02 November 2014, Lagos – Seplat Petroleum Development Company Plc, Nigeria’s leading Nigerian indigenous oil and gas company, listed on both the Nigerian Stock Exchange and London Stock Exchange, announced its Q3 results on October 30, 2014.
The company said average working interest production for the first nine months of 29,014 boepd, went up 8% from the same period last year, and maintains average working interest guidance of 29,000 to 33,000 boepd for the full year.
The company’s net profit stood at US$228 million following one-off costs of US$54 million as reported in H1 2014. Absent these charges, net profit would have totalled US$282 million.
The board of Seplat has agreed an interim dividend ofUS$0.06 per share. The Company has maintained a strong financial position with cash at bank of US$435 million at period end.
“We have continued to move the business forward in the third quarter. Production performance is strong and we are well capitalised to take advantage of the current and new growth opportunities available to us,” said Austin Avuru, Seplat’s Chief Executive Officer.
“However, like all producers, we are closely monitoring the oil price environment and have challenged ourselves to respond by redoubling efforts to improve efficiency and maximise profitability,” he added.
The growth in SEPLAT’s gas revenue is not unexpected as the company has always targeted an aggressive gas domestication strategy.
Underlining the key role gas domestication would play, the Managing Director and CEO, Austin Avuru noted earlier this year that despite a slight shortfall in the gas revenue for the 2013 period, growth was on the horizon.
”Our gas production in 2013, however, fell marginally by 0.03 per cent year-on-year due to challenges in gathering associated gas within our major operating field but we remain focused in becoming one of the first four major players in Nigeria’s gas market.
We are pursuing our gas domestication project in this regard. Already, we have signed a major gas contract designed to deliver 322bcf of gas by 2017. We have improved our prices of gas sales contracts as we deploy resources to meet our domestic supply obligations to Sapele power plant and Geregu power plant and others as well as foreign buyers.”
With gas revenue rising by 24% year-on-year to US$17 million as reported in its Q3 results, SEPLAT’s gas domestication process seems to be yielding results with the company on course to become as Avuru said “becoming one of the first four major players in Nigeria’s gas market.”