Seplat Petroleum Development Company Plc ("Seplat" or the "Company"), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, announces its unaudited results for the nine months ended 30 September 2020. 

Operational highlights 

• Working-interest production within guidance at 50,653 boepd, despite market volatility 
• Liquids production of 33,327 bopd, gas production of 100 MMscfd
• Eland OML40/Ubima assets produced 9,151 bopd, 27.5% of Group oil volumes, integration progressing well
• TFP reconciliation losses reduced to 8.6%
• Amukpe-Escravos Pipeline now expected operational in H2 2021
• Low unit cost of production at US$8.73/boe, with cost-cutting initiatives ongoing, particularly at OML40/Ubima
• ANOH project remains on track for Q4 2021 first gas, completion of financing imminent

Financial highlights

• Strong cash balance of US$213 million after US$100 million RCF repayment, US$29 million 2019 final dividend, and US$109 million capex
• Net debt steady at US$480 million with most maturities after 2021
• Revenue US$388 million due to lower oil prices
• IAS 36 COVID-19 impact assessment and IFRS 9 non-cash impairment provision of US$180 million. 
• Provision reverses operating profit of US$100 million to operating loss of US$79 million
• NPDC receivables further reduced to US$152 million
• Interim dividend declared
• Interim dividend of US$0.05 per share (2019: US$0.05) in line with Seplat's normal dividend distribution timetable

Outlook for 2020

• Full-year production guidance narrowed to 48-52 kboepd, subject to market conditions
• Oil hedging: 1.5MMbbl at US$30/bbl and 0.5MMbbl at US$35/bbl in Q4 2020
• Full-year capex expected to be around US$120 million (US$109 million already invested)

Roger Brown, Chief Executive Officer, said:
"Seplat's third-quarter performance has again demonstrated the resilience of our business in challenging times and in addition to voluntarily reducing our debt leverage by US$100 million, we are maintaining our commitment to shareholders by declaring an interim dividend of US$0.05 per share, as we have in previous years. The business continues to operate effectively despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria.

After the tragic incident on OML40 in July, we have in consultation with our government partner NPDC and the regulatory authorities in Nigeria, conducted three separate and comprehensive investigations that have led to the implementation of new and strengthened safety procedures at the joint venture. Our thoughts and prayers remain with the affected families and friends.

We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year.

We have strengthened our oversight with the appointment of two independent directors, Arunma Oteh and Xavier Rolet, who bring considerable local and international business and governance expertise to the Board. 

I have taken over the leadership of Seplat at a challenging time for our industry, but am confident that our actions to increase operational efficiencies, further reduce costs and continue our expansion into midstream gas processing to reduce carbon emissions by displacing inefficient and expensive diesel generated electricity, will ensure that Seplat remains at the forefront of Nigeria's exciting energy transition and provide sustainable energy for a young and rapidly growing population."    

KeyFacts Energy: SEPLAT Nigeria country profile