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SEPLAT Petroleum Development Company (Seplat) Plc has announced a $0.05 interim dividend payouts to its shareholders.
The dividend distribution was part of the highlights of the operational reports and accounts of the company for the nine-month period ended September 30, 2020.
The report showed that the recorded increased operational efficiencies and further reduction in costs. The company closed third quarter 2020 with cash balance of $213 million after $100 million RCF repayment, $29 million 2019 final dividend, and $109 million capital expenditure (capex). Net debt was steady at $480 million with most maturities after 2021 while revenue was $388 million due to lower oil prices.
key extracts showed that revenue dropped by 10.7 per cent from N151.88 billion in third quarter 2019 to N135.66 million in third quarter 2020. Gross profit also declined by 60.94 per cent from N81.22 billion to N31.73 billion. As against pre-tax profit of N56.71 billion in third quarter 2019, the company reversed into pre-tax loss of N45.49 billion. After taxes, net loss stood at N33.68 billion in third quarter 2020 as against net profit of N56.65 billion in third quarter 2019.
Chief Executive Officer, Seplat Petroleum Development Company, Mr. Roger Brown said the third-quarter performance has again demonstrated the resilience of the company’s business in challenging times.
He noted that in addition to voluntarily reducing its debt leverage by $100 million, the company has maintained its commitment to shareholders by declaring an interim dividend of $0.05 per share, as it had done in previous years.
He said the company continues to operate effectively despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria.
“We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year. We have strengthened our oversight with the appointment of two independent directors, Arunma Oteh and Xavier Rolet, who bring considerable local and international business and governance expertise to the board, Brown said.
Brown, who recently took over the leadership of the company, noted that notwithstanding the challenges in the industry, the company’s push to increase operational efficiencies, further reduce costs and continue expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel generated electricity, will ensure that Seplat remains at the forefront of Nigeria’s exciting energy transition and provide sustainable energy for a young and rapidly growing population.
