Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — H1 2014 Earnings Presentation
16 slides from Seplat Energy's earnings presentation, Jul 25, 2014
Slide 1: Half-yearly Results
Half-yearly Results 25 July 2014 1 1
Slide 2: Important notice
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 o
Slide 3: First half 2014 highlights
First half 2014 highlights Successful IPO in Lagos and London raised gross proceeds of $535 million First half average working interest production(1) of 27,375 boepd (H1 2013: 27,183 boepd) • Excluding unplanned downtime in the period of 28 days (out of 45 in total) average working interest prod
Slide 4: Production
Production 35,000 First half average working interest production 27,375 boepd (H1 2013: 27,183) 30,000 • Liquids production 21,494 bopd (1) • Gas production 35.3 mmcfd (5,881 boepd) 25,000 45 days downtime on Trans Forcados system boped 20,000 (28 of which were unplanned) Excluding unplanned d
Slide 5: Gas business
Gas business Seplat is strategically positioned to capitalise on gas to power market opportunities on commercial terms New Gas Sales Agreement signed with Azura Edo IPP – underpins investments to upgrade the Oben gas plant Volume Duration Gas Price Off-takers (MMcfd) (years) Status (US$/Mcf)* Do
Slide 6: Rig based work programme
Rig based work programme 2013 2014 2015 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Land Rig 1 (Heavy) Oben Oben Oben Orogho Oben TBC Land Rig 2 (Heavy) Okporhruru Okporhruru Oben Okporhruru Oben Land Rig 3 (Heavy) Ogegere Oben Oben Orogho Orogho Sapele Sapele New Land Rig (Heavy
Slide 7: Warri refinery pipeline and liquid treatment facility
Warri refinery pipeline and liquid treatment facility Seplat-operated 12” x 7km pipeline to refinery completed and tested in March • 94,000 bbls gross delivered in H1 Pipeline capacity 100,000 bopd Some issues remaining related to water produced – further process development work ongoing at LT
Slide 8: Other projects
Other projects Oben Gas Plant On track to expand capacity to 240 mmscfd by end 2014 150 mmscfd processing unit being shipped to site; civil works well advanced Next expansion phase will take total Seplat capacity to 450 mmscfd by end 2016 Liquids storage Two 50,000 bbl tanks due for completi
Slide 9: Building a leading Nigerian independent E&P
Building a leading Nigerian independent E&P Wide range of attractive new business opportunities available • Additional IOC divestments • Asset acquisitions & farm-ins OML 53 • Future licensing awards Pipeline of material opportunities being actively evaluated and pursued Prioritise opportuniti
Slide 10: Finance review
Finance review 25 July 2014 10 1
Slide 11: Income statement
Income statement US$ million H1 2014 H1 2013 Y-o-Y H1 2014 H1 2013 Revenue 388 419 -8% Gross Oil Sales 404 330 (Over)/Under-lift (26) 83 Cost of sales (141) (169) -17% Gas sales 10 6 Gross profit 247 250 -2% Total Revenue 388 419 • Royalties 19% lower at $76 million G&A (83) (29) nm • Well work-over
Slide 12: Operating performance – year on year reconciliation
Operating performance – year on year reconciliation Sales revenue Sales revenue US$419m US$388m 600 Adjustment for US$93 million Normalised profit after tax reversal of deferred tax Net Finance costs 500 Adjustment for US$44 G&A million one off costs Cost of sales Other Expenses 400 US$ million Norm
Slide 13: Sources and uses
Sources and uses 1,600 42 1,400 116 37 1,200 446 79 17 48 40 US$ million 1,000 453 800 535 600 400 262 580 200 169 0 Cash 31 Dec Funds Flow Gross IPO Proceeds from Working PP&E IPO costs Debt Financing MPI repayment Dividend Refundable Cash 30 June 2013 from Proceeds borrowings capital Repayments ch
Slide 14: Capital expenditures
Capital expenditures First half 2014 net capital expenditures Full year 2014 net capital expenditures guidance 3% 3% 12% 22% 14% $122 $250 million million 11% 64% 71% Drilling Oil facilities Gas facilities Others Drilling Oil facilities Gas facilities Others 14
Slide 15: Capital structure
Capital structure H1 2014 Facility $ million Coupon Strong asset performance provides for Afrexim Syndication Loan 330 L+7.5% significant debt capacity Zenith Loan 200 L+7.5% (floor of 8%) Additional debt drawn for acquisitions in FBN Working Capital 100 L+8% February 2014 630 Current debt fac
Slide 16: Q&A
Q&A 16 1
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