Seplat Petroleum Development Company Plc has driven down its  finance costs to $16 million  from the $26 million in  2018.

The company in its interim management statement and consolidated interim financial results for the three months ended March 31 2019 just released, the results showed positive impact of the 2018 debt refinancing. This  subsequently resulted in a 38 per cent year-on-year reduction in finance costs.

Its net profit stood at $33 million after adjusting for a tax credit of $13 million.

Seplat Petroleum is a leading Nigerian independent oil and gas company listed on both the Nigerian Stock

Exchange and London Stock Exchange

Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said: “Our operations have continued to perform in line with expectation, with the phasing of our 2019 work programme such that the production uplift will be felt throughout the second half of the year as we step up drilling activities to focus on capturing the numerous high margin and short-cycle cash return opportunities within our current portfolio.

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“The next phase of growth for our gas business is now gathering pace following FID for the ANOH project, with governments first tranche of equity investment received. We have continued to deleverage the balance sheet and self-fund investments into the existing portfolio from operational cash flow, while retaining the financial flexibility and available resources that will enable Seplat to capitalise on what we expect to be an increasingly busy pipeline of  inorganic growth opportunities that fit our acquisition criteria.”

Production uptime in first quarter stood at 85 per cent; Reconciliation losses are yet to be finalised but are expected to remain at levels consistent with prior periods; Full year 2019 production guidance maintained at 49,000 to 55,000 boepd  on a working interest basis, comprising 24,000 to 27,000 bopd liquids and 146 to 164 MMscfd (25,000 to 28,000 boepd) gas production.

The results also showed that the 2019 capex guidance is maintained at $200 million (excluding investment in the ANOH joint venture).

Revenue of $160 million and gross profit of $81 million which  represents a 51 per cent gross profit margin;  

Average realised gas price of $3.24/Mscf in the period (2018: $2.79/Mscf) – Operating profit of US$33 million  (2018 : $84 million) reflects adjustments for a $16 million overlift position and US$12 million charge in relation to the company’s oil price hedges, comprising $5 million cost of hedges and $7 million fair value loss (reversing the $9 million fair value gain booked at the end of 2018).

Net cash generated from operations up  by 73 per cent year-on-year at $80 million (2018: $46 million) versus capex  incurred of $16 million (2018: US$3 million). Further receipt in the period of $17 million from liftings at OML 55 .