By Barnabas Esiet.
Seplat Petroleum Development Company Plc. (Seplat), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), says despite lower revenues, its cash reserves has risen to $343m for the six months ended 30 June 2020.
In an unaudited report recently submitted to the NSE, the Company said it would acquire two gas wells and related infrastructure from the US$120m budgeted full-year Capital Expenditure of which US$86m has already been invested.
According to the report, Seplat’s revenue for the period under review stood at $234m despite lower oil prices and demand.
The Chief Executive Officer of Seplat, Austin Avuru, who would be retiring soon after ten years at the helm of affairs, attributes the resilient performance of the company to its financial strength and efficient management.
CEO Seplat, Austin Avuru.
“Our continued resilience is possible as a result of our financial strength, our careful management of risk and our prudent approach to capital allocation, unlike many in our industry, we were able to protect our 2019 dividend and increase our capital investment to ensure continued growth.” He noted.
“The cash position is also robust because our careful management of debt has ensured that the majority of obligations mature in 2022 and 2023. We are operating within our covenants on all our lines of debt.” The Seplat CEO said.
He thanked the staff for working to make Seplat a major force in Nigerian energy production. “I hand a robust and successful company over to Roger Brown, the incoming CEO, in the confidence that he and everyone at Seplat will make its second decade even more successful than its first.”