Seplat Petroleum Development Company Plc has announced an interim dividend of $0.05 per share in line with its normal dividend distribution timetable.
The announcement was contained in the company’s third quarter unaudited financial results for the nine months ended September 30, 2020, released on Friday.
Key highlights of the report showed that the company recorded a strong cash balance of $213m after $100m revolving credit facility repayment, $29m 2019 final dividend, and $109m capital expenditure.
Its net debt steady at $480m with most maturities after 2021, leaving a revenue of $388m due to lower oil prices.
The company’s COVID-19 impact assessment and non-cash impairment provision was put at $180m.
Also, the report showed that Nigerian Petroleum Development Company receivables further reduced to $152m while provision reversed operating profit of $100m to operating loss of $79m.
While the company reported a working-interest production within guidance at 50,653 barrels of oil equivalent per day, despite market volatility, outlook for 2020 full-year production guidance narrowed to 48-52 kboepd.
Commenting on the results, Roger Brown, Seplat’s Chief Executive Officer, said, “Seplat’s third-quarter performance has again demonstrated the resilience of our business in challenging times and in addition to voluntarily reducing our debt leverage by $100m, we are maintaining our commitment to shareholders by declaring an interim dividend of $0.05 per share, as we have in previous years. The business continues to operate effectively despite the restraints of the COVID-19 pandemic and the recent unrest in Nigeria.
“After the tragic incident on OML40 in July, we have in consultation with our government partner NPDC and the regulatory authorities in Nigeria, conducted three separate and comprehensive investigations that have led to the implementation of new and strengthened safety procedures at the joint venture. Our thoughts and prayers remain with the affected families and friends.
“We continue to hedge our oil business against further price volatility and are pursuing further cost-cutting initiatives to ensure that we will remain profitable even at lower prices experienced earlier in the year.”
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