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By Adewale Sanyaolu
Seplat Energy Plc says it has reported a nine month (Q3) 2021 operating profit of N62.6bilion, representing a rise of 299 per cent year-on-year.
Details of the Company’s financial performance are contained in its unaudited results for the nine months ended September 30, 2021.
This was even as it announced revenue of N182.7billion, representing a rise of 18.7 per cent year-on-year.
The Company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) also rose to N105.7billion from N71.9billion recorded 9M 2020, depicting a growth of 29.6 per cent.
Commenting on the results, the CEO, Seplat Energy Plc, Roger Brown, said: “Production has recovered strongly since the outage at Forcados Oil Terminal (FOT) and we have been averaging nearly 33kbopd liquids throughout October. Now that production has normalised, we expect production to be in the range 48-50 kboepd for the year, provided uptime on the Forcados Pipeline and FOT remains above the budgeted 80 per cent. I’m pleased to report that our new wells at Gbetiokun are performing strongly, and we will soon commence drilling the exciting Sibiri prospect on OML40.
‘‘We have taken the difficult, but practical decision to bring an end to the uncertainty of the Access Bank legal dispute regarding Cardinal Drilling Services, which completes the Board-mandated removal of Related Party Transactions. Although we maintain our previously stated position that legal action against the Company was wholly without merit, the risk of significant disruption to our operations and other opportunities from a long, drawn-out legal case brought us to a negotiated settlement with Access Bank. We have therefore acquired the four Cardinal rigs and we are now focusing on fast tracking their deployment in future drilling campaigns. `“Our business model is robust, despite setbacks in the third quarter, thanks to the prudent and flexible approach we have taken to managing the business. With an increased focus on efficiency in our operations, improving uptime by opening up the Amukpe to Escravos Pipeline and driving further cost reduction across our portfolio, this will provide the bedrock allowing us to operate effectively in fluctuating commodity prices and generate returns for shareholders.
