Nigeria’s homegrown independent petroleum exploration and production company, Seplat, has declared confident outlook for the year after successfully emerging from the turbulent 2020 operating year with half a billion dollar full year profit.
The company stated in a its full year financial statement for 2020 that it raked in some $530.5 million revenue in the year while making significant progress in its sideline gas business project financing closure that would drive its novel ANOH gas processing plants to commissioning by early next year.
Company spokesman, Dr Chioma Nwachuku, stated that Seplat’s strong financial and operating position came amidst constraints and challenges posed by the raging global coronavirus pandemic and output limitations imposed by the Organization of Petroleum Exporting Countries (OPEC).
The company’s audited financial results for the year stated that Seplat further reduction in costs and debts, while maintaining strong operating efficiency, investments and sustainable production outlook.
According the financial report of the company, Seplat is efficiently managing a delicate mix of debt reduction and growth investments in an agendum that also maintains investors reward with dedication to dividend payments.
The company reported a full year dividend of $0.10 per share and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $265.8 million, operating profit of $121 million before non-cash impairments and unrealized fair value losses.
The company funded dividends with $58 million in the year, reduced debt by $100 million, made a capital expenditure of $150 million, and retained strong cash position of $259 million. Debt position has also crashed to $440 million with maturities extending beyond 2021.
Managing Director, Mr Roger Brown stated that Seplat delivered production in line with guidance in the year and operated with minimal incidences of COVID-19 cases.
He said Seplat defied 2020 oil price crash and deleveraged the balance sheet with $100 million debt reduction, honored its dividend commitments of regular income to shareholders and increased investments in growth projects all from $330 million operating revenue.
With the company’s investments in gas, he said, Seplat is positioning to lead Nigeria’s transition into cheaper and low emission electricity generation that balances environmental and the social agenda.
“Our flagship ANOH project with the Nigerian Gas Company is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”
“We remain committed to providing shared value for all of our stakeholders. During the year, with our Government partners, we provided medical beds and other palliatives to our communities and we have committed to constructing a 200-bed infectious diseases hospital. Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development,” Brown added.