Seplat PLC, a major player in the upstream section of the petroleum industry said its gross revenue for the nine months period ended in September fell by 51% year on year.
In statement release shortly, Seplat PLC noted that its gross income for the period fell to US$203 million (N48 billion), compared to 2015 when it reported US$420 million (N83 billion)
The Seplat PLC said the sharp drop is “reflecting the shut-in of the Forcados terminal and lower oil price realisations. The loss of revenue was however, “partially offset by increased gas sales following completion of OGPE Phase I and higher gas pricing”.
Also, Crude revenue (after lifting adjustments) was US$125 million (N29 billion), down 66% year-on-year (2015: US$367 million (N73 billion)) – Gas revenue was US$77 million (N19 billion), up 48% year-on-year (2015: US$53 million ((N10 billion))
In a press statement issued by the company, Austin Avuru, Seplat’s Chief Executive Officer said:
“Whilst the obvious challenges we have been confronted with are reflected in our results for the first nine months, we have responded by delivering on what is within our control and by implementing a range of solutions. An alternative liquids export route has been established via the Warri refinery jetty where we are making good progress towards establishing a regular offtake schedule. This in turn has been the enabling factor that has permitted gas production to be de-constrained and can be used going forward as a means of improving security of gas supply to the domestic market. Elsewhere, we are on-track to deliver the Phase II expansion of the Oben gas processing plant and in the coming months step up gas production further to help meet domestic demand”
He concluded that “Financially, the approval to re-profile our seven-year term loan facility underscores the strength of our relationship with our lenders based on strong business fundamentals, which reflect the quality of our portfolio and strong operating track record. The smoothing of the repayment profile will assist in ensuring that we preserve a sufficient liquidity buffer to operate under prevailing business conditions, at the same time enabling us to invest on a fully discretionary basis in our portfolio of production opportunities”