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Leading indigenous Nigerian oil and gas company, Seplat Petroleum Development Company Plc has posted N73 billion profit for the period ended, December 31, 2018, with an assurance to grow production, drive increased shareholder yield and capital appreciation.
The Company reiterated its commitment to stronger growth in the oil and gas sector during its 6th Annual General Meeting which held in Lagos.
Seplat also announced N228 billion revenue in its full year 2018 financial result ended 31 December 2018. The figure represents an increase of 65 per cent from the N137billion the company made in the 2017. Seplat, listed on both the Nigerian Stock Exchange and London Stock Exchange, also recorded N73 billion profit before differed tax, indicating 480 per cent increase from N13 billion which the company made over the same period in 2017.
In his address to shareholders, the Chairman, Seplat Petroleum, Dr. A.B.C. Orjiako, said the company’s 2018 operational and financial performance reflected the significantly higher year-on-year levels of production uptime at its core oil producing assets combined with a firmer, albeit still volatile, oil price and increased contribution from the company’s gas business.
He added: “As you are aware, our results from the previous two years were characterised by the extended period of force majeure at the Forcados terminal from February 2016 to June 2017.
“As we enter 2019, our reliable production base, low unit cost of production and discretion over capital commitments will allow the business to remain highly free cash flow generative and profitable. In the absence of any major interruption or force majeure event, this will enable Seplat to honour its dividend policy and provide an attractive yield to our shareholders in addition to the potential for capital appreciation.”
According to Orjiako, the company will selectively invest in low risk oil production drilling opportunities within the existing portfolio and the continued expansion of the gas business, with 2019 set to be the year that activity intensifies at the large scale Assa-North and Ohaji-South (ANOH) gas and condensate development.
