Seplat Petroleum Development Company Plc, an indigenous oil company with dual listing on the Nigerian Stock Exchange and the London Stock Exchange seems to be struggling to cut its losses.
For the first quarter of the year, the Seplat reported a net loss of USD19 million compared to USD22.5 million in the previous year.
Gross revenue for the period fell drastically to USD47 million compared to USD83 million reported with the same quarter last year.
However, several cost cutting measures saw a serious cut in cost of sales down to USD28 million compared to USD53 million reported in the year 2016.
The company’s asset was slightly depleted to USD2,1 billion compared to USD2,1 billion reported in 2016. The company’s total liabilities has seen slight increase from USD951 million compared to USD945 million reported in 2016.
Austin Avuru, Seplat’s Chief Executive Officer, said: “The first quarter of 2017 is a transitionary period for Seplat in which our oil sales have been constrained whilst we electively undertook the necessary upgrade and repair work on two jetties at the Warri refinery to give us the future benefit of doubling barging volumes and stabilising exports via that route at a gross rate of 30,000 bopd. Alongside this we are collaborating with and supporting government on completion of the Amukpe to Escravos pipeline that will offer a third export route to Seplat and help to significantly de-risk the distribution of our oil production to market.
He added that “These proactive management actions, combined with the consistently strong performance of our gas business and continued strict financial discipline to preserve a liquidity buffer, should lead to a much improved performance outlook over the remainder of 2017 and beyond, with a much greater level of in-built resilience to such external shocks”.
Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange (“LSE”) (LSE:SEPL) and Nigerian Stock Exchange (“NSE”) (NSE:SEPLAT).