Nigerian independent energy company Seplat Energy continues to deliver a robust performance despite the ongoing pandemic, with its second-quarter volumes being significantly higher than that of the first three months of the year.
CEO Roger Brown says the company remains “confident of a good outcome” for the full year as it continues to drive improvements across its operations.
For the six months ended June 30, Seplat achieved its guidance of working-interest oil and gas production of 50 786 barrels of oil produced daily (boepd), while liquids production was 30 028 boepd in the first half of the year.
Gas production was 21% higher year-on-year.
Revenue for the six months was up 32% to $308.8-million, with earnings before interest, taxes, depreciation and amortisation (Ebitda) at $178.9-million.
Net debt for the period was $456.4-million, though the company successfully completed the issue of $650-million, or 7.75%, of senior notes, to redeem the existing $350-million, or 9.25%, senior notes.
Seplat repaid $250-million drawn on the $350-million revolving credit facility, and refinanced $100-million at the Westport RBL facility.
For the full-year, the company expects to produce an average of between 48 000 and 55 000 boepd, taking into account the impact of quotas from the Organisation of the Petroleum Exporting Countries.
“We continue to hedge against oil price volatility and expect a higher proportion of revenues to come from long-term gas contracts at stable prices,” Brown says, adding that the company will have “significant cash resources and will continue to manage our finances prudently in 2021”.
Seplat also expects to invest more than $180-million of capital expenditure across the full year, with $57-million already invested.