In its 2017 financial report recently made available to the press, Seplat Petroleum Development Company Plc declared N81.11 billion ($452 million) as its Profit After Tax (PAT) for last year.
This 79 percent increase in the company’s revenue (compared to last year’s $254 million PAT) is made possible by the 43 percent increase in Nigeria’s total oil production in 2017. Recall that Nigeria was producing 36,923 barrels of crude oil per day last year; a sharp increase from the 25,877 barrels per day produced in the preceding year.
Another factor responsible for the company’s high-profit turnover is the June 2017 lifting of force majeure at forcados terminal.
A breakdown of the profit
Seplat’s crude oil production revenue stood at $328 million; a 121 percent increase compared to the oil revenue generated in the preceding year. This, coupled with the $124 million realised from gas sales, put the company’s total revenue for 2017 at $452 million dollars (N81.11 billion).
Austin Avuru, the Chief Executive Officer of Seplat said he is pleased with the company’s performance in the 2017 fiscal year.
“I am pleased to report that Seplat made a return to full -year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast we were plagued throughout most of the first half by force majeure at the Forcados terminal,” Seplat CEO Austin Avuru said.
“However, following the lifting of force majeure on June 6 we rapidly restored full production operations and our subsequent operational and financial performance is a clear indicator of our strong fundamentals and what we can achieve when we have unhindered access to market.-Austin Avuru
Meanwhile, Seplat plans to commission its 160,000 barrels per day Amukpe to Escravo pipeline by the third quarter of 2018. The pipeline is expected to provide access to at least three export routes at their western assets and two of their eastern assets, thereby de-risking the distribution of their product to the market.
