By Modupe Gbadeyanka
One of the leading indigenous Nigerian oil and gas exploration and production companies, Seplat Petroleum Development Company Plc, has released its financial statements for the first nine months of 2017.
In the results released by the firm with strategic focus on Nigeria, the company posted a loss of N1.6 billion in the period under review. This was against the N24.1 billion reported in the corresponding period of last year.
The profit loss recorded by Seplat came despite a significant rise in the company’s revenue during the period.
In the financial statements analysed by Business Post, Seplat grew its revenue by 75.6 percent to N85.2 billion from N50 billion a year ago.
Also, the Seplat posted a loss before tax of N760 million in the first nine months of this year in contrast to the loss before tax of N21.5 billion 12 months ago.
However, the company’s operating profit during the period under review increased to N16.3 billion from the N13.2 billion loss last year, while the gross profit rose to N38.1 billion from N19.2 billion.
On a quarterly level, Seplat returned to profitability as profit after tax in three months grew to N6.8 billion from N11.3 billion loss in the corresponding period of last year.
The company said during the period under review, it recorded gas revenues of $85.9 million up by 11 percent year-on-year (2016: $77.4 million); while its peak daily output reached 352 MMscfd (gross) in Q3.
It said new gas sales agreements are being agreed upon to increase offtake and diversify counterparties, pointing out that significant progress was made in formalising an incorporated joint venture relationship between Seplat and government to deliver the 300 MMscfd ANOH gas processing plant.
It noted that in light of this, Seplat FID will now be aligned with NNPC approvals with both parties expected to take FID within the next three to six months.
Seplat said Its Q3 working interest production within guided range; full year working interest production guidance of 17,000 to 19,000 bopd and 105 to 115 MMscfd (or 35,000 to 38,000 boepd) was maintained.
Also, the uptime on the Trans Forcados System during Q3 was 84 percent; average reconciliation losses in Q3 significantly reduced to below 3 percent from previous average of around 10 percent.
In addition, the Amukpe to Escravos pipeline commercial contracts are in advanced stage with scope of work and costs of connection to the terminal agreed.
The firm said the pipeline will be under joint management between the pipeline owners Pan Ocean/NAPIMS and the Seplat/NPDC JV.
Timetable slightly delayed to ensure that tie-in works are fully funded prior to commencement which is now anticipated before the end of 2017. The pipeline is expected to be commissioned in H1 2018, the firm said.
Commenting on the results, the chief executive of Seplat, Mr Austin Avuru, stated that, “I am pleased to report a sharp improvement in Seplat’s operational and financial performance which has resulted in a welcome return to profitability during the third quarter.
“The improved cash flow is translating into a stronger balance sheet and, based on current levels of production and sales, we maintain full year production guidance of 35,000 to 38,000 boepd.
“Looking ahead, we plan to build on this performance in the coming quarters focusing on regular and predictable revenues as we start to unlock further value from our portfolio of production and development opportunities.”
