SEPLAT Petroleum Development Company Plc, has revealed its intention to acquire valuable asset in the oil and gas sector from either corporate or government owned asset to consolidate its business organically and contribute its part in growing the economy.
Chief Executive Officer, Mr Austin Avuru, while addressing the capital market community during its ‘Facts Behind The Figures’ Presentation held at the Lagos floor of the Exchange, stated that the company’s current well stock is producing strongly having had limited draw down during force majeure.
He said “We have returned to profitability and Future Cash Flow, FCF remains positive. We are having reasonable cash in hand to prepare against any possible acquisition of asset or capital investment either from corporate organization or government oil well that will enhance our production and profitability in the future. We have reinstated dividend at earliest opportunity in order to reward our shareholders.
“We have refinanced balance sheet with four year US$300 million Revolving Cash Flow, RCF and US$350 million debut bond issuance and this strengthens our liquidity position and diversified our capital base.”
On its scale up programme, he said: “We have extensive inventory of production drilling opportunities within current portfolio and we implement a high-graded drilling programme targeting the most cash generative wells that is aimed to deliver incremental organic growth. The ANOH project set to be a major driver of growth for the gas business- moving towards FID
‘’We would be pursuing growth opportunities as we have strong financial position and a core business restored to full production operations provides a solid foundation upon which to resume pursuit of value accretive acquisition opportunities.”
Our average working interest production in first quarter, Q1’18 stood at 53,604 boepd, a new quarterly record for Seplat (Q1’17: 20,922 boepd). Production uptime in Q1’18 was 82 percent with, average reconciliation losses of 7.3 percent.
While commenting on its financial position, the Chief Financial Officer, CFO, Seplat Petroleum, Mr Roger Brown, said: “ In our Q1’18 Profit Before Tax, we recorded US$59milion driven by higher production and higher oil price realization more than offsetting higher net finance cost. Our Q1’18 Profit After Tax is US$21 million after adjusting for non cash tax items of US$38 million (primarily deferred tax ). Our reduction in Capital Expenditure, CAPEX compared to prior year reflects adjustments pending refinancing outcome”