refinery. The upgraded jetties will enable sustained exports of 30,000 bopd gross if required in the future
· Completion of the 160,000 bopd Amukpe to Escravos pipeline prioritised by the Nigerian government and anticipated to be fully operational in Q1 2018.
Robust & Growing Gas Business
· Gas revenues of US$54 million in H1 (41% of total H1 revenues and up 15% year-on-year)
· Actively engaged with counterparties to finalise new GSA’s – plan to take gross production towards 400 MMscfd
· Proceeding towards FID at the large scale ANOH gas and condensate development at OML 53
Strengthen Balance Sheet
· One year extension of revolving credit facility (“RCF”), 30% oversubscribed and successfully concluded in June
· US$42 million debt principal repayments made in H1; gross debt at 30 June US$635 million and net debt US$433 million. Cash at bank at 30 June US$202 million and discretion maintained over spend (H1 capex US$11 million)
· NPDC headline receivable at 30 June US$225 million (31 Dec 2016: US$239 million); net receivable US$215 million (31 Dec 2016: US$229 million) after adjusting for impairment.
Return to Operating Profit
· 27% year-on-year reduction in G&A helped drive return to operating profitability
· Low cost production base (H1 production opex US$5.85/boe), diversification of oil export routes and growing contribution of the gas business positions Seplat on trajectory towards increased long term profitability
For more please see: Press Release