Stability
Performance
Growth
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The Seplat difference

01. Financial stability
  • 01. Financial stability
  • 02. Production capability
  • 03. Portfolio diversity

Financial strength and flexibility

We have continued to carefully manage our finances, making focused investments across the portfolio and optimising our capital structure to finance our ambitious future growth plans.

We continue to retain discretion over the majority of our capital expenditure to allow flexibility to scale our investments appropriately.

Alongside this, we have kept downward pressure on our cost base to enhance margins.

Strong operational track record

Seplat is underpinned by a high quality asset base and has invested to consistently grow oil production and capacity.

Our policy to establish multiple export routes for all assets will de-risk over reliance on any one third party system to ensure distribution of our production to market.

Looking ahead, we have a large inventory of production drilling opportunities in our current portfolio that we will highgrade and implement a work programme to exploit.

Portfolio diversity

We have prioritised the commercialisation and development of the substantial gas reserves and resources identified at our blocks, positioning Seplat today as a leading supplier of processed natural gas to the domestic market in Nigeria that will help increase Nigeria's power generation capacity and industrial output.

Our gas business is making an increasingly important financial contribution for Seplat with gas prices de-risked from the volatility of the oil price.

Highlights

Production within guidance, strong profitability, cash flow & balance sheet

49,867boepd
WI production within guidance
US$263m
FY 2018 profit before tax
US$156m
Gas revenues at record levels
US$5.77/ boe
Low unit production opex
US$502m
Strong cash flow from operations
145MMscfd
Net WI domestic market supply
US$88m
Capital investment
US$450m
Gross debt
US$585m
Cash position

Management statements

A focused and performing business

2018 contained some notable highlights for Seplat. Production was in line with guidance and the strong underlying profitability and cash flow performance allowed for reinstatement of the dividend.

A.B.C. Orjiako – Chairman
A.B.C. Orjiako, Chairman A.B.C. Orjiako, Chairman

Exploiting improved operating environment to deliver strong profitability growth

2018 was a solid year for Seplat, and a continued validation of our business model and strategy.

Austin Avuru – Chief Executive Officer
Austin Avuru, Chief Executive Officer Austin Avuru, Chief Executive Officer

Special feature

Local content development in the Nigerian oil and gas industry

A model for indigenisation

Local content development is critical for countries like Nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation from the rest of the economy, thereby allowing minimal participation from local citizens in its development.

Written by:
Adeola Adenikinju, PhD, FNAEE, FEI
Professor and Director Centre for Petroleum, Energy Economics and Law University of Ibadan Ibadan