Seplat’s 2015 Profit declines by 57.5%

By Chioma Obinagwam

Indigenous oil and gas exploration and production company, Seplat Petroleum Development Company Plc said  its Profit Before Tax(PBT) for the period ended December 31, 2015 dropped 57.5 per cent to N17.24 billion from N40.48 billion posted in the erstwhile year of 2014.

In the same vein, Profit After Tax (PAT) for the period declined 67.5 per cent to N13 billion from N40.48 billion declared in the same period of 2015.

Revenue went down from N124 billion in 2014 audited year end to N113 billion in the review period of 2015; representing a depreciation of nine  per cent.

The company disclosed this in a filing with the Nigerian Stock Exchange (NSE), recently.

Despite the decline in profit, the board is recommending a final dividend of $0.04 per share.

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The $0.04 dividend per share recommended by the board in the period under review is lower than the $0.09 per share paid in 2014; bringing total dividends for the year to $0.08 per share down from $0.15 per share paid in 2014 audited year end.

Seplat said: “Subject to approval of shareholders, the dividend will be paid on or shortly after the Annual General Meeting (AGM) which will be held on June 1, 2016 in Lagos, Nigeria.”

Austin Avuru, Chief Executive Officer (CEO) of the company commenting on its full year 2015 financial results  said: “In 2015 we delivered on what was in our control, posting best-in-class reserves and production growth and taking our gas business across a transformational threshold with 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, and against a bleak industry backdrop remained firmly profitable with a strong balance sheet underpinning us. 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 takes on additional importance by providing a continuous revenue stream that is de-linked to the oil price and our enlarged portfolio offers us scope for greater diversification,” he continued.

He further disclosed that it would focus on strengthening the balance sheet of the company.

“Finally, I would like to re-emphasise our strong focus remains on protecting the business and managing for value through driving further cost reductions, optimising operations, deleveraging and strengthening the balance sheet in preparation for opportunities that will inevitably follow this current downturn.”