By Peter Egwuatu
In spite of the challenges of the COVID-19 pandemic, SEPLAT Petroleum Development Company Plc, listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has maintained its dividend paying policy as it declared a final dividend of $0.05 per share, representing $0.10 per share for full year ended December 31, 2020.
This brings the total dividend declared by the company to $58 million in 2020.
The company also posted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $265.8 million as well as operating profit of $121 million (before non-cash impairments and unrealised fair value losses).
In the audited results for the financial year ended 31 December 2020, the company recorded revenue of $530.5 million with increased operational efficiency and further reduction in costs.
Other performance indicators showed that SEPLAT recorded strong cash position of $259 million and this was after $100 million Revolving Credit Facility RCF repayment, $58 million dividends paid in the year, and $150 million capex. Net debt stood at $440 million with most maturities after 2021.
Commenting on the results, which were released to the NSE and LSE on Monday, Mr. Roger Brown, the Chief Executive Officer of the Company, said: “2020 was a challenging year for the Company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.
“From the $330 million of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet. Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.”