SEPLAT Petroleum Presents 2015 Report

SEPLAT Petroleum Development Company Plc, a leading Nigerian independent oil and gas exploration production company, presented its report on the 16^th of May, 2016 for its audited full-year 2015 results of the Nigerian Stock Exchange.

Presenting the details of its full-year 2015 performance ahead of its Annual General Meeting scheduled for June 1, 2016, Austin Avuru, Chief Executive Officer and Roger Brown, Chief Financial Officer, informed the audience that working interest 2P reserves at the end of 2015 averaged 43,372 boepd, ahead of guidance and up to 41% year-on-year. Within this, oil and condensate production accounted for 29,003 bodp (up 20% year-on-year) and natural gas production was 86 MMscfd (up 119% year-on-year). All of the natural gas production was supplied to the domestic market.

In a significant step forward for its gas business, during mid year 2015, SEPLAT successfully completed and commissioned the Oben gas plant phase 1 expansion which saw the Company’s overall gross processing capacity double to 300 MMscfd.

SEPLAT’s gas business was evident as revenues from gas sales increased 185% year-on-year to US$77 million. Gross revenue for the year 2015 stood at US$570 million, down 26% year-on-year. Net profit for 2015 stood at US$67 million and cash flow from operations before movements in working capital stood at US$190 million against capital investments of US$326 million and US$573 million respectively.

At the end of 2015, the net NPDC balance stood at US$435 million, down from US$463 million at the end of 2014.

Currently, the Company has set full production guidance at 41,000 to 48,000 boedp and expects its capital expenditures to be around US$130 million.

According to Austin, the company delivered what was in their control in 2015, posting best-in-class reservs and production growth and taking the gas business across a transformational thresh further expansion still to come.

“We acted quickly and decisively in response to the weak oil price environment, adjusting our work programme and cost structures. Having started the year strongly, our 2016 full year production expectation has been impacted by the current shut-in of the Forcados terminal. However, we are much better positioned to withstand such interruptions than in prior years”

“Our gas business has taken an additional importance by providing a continuous revenue stream that is de-linked from the oil price. Our enlarged portfolio offers us the scope for greater diversification.

He, however, re-emphasized that the company’s strong focus remains on protecting the business and managing value through effective cost reductions, optimizing operations, deleveraging and strengthening the balance sheet, which will strategically position the company to take advantage of opportunities that will inevitably follow this downturn.