Seplat Petroleum Development Company Plc 2019 Half Yearly Results - 30 July 2019 Stability Performance Growth 2019 HALF YEARLY RESULTS- 30 JULY 2019 1 2019 HALF YEARLY RESULTS
IMPORTANT NOTICE DISCLAIMER FORWARD-LOOKING STATEMENTS This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company’s current beliefs and expectations about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth, strategies and the oil and gas business. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company and must not be relied upon in any way in connection with any investment decision. 2 2019 HALF YEARLY RESULTS
Introduction Austin Avuru - Chief Executive Officer Seplat Petroleum Development Company Plc | www. seplatpetroleum.com 3 2019 HALF YEARLY RESULTS
WELL POSITIONED TO BUILD, GROW & DELIVER VALUE MAPPING SEPLAT’S ROUTE TO VALUE CREATION FOR SHAREHOLDERS OIL DOMESTIC GAS FINANCIAL OPPORTUNITY BUSINESS BUSINESS STRENGTH RICH • • • • H2 weighted production ANOH project progressing to Low leverage (net cash) Organic upside development work plan (see CMD materials) & significant undrawn • Acquisition opportunities - programme headroom • Continued strong NAV and FCF accretive • • Offset decline and deliver performance of Oben Organic work programme • Fire power to capitalise but incremental growth funded by internal cash flow • Set to become largest maintain price discipline • • Manage for value – sustain supplier of processed gas Low cost production base & optimise long term in 2021 recovery Oben + ANOH outcome 2P + 2C reserves Planned 2019 exit rate Cash at bank 825 MMscfd & resources 34,000 US$433 MM 561 MMboe (pro-forma gross processing (W.I barrels oil per day) capacity post ANOH completion (at 30 June 2019) (at 1 January 2019) in Q1 2021) VALUE CREATION AND ENHANCED SHAREHOLDER RETURNS Sustainable FCF generation to underpin dividend Gas business can more than double in both scale and financial contribution to the business Further diversification through commodity mix and portfolio expansion (acquisitions that offer production and reserves with growth potential) 4 2019 HALF YEARLY RESULTS
Operations update Effiong Okon - Operations Director Seplat Petroleum Development Company Pl c | www. seplatpetroleum.com 5 2019 HALF YEARLY RESULTS
H1 2019 WORKING INTEREST PRODUCTION & FY 2019 GUIDANCE UNDERPINNED BY A STRONG PLATFORM OF PRODUCING FIELDS boepd 60,000 • Average working interest FY 2019 guidance range 49,000-55,000 boepd Oil production production for H1 2019 Gas production stood at 48,004 boepd 49,867 (H1 2018: 51,099 boepd) 50,000 48,004 - Liquids production of 22,974 bopd (H1 2018: 25,286 bopd) 43,372 - Gas production of 145 MMscfd (H1 2018: 155 MMscfd) 40,000 36,924 • Production uptime was 88% 24,198 25 – 28 14,369 25,030 kboepd 30,823 30,000 28,341 FY 2019 working interest 25,877 6,571 19,070 production guidance 4,867 20,020 Oil 24,000 – 27,000 bopd (1) 20,000 15,786 5,226 146 - 164 MMscfd Gas (25,000 – 28,000 boepd) 24 -27 29,003 kbopd 25,669 24,252 23,474 Total 49,000 – 55,000 boepd 22,974 10,000 17,853 14,794 (1) Before reconciliation losses, volumes measured at the 10,091 LACT unit, Predicated on no major force majeure event in 2019. 0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 H1 2019 FY 2019E 6 2019 HALF YEARLY RESULTS
H1 2019 ACTIVITIES AND H2 2019 OUTLOOK DEVELOPMENT ACTIVITIES SET TO STEP UP IN H2 2019 WESTERN ASSETS - OML’s 4, 38, 41 & OPL 283 H1 2019 activities H2 2019 activities OMLs 4,38 & 41 OMLs 4,38 & 41 • Workover of one oil well in Sapele • Amukpe to Escravos pipeline expected to be commissioned in Q4 2019; • Sapele integrated gas processing facility project • Drill up to 6 new oil production wells; 1 new gas well; technical service agreement and design review • Liquid treatment facility upgrades to enable 1 rig based re-entry of an existing oil well • Progress work on Sapele integrated gas processing facility dry crude delivery from Sapele and Amukpe to Forcados Terminal upgrade • Liquid treatment facility upgrades (Sapele and Amukpe) OPL 283 OPL 283 • Preparation work for development of the • Preparation work for development of the Igbuku field; Igbuku field; Concept selection and FEED Concept selection and FEED EASTERN ASSETS – OML 53 & OML 55 H1 2019 activities H2 2019 activities OML 53 OML 53 • Development of the Ohaji South oil reserves; • Location preparation and camp site engineering works for Ohaji brought onstream two oil production wells (Ohaji South drilling campaign South 3 & 4) • Drill a new oil production well at Ohaji South • 1 rig based workover of an existing oil production • Upgrade of the EPF at Ohaji South well at the Jisike field • Install PD meter at Jisike Flow Station • Early Production Facility (EPF) at Ohaji South and framing of crude oil storage tank in Jisike OML 55 OML 55 • Continued monetisation of liftings towards full recovery • Received US$17 million towards recovery of the of the US$330 million discharge sum US$330 million discharge sum 7 2019 HALF YEARLY RESULTS
2019 WORK PROGRAMME SUMMARY HIGHEST IMPACT VALUE ADDING WORK PROGRAMME 2019 ` Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sapele 01 Sapele 02 Sapele 03 Sapele 04 OML 4 , 38 & 41 Sapele 02 Sapele 03 Sapele 04 Sapele 01 Mosogar Ovhor 06 Appraisal Oghareki Sapele 29 Ovhor 02 Ovhor 01 Oben re-entry workover well Ohaji Ohaji Ohaji South 01 South 01 South 02 OML 53 Jisike 06 Appraisal Appraisal workover well well Oben Booster Amukpe to Major Project Ohaji South Compression Escravos Development, Phase 2 & 3 Pipeline Delivery Phase 1 Major Project Sapele Field Liquid Kick-off Treatment Facility Delayed Development Project completion Project award Project completed 8 2019 HALF YEARLY RESULTS
Finance update Roger Brown - Chief Financial Officer Seplat Petroleum Development Company Plc | www. seplatpetroleum.com 9 2019 HALF YEARLY RESULTS
H1 2019 FINANCIAL DASHBOARD SEPLAT HAS DELIVERED EXCELLENT FINANCIAL OUTCOMES Profitability sustained Strong cash generation EBITDA US$120 120 mill illio ion US$ S$255 mill illio ion US$ S$224 224 mill illio ion (Profit before tax) (Cash flow from operations) H1 2018: US$121 million H1 2018: US$245 million H1 2018: US$229 million Low operating costs Gross debt Capital Investment US$47 milli lion US$ S$350 mill illio ion US$ S$28 mill illio ion ( US$5. $5.41/ 1/bo boe Production Opex ) H1 2018: US$41 million (US$4.50/boe) H1 2018: US$21 million H1 2018: US$550 million Increased gas revenues Net cash position Dividend paid US$1 $139 mill illio ion US$ S$0.05/share US$ S$83 mill illio ion (US$29 million paid out in H1 2019) H1 2018: US$0.05/share H1 2018: US$85 million H1 2018: Net debt US$40 million 10 2019 HALF YEARLY RESULTS
Recommend
More recommend
