Seplat says interim performance 'robust' despite headwinds
Nigerian oil and gas producer Seplat Petroleum Development Company says it delivered a robust performance for the six months ended June 30, despite the unprecedented crises experienced since March.
“Our continued resilience is possible as a result of our financial strength, our careful management of risk and our prudent approach to capital allocation. Unlike many in our industry, we were able to protect our 2019 dividend and increase our capital investment to ensure continued growth.
"Our oil hedging strategy and gas revenues continue to protect the business from price volatility, we are achieving substantial cost reductions from our suppliers and are managing our own costs even more carefully in this challenging period," CEO Austin Avuru says.
He acclaims that the company’s cash position is also robust, owing to its careful management of debt which has ensured that the majority of obligations mature in 2022 and 2023.
“We are operating within our covenants on all our lines of debt,” he notes.
For the six months under review, Seplat's working interest production was comfortably within guidance at 51 177 bbl/d of oil equivalent, despite market volatility.
The company's revenue, however, decreased by 34.2% year-on-year to $234-million as a result of lower demand and lower oil prices.
Cash increased to $343-million for the period despite the lower revenues; and capital expenditure for the period was $86-million.
Net debt is steady at $457-million with most maturities after 2021.
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