Seplat’s gas business contributes 27% to total revenue
Seplat Petroleum Development Company Plc has said its gas business recorded $124 million revenue, representing over 27 per cent increase to the firm’s total revenue for the 2017 financial year.
The indigenous oil and gas company, which returned to profitability after making a loss before tax of $173 million in 2016, explained that its strategy to diversify income base through expansion of gas business has significantly strengthened its balance sheet.
Speaking at the 2017 yearly general meeting held in Lagos on Wednesday, the Chairman of the company, ABC Orjiakor, explained that the company is presently pursuing a Nigeria focused growth strategy and is well positioned to participate in future divestment programmes by the international oil companies, farm–in opportunities and future licensing.
According to him, the firm completed and commissioned the phase 11 of its Oben gas processing hub, which added a further 225 MMscfde capacity to take a total capacity at the Oben plant to 465 MMscf.
Orjiakor, who assured shareholders of increased value on investments and enhanced profitability, said: “Following repeated disruptions to the TransForcados export route, Seplat is now focused on providing multiple export route to mitigate downtime and revenue loss.
“In 2017, the company successfully completed repairs and upgrades on two jetties at the Warri refinery that would enable sustained export of 30,000bopd (gross), up from 15,000bopd.”
Furthermore, he said the Amukpe-Escravos 160,000bopd capacity pipeline is set to come on stream and would provide a third export option for liquids production at OMLs 4, 38 and 41, which presently accounts for about 90 per cent of the firm’s total liquid production mix, expected to be completed by Q3, 2018.
He added that the firm’s profit before tax for the year stood at $44 million and reflected the return to profitability in the third and fourth quarters, where net quarterly profit before tax of $24 million and $46 million, respectively offset the $26 million loss before tax recorded at mid-year.
“Looking ahead, Seplat, which migrated to the premium board of the Nigerian Stock Exchange (NSE) on April 16, 2018, will focus on its early mover advantage in the domestic gas sector that will now be anchored around OML 53 large scale ANOH greenfield gas and condensate development.
“The company will also retain the flesibility and financial discipline that ha seen it emerge from a difficult chapter in its history a fitter and stronger business,” he said.
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