Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company has recorded 24 percent revenue loss to stand at $530.5 million or N190.9 billion as against $697.8 million or N214.2 billion in 2019 financial year.
In a statements to the capital market regulators, investors and other stakeholders on Monday, the firm’s Gross profit was $124.6million or N44.8 billion in 2020 from $395.7 million or N121.5billion in 2019, a decrease of 68.5 percent.
Seplat’s audited results for the year ended 31 December 2020, indicates that Cash flow from operations was $329.4million or N118.6 billion in 2020, down 3.6 percent from $341.6 million or N104.7 billion in 2019. Consequently, final dividend of $0.05 per share was recommended for full year.
From its operational highlights, the company’s operating profit stands at $121 million (before non-cash impairments and unrealised fair value losses) with strong cash position of $259 million after $100 million RCF repayment, $58 million dividends paid in the year, and $150 million capex; while net debt stands at $440 million with most maturities after 2021.
In compliance with prudent accounting standards on the treatment of COVID-19 pandemic impact on Oil and Gas businesses, Seplat had to revalue downwards its oil and gas assets by $114.4million to reflect the lower crude oil prices of 2020 and this reversed the operating profit of US$82.7million to a loss for the year of US$85.3million.
The firm, which is listed on both The Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE) said when crude oil prices improved, these same oil and gas assets would be revalued upwards.
Roger Brown, Chief Executive Officer, Seplat said that year 2020 was a challenging one for the Company but Seplat had 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.
According to him, the $330 million generated from operations, has increased the company’s capital investment invested in ANOH while it has voluntarily paid down $100 million debt to further deleverage 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.
“Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity and we believe this will provide the necessary baseload for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fuelled by coal. The energy transition in Nigeria must balance both the environmental and the social agenda.
“Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.
“We remain committed to providing shared value for all of our stakeholders. During the year, with our Government partners, we provided medical beds and other palliatives to our communities and have started construction on a 200-bed infectious diseases hospital. Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development”, he said