Seplat Petroleum Development Company Plc, has announced a cash increased to $343 million despite lower revenues for the six months ended 30 June 2020. Revenue for the period stood at $234 million amid lower oil prices and demand.
Commenting on the results, which were released to the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE) on Wednesday, the Chief Executive Officer, Seplat, Mr. Austin Avuru, said: “Seplat has delivered a robust performance despite the unprecedented crises we have experienced since March. 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.”
According to Avuru, Seplat’s oil hedging strategy and gas revenues, have continued to protect the business from price volatility, with the company achieving substantial cost reductions from its suppliers while managing own costs even more carefully in this challenging period.
“Thanks to the excellent relationships we have with our Government partners and supply chain, our Nigerian Petroleum Development Company (NPDC) receivables have fallen and we are managing our payments equitably. 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.