Seplat Petroleum Development (SEPL) says it has set itself up for a brighter future during the first half of 2019, but alongside the final investment decision for the ANOH gas and condensate plant, production has struggled.
Seplat said average working interest production for the six months to 30 June was 48,004 barrels of oil equivalent per day (boepd), a 6 per cent fall year on year. This is split roughly half-and-half between oil and gas production. Full-year guidance remains at 49,000-55,000boepd, with the company calling production “H2 weighted”. Safety upgrades on a rig and higher maintenance levels than expected hit first-half numbers, Seplat said.
Oil revenue for the period was down 16 per cent to $216m, and gas revenue would have fallen the same but for a $67m tolling payment from the government, covering part of the government’s share of funding for an already completed expansion project. The operating profit was down 12 per cent year on year. Capital expenditure for the full year is forecast at $150m, largely coming in the second half. This is down on the initial $200m guidance.
Chief executive Austin Avuru said Seplat was on an “extremely solid financial footing” and was targeting ways to grow shareholder returns. The company announces its interim dividend on the release of its September quarter results.
Bloomberg consensus is for full-year Ebitda of $408m, a 5.7 per cent year-on-year drop, but forecasts a recovery to $462m in 2020.
| SEPLAT PETROLEUM (SEPL) | ||||
| ORD PRICE: | 118p | MARKET VALUE: | £691m | |
| TOUCH: | 115-118p | 12-MONTH HIGH: | 160p | LOW: 110p |
| DIVIDEND YIELD: | na | PE RATIO: | 4 | |
| NET ASSET VALUE: | 289¢ | NET CASH: | $83m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢)* |
| 2018 | 343 | 121 | 9.0 | 5.0 |
| 2019 | 355 | 120 | 21 | na |
| % change | +4 | -1 | +133 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.22 *Half-year dividend announced later in the year | ||||
