Seplat Petroleum Development Company, Nigeria’s largest listed oil and gas firm by market value has released its result for the year ended December 31, 2020.
The following highlights from the report shows how the company performed in 2020.
Revenue hit three-year low
The oil and gas firm saw its revenue slump 10.7 percent to N191 billion in 2020 from N214.1 billion in 2019, the lowest in three years.
The decline in the revenue from crude oil was majorly due to the Covid-19-induced lockdowns which resulted in a reduction in oil demand.
The Brent oil price averaged $43.21/bbl over 2020 compared to $64.04/bbl in 2019. Brent also remained volatile throughout the year, following the twin shocks of the Saudi Arabia – Russia price war trading and the pandemic.
Seplat see its first loss since 2016
Following the crash in revenue, Seplat recorded a loss of N30.7 billion in 2020 from a profit of N85 billion in 2019. This is its first loss since 2016 when crude oil prices crashed and the economy was in a recession.
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Similarly, the company made a loss before tax of N28.8 billion compared to a profit before tax of N89.9 billion made in 2019.
Impairment loss jumped 197%
Seplat recorded an impairment loss of N41.1 billion in 2020, a 197 percent increase compared to 2019 when impairment loss stood at N14.9 billion.
The company noted that the impairment is as a result of re-assessment of future cash flow from the Group’s oil and gas properties due to significant fall in oil prices.
Gross profit plunged
The oil and gas firm’s gross profit plunged 59.8 percent to N44.8 billion in 2020 compared to N121.4 billion in 2019.
This is due to lower oil prices and higher non-production costs primarily consisting of royalties and DD&A (Depletion, Depreciation and Amortisation) which was N25.8 billion compared to N29.7 billion in the prior year.
Dividend
Seplat recommended a final dividend of $0.05 per share bringing the total dividend to $0.10 per share in2020 same as 2019.
On approval of shareholders, the dividend will be paid shortly after the Annual General Meeting, which will be held in Lagos, Nigeria, on 20 May 2020.
Also, Earnings per share fell to a negative value of N45.72 compared to a positive N146.1 recorded last year.
