Seplat Petroleum Development Company Plc has announced that it hopes to commence its first gas flowing to customers before the end of the first half of 2022, at a lower expected cost of up to $650 million.
The Chief Executive Officer of Seplat, Roger Brown, said that despite 2020 posing many challenges, Seplat showed resilience and was able to deliver production, while containing the spread of COVID-19.
According to the Company’s audited results for the Financial Year ended 31st December 2020, Seplat’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were $265.8 million, while its operating profit was $121 million (before non-cash impairments and unrealised fair value losses).
The Company’s revenue dropped by 24% to N190.9 billion in 2020, in comparison to N214.2 billion recorded in 2019. Gross profit fell by 68.5% to N44.8 billion in 2020, in comparison to N12.5 billion in 2019, while cash flow from operations declined to N118.6 billion.
He also noted that the Company continue to honour its commitment to shareholders, by maintaining a total dividend of $0.10 per share for the year despite seeing the lowest oil prices in their history.
Brown said: “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity and we believe this will provide the necessary base load for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fuelled by coal.
Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”