Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — FY2017 Earnings Presentation
21 slides from Seplat Energy's earnings presentation, Feb 28, 2018
Slide 1: 2017 Full Year Results
28 February 2018 1 2017 FULL YEAR RESULTS
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: Introduction
INTRODUCTION Austin Avuru – CEO 3 2017 FULL YEAR RESULTS
Slide 4: 2017 Highlights
2017 HIGHLIGHTS PRODUCTION WITHIN GUIDANCE; RETURN TO FY PROFIT, STRONG CASH FLOW & BALANCE SHEET, RECORD GAS CONTRIBUTION OPERATIONAL FINANCIAL GAS BUSINESS WI production within guidance Return to FY profitability Gas revenues at record levels 36,923 boepd US$44 million US$124 million (Guidance 35,
Slide 5: Outlook and Priorities
OUTLOOK AND PRIORITIES POSITIONED FOR RETURN TO LONG TERM PROFITABILITY AND TO CAPITALISE ON GROWTH OPPORTUNITIES • Current well stock is producing strongly having had limited draw down during force majeure DE-RISK & HARVEST • Line of sight on availability of three alternative export routes at key o
Slide 6: Operations Update
OPERATIONS UPDATE Jay Smulders – Technical Director 6 2017 FULL YEAR RESULTS
Slide 7: Working Interest Production
WORKING INTEREST PRODUCTION 2017 PRODUCTION REFLECTS THE LIFTING OF FORCE MAJEURE AND IS WITHIN GUIDANCE boepd 50,000 47,291 • Force majeure at the Forcados terminal FY 2017 was lifted on 6 June 45,000 guidance range 43,372 35 – 38 kboepd • Resumption of full production operations 40,000 to pre forc
Slide 8: Reserves and Contingent Resources at 31/12/17
RESERVES AND CONTINGENT RESOURCES AT 31/12/17 A SIGNIFICANT RESERVE AND RESOURCE BASE OFFERS GOOD FUTURE GROWTH POTENTIAL 2P WI RESERVES (1) 2P + 2C WI RESERVES & RESOURCES(1) TOTAL WI 2P OIL RESERVES (MMbbls) TOTAL WI 2P GAS RESERVES (Bscf) 5 42 477 226 538 274 5 226 1,456 657 251 MMboe 264 MMboe 7
Slide 9: Track Record of Consistent Reserves Growth
TRACK RECORD OF CONSISTENT RESERVES GROWTH SINCE 2010 SEPLAT HAS CONVERTED 141 MMBBLS OIL AND 72 MMBOE GAS FROM 2C RESOURCES TO 2P RESERVES WI 2P RESERVE GROWTH (MMBOE) WI 2P OIL RESERVE BASE 2010 – 2017 (MMBBL)(1,2) WI 2P GAS RESERVE BASE 2010 – 2017 (MMBOE)(1,2) 2010 – 2017 CAGR: 19% 2010 – 2017 C
Slide 10: Oil Business Update
OIL BUSINESS UPDATE PRIORITISING THE DIVERSIFICATION OF CRUDE EXPORT ROUTES TO MITIGATE CONCENTRATION RISK IN THE FUTURE Amukpe to Escravos OML’s 4, 38, 41 OPL 283 Export Pipeline (AEEP) • Completed workover of the Orogho-7 production well • Completed the Anagba-1 appraisal well with • Completion of
Slide 11: Gas Business Update
GAS BUSINESS UPDATE TOTAL OPERATED PROCESSING CAPACITY AT ANOH COMPLETION WILL BE CAPABLE OF SUPPORTING ~3,000MW POWER GENERATION Oben Hub • Strategically positioned to OMLs 4, 38, 41 access Nigeria’s main demand centres • Commenced delivery of commissioning gas to Azura IPP in December 2017 Pillar
Slide 12: Key Technical and Operational Priorities
KEY TECHNICAL AND OPERATIONAL PRIORITIES DELIVERING A VALUE ADDING WORK PROGRAMME Poised to resume high Optimally produce Complete the Amukpe graded production current well stock to Escravos pipeline drilling schedule Maximise utilisation of Leverage experience at Maintain operational existing gas p
Slide 13: Finance Update
FINANCE UPDATE Roger Brown - CFO 13 2017 FULL YEAR RESULTS
Slide 14: 2017 Quarterly Trends
2017 QUARTERLY TRENDS Q3 AND Q4 PERFORMANCE REFLECTS RETURN TO FULL PRODUCTION OPERATIONS AND OIL PRICE TAILWIND Revenue US$ million EBITDA US$ million 452 Average realised gas price: US$2.97/Mscf Average realised oil price = US$50.38/bbl 93 199 124 174 147 38 254 67 328 32 105 84 29 136 47 115 28 1
Slide 15: Financial Summary
FINANCIAL SUMMARY RETURN TO FULL YEAR PROFITABILITY, STRONG CASH FLOW GENERATION AND BALANCE SHEET STRENGTHENED US$ million FY 2017 FY 2016 Y-o-Y FY 2017 FY 2016 Revenue 452 254 78% Gross Oil Sales 366 133 Cost of sales (240) (182) 32% Stock movements (38) 16 Gross profit 212 72 194% Gas sales 124 1
Slide 16: Cash Reconciliation
CASH RECONCILIATION STONG FREE CASH FLOW GENERATION PUTS SEPLAT IN A SIGNIFICANTLY STRONGER FINANCIAL POSITION AT YEAR END 700 FREE CASH FLOW OF US$450 MILLION 36 33 600 98 500 72 447 3 US$ million 437 400 Hedging strategy aimed at providing cash flow assurance • 2017 hedging – 3.69 MMbbls at a comb
Slide 17: Capital Expenditures
CAPITAL EXPENDITURES 2017 CAPEX LIMITED TO US$33 MILLION – DISCRETION MAINTAINED OVER SPEND 350 US$321 million CAPEX PLANS 300 39 • Seplat will continue to exercise discretion over spend • Selectively considering 250 54 production drilling opportunities US$230 million in the existing portfolio with
Slide 18: Capital Structure
CAPITAL STRUCTURE OPTIMISING OUR CAPITAL STRUCTURE TO SUPPORT GROWTH Facility Refinanced As at (US$ million) in 2015 Repayment 31 Dec 2017 • Completed negotiations in September 2016 with Nigerian Lenders to approve 7-year secured term 700 (242) 458 the deferment of H2 16 and 2017 principal repayment
Slide 19: Outlook
OUTLOOK PROACTIVE MANAGEMENT STABILISED THE BUSINESS IN DIFFICULT CONDITIONS AND POSITIONS SEPLAT FOR LONG TERM GROWTH PROTECTED THE CORE …NOW TRANSITIONING …WITH FUTURE GROWTH BUSINESS IN DIFFICULT BACK INTO “BUILD AND OPPORTUNITIES TO CONDITIONS… GROW” MODE… TRANSFORM Upgraded Warri refinery alter
Slide 20: Q&A
Q&A 2017 Full Year Results 20 2017 FULL YEAR RESULTS
Slide 21: Head Office and London Office
Head Office Seplat Petroleum Development Company Plc Address: 25A, Lugard Avenue, Ikoyi, Lagos, Nigeria. Phone: +234 1277 0400 Email: info@seplatpetroleum.com ir@seplatpetroleum.com Web: www.seplatpetroleum.com London Office Seplat Petroleum Development Company Plc Address: 4th Floor, 50 Pall Mall,
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