Seplat Petroleum Development Company Plc has revealed plans to focus more on expanding its domestic natural gas business to improve its profitability.
ABC Orjiako, Chairman of Seplat, said this at the 2017 Annual General Meeting (AGM) of the company held in Lagos.
Orjiako further said that the company made good progress last year as it focused on key priority to de-risk future cash flows through diversification of oil export routes, invest in and scale up its domestic gas business.
He noted that one of the major challenges faced during the year was the repeated disruption to the Trans-Forcados export route, but assured that the company is now focused on providing multiple export routes. The company currently controls about 30 percent of the domestic gas market.
Orjiako also announced the completion of repairs and upgrade work on two of its jetties at the Warri refinery this he noted will enable it to sustain exports of 30,000 barrels per day (bpd) from 15,000 bpd.
In 2017, 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 realized from gas sales, put the company’s total revenue for 2017 at $452 million dollars (N81.11 billion).
The company also revealed plans to commission its 160,000 barrels per day Amukpe to Escravos 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.
Recall that Seplat recently refinanced its existing US$300 million revolving credit facility (RCF) due December 2018 with a new four year US$300 million RCF due June 2022; the proceeds will be used to repay and cancel existing indebtedness.
Seplat Petroleum Development Company Plc was incorporated on June 17, 2009, as a private limited liability company and re-registered as a public company on October 3, 2014.
The company is listed on both the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE). Its shares are currently trading at ₦740 on the floor of the NSE, with a 96.49% one-year return.