By Chinyere Joel-Nwokeoma
Seplat Petroleum Development Company Plc has declared a total dividend of 10 cents per share for its shareholders for the financial year ended Dec. 31, 2020.
The company disclosed this in its audited result released on the Nigerian Stock Exchange on Monday.
The company during the period posted a revenue of 530.5 million dollars (N190.9 billion) as against 697.8 million dollars (N214.2 billion) achieved in the preceding period of 2019, a decrease of 24 per cent.
Its gross profit stood at 124.6 million dollars (N44.8billion) from 395.7 million dollars (N121.5billion) in 2019, down 68.5 percent.
The company’s cash flow from operations was 329.4 million dollars (N118.6 billion) in 2020, down 3.6 percent from 341.6 million dollars (N104.7 billion) in 2019.
Seplat revalued downwards its oil and gas assets by 114.4 million to reflect the lower crude oil prices of 2020 and this reversed the operating profit of 82.7 million to a loss for the year of 85.3 million dollars.
It explained that when crude oil prices improve, these same oil and gas assets would be revalued upwards.
Commenting on the performance, Seplat Chief Executive Officer, Mr Roger Brown, described 2020 as a challenging year.
“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 dollars of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down 100 million dollars of debt, further deleveraging the balance sheet.
“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 10 dollars per share for the year,” Brown said.
He noted that the company would continue to provide value for its shareholders and stakeholders.
“We remain committed to providing shared value for all of our stakeholders. During the year, with our government partners, we provided medical beds and other palliatives to our communities and have started construction on a 200-bed infectious diseases hospital.
“Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development,” he said. (NAN)