Seplat grows profit by 499% to N80.6b

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Seplat Petroleum Development Company Plc recorded strong growths in sales and profitability in 2018 as pre-tax profit quadrupled to N80.6 billion.

Key extracts of the audited report and accounts of Seplat for the year ended December 31, 2018 showed that turnover rose by 65 per cent from N138.28 billion in 2017 to N228.39 billion in 2018. Profit before tax jumped by 499.4 per cent to N80.62 billion in 2018 compared with N13.45 billion recorded in 2017. However, with taxes of N35.75 billion paid in 2018 as against tax gain of N67.66 billion in 2017, profit after tax dropped to N44.87 billion in 2018 compared with N81.11 billion in 2017. Earnings per share thus dropped from N143.96 in 2017 to N79.04 in 2018.

The board of the company has recommended a dividend per share of $0.05, the same payout for 2017 year.

Chief Executive Officer< Seplat Petroleum Development Company Plc, Mr. Austin Avuru said the company has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation that provide it with an extremely solid foundation for growth in the coming years.

He said the company’s core assets in the West, OMLs 4, 38 and 41, the extension of the license to 2038 means that the company can confidently plan and invest long into the future to realise the full potential of those blocks.

“As we continue to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the final investment decision to invest in the large scale ANOH gas and condensate development which will form the next phase of transformational growth for our gas business,” Avuru said.

He noted that disciplined capital allocation continues to remain at the core of activities evidenced by continual deleveraging of debt levels to the current balance of $350 million.

According to him, during the immediate past year, the company reinstated the dividend, increased capital investments and with the resources and headroom in its capital structure, it has been equipped to capitalise on organic and inorganic growth opportunities as they may arise.

He said the company will, going forward, retain its price disciplined approach to only allocating capital to the highest cash returning organic and value accretive acquisition growth opportunities.

He assured that with a robust dividend yield,  Seplat will become the investment of choice in Nigeria to access sub-Sahara Africa’s most prolific oil and gas opportunities.

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