…Expands into midstream gas processing to reduce carbon emissions
By Peter Egwuatu
Despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria, Seplat Petroleum Development Company Plc, has announced a $0.05 dividend payout to shareholders for the period whilst remaining confident that its cost-cutting initiatives and prudent management of cash would enable further reductions in debt, and support dividend payments and investment for growth.
The Company also affirmed its expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel generated electricity, adding that this is aimed at ensuring that Seplat remained at the forefront of Nigeria’s exciting energy transition and provide sustainable energy for a young and rapidly growing population.
Seplat in its unaudited third quarter ended September 2020, Q3’20 report sent to the Nigerian Stock Exchange, NSE recorded increased operational efficiencies and further reduction in costs as working-interest production within guidance stood at 50,653 boepd, despite market volatility.
It recorded liquids production of 33,327 bopd, gas production of 100 MMscfd, while Eland OML40/Ubima assets produced 9,151 bopd, 27.5% of Group oil volumes, integration progressing well.
Commenting on the results, Mr. Roger Brown, the Chief Executive Officer of the Company, said: “Seplat’s third-quarter performance has again demonstrated the resilience of our business in challenging times and in addition to voluntarily reducing our debt leverage by US$100 million, we are maintaining our commitment to shareholders by declaring an interim dividend of US$0.05 per share, as we have in previous years. The business continues to operate effectively despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria.”
Continuing he said: “We recorded strong cash balance of US$ 213 million after US$100 million RCF repayment, US$29 million 2019 final dividend, and US$109 million capex. Net debt steady at US$480 million with most maturities after 2021. Our revenue stood at US$388 million due to lower oil prices.
“We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year.
“We have strengthened our oversight with the appointment of two independent directors, Arunma Oteh and Xavier Rolet, who bring considerable local and international business and governance expertise to the Board.”