Nigeria’s leading oil exploration company, Seplat Petroleum Development Company Plc, has disclosed its consolidated financial statements for the nine months ended September 30th, 2019. The company reported an increase in profit for the period despite a slight decline in its revenue. See the breakdown below.
Revenue: During the period under consideration, the company’s revenue from contracts with customers stood at N151.8 billion as against N173.7 billion during the comparable period last year, thereby marking a 12.5% reduction.
Meanwhile, there was an 11.9% reduction in the company’s cost of sales which stood at N70.7 billion, compared to N80.2 billion as at September last year. In the same vein, administrative expenses reduced slightly by 0.6% to N16.7 billion as against N16.8 in September last year.
Profit Before Taxation: The oil explorer’s profit before tax for the period was N56.7 billion, marking a 12.8% decrease when compared to N65 billion PBT reported by the company for the nine months period ended September 2018.
PAT: Seplat’s profit for the period is N56.6 billion as against N27.9 billion during the comparable period last year. Note that the company paid less tax during the first nine months of the year and this is responsible for its high profit after tax.
While reacting to the nine months financial performance, the company’s Chief Executive Officer, Austin Avuru, said the following:
“2019 so far has seen us make significant progress towards furthering our ambitious growth strategy. While our production and financial performance has dipped in Q3 as a result of slippage to our drilling programme and weaker pricing, the core business remains highly cash generative and with four rigs now operational in the field we expect to quickly regain momentum. This is reflected in our decision to declare an interim dividend of US$29 million.”