Nigeria’s leading indigenous oil producing company, Seplat Petroleum, saw its profit surge by 194 percent year-on-year to $212 million in 2017, buoyed by a significant increase in oil production following the resumption of exports at the Forcados terminal.
In the report on its operations during the 2017 financial year, Seplat recorded 79 percent increase in revenue to $452 million from $254 million in the preceding year, on the back of the 43 percent increase in oil production to 36,923 barrels per day from 25,877 barrels per day in the preceding year.
The higher oil production following the lifting of force majeure at the Forcados terminal from June 6 onwards, together with higher oil price realisations, positively impacted oil revenue which stood at $328 million, up 121% year-on-year.
Alongside this, the company’s gas revenue reached a new record of US$124 million, up 18% year-on-year. Consequently, total revenue for 2017 was up 78% from 2016 at US$452 million.
“I am pleased to report that Seplat made a return to full -year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast we were plagued throughout most of the first half by force majeure at the Forcados terminal,” Seplat CEO Austin Avuru said.
“However, following the lifting of force majeure on June 6 we rapidly restored full production operations and our subsequent operational and financial performance is a clear indicator of our strong fundamentals and what we can achieve when we have unhindered access to market.”
The company said the 160,000 barrels per day Amukpe to Escravos which will serve as an alternate export pipeline is expected to be fully commissioned and operational in Q3 2018; providing access to three separate export routes at our western assets and two at our eastern assets providing adequate redundant capacity will significantly de-risk distribution of oil production to market.