Seplat Reports $31.7m Operating Loss for 2020, Sees Gas Opportunity in Agbara, Benin

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Seplat ANOH gas Project

Seplat Petroleum Development Company Plc, a Nigerian independent energy company has announced its audited results for the financial year ended 31 December 2020 showing EBITDA of $266 million, operating loss of $37 million (after non-cash impairments and unrealised fair value losses.

Seplat reported strong cash position of $259 million after $58 million dividends paid in the year, and $150 million worth of capex.

Operational highlights

Seplat maintained working-interest production within guidance at 51,183 boepd, despite demand fall and OPEC+ quotas

  • Liquids production of 33,714 bopd, gas production of 101 MMscfd
  • Eland OML40/Ubima assets produced 8,855 bopd, 26.3% of Group liquid volumes
  • Low unit cost of production at $8.90/boe, with cost-cutting initiatives ongoing, particularly at OML40/Ubima
  • Drilled/completed nine wells and brought eight on stream in 2020
  • ANOH project now budgeted under original $700 million Final Investment Decision (FID) estimate, but COVID-19 related delays push completion to H1 2022
  • Final dividend of $0.05 per share recommended ($0.10/share for full year)
  • net debt at $440 million with most maturities after 2021.

As part of the conference call on the full year 2020 results listened in to by MoneyCentral, Seplat said it is seeing opportunity for growth in its gas business in Agbara, Ogun state industrial park where it is looking to sign a Gas Supply Agreement (GSA), and in Edo State in Benin where there is an industrial park being built as well as a new 55 megawatt power plant.

Roger Brown, Chief Executive Officer, said: “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity and we believe this will provide the necessary baseload for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fuelled by coal.”

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