Resilience and Strength 23 March 2020 1 2019 FULL YEAR RESULTS - PowerPoint PPT Presentation

Seplat Petroleum Development Company Plc 2019 Full Year Results Resilience and Strength 23 March 2020 1 2019 FULL YEAR RESULTS

Overview 2019 Austin Avuru Chief Executive Officer Seplat Petroleum Development Company Plc | www. seplatpetroleum.com 2 2019 FULL YEAR RESULTS

NIGERIA’S LEADING INDEPENDENT OIL & GAS PRODUCER SEPLAT DELIVERED SIGNIFICANT STRATEGIC, OPERATIONAL AND FINANCIAL ACHIEVEMENTS IN 2019 KEY FI FIGU GURES ACH CHIEVE VED IN N 2019 2019 • 46,498 boepd total Working interest • Liquids 23,935 bopd production • Gas 131 MMscfd (22,563 boepd) VOLUMES Avg. daily 46,498 boepd • Strong balance Revenue of US$698m • sheet and cash US$333m cash at bank • flow US$338m operating cash flow • Gas revenues of $203 million were 29% of Group PROFIT Gas diversification revenue, de-coupled from oil price • increases resilience FID taken for ANOH 300MMscfd processing US$277m plant eastern Niger Delta • Total of $285 million returned to shareholders US$0.05 final since IPO (FY14-FY19) dividend proposed • Dividend only suspended during 2016/17 for FY 2019 production shut-in FINAL DIVIDEND • Acquisition of Eland Plc adds 36 MMbbls of 2P reserves and production, diversifies Landmark $0.05 Group export routes acquisition • Amobe prospect has potential to add significant reserves to Group portfolio 3 2019 FULL YEAR RESULTS

LANDMARK ACQUISITION OF ELAND OIL & GAS PLC DIVERSIFIES PRODUCTION AND EXPORT ROUTES, ADDS SIGNIFICANT EXPLORATION EXPERTISE AND POTENTIAL OML 40 RESERVES PRODUCTION EXPORT ROUTES • • • Adds 36 MMbbls 8,963 kbopd Adds production not WI 2P reserves achieved in 2019 dependent on • • Trans Forcados High-quality Diversifies Seplat’s pipeline Amobe prospect production base • with gross potential • Potential for new New Gbetiokun for 78MMbbls offshore export wells being drilled to route to combine boost production OML40 and OML 4,38 & 41 flows Ubima EXPERTISE CASH FLOW INTEGRATION • • • Adds significant Acquired right to be First major M&A technical and repaid $414m+ • Integration process exploration Westport loan under way expertise • Repayment schedule • Independents on • Aberdeen office agreed for 2022-24 integration team to adds additional • Underpins future represent Eland staff technical capability Group cash flows interests to the Seplat Group • CSR projects to be integrated 4 2019 FULL YEAR RESULTS

A DIVERSIFIED AND RESILIENT PLATFORM SEPLAT IS DIVERSIFYING AND RERISKING ITS BUSINESS TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE ASSURING INCREASING GAS PRUDENT CAPITAL BUSINESS OIL REVENUES EXPORT ROUTES DIVERSIFICATION ALLOCATION RESILIENCE • Operate mature, • Imminent Amukpe- • Increasing • Flexible capex can be • Significant cash de-risked fields Escravos pipeline contribution of gas dialled up or down to balance available significantly to Group revenue align with prevailing • Addition of Eland • Limited debt servicing de-risks exports from and profitability conditions and future OML 40 adds in 2020 & 2021 OMLs 4,38 & 41 needs • Gas prices not linked production and • Hedged 1.5MMbbls • Mostly buried • Focus on highest- export routes not to oil price, reducing per quarter at $45 dependent on pipeline will reduce volatility of Group return prospects for Q1-Q3 2020 Trans Forcados losses from vandalism cash flows • Well-managed • Low unit cost pipeline • Potential for offshore • Gas pipelines less balance sheet, production $6.20 / • Increased focus on FPSO / FSO route prone to damage not over-levered boe in 2019 improving uptime linking Amukpe- • High drop-through • Solid credit rating, • Profitable at lower oil Escravos to OML 40 • Drilling programme of cash from gas able to tap markets prices export route, to focused on high- revenues when appropriate reduce handling • Business continuity return wells. • Massive opportunity charges and losses plan in place for Oben and ANOH to serve growing domestic market 5 2019 FULL YEAR RESULTS

Finance update Roger Brown Chief Financial Officer Seplat Petroleum Development Company Plc | www. seplatpetroleum.com 6 2019 FULL YEAR RESULTS

FY 2019 FINANCIAL HIGHLIGHTS STRONG PERFORMANCE AGAINST CHALLENGING CONDITIONS Profitability increased Strong cash generation EBITDA $270 million $338 million $457 million (Profit before deferred tax) (Cash flow from operations) 14% 33% 2% FY 2018: $502 million FY 2018: $238 million FY 2018: $447 million Low operating costs Gross debt Capital investment $789 million $6.20/boe $125 million After Eland acquisition (Production opex) 7% 77% 42% FY 2018: $5.77/boe FY 2018: $446 million FY 2018: $88 million Gas 29% of Group sales Final dividend Net debt position $203 million $456 million US$0.05/share Includes $66.9m gas tolling fees Following cash acquisition of Eland (US$59 million paid out in 30% 00% 2019 calendar year) 428% FY 2018: $156 million FY 2018: $0.05 FY 2018: Net cash $139 million 7 2019 FULL YEAR RESULTS

FY 2019 FINANCIAL RESULTS A PROFITABLE BUSINESS WITH STRONG CASH FLOW GENERATION AND ROBUST BALANCE SHEET $ million FY 2019 FY 2018 Change • Gross Oil Sales 495 590 (16.2%) Revenues reflect lower realised prices and lower production Gas sales 136 156 (12.8%) following drilling delays Gas tolling 67 - • Gas tolling is revenue received from NPDC for processing its share of the gas Total Revenue 698 746 (6.5%) extracted from 2015 to 2018 $ million FY 2019 FY 2018 Change Revenue 698 746 (6.5%) • Royalties, crude handling and DDA reflect lower oil prices and production Cost of sales (302) (355) (15.1%) • Higher Operations & maintenance expense as a result of increased levels of Gross profit 398 391 1.2% asset integrity management activities • US$30 million recognised within other income includes gain on sale of 55% of G&A (71) (80) (11.4%) Oben gas plant, income generated on the use of third-party usage of the Other (13.1) (2) 721% Group’s Warri Pipeline offset by a US$7 million overlift position • Operating profit 312 310 0.7% Includes the cost of oil hedges and corresponding losses charged to the P&L • Increased operating profit driven by gas tolling revenue recognised but set Net finance costs (20) (47) (143%) against the reversal of previously recognised accrued interest of US$40 million Profit before deferred tax 270 238 13.5% on NPDC receivables due to the settlement of these receivables • Tax expense includes recognition of previously unutilised deferred tax assets Tax expense (29) (117) (75.1%) from prior years’ tax losses and capital allowances Profit after tax 277 147 89.0% Capex incurred 125 88 42% • Capex includes drilling costs in relation to nine development wells and facility upgrades Cash flow from operations 338 502 (32.7%) • Reduced cash balance reflects the cash contribution to fund the Eland acquisition, NPDC receivables 222 00 00% AGPC equity contribution and ANOH deconsolidation Cash at bank 333 585 (43.1%) 8 2019 FULL YEAR RESULTS

CASH RECONCILIATION STRONG FREE CASH FLOW GENERATION AND DILIGENT MANAGEMENT OF GROUP LIQUIDITY $ million Hedging strategy aimed at providing cash flow assurance FY 2019 hedging: 4.00 MMbbls at US$50.0/bbl Cash at Cash from Net Oben gas OML 55 Net Eland AGPC PP&E ANOH Dividend FX Cash at 31/12/18 operations proceeds plant receipts interest acquisition cash equity paid differences 31/12/19 (incl. (loans, proceeds deconsolidated contribution (excl. restricted finance restricted cash) changes) cash) 9 2019 FULL YEAR RESULTS

PRUDENT FINANCIAL MANAGEMENT SEPLAT’S FLEXIBILITY TO SCALE INVESTMENT UP OR DOWN HELPED IT NAVIGATE PREVIOUS CHALLENGES INCREASING GAS VOLUMES DIVERSIFY BUSINESS SUCCESSFUL CASH MANAGEMENT STRATEGY Gross debt ($m) Cash ($m) 49,867 $900 50,000 46,498 $900 $259m OML $789 43,372 Oil Gas $800 53 acquisition 36,923 $664 40,000 $457m Eland $700 24,198 14,369 $588 acquisition $585 $570 22,563 30,823 $600 28,341 30,000 25,877 $500 6,571 19,070 4,867 $333 $326 $400 $446 $310 $285 20,000 $437 Higher cash 15,786 $300 level than 29,003 $169 $160 25,669 23,474 24,252 23,935 $200 2014-16 10,000 17,853 $100 10,091 - $0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 ($108.6) ($99.0) ($53.0) ($45.1) ($54.7) ($71.3) ($64.0) RISING GAS REVENUES REDUCE EXPOSURE TO OIL PRICE FLEXIBILITY WITH CAPITAL EXPENDITURE $350 $100m capex $1,000 2% planned for 2020 Oil Gas 4% $300 21% ($50m spent in Q1) $18.1 $800 29% $250 13% $27.4 $155.6 $600 $202.6 $200 28% $77.0 321 $150 $862.1 $400 $124.0 $747.6 41% $100 $590.5 $493.5 $495.1 152 $200 125 $105.5 120 $50 $318.2 88 52 $148.8 33 $0 $0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Oil price crisis Trans Forcados force majeure 10 2019 FULL YEAR RESULTS (Jul 14 – Jan 16) (Feb 16 – Jun 17)