Dipo Olowookere
By Dipo Olowookere
One of the players in the Nigerian energy sector, Seplat Petroleum Development Company Plc, has announced its financial statements for the year ended December 31, 2019.
The company, listed on both the Nigerian and London stock exchanges, recorded a 6.2 percent decline in the revenue generated in the period under review, N214.2 billion in 2019 FY compared with N228.4 billion achieved in 2018 FY.
The revenue shortfall was majorly impacted by lower production and oil price as Brent oil price averaged $64.04/bbl over 2019 (2018: $71/bbl). The average premium to Brent achieved by the Group in 2019 was $0.36/bb.
In the statements, the firm said the cost of sales reduced to N92.7 billion from N108.5 billion, while the gross profit rose to N121.5 billion from N119.8 billion due to higher gas processing revenues and lower non-production costs primarily consisting of royalties and DD&A.
The DD&A charge for oil and gas assets decreased in the period under review, reflecting lower depletion of reserves because of decreased production compared to the prior year.
As at December 31, 2019, Seplat generated N9.2 billion as other income, higher than N4.6 billion realized in 2018.
According to the financial documents, general and administrative expenses was trimmed to N21.7 billion from N24.4 billion, while operating profit increased to N95.8 billion from N94.9 billion, mainly because of the gas-tolling revenue recognised but set against the reversal of previously recognised accrued interest on NPDC receivables due to the settlement of these receivables.
Also, the finance income appreciated to N4.1 billion from N3.0 billion, while the finance cost went down to N10.3 billion from N17.3 billion.
In the results, Seplat said its profit before tax increased to N89.9 billion from N80.6 billion, while the profit after tax significantly jumped to N85.0 billion from N44.9 billion.
As earlier reported, Seplat is proposing to pay a final dividend of $0.05 to its shareholders for the financial year, with qualification date set at May 12, 2020, while the Register of Shareholders will be closed by the registrar, Datamax Registrars Limite, on May 13, 2020, with the payment date fixed for June 4, 2020 and the Annual General Meeting (AGM) to hold on May 28, 2020.
Seplat said Shareholders holding their shares on the Nigerian Stock Exchange without a valid Nigerian Certificate for Capital Importation (CCI) will be paid their dividend in Naira as the default currency.
It also said shareholders holding their shares on the Nigerian Stock Exchange with a valid CCI will be paid their dividend in US Dollars as the default currency.
However, those shareholders may instead elect to receive their entire dividend payment in Naira (partial elections are not permissible). Evidence of the CCI must be provided to Datamax Registrars Limited.
In addition, shareholders holding their shares through depository interests on the London Stock Exchange will be paid their dividend in US Dollars as the default currency.
However, those shareholders may instead elect to receive their entire dividend payment in Pounds Sterling, adding that partial elections are not permissible.
