Seplat Promises Better Performance, Generates $318 Million Cash

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The Chairman of Seplat Petroleum Development Company Plc, Dr. ABC Orjiako, yesterday assured shareholders and other stakeholders of better future performance, saying the company’s $318 million for 2020 full year remained strong and was higher than the $150 million invested.

Orjiako, who spoke at the company eight annual general meeting (AGM) in Lagos, noted that the capital investment, which was higher than the $125 million spent in 2019, demonstrated its commitment to growth.

He disclosed that the company’s average working interest production was 51,183boepd, including 33,714bopd of liquids and 101MMscfd gas (17,469boepd).
“Of this, our Eland assets contributed 8,855bopd, or 26 per cent of total liquid volumes. Our financial performance enabled us to maintain our commitment to paying dividends. While other companies were cutting back or cancelling payments for the 2019 financial year, because of prevailing uncertainties, we honoured our commitment and paid a final dividend of US$0.05, for a total dividend of US$0.10 for 2019.
“In October 2020, we announced an interim dividend of US$0.05 and the Board has since approved an additional top-up of US$0.05, maintaining our US$0.10 dividend for the 2020 financial year. Since we raised $535 million at our initial public offering in May 2014, we have returned $344 million to shareholders in the form of dividends,” he said.

According to him, it is the responsibility of the board of directors to plan for the long-term sustainability of the company, as scenario analyses on Seplat’s assets have been conducted under different climate change and demand scenarios, whilst looking towards a future in which Seplat is much more involved in promoting low carbon environment in its operations and the company adopting Seplat Energy as its new name following the passage of the resolution at its AGM.

Also speaking, Chief Executive Officer, Seplat, Mr. Roger Brown, the company was embracing climate change opportunities on two fronts.

“Firstly, we continue to invest heavily in expanding our domestic gas business in line with the Government’s strategy to achieve universal access to electricity, and to make that energy cheaper and cleaner by replacing diesel generation, which is very damaging to the environment and the economy. Gas is clearly the next step for Nigeria, and we have a leading position domestically with the Nigerian Government declaring the ANOH project as one of the seven critical gas development projects for the country. Secondly, we have created a New Energy unit to focus on lower carbon to zero carbon fuel sources and the natural extension beyond gas is for Seplat to participate in renewable energy, such as solar power, and in emerging technologies such as carbon capture and storage,” he said.

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