Seplat posts $85.3m annual loss amid ‘lowest oil prices’

Seplat Petroleum Development Company Plc has reported a loss of $85.3 million for the 2020 financial year, compared to a profit of $277 million in 2019.

The Nigerian independent oil and gas company, in its audited results released on Monday, described 2020 as challenging as it saw the lowest oil prices in its 10-year history last year.

Its posted a loss before tax of $80.2 million last year, compared to a profit before tax of $292.9 million in 2019.

“The loss reflects lower oil prices realised and an impairment provision of $144.3 million booked in the period, which includes a nonfinancial asset charge of $114.4 million and financial asset charges of $29.9 million,” Seplat said.

The company’s revenue fell by 24 percent year-on-year to $530.5 million from $697.8 million.

Its Chief Executive Officer, Roger Brown, said, “2020 was a challenging year for the company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.

“From the $330 million of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet.”

He added, “Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.”