Seplat Petroleum Development Company, an indigenous Nigerian upstream oil and gas firm has delivered superb results in the first quarter of 2021, aided by higher oil prices, compared to a year ago.
The oil firms board also adopted a quarterly dividend policy.
Oil prices were sliding in Q1, 2020 as a result of the corona virus induced lockdowns that led to demand destruction leading to Seplat recording a loss of N34.63 billion in the quarter.
Seplat has however come back strong with a 127 percent increase in after-tax profits in Q1, 2021 to N9.45 billion on revenues that rose by 36.6 percent.
Gross profit margins (a measure of profitability) rose to 34.63 percent in the period from 25.37 percent in Q1, 2020, while Earnings Per Share (EPS) rose by 138 percent.
Roger Brown, Chief Executive Officer, said:
“We have made a progressive start to the year, delivering oil and gas production volumes of 48,239 boepd, within our guidance range. With the Gbetiokun field at OML40 now back in production, we are currently achieving average daily volumes of nearly 54 kboepd so far in April and we will build on this as we add additional oil and gas wells this year.
Our flagship ANOH gas project is proceeding as planned and was fully funded in February when our joint venture company, AGPC successfully raised $260 million of debt financing. In addition, the success of our $650 million Eurobond issuance in March demonstrates investor confidence in our prudent financial management and the exciting future ahead
for the Company and its stakeholders. As we drive forward our strategy of being a low-cost energy provider delivering reliable, affordable and sustainable energy to the young, fast-growing population of Nigeria, energy transition – which delivers on Nigeria’s social
development goals in tandem with the climate agenda – is essential. This is the backbone of Seplat’s strategy and we will be communicating how we plan to achieve this over the coming months. To that end, the Board took the decision to change our name to Seplat Energy PLC, which more adequately reflects our ambitions of providing a broader energy
mix. We will present the name change to our shareholders for approval at the AGM on 20 May 2021.”
Seplat announced a quarterly dividend at a rate of US 2.5 cents (United States Two and Half Cents) per Ordinary Share (subject to appropriate Withholding tax) to be paid to SEPLAT’s shareholders whose names appear in the Register of Members as at the close of business on 12th May 2021.
“The exchange rate for the Naira or Pounds Sterling amounts payable will be determined by reference to the relevant exchange rates applicable to the US dollar on 11 th May 2021 and will be communicated by the Company on 12th May 2021,” Seplat said.