Seplat Petroleum Development Company Plc, a local energy company listed on the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has announced a half year revenue of $234m (N90 billion at N385/$) amid lower oil prices and demand.
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The company also announced a cash reserve increase to $343m despite lower revenues and a full year capital expenditure of US$120m (with US$86m already invested) for drilling two gas wells and related infrastructure.
Commenting on the results, which were released to the NSE and LSE on Wednesday, the Chief Executive Officer, Seplat, Mr. Austin Avuru, said: “Seplat has delivered a robust performance despite the unprecedented crises we have experienced since March.”
“Thanks to the excellent relationships we have with our Government partners and supply chain; our Nigerian Petroleum Development Company (NPDC) receivables have fallen and we are managing our payments equitably. The cash position is also robust because our careful management of debt has ensured that the majority of obligations mature in 2022 and 2023. We are operating within our covenants on all our lines of debt,” the Seplat CEO said.
On its outlook for the remaining part of the year, the CEO said the company will maintain its previous guidance of 47,000 to 57,000 boepd and remain confident of market recovery in the coming months.
He said: “The business is hedged against low oil prices using put options, and a significant proportion of our revenues now comes from gas, which offers additional protection from oil price volatility.
