Seplat Petroleum Development Company Plc, a Nigerian independent energy company listed on both the Nigerian Stock Exchange(NSE) and the London Stock Exchange(NSE), has recorded a revenue of $530.5 million (N190.9 billion)for year ended December 31, 2020, compared with $697.8 million (N214.2 billion).
However, Loss after tax stood at N30.712 billion in 2020 compared with a profit of N85.616 billion in 2019. However, the directors have recommended a final dividend of $0.05 bringing the total to $0.10 per share share recommended ($0.10/share for full year).
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $265.8 million, operating profit of $121 million (before non-cash impairments and unrealised fair value losses).
Commenting on the performance, Chief Executive Officer, Seplat Petroleum Development Company Plc, Roger Brown, said: “2020 was a challenging year for the company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.
According to him, from the $330 million of cash generated from operations, the company increased its capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet.
“Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year,” he said.
Brown explained that gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. He noted Seplat was leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity.
He said:“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. The energy transition in Nigeria must balance both the environmental and the social agenda. Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”