March 1, 2021

By InvestAdvocate

Lagos (INVESTADVOCATE)-Dual listed and leading indigenous Nigerian oil and gas exploration and production company, Seplat Petroleum Development Company Plc said on Monday reported a loss after tax of N30.71 billion for the period ended December 31, 2020 a drop of 137.9 percent from a profit after tax of N80.9 billion posted a year ago.

In the same vein the company posted a loss before tax of N28.7 billion in the review period of 2020 compared to profit before tax of (PBT) of N89.9 billion declared the same period of 2019., indicating a loss of 132.11 percent.

Revenue went down from N214.1 billion in 2019 audited year end to N190.9 billion in the review period of 2020; showing a depreciation of 10.8 percent, Seplat said in a filing with the Nigerian Stock Exchange (NSE).

The board has recommended a final dividend of U$0.05 per ordinary share ($0.10/share for full year), and will be paid to shareholders whose names appear on the qualification date and in the Register of Members as at the close of business on May 4, 2021 and May 5, 2021 respectively

Seplat says subject to approval of shareholders, the dividend will be paid on or shortly after the Annual General Meeting (AGM) which will be held on May 20, 2021 and payment date May 28, 2021 respectively.

Commenting on the results, which were released to the NSE and LSE on Monday, Mr. Roger Brown, the Chief Executive Officer of the Company, said: “2020 was a challenging year for the Company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.

“From the $330 million of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet. Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.”

The SEPLAT CEO explained: “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity and we believe this will provide the necessary baseload for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fueled by coal. The energy transition in Nigeria must balance both the environmental and the social agenda.

“Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”

“We remain committed to providing shared value for all of our stakeholders. During the year, with our Government partners, we provided medical beds and other palliatives to our communities and we have committed to constructing a 200-bed infectious diseases hospital. Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development,” Brown added, according to a statement made available to InvestAdvocate by Seplat.

Click here to read PDF copy of Seplat Plc FY 2020 1 March 2021 by Cowry Asset Research