By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- First listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company on Monday said it has recorded a sustainable growth of 404.4 percent in its post listing profit for its 2013 audited year end.
Following this, Ambrosie Orjiako, chairman of the group at its first post listing annual general meeting (AGM) said Seplat has grown beyond expectation. The firm reported a profit of $550.268 million (N90 billion) in the review period of 2013 compared to N109.099 million (N17.783 billion) in the same period of 2012; indicating a growth of 404.4 percent.
Similarly, revenue of Seplat climbed 41 percent to $880.2 million (N143.6 billion) in 2013 end from $624.546 (N101.800 billion) in the corresponding period of 2012; representing a growth of 41 percent.
According to Orjiako, Seplat has recorded exponential growth despite a harsh operating environment underlined by the uncertainties about the passage of the petroleum industry bill (PIB), persistent oil theft, huge exposure to subsidies and reduced demand for Nigerian crude oil blends, in the United States, among other things.
“Seplat has continued to deliver growth holistically since inception in line with our strategy. Operated crude oil production has grown significantly over a three-year period (2011-2013), from 11.5 million barrels in 2011 to 18.8 million barrels in 2013, with an exit gross production rate at 31 December 2013 of 61.7 thousand barrels per day,” he said.
The Seplat chairman affirmed that the oil and gas firm operated average daily production for 2013 was 51.4 thousand barrels per day, with total annual operated production of 18.8 million barrels.
Orjiako further affirmed with consistent growth in production, reserve, profit and the company’s dual listing on both the London and Nigerian stock exchanges, Seplat is now fully set for the next phase of building a sustainable long-term business with substantial contributions to Nigeria’s energy security.
“The future of our company is very bright, we shall strive to maintain our leadership position in the indigenous E & P industry in Nigeria and focus on following our growth strategy to seek to ensure delivery of our commitment not only to capital growth but also to remain profitable and dividend-paying. We shall seek to deliver tangible rewards to all stakeholders,” The Seplat chairman said.
However, the Seplat board said it approved and paid a dividend of $0.10 (N16.00) per share to investors of the company for the year ended December 31, 2013.
The chairman of the company said it expects to pay a higher dividend of not less than the N16.00 paid in 2013 end; reflecting Slat’s strong growth and cash flow prospects.
Orjiako said from 2014 year end, the core dividend to shareholders of the company will comprise an interim dividend expected to be paid in November and a final dividend expected to be paid in June the next year.
On his part, Austin Avuru, chief executive officer (CEO) of Seplat said the company’s growth trajectory will remain on the upward because the company intends to keep production levels and revenue streams on the high by investing in new wells, improving infrastructure and monetising its natural gas resources.
“Seplat intends to continue development of its existing properties by improving operational efficiencies, investing in facilities and infrastructure to increase oil production and positioning itself to further monetise natural gas resources.
“New developments for recent discoveries and the completion of identified development projects will also ensure that the company is well-positioned to grow both reserves and production by converting contingent and prospective resources into commercial reserves,” Avuru said.
