Here come another bombshell, Nigeria’s indigenous oil company playing in the upstream exploration and production side of things has just released its Q1 2015 result.
Apart from the fact that the company has been making loss for the past two years, things are getting worse for the crude oil exploration company.
The company’s gross revenue fell to USD 83 million last quarter compared to its gross revenue of about USD 131 million it declared in the same quarter last year. While its cost of sales is coming down, the decrease is still USD 53 million compared to USD 58 million it expended in 2015.
As a sign of its health as a going concern, Seplat’s net asset is stated to have fallen to USD 2.6 billion.
This a worrying sign for the company as its net liabilities is fast catching up with its assets. As at last quarter, the company’s net liabilities in last quarter USD 1.2 billion compared to USD1.3 billion it had in 2015 in the same quarter.
As the global oil market continues to flip flop, Seplat might have more challenges ahead. The company’s net leverage has spiralled to USD 21 million compared to USD 17 million loan it was exposed to in the same quarter in 2015.
The challenge that might face Seplat is that its creditors might take over some of its asset to clean up their loan book.