Seplat Petroleum CEO Assures Stakeholders of Improved Returns

Goddy Egene

The Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru on Tuesday assured stakeholders that the company has been positioned to deliver superior returns.

Seplat, which posted a loss in 2016 bounced back into profitability in 2017 and consolidated with an impressive performance for first quarter ended March 31, 2018.

Speaking at company’s facts behind the figures presentation at the NSE in Lagos, Avuru said the successful refinancing of its balance and resumption of exports via the Forcados terminal and more investment natural gas for domestic market would lead to better results going forward.

According to him, when the companies does well all stakeholders must feel the impact and benefit.

“The communities must feel happy that we are operating in their area, the staff must feel happy that their contribution toward wealth generation, they have reward for it and our shareholders must have sufficient returns either in terms of dividends, capital appreciation or both. That is what we strive to achieve,” he said.

According to him, the refinancing of its balance has significantly strengthened the company’s liquidity position and allow for work programme to be scaled up and focus switch to delivery of growth strategy.

He said the company would leverage its unique position and strong track record to access new production and development assets in the Niger Delta.

Avuru had recently told shareholders that three themes would drive the company’s growth going forward.

He said: “Firstly, Seplat has historically been one of the most active drillers onshore Nigeria and we have a large inventory of oil production drilling opportunities we will high grade and drill out to organically sustain and grow production.

“Secondly, we will capitalise on our early mover advantage in the domestic gas sector and further grow upstream and midstream production and processing capacity to help meet Nigeria’s increasing demand and power deficit.

“Finally, with our balance sheet refinanced, a free cash flow positive production business together with headroom in our capital structure we have the capacity and capability to selectively consider and execute value accretive acquisition opportunities whilst staying true to our price-disciplined approach.”

Meanwhile, the bears reclaimed control of the Nigerian stock market to close 0.60 per cent lower yesterday, following decline in the prices of bellwether tickers. The Nigerian Stock Exchange (NSE) All-Share Index fell to 37,421.01, while market capitalisation fell to N13.56 trillion.