The output of Seplat Petroleum Development Company Plc has dropped from about 52,130 barrel per day, bpd to to 34,179 bpd.
The company indicated that the average total working interest production for the first three months of 2016 stood at 34,179 bpd, down 5per cent year-on-year and reflective of the shut-in and suspension of oil exports at the Forcados terminal from mid-February onwards as a result of damage to pipeline infrastructure at the loading arm.
It maintained that prior to this; the company’s working interest production was averaging around 52,130 boepd.
The noted that repairs are currently on-going to expedite the resumption of exports from the terminal.
It stated that the company would continue to produce and sell gas into the domestic market meaning it is better positioned to withstand such interruptions than in prior years.
It disclosed that gas production in the first quarter was 100.7 MMscfd, up 113per cent year-on-year.
The company stated that total revenue in the period was US$83 million. Within this, crude revenue after lifting adjustments was US$56 million, 53per cent lower than the same period in 2015.
It observed that gas revenue increased by 145% year-on-year to US$27 million as the step-change in gas production arising from the Oben gas plant expansion, and higher pricing, continue to take effect.
The company said gross profit stood at US$30 million and net loss after tax US$19 million, reflecting the lower realised oil price and shut-in of the Forcados terminal.
It noted that capital investments incurred during the first three months totaled US$9 million against cash generated from operations of US$64 million.
The company said that cash at bank was US$298 million and net debt US$540 million at period end.
It disclosed that the outstanding NPDC net receivable as at 31 March was US$353 million, down from US$435 million at end 2015.
“Our first quarter results reflect the impact of the shut-in and suspension of oil exports at the Forcados terminal from mid-February onwards,” said Austin Avuru, Seplat’s Chief Executive Officer.
“However, we are in the final stages of establishing a temporary export solution via the Warri refinery jetty with our off-taker Mercuria to resume oil production, albeit at reduced levels, which will enable us to de-constrain gas sales into the domestic market back to normalised levels. Longer term it remains an absolute priority of ours to secure reliable alternative export options and achieve greater diversification through development of the wider portfolio. Despite these challenging circumstances I am pleased to report that we continued to supply an average gross rate of 224 MMscfd sales gas into the domestic market and that the business remains on a sound financial footing with strong fundamentals that together provide resilience to such setbacks” he added.
-Â Favour Sunday