By Adedapo Adesanya
Despite numerous challenges in the past year, Niger Delta Exploration and Production (NDEP) Plc grew its top-line by 16 percent from N39.1 billion in 2018 to N46 billion in 2019.
This was contained in the company’s annual reports and financial statements for the year ended December 31, 2019.
Giving a break down of the growth, revenue from crude oil increased to N38.3 billion as against N29.4 billion recording in the previous year as a result of an increase in production despite the market’s volatility, which caused the average realised price to drop to $65 per barrel on average from 2018’s $74 per barrel.
Revenue from diesel dropped in the year to N4.6 billion from the previous year’s N5.2 billion because of plant maintenance activities and outages due to integration to its Train 2 under construction.
The company also noted that its gas revenues dropped to N3.0 billion from 2018’s N4.4 billion as a result of lower realised prices.
In terms of profit, NDEP Plc’s profit before tax stood at N20.6 billion, dropping 29 percent from N29.3 billion recorded in 2018. This was negatively affected by non-recurrent costs.
According to the company, its associate, ND Western Limited, remains a strong support by contributing a profit share of N9 billion, although lesser than the previous year’s N9.4 billion.
The profit after tax recorded in 2019 also dropped, by as much as 48 percent to N19.5 billion against N37.4 billion that was realised in 2018. This was further impacted by the lower deferred tax credit written to Profit or Loss account in the year which was N0.4 billion (2018: N9 billion) as it enjoyed more capital allowances to relieve tax.
During the year, NDEP Plc’s equity position increased as a result of the successful conversion of the African Capital Alliance (ACA) convertible loan to ordinary shares at a premium. As a result, 35,833,768 units of shares were issued in the year at $2.23 per share, resulting in an increase in share capital and premium.
Also total assets grew in 2019 due to the completion of Wells Number 10 and 11, additional spend on the Refinery expansion and other assets under construction.
Speaking on this, the company said, “There has been tremendous progress on the expansion project with its commissioning projected for the year 2020. This will further generate multiple revenue streams for your company and create immense value for our country.
“The refinery project will enhance your company’s resilience during times of uncertainties such as the ravaging effects of the COVID-19, which caused a major free-fall of the crude oil prices globally.”
The company board has recommended a dividend of N17 per share, which if approved will be the company’s 13th year of consistent dividend payments.
This will be subject to approval at the company’s 25th Annual General Meeting scheduled for Wednesday, June 17, 2020, at the Board Room of the company situated at Number 15 Babatunde Jose Road, Victoria Island, Lagos at 11:00a.m.
Dipo Olowookere