Seplat Petroleum Development Company (Seplat) reported a loss of N3.1billion ($9.9m) in Q2 2017 results published by the Nigerian Stock Exchange (NSE) yesterday.
The result shows however that sales were up by 21% y/y, reaching N25.7 billion (US$84.5m).
Seplat’s losses are receding following the resumption of the TransForcados System (TFS) in June.
Seplat delivered an H1 oil production of 9,507 barrels per day (bpd), down -18% y/y but up 86% q/q, which works out to Q2 average production of around 14,000 bpd.
Gas production was up 19% y/y to 101MMscfd.
Again the resumption of the TFS is primarily responsible for the rise in gas production as previously constrained volumes became available for processing.
A gross margin contraction of -1,612bps y/y to 40.8% and a significant rise in net finance costs more than offset top-line growth and a double-digit decline in opex to lead to the loss before tax of –US$10m. Sequentially, as stated above, Seplat’s numbers are moving in the right direction.
Sales grew 79% q/q while the firm’s Q2 loss before tax of –US$10m compares with –US$18m delivered in Q1 2017. A combination of a 17% q/q rise in opex and a 9% increase in net finance costs only partially offset positives coming through from top-line growth and a marginal gross expansion.
Year to date, Seplat shares have gained +27.7% compared with the ASI’s 36.7%.