By Audrey Lotechukwu
SAT, 31 OCT, 2020-theGBJournal-Roger Brown, Chief Executive Officer, Seplat Petroleum Development Company Plc said the company’s third-quarter performance demonstrated the resilience of the business in challenging times following the reduction of its debt leverage by $100 million.
But its earnings report published on Friday underlined the impact of the global oil prices drop and COVID-19 pandemic on both revenue and profit. Revenue dropped 21.6% to N135.6 billion in 9M 2020 from N151.9 in 9M 2019 while gross profit rescinded also by 65.8% to N31.7 billion in 9M 2020 from N81.2 billion in 9M 2019.
The company says it now expects the full-year capex to be around US$120 million (US$109 million already invested).
Profit (loss) before tax dropped 170.4% to N45.5 billion in the period under review. EBITDA, adjusted for non-cash items, was down 16% to N71.9 billion from N99.6 billion.
However, it still maintains a strong cash balance of US$213 million after US$100 million RCF repayment, US$29 million 2019 final dividend, and US$109 million capex while declaring Interim dividend of US$0.05 per share (2019: US$0.05), in line with its normal dividend distribution timetable.
Impairment of assets climbed 348.1% to N62.8 billion from N29.1 billion in 9M 2019. The impairment includes US$158.2 million impairment on revaluation of assets and US$21.4 million impairment of financial assets.
Seplat readjusted its 2020 production outlook to 48,000-52,000 boepd for the full year following the performance. It said it will continue to focus on cost savings to maintain profitability at the lower oil prices realised so far this year.
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