Information  X 
Enter a valid email address

SEPLAT PetDevCom Plc (SEPL)

  Print      Mail a friend

Thursday 30 October, 2014

SEPLAT PetDevCom Plc

Interim Management Statement & Q3 2014 Results

RNS Number : 6612V
SEPLAT Petroleum Development Co PLC
30 October 2014
 



 

                                                                                                        

 

 

Seplat Petroleum Development Company Plc

 

 

INTERIM MANAGEMENT STATEMENT AND CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE THIRD QUARTER  ENDED 30 SEPTEMBER 2014

 

Lagos and London, 30 October 2014:  Seplat Petroleum Development Company Plc ("Seplat" or the "Company"), a leading Nigerian indigenous oil and gas company, listed on both the Nigerian Stock Exchange and London Stock Exchange, today announces average working interest production for the first nine months of 29,014 boepd, up 8% from the same period last year, and maintains average working interest guidance of 29,000 to 33,000 boepd for the full year.

After lifting adjustments, crude revenue was US$576 million, 8% lower than in 2013 while gas revenue increased by 24% year-on-year to US$17 million.  Net profit stood at US$228 million following one-off costs of US$54 million as reported in H1 2014.  Absent these charges, net profit would have totaled US$282 million.  The board of Seplat has agreed an interim dividend of US$0.06 per share. The Company has maintained a strong financial position with cash at bank of US$435 million at period end.  

"We have continued to move the business forward in the third quarter.  Production performance is strong and we are well capitalised to take advantage of the current and new growth opportunities available to us," said Austin Avuru, Seplat's Chief Executive Officer.  "However, like all producers, we are closely monitoring the oil price environment and have challenged ourselves to respond by redoubling efforts to improve efficiency and maximise profitability," he added.  Information contained within this release is un-audited and is subject to further review.

Production update

·      On track to deliver full year working interest production guidance of 29,000 - 33,000 boepd and target 2014 exit rate of 72,500 bopd

·      Nine month working interest production of 29,014 boepd (compared to 26,989 boepd in 2013)

Average working interest production during the third quarter 32,237 boepd (comprising 25,128 bopd liquids and  42.7 mmscfd gas)

·      Reported production figures reflect 59 days of downtime on the Trans Forcados System (TFS) in the first nine months, of which 14 were in Q3.  Excluding un-budgeted downtime of 33 days, average working interest production in the first nine months was 32,336 boepd (comprising 25,183 bopd liquids and 42.9 mmscfd gas)

 

·      Deliveries to the Warri refinery via the new alternative export route, which mitigates sole reliance by the Company on exports via the TFS, increased in the third quarter - gross deliveries in the first nine months stand at 288,661 bbls

 

·      Daily gross liquids production from OMLs 4, 38 and 41 exceeded 70,000 bopd for the first time on 2nd October

 

·      During the first nine months, approximately 98% of liquids production from OMLs 4, 38 and 41 was transported through the TFS.  This volume was subject to 10.14% reconciliation losses

 

·     Average oil price realisation of US$109.9/bbl (2013: US$110/bbl), against an average price for Brent in the period of US$110.3/bbl (2013: US$113.86/bbl), and an average gas price of US$1.55/mscf (2013: US$1.43/mscf

Working interest production for the first nine months of 2014(1)


Gross


Working Interest


Liquids

Gas

Oil equivalent


Liquids

Gas

Oil equivalent


Seplat %

bopd

mmcfd

boepd


bopd

mmscfd

boepd










45%

49,249

83.9

63,232


22,162

37.8

28,457

OPL 283

40%

1,392

-

1,392


557

-

557

Total


50,640

83.9

63,624


22,719

37.8

29,014

(1) Liquid production volumes as measured at the LACT unit for OMLs 4, 38 and 41 and OPL 283 flow station.  Volumes stated are subject to reconciliation and will differ from sales volumes within the period.



 

Drilling and capital projects update

·      High levels of rig based activity continued in Q3 when the Company completed three oil production wells at Oben, one gas work-over well at Oben and one gas work-over well at Sapele

·      First oil delivered from the Ovhor - Amukpe gaslift compressor on 11th October - commissioning work to enable continuous gaslift is ongoing

·      The new 150 mmscfd capacity Oben gas processing plant has arrived in country and site preparation works at the field have been completed

·      Modification work is ongoing at the liquid treatment facility to address issues with the composition of separated water to enable full continuous injection

·      Construction and installation of two 50,000 bbl storage tanks at the Amukpe field progressing - first tank is nearing completion

New ventures

·      Actively pursuing a number of new venture opportunities that offer near term production, cash flow and reserve replacement potential - committed to maintaining price discipline with a focus on onshore and shallow water offshore areas  

Finance update

·      Gross revenue for the first nine months was US$592.5 million (N92.0 billion) (2013: US$642.9 million (N99.9 billion))

Crude revenue (after adjusting for changes in lifting) was US$575.6 million (N89.6 billion), an 8% decrease from the same period in 2013 (US$629.6 million (N97.8 billion)) mainly due to increased downtime in 2014

Gas revenue was US$16.5 million (N2.6 billion), a 24% increase from the same period in 2013 mainly due to increased production from well work-overs, upgrade works on the Oben gas plant and higher offtake from the Sapele gas plant

·      Working interest sales volumes during the first nine months increased marginally to 7.1 mmboe from 7.0 mmboe in 2013.  The total volume of crude lifted in the first nine months was 5.3 MMbbls compared to 5.8 MMbbls in 2013.  The 2013 liftings includes 0.74 mmbbls of returned MoU volumes from Shell in relation to settlement of a prior underlift position.  Total gas volume sold was 10,223,406 scf (2013: 6,775,152 scf).

·      Nine month profit after tax was US$227.9 million (N35.4 billion) (2013: US$442.2 million (N68.7 billion))

Decrease year-on-year due to deferred tax liabilities of US$92.7 million (N14.4 billion) released in Q3 2013 as a result of pioneer status being granted to the Group, lower crude revenue in 2014 as explained above and US$54 million (N8.4 billion) of one-off general and administration costs in relation to financing, regulatory, procurement and staff costs in 2014

On a normalised basis (for costs only) nine month profit after tax was US$282 million (N43.8 billion) (2013: US$349 million (N54.2 billion))

·      Strong financial position - cash at bank US$435 million with a further US$453 million placed as a refundable deposit against potential investment; debt repayment of US$39 million in Q3 reduced gross debt to US$590 million

·      Re-financing and up-sizing of existing debt facilities in progress - engaged with several local and international financial institutions

·      Capital investments of US$123 million in the first nine months funded by net operating cash flow before working capital of US$283 million; maintain full year capex expectation of around US$250 million

·      The outstanding NPDC receivable at 30 September was US$418 million (N64.9 billion), consisting of both current year performances and outstanding payments brought forward from prior period performances

US$232 million (N36 billion) approved as cash calls for 2014

US$186 million (N28.9 billion) still undergoing various approval levels within NPDC

US$30 million (N5 billion) from approved performance in prior years has been bought forward and US$347 million (N54 billion) has been added to performance in 2014

Total of US$240 million (N37billion) collected by the Company as cash calls from NPDC during the first nine months

US$28 million (N4.3 billion) has been received post period end.  Plans are being implemented to ensure timely recovery of remaining outstanding balances

 

Payment of interim dividend

·      The board of Seplat has agreed an interim dividend of US$0.06 per share. The dividend will be paid on or shortly after 24 November 2014 to shareholders on the register at the close of business on 6 November 2014. All shareholders will be paid their dividends in US Dollars.  The Nigerian shareholder register will be temporarily closed on 7th November 2014 to enable the Company's registrar, DataMax Registrars Limited ("DataMax"), to prepare for the payment of the interim dividend.

·      Seplat shareholders who are yet to provide their account details for the direct credit of the interim dividend payment should provide necessary information to DataMax.  Holders of Depositary Interests on the London Stock Exchange should contact the Company's UK depositary, Computershare.

DataMax Registrars Limited

Computershare

2c Gbagada Expressway

The Pavillions

Gbagada Phase 1

Bridgewater Road

Lagos

Bristol

Fax: + 234 - 2716095

BS13 8AE

Web: www.datamaxregistrars.com

Web: www.computershare.com

Email address: [email protected]


 

 

Conference call:

 

At 8:30 am (UK time), 9:30 am (Lagos Time) on 30 October, Austin Avuru (CEO) and Roger Brown (CFO) will host a conference call to discuss the Company's results. Access details are:

 

Telephone Number: +44 (0) 1452 569393

 

Conference ID (to be quoted):  SEPLAT PETROLEUM

 

 

Enquiries:

Seplat Petroleum Development Company Plc

Roger Brown, CFO

Andrew Dymond, Head of Investor Relations

Chioma Nwachuku, GM - External Affairs and Communications

 

 

 

 

+44 203 725 6500

 

+234 12 770 400

FTI Consulting

Ben Brewerton / Sara Powell / George Parker

[email protected]

 

+44 203 727 1000

Citigroup Global Markets Limited

Tom Reid / Luke Spells

 

+44 207 986 4000

RBC Europe Limited

Matthew Coakes / Jakub Brogowski

+44 207 653 4000

 

Notes to editors

Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange ("LSE") (LSE:SEPL) and Nigerian Stock Exchange ("NSE") (NSE:SEPLAT).

In July 2010, SEPLAT acquired a 45 percent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil and gas leases in the Niger Delta (OMLs 4, 38 and 41), which includes the producing Oben, Ovhor, Sapele, Okporhuru, Amukpe and Orogho fields.  Since acquisition, Seplat has more than tripled production from these OMLs. 

In June 2013, Newton Energy Limited, a wholly-owned subsidiary of the Company, entered into an agreement with Pillar Oil Limited to acquire a 40 per cent participating interest in the Umuseti/Igbuku marginal field area within OPL 283. 

Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds.

For further information please refer to the company website, http://seplatpetroleum.com/



 

 

DIRECTORS' INTEREST IN SHARES

The interests of the Directors (and of persons connected with them) in the share capital of the Company (all of which are beneficial unless otherwise stated) as at 30 September 2014, are as follows:

 

Name

No. of
Ordinary
Shares

As a
percentage of
total Ordinary
Shares in issue

A.B.C. Orjiako(1)

84,736,913

15.32

Ojunekwu Augustine Avuru(2)         

73,297,011

13.25

William Stuart Connal(4)     

1

-

Roger Thompson Brown(4)

1

-

Michel Hochard  

-

-

Macaulay Agbada Ofurhie(3)            

4,806,373

0.87

Michael Richard Alexander               

-

-

Charles Okeahalam(4)          

400,000

-

Basil Omiyi(4)        

400,000

-

Lord Mark Malloch‑Brown

-

-

Ifueko M. Omoigui‑Okauru               

-

-

Damian Dodo       

-

-

 

Notes:

1.         72,036,912 Ordinary Shares are held by Shebah Petroleum Development Company Limited, which is an entity controlled by A.B.C. Orjiako and members of his family, and 12,700,001 Ordinary Shares are held directly by Mr. Orjiako's siblings. In addition, 13,506,800 Ordinary Shares, representing approximately 2.44 percent of the Ordinary Shares (as at the Latest Practicable Date), are held by Vazon Investments Limited (7,366,800 Ordinary Shares) and Hautguard Limited (6,140,000 Ordinary Shares). Both Vazon Investments Limited and Hautguard Limited are controlled by individuals who are also shareholders in Shebah Exploration and Production Company Limited, an entity controlled by A.B.C. Orjiako.

2.         27,217,010 Ordinary Shares are held by Professional Support Limited and 1,920,000 Ordinary Shares are held by Abtrust Integrated Services Limited, each of which is an entity controlled by Austin Avuru. 44,160,000 Ordinary Shares are held by Platform Petroleum Limited, an entity in which Austin Avuru holds 23.28 percent of the issued share capital.

3.         Macaulay Agbada Ofurhie also owns 7.28 percent of Platform Petroleum Limited, an entity which holds 44,160,000 Ordinary Shares (approximately 7.98 percent).

4.         Denotes a shareholding of less than 0.10 per cent.

 

SUBSTANTIAL INTEREST IN SHARES

 

The issued and fully paid share capital of the Company as at 30 September 2014 is beneficially owned as follows:

 

Name

No. of Ordinary
Shares

As a percentage
of total Ordinary
Shares in issue

A.B.C. Orjiako(1)  

84,736,913

15.32

Austin Avuru and Platform Petroleum Limited(2)           

73,297,011

13.25

MPI S.A.               

120,400,000

21.76

Citibank Custodian

68,907,884

12.45

Mercuria Capital Partners Limited    

24,000,000

4.34

Quantum Power International Holdings Limited            

19,600,000

3.54

Quantum Capital Partners Fund I LP

19,996,000

3.61

The Blakeney Group           

16,000,000

2.89

Others

126,372,505

22.84


553,310,313

100.00

Notes:

(1)       72,036,912 Ordinary Shares are held by Shebah Petroleum Development Company Limited, which is an entity controlled by A.B.C. Orjiako and members of his family, and 12,700,000 Ordinary Shares are held directly by Mr. Orjiako's siblings. In addition, 13,506,800 Ordinary Shares, representing approximately 2.44 percent of the Ordinary Shares (as at the Latest Practicable Date), are held by Vazon Investments Limited (7,366,800 Ordinary Shares) and Hautguard Limited (6,140,000 Ordinary Shares). Both Vazon Investments Limited and Hautguard Limited are controlled by individuals who are also shareholders in Shebah Exploration and Production Company Limited, an entity controlled by A.B.C. Orjiako.

 

(2)       27,217,010 Ordinary Shares are held by Professional Support Limited and 1,920,000 Ordinary Shares are held by Abtrust Integrated Services Limited, each of which is an entity controlled by Austin Avuru. 44,160,000 Ordinary Shares, are held by Platform Petroleum Limited, which is an entity in which Austin Avuru holds 23.28 per cent. of the issued share capital.

 

The directors confirm that to the best of their knowledge:

 

a)         The condensed set of financial statements have been prepared in accordance with lAS 34 'Interim Financial Report';

b)         The interim management  report  includes  a fair review  of  the information required  by UK DTR 4.2.7R indication  of  important  events during the first  nine  months and  description  of  principal risks and uncertainties for the remaining three months of the year and 

c)         The interim management report includes a fair review of the information required by UK DTR 4.2.8R disclosure of related parties' transactions and changes therein.

 

 

By order of the Board,        

 

A.B.C Orjiako

A.O.  Avuru

R.T. Brown

FRC/2013/IODN/00000003161

FRC/2013/IODN/00000003100

FRC/2014/IODN/00000007983

Chairman

Group Managing Director/ Chief Executive Officer

Group Chief Financial Controller

29 October 2014

29 October 2014

29 October 2014

 

Disclaimer 

Certain statements included in these results contain forward-looking information concerning Seplat's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which Seplat operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within Seplat's control or can be predicted by Seplat. Although Seplat believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. Actual results and market conditions could differ materially from those set out in the forward-looking statements. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in Seplat or any other entity, and must not be relied upon in any way in connection with any investment decision. Seplat undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.



 

INDEPENDENT AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION TO THE MEMBERS OF SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

 

We have reviewed the accompanying consolidated interim financial statements of Seplat Petroleum Development Company Plc and its subsidiaries (the Group), which comprise the consolidated statements of financial position as at 30 September 2014 and profit or loss and other comprehensive income, changes in equity and cash flows for the third quarter then ended, and notes to the consolidated interim financial statements as set out on pages 14 to 26. The company's directors are responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with IAS 34, "Interim Financial Reporting" and in the manner required by the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004 and the Financial Reporting Council of Nigeria (FRCN) Act, No. 6, 2011. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

 

Scope of Review

 

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements do not present fairly, in all material respects, the financial position of the Group as at 30 September 2014, and of the financial performance and its cash flows for the third quarter  then ended in accordance with IAS 34, "Interim Financial Reporting" and in the manner required by the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004 and the Financial Reporting Council of Nigeria Act, No. 6, 2011.

 

 

Yemi Odutola, FCA, FRC/2012/ICAN/00000000141

For: Ernst & Young

Lagos, Nigeria

 

29 October 2014



 

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THIRD QUARTER ENDED 30 SEPTEMBER 2014

 


Note

9 months

ended 30 Sept 2014

9 months

ended 30

Sept 2013

12 months  ended 31

Dec 2013

9 months

ended 30

Sept 2014

9 months

ended 30

Sept 2013

12 months

ended 31

Dec 2013



        $000

$000

$000

Nmillion

Nmillion

Nmillion

Revenue

3

  592,468

 642,938

880,227

 92,007

 99,854

137,060

Cost of sales

4

 (240,646)

(236,312)

(330,943)

(37,364)

(36,701)

(51,531)



-----------

----------

-----------

----------

 ---------

-----------

Gross profit


  351,864

 406,626

549,284

 54,643

 63,153

 85,529

General and administrative expenses

5

(112,237)

 (44,284)

(71,977)

(17,430)

  (6,878)

(11,208)

Other operating income


          43

       320

      404

-

50

63

Gain/(loss) on foreign exchange


   14,819

     (166)

   1,473

   2,301

      (26)

 229

Fair value movement in contingent consideration


  -

           -

    (514)

 -

-

 (80)

Operating profit


 254,447

362,496

478,670

39,514

56,299

74,533

Finance income


     7,085

    1,222

       658

  1,100

     190

     102

Finance charges

6

 (33,593)

(14,220)

 (21,805)

 (5,217)

 (2,208)

 (3,395)

Profit before taxation


 227,939

349,498

457,523

35,398

54,281

71,240

Taxation

11

    -

   92,745

92,745

-

14,399

14,441



-----------

-----------

----------

-----------

----------

---------

Profit after taxation


227,939

 442,242

550,268

35,398

68,680

85,681









Other comprehensive income

Foreign translation reserve


 

           -

 

-

 

   58

 

(2,065)

 

(2,050)

 

(1,955)









Total comprehensive income for the period / year


227,939

 442,242

550,326

33,333

66,630

83,726



 =====

  =====

======

======

=====

=====

Earnings per share ($/N)

7

    $0.46

   $1.11

    $1.37

N64.15

N171.70

N214.20



     ===

      ===

     ===

   ===

 ====

   ===



 

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014









Assets

Note

As at 30 Sept

As at 30 Sept

As at 31 Dec 

As at 30 Sept

As at 30 Sept

As at 31 Dec



2014

2013

2013

2014

2013

2013



$000

$000

$000

Nmillion

Nmillion

Nmillion

Non-current assets








Oil and gas properties


753,581

525,244

577,954

114,766

79,301

87,442

Other property, plant and equipment


  11,735

7,166

7,553

1,787

1,082

1,176

Intangible assets


71

163

141

11

25

22

Deferred tax assets

11

-

-

-

-

-

-

Prepayments


118,119

36,744

108,910

18,338

5,705

16,958



------------

---------

---------

--------

--------

-----------

Total non-current assets


883,506

569,317

694,558

134,902

86,113

105,598



------------

---------

---------

--------

--------

-----------

Current assets








Inventories


55,839

31,762

43,112

8,669

4,931

6,713

Trade and other receivables


533,509

403,322

410,430

82,827

62,620

63,908

Deposit for Investments


453,190

-

-

70,358

-

-

Other Current financial assets

12

-

-

-

-

-

-

Cash and cash at banks


434,785

105,484

169,461

67,500

14,825

26,387



------------

---------

---------

--------

--------

-----------

Total current assets


1,477,324

540,568

623,003

229,355

82,376

97,008



------------

---------

---------

--------

--------

-----------

Total assets


2,360,829

1,109,885

1,317,561

364,256

168,489

202,606



=======

======

=======

======

=====

======

Equity and liabilities








Equity attributable to shareholders








Share capital

13a

1,798

690

1,334

  277

   107

205

Capital contribution

13b

  40,000

40,000

40,000

    6,218

6,218

6,218

Share premium

13c

497,456

-

-

  77,253

-

-

Retained earnings


878,747

583,424

690,807

136,209

90,346

106,993

Foreign translation reserve


         58

-

58

  (2,065)

(2,050)

(1,955)



------------

---------

---------

--------

--------

-----------

Total equity


1,418,059

624,114

732,199

217,891

94,621

111,461



------------

---------

---------

--------

--------

-----------

Non-current liabilities








Interest bearing loans & borrowings


291,642

159,002

120,850

45,277

23,447

18,818









Deferred tax liabilities

11

-

-

-

-

-

-

Contingent consideration


9,080

7,984

8,245

1,410

1,240

1,284

Provision for decommissioning


16,634

14,989

15,176

2,582

2,328

2,363



------------

---------

---------

--------

--------

-----------

Total non-current liabilities


317,356

181,975

144,271

49,269

27,015

22,465



------------

---------

---------

--------

--------

-----------

Current liabilities








Trade and other payables


327,981

203,931

251,338

50,919

31,662

39,135

Short term borrowings


297,434

  99,865

189,753

46,177

15,192

29,546

Other Current financial liabilities

12

-

  -

-

-

-

-

Current taxation


-

  -

-

-

-

-



------------

---------

---------

--------

--------

-----------

Total current liabilities


625,415

303,796

441,091

97,096

46,854

68,681



------------

---------

---------

--------

--------

-----------

Total liabilities


942,771

485,771

585,362

146,365

73,869

91,146



------------

------------

------------

----------

---------

----------

Total equity and liabilities


2,360,829

1,109,885

1,317,561

364,256

168,490

202,607



========

========

========

======

======

======

 

 

A.B.C Orjiako

A.O.  Avuru

R.T. Brown 

FRC/2013/IODN/00000003161

FRC/2013/IODN/00000003100

FRC/2014/IODN/00000007983

Chairman

Group Managing Director/CEO

Group Chief Financial Officer

29 October 2014

29 October 2014

29 October 2014



SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THIRD QUARTER ENDED 30 SEPTEMBER 2014

 


Share

 

Share

Capital

Foreign Translation

Retained

Total


Capital

Premium

Contribution

Reserve

Earnings

Equity


$000

$000

$000

$000

$000

$000








At 1 January 2013

690

-

40,000

-

141,183

181,873

Bonus issues

644




(644)

-

Profit for the period

-


-


550,268

550,268

Other comprehensive income

-


-

58


58


---------

----------

-----------

-------

-----------

-----------

At 31 December 2013

1,334

-

40,000

58

690,807

732,199


=====

=====

=====

====

=======

======

At 1 January 2014

1,334

497,456

40,000

58

690,807

732,199

Additional issued share (Note 12)

464




-

497,920

Dividend (Note 10)





(40,000)

(40,000)

Profit for the period





228,578

228,578


------------

------------

-----------

------

------------

--------------

At 30 September 2014

1,798

497,456

40,000

58

879,385

1,418,697


======

=======

======

===

=======

========


Nmillion

Nmillion

Nmillion

Nmillion

Nmillion

Nmillion








At 1 January 2013

105

-

6,218


21,412

27,735

Bonus issues

100




(100)

-

 Profit for the period

-


-


85, 681

85, 681

Other comprehensive income

-


-

(1,955)


(1,955)


---------

----------

--------

-------

-----------

-----------

At 31 December 2013

205

-

6,218

(1,955)

106,993

111,461


=====

=====

=====

====

======

======

At 1 January 2014

205

-

6,218

(1,955)

106,993

111,461

Additional issued share (Note 12)

72

77,252

-


-

77,325

Dividend (Note 10)

-


-


(6,213)

(6,213)

Total comprehensive income/ Profit for the period

-


-


35,497

35,497

Other comprehensive income


-


(110)

31

    (79)


---------

----------

-----------

-------

-----------

-----------

At 30 September 2014

277

77,252

6,218

(2,065)

136,308

217,991


=====

=====

=====

====

=======

======

 



 

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

CONSOLIDATED STATEMENT OF CASH FLOW FOR THIRD QUARTER  ENDED 30 SEPTEMBER 2014

 


9 Months

to

30 Sept

9 Months

to

30 Sept

12 months

to

Dec

9 Months

to

30 Sept

9 Months

to

30 Sept

12 months

to

Dec


2014

2013

2013

2014

2013

2013


$000

$000

$000

Nmillion

Nmillion

Nmillion

Cash Flows from Operations Activities







Cash generated from operations

179,649

319,054

397,793

27,890

  47,982

  61,942

Income taxes Paid

(3,153)

(97,960)

(106,584)

(490)

(15,208)

(16,596)


-----------

----------

-----------

---------

----------

----------

Net cash inflows from operating activities

176,496

221,094

291,209

27,400

  32,774

  45,346


-----------

----------

-----------

---------

----------

----------

Cash Flow from Investing Activities







Investment in Oil and gas properties

(116,403)

(108,561)

(216,200)

(18,072)

(16,854)

(33,665)

Investment in other property, plant and equipment

(6,700)

(1,733)

(4,503)

(1,040)

(269)

(701)

Proceeds from sale of asset

-

   -

85

-

-

13

Deposit for Investment

(453,190)

(60,000)

-

(70,358)

(9,315)

-

Interest received

 6,887

   1,221

658

1,069

    189

102


-----------

-----------

-----------

-

----------

----------

Net cash outflows from investing activities

(569,406)

(169,073)

(219,960)

(88,400)

(26,249)

(34,251)


-----------

-----------

-----------

----------

----------

----------

Cash Flows from Financing Activities







Proceeds from issue of shares

497,921

-

-

77,302

-

-

Issue costs

(45,806)

-

-

(7,111)

-

-

Proceeds from bank financing

446,000

60,000

129,000

69,242

9,315

20,087

Repayments of shareholder financing

(48,000)

-

-

(7,452)

-

-

Repayments of bank financing

(119,034)

(49,918)

(68,096)

(18,480)

(7,750)

(10,603)

Dividends paid

(40,000)

-

-

(6,213)

-

-

Interest paid

(32,847)

(12,951)

(18,776)

(5,100)

(2,011)

(2,924)


-----------

---------

-----------

---------

----------

----------

Net cash inflows/(outflows) from financing activities

658,234

(2,869)

42,128

102,188

 (446)

6,560


-----------

---------

-----------

---------

----------

----------

Net increase in cash and cash equivalents

265,324

49,152

113,377

41,188

  6,079

17,655

Cash and cash equivalents at beginning of period / year

169,461

56,332

56,332

26,387

  8,746

8,771

Net foreign exchange difference

-

-

(248)

(75)

     -

(39)


======

=====

=====

=====

=====

====

Cash and cash equivalents at end of period / year

434,785

105,484

169,461

67,500

14,825

26,387


======

=====

=====

=====

=====

====



 

 

1.     CORPORATE STRUCTURE AND BUSINESS

Seplat Petroleum Development Company Plc ("the Company''), the parent of the Group was incorporated on 17 June 2009 as a private limited liability company, under the Company and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria 2004, and commenced operations on 1 August 2010. The Company was re-registered as a public limited company on 3rd October, 2013. The company successfully listed on both the London and Nigeria Stock Exchanges on 14 April 2014. The Company is principally engaged in oil and gas exploration and production.

 

GROUP STRUCTURE AND COMPOSITION

During 2013, the Company incorporated four new subsidiaries, Seplat Petroleum Development Company UK Limited, which was incorporated on 21 August 2013, Seplat East Onshore Limited, which was incorporated in 12 December 2013, Seplat East Swamp Company Limited, which was incorporated on 12 December 2013 and Seplat Gas Company Limited, which was incorporated on 12 December 2013, these entities are wholly owned subsidiaries of Seplat.   On 1 June 2013, Newton Energy Limited a wholly owned subsidiary of Seplat, incorporated on 8th November, 2010 acquired from Pillar Oil Limited ("Pillar Oil") a 40% per cent participant interest in producing assets: the Umuseti and Igbuku marginal field area located in OPL 283. The total purchase price for these assets was $50 million paid at the completion of the acquisition in June 2013 and a contingent payment of $10 million payable upon reaching certain production milestones.

 

$57.7 million was allocated to the producing assets including $7.7 million as the fair value of the contingent consideration as calculated on acquisition date. 

 

The Company together with its subsidiaries, Newton Energy Limited, Seplat Petroleum Development Company UK Limited, Seplat East Onshore Limited, Seplat East Swamp Company Limited and Seplat Gas Company Limited and are referred to as the Group.

 

Except for Newton Energy Limited and Seplat Petroleum Development Company UK Limited, the other three entities had not started operation as at 30 September 2014.

 

2.     ACCOUNTING POLICIES

                               

2.1      Basis of preparation

 

These consolidated financial statements for the period ended 30 September 2014 are prepared in accordance with the International Financial Reporting Standard ("IFRS") as issued by the International Accounting Standards Board (IASB).

 

The consolidated financial statements have been prepared on a historical cost basis, except for contingent consideration that has been measured at fair value. The accounting policies have not been included, but the accounting policies and methods of computation are consistent with the most recent set of audited financials presented for the year ended 31 December 2013.



 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

The quarterly condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's audited financial statements for the year ended 31 December 2013.

 

The consolidated financial statements are presented in US dollar ($) and Nigerian Naira (N) rounded to the nearest  $000 and Nmillion, except when otherwise indicated.

 

2.2      Basis of consolidation

 

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 September 2014.

 

This basis is the same adopted for the last audited financials statement as at 31 December 2013.

 

2.3.   Functional and presentation currency

           

The US Dollar is the functional currency of the Group. Transactions denominated in currencies other than the US Dollar are deemed to be foreign currencies and recorded at the rates of exchange ruling at the dates of those transactions. The resulting exchange gains or losses are included as foreign translation losses/gains in the statement of profit or loss. The Group uses the direct method of consolidation and has elected to recycle the gain or loss that arises from this method. 

 

For statutory reporting purposes, the Naira components of the quarterly consolidated financial statements are derived from the US dollar financial statements translation in which all monetary assets and liabilities are translated at the closing rate, share capital at historical rate while comprehensive income and fixed assets accounts are translated at the average rate for the period. The resulting exchange differences are recognised in other comprehensive income and included as a separate component of equity.

 

3.             REVENUE


9 months ended

30 Sept

2014

9 months

ended 30 Sept 2013

9 months ended 30 Sept

2014

9 months ended 30 Sept 2013

               

$000

$000

Nmillion

Nmillion

Crude oil sales as invoiced

576,675

640,558

89,554

99,484

 

 

Changes in lifting (in line with participating interests of both parties)

    (691)

(10,915)

(107)

(1,695)


-----------

-----------

---------

----------


575,984

629,643

 

89,447

97,789

Gas sales

  16,484

13,295

2,560

2,065


-----------

-----------

---------

----------

Total revenue

592,468

642,938

92,007

99,854


======

======

=====

=====

The sole off-taker for crude oil is Shell Western Supply and Trading Limited.

 



 

4.         COST OF SALES

 


9 months ended 30 Sept 2014

9 months ended 30 Sept 2013

9 months ended 30 Sept 2014

9 months ended 30 Sept 2013


$000

$000

Nmillion

Nmillion

Crude handling fees

14,967

  15,870

2,324

2,465

Royalties

129,634

139,050

20,131

21,596

Depletion, Depreciation and Amortisation

25,537

  20,017

3,966

3,109

Niger Delta Development Commission

7,914

  7,226

1,229

1,122

Other Rig related Expenses

23,276

27,043

3,615

4,200

Other Field Expenses

39,320

27,106

6,099

4,209


---------

-----------

----------

---------


240,646

236,312

37,364

36,701


=====

======

=====

======

 

5.             GENERAL AND ADMINISTRATIVE EXPENSES

 


9 months ended 30 Sept 2014

9 months ended 30 Sept 2013

9 months ended 30 Sept 2014

9 months ended 30 Sept 2013


$000

$000

Nmillion

Nmillion

Depreciation, amortisation and impairment charges

2,605

1,962

405

305

Employee related cost

17,358

8,977

2,696

1,394

Professional & Consulting Fees

46,669

16,810

7,247

2,611

Directors Emoluments

5,823

3,046

904

473

Other General and Admin Expenses

39,782

13,489

6,178

2,095


---------

-----------

----------

---------


112,237

44,284

17,430

6,878


=====

======

=======

======

6              FINANCE CHARGES

 


9 months ended 30 Sept 2014

9 months ended 30 Sept 2013

9 months ended 30 Sept 2014

9 months ended 30 Sept 2013


$000

$000

Nmillion

Nmillion

Bank loan

32,135

8,617

4,990

1,615

Interest on shareholder loan

-

4,335

-

673

Unwinding of discount on provision for decommissioning 

1,458

1,268

226

197


---------

-----------

----------

---------


33,593

14,220

5,217

2,208


=====

=====

=====

=====

 



 

 

7.         EARNINGS PER SHARE

 

Basic

 

Basic earnings per share is calculated on the Company's profit after taxation and on the basis of weighted average of issued and fully paid ordinary shares at the end of the year.

 


9 months ended

30 Sept

2014

9 months

ended

30 Sept

2013

9 months

ended

30 Sept

2014

9 months

ended 30

Sept

2013


$000

$000

Nmillion

Nmillion






Profit  for the year attributable to shareholders  ($000)

228,578

442,241

35,497

68,679


----------

----------

---------

---------

 

                                                                   

 

 

Weighted average number of ordinary shares in issue (in 000)

492,778

400,000

492,778

400,000







----------

----------

----------

----------


$

$

N

N

Basic earnings per share (in $)

0.46

1.11

64.15

171.70

Dividend per share (in $ and N)

0.10

-

16

-

 

Earnings

$000

$000

Nmillion

Nmillion

 

Profit attributable to equity holders of the Group

227,939

442,241

35,398

68,680


======

======

=====

=====











Profit used in determining diluted earnings per share

227,939

442,241

35,398

68,680


======

======

======

======

There were no dilutive instruments for the period ended 30 September 2014. 

 



 

8.             RELATED PARTY TRANSACTIONS

   

a.             Transactions

 

    The following transactions were carried out by related parties on behalf of Seplat:

 

  i)           Purchases of goods and services

 


9 months ended 30 Sept

2014

9 months ended 30 Sept

2013


9 months ended 30 Sept

2014

9 months ended 30 Sept

2013


$000

$000


Nmillion

Nmillion

Shareholders






MPI SA

300

2,767


47

430

Shebah Petroleum Development Company Limited

1,430

757


222

118

Platform Petroleum Limited

176

843


27

131


---------

---------


---------

---------


1,906

4,367


296

678


=====

=====


=====

=====

Entities under common control






Abbeycourt Trading Company Limited

3,151

1,954


489

303

Cardinal Drilling Services Limited

31,154

24,392


4,836

3,787

Ndosumili Ventures Limited

1,911

1,774


297

275

Berwick Nigeria Limited

1,306

-


203

-

Neimeth International Pharmaceutical Plc

21

-


3

-

Nerine Support Services Limited*

24,133

10,561


3,746

1,639

Shebah Exploration and Production Company Limited (BVI)

1,011

-


157

-

Helko Nigeria Limited

828

101


129

16


---------

---------


---------

---------


63,515

38,782


9,860

6,020


=====

=====


=====

=====

 

* $16.8 million (2013: $6 million) was paid as salary to Seplat contract staff



 

8.         RELATED PARTY TRANSACTIONS - Continued

 

ii) Interest expense







9 months ended

9 months ended

9 months ended

9 months ended



30 Sept 2014

30 Sept 2013

30 Sept 2014

30 Sept 2013









$000

$000

Nmillion

Nmillion


Shareholders






MPI

-

1,694

-

263



=====

=====

=====

=====







 

b.         Balances

 

The following balances were receivable from or payable to related parties as at 30 September 2014:

(i) Prepayments / receivables







9 months ended

9 months ended

9 months ended

9 months ended



30 Sept 2014

30 Sept 2013

30 Sept 2014

30 Sept 2013



$000

$000

Nmillion

Nmillion


 Under common control






SEPCOL

-

12,000

-

1,863


Cardinal Drilling Services Limited


19,950

-

3,097


Abbeycourt Petroleum Company Limited

-

-

-

-



---------

---------

--------

--------



-

31,950

-

4,960



=====

=====

====

====

(ii)

Payables






Shareholders -






Loan from MPI

-

47,927

-

7,441



=====

=====

=====

====



9.   COMMITMENTS AND CONTINGENCIES

 

There have been no material changes to the Group's commitments or contingent liabilities in the nine month period to 30 September 2014.

 

10.  DIVIDEND

 

The Directors recommended to members the payment of a dividend of $0.10 per 50 kobo share amounting to $40 million for the year ended 31 December 2013.

 

The dividend was approved by the board and paid to members whose names appeared in the Company's register of members as at close of business on 31 December 2013. This was subsequently paid in the first quarter of 2014.

 

11.  TAXATION

 

In 2013, the Company and its wholly owned subsidiary, Newton Energy Limited  made applications for the tax incentives available under the provisions of the Industrial Development Income Tax Relief Act (IDITRA). In February 2014, the Company was granted the incentives in respect of the tax treatment of OMLs 4, 38 and 41 effective 1 January 2013. Newton Energy Limited was also granted similar incentives in respect of the tax treatment of OML 56 effective 1 June 2013. Accordingly, the new incentives form the basis of our current and deferred taxation as disclosed in the financial statements. Hence there was no tax expense in the nine months ending 30 September 2014.

 

 

12.       SHARE CAPITAL

 

12a.

 

As at 30 Sept

As at 30 Sept

As at 31 Dec

As at 30 Sept

As at 30 Sept

As at 31 Dec


2014

2013

2013

2014

2013

2013

VALUE

$000

$000

$000

Nmillion

Nmillion

Nmillion

Authorised ordinary share capital















====

====

====

====

====

====

1,000,000,000 ordinary shares denominated in  Naira of 50 kobo per share

3,335

3,335

3,335

517.8

518

519


====

====

====

====

====

====

Issued and fully paid














553,310,313 issued shares denominated in Naira of 50 kobo per share

1,798

690

1,334

277

107

205


====

====

====

====

====

====

 

During the year, the Group issued and allotted 153,310,313 through an initial public offering, resulting in an increase in number of issued and fully paid ordinary shares of 50k each from 400 million to 553 million shares.

 



 

12b      Capital contribution


As at 30 Sept 2014

As at 30 Sept 2013

As at 31 Dec 2013

As at 30 Sept 2014

As at 30 Sept 2013

As at 31 Dec 2013


$000

$000

$000

Nmillion

Nmillion

Nmillion








 Additional Contribution

40,000

40,000

40,000

6,218

6,218

6,218


--------

----------

---------

--------

--------

-------


40,000

40,000

40,000

6,218

6,218

6,218


=====

======

=====

=====

=====

====

 

This represents M&P additional cash contribution to the Company. In accordance with the Shareholders Agreement, the amount was used by the Company for working capital as was required at the commencement of operations. Subsequently, the interest held by M&P was transferred to MPI. All terms and conditions previously held by M&P were re-assigned to MPI.

12c     Share Premium


As at 30 Sept 2014

As at 30 Sept 2013

As at 31 Dec 2013

As at 30 Sept 2014

As at 30 Sept 2013

As at 31 Dec 2013


$000

$000

$000

Nmillion

Nmillion

Nmillion

Issued capital proceeds

497,920

-

-

77,325

-

-

Transfer to share capital

(464)

-

-

(72)

-

-


--------

----------

----------

--------

--------

--------


497,456

-

-

77,253

-

-


======

======

=====

=====

====

====

 

During the year, net proceeds of $497.9 million (N77.3 billion) was received during the initial public offering. 153,310,313 shares of 50keach totalling $464,000 (N76.7 million) were transferred to share capital.

 

13.      EVENTS AFTER THE REPORTING PERIOD

At the date of this report there have been no significant events after reporting period, which would have a material effect on the financial statements as presented.



SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC (the ''Company'')

 

GENERAL INFORMATION

 

COMPANY SECRETARY

Isaiah Adesola Odeleye

REGISTERED OFFICE AND BUSINESS


ADDRESS OF DIRECTORS

25a Lugard Avenue


Ikoyi


Lagos


Nigeria



REGISTERED NUMBER

RC No. 824838



REGISTRARS

DataMax Registrars Limited


2c Gbagada Express Way, Gbagada, Lagos.



FRC NUMBER

FRC/2014/00000002714



AUDITORS

Ernst & Young


10th Floor, UBA House


57 Marina


Lagos, Nigeria



SOLICITORS

Abhulimen & Co.


Anaka Ezeoke & Co.


D. D. Dodo & Co.


Jakpa, Edoge & Co.


Ogaga Ovrawah & Co.


Streamsowers & Kohn


Thompson Okpoko & Partners


Winston & Strawn London LLP



BANKERS

Access Bank Plc


Afrexim Bank


BNP Paribas


Diamond Bank Plc


First Bank Plc


GTBank Plc


Skye Bank Plc


Stanbic IBTC


United Bank of Africa Plc


Zenith Bank Plc

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
QRTDDBDGGXDBGSC

a d v e r t i s e m e n t