- Seplat to pay out total 2020 dividend of 10¢, the same as last year
- Profits hit by impairments and low oil price
Nigeria oil and gas producer Seplat Petroleum Development Company (SEPL) has recorded a $32m (£23m) operating loss because of the collapse in oil prices last year, but managed to hold onto its dividend and positive operating cash flow.
Seplat saw sales fall by almost a quarter last year, to $531m. This decline was far less than the 38 per cent decline in its realised oil price of $40 for 2020 because the company also produces a significant amount of gas, the price of which did not fall on the year before.
Excluding lease liabilities, net debt was down slightly compared to the end of 2019, at $440m, although Seplat repaid $100m of one loan. Refinancing “all or a portion” of the company’s debt remains a management focus, Seplat said.
Chief executive Roger Brown said the company had “continued to honour [its] commitment to shareholders of a regular income stream” despite the low oil prices by keeping the dividend at 10¢ for the year.
The next milestone for the company is finishing the 50-per-cent-owned ANOH gas plant in the next 12 months, for which it raised $260m in February.
Seplat's production mix and shift to more gas through ANOH is a positive, as is its commitment to the payout. Hold.
Last IC View: Hold, 57p, 31 Jul 2020
SEPLAT PETROLEUM DEVELOPMENT COMPANY (SEPL) | ||||
ORD PRICE: | 83p | MARKET VALUE: | £ 487m | |
TOUCH: | 82-83p | 12-MONTH HIGH: | 108p | LOW: 37p |
DIVIDEND YIELD: | 8.6% | PE RATIO: | NA | |
NET ASSET VALUE: | 277¢ | NET DEBT: | 27% |
Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
2016 | 254 | -173 | -29 | nil |
2017 | 452 | 44.0 | 47 | nil |
2018 | 746 | 263 | 26 | 15.0 |
2019 | 698 | 293 | 46 | 10.0 |
2020 | 530 | -80.2 | -13 | 10.0 |
% change | -24 | - | - | - |
Ex-div: | 03 May | |||
Payment: | 28 May | |||
£1=$1.40 |