Story by  Peter Egwuatu

Seplat Petroleum Development Company Plc (SEPLAT), listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has declared a $29million interim dividend to shareholders.

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It also stated that its recent £382million cash acquisition of Eland Oil and Gas Plc would create more value opportunities for shareholders going forward as it announced its unaudited results for the nine months ended 30 September 2019 released to the NSE and LSE.

Analysis of the nine months results shows that working interest production averaged 47,163 BPD for the period as against 50,303 in 2018 and reflects slippage to the intended production drilling programme as a result of rig mobilisation delays and availability.

The company recorded revenue of US$495 million as against US$568 million in the corresponding period of 2018. It also posted a  gross profit of US$265 million as against  US$306 million in 2018, representing  a 54% gross profit margin; operating profit of US$211 million as against  US$264 million in 2018  with US$36 million recognised within their Income (including a US$31 million oil under lift position and US$3 million income generated by third party usage of the Group’s Warri pipeline) and a US$5 million net fair value gain offset by a US$40 million impairment of NPDC receivables

Profit for the period stood at US$185 million from US$91 million) in 2018. This positively impacted by a 37% year-on-year reduction in finance costs reflecting de-leveraging of the balance sheet early in the year when the outstanding balance on the 2022 Revolving Credit Facility, RCF was ultimately reduced to zero.

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