Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — H1 2018 Earnings Presentation
18 slides from Seplat Energy's earnings presentation, Jul 30, 2018
Slide 1: 2018 Half-Yearly Results
2018 HALF-YEARLY RESULTS 30 JULY 2018 1 2018 HALF YEARLY 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- Chief Executive Officer 3 2018 HALF YEARLY RESULTS
Slide 4: H1 2018 at a Glance
H1 2018 AT A GLANCE PRODUCTION WITHIN GUIDANCE, STRONG PROFITABILITY, CASH FLOW & BALANCE SHEET OPERATIONAL FINANCIAL GAS BUSINESS WI production within guidance Profitability sustained Increased gas revenues 51,099 boepd US$121 million US$85 million (Guidance 48,000 – 55,000 boepd) (Profit before ta
Slide 5: Key Near & Medium Term Business Objectives
KEY NEAR & MEDIUM TERM BUSINESS OBJECTIVES POSITIONED FOR RETURN TO LONG TERM PROFITABILITY AND TO CAPITALISE ON GROWTH OPPORTUNITIES OPTIMISE & GROW PRODUCTION DIVERSIFICATION SCALE UP THE GAS BUSINESS Large inventory of production drilling Prioritise diversification of crude oil Full utilisation o
Slide 6: Operations Update
OPERATIONS UPDATE Effiong Okon- Operations Director 6 2018 HALF YEARLY RESULTS
Slide 7: H1 2018 Working Interest Production & FY2018 Guidance
H12018 WORKING INTEREST PRODUCTION & FY2018 GUIDANCE UNDERPINNED BY A STRONG PLATFORM OF PRODUCING FIELDS boepd 60,000 FY guidance range 48,000-55,000 boepd • Average working interest Oil production production in H1 2018 stood at Gas production 51,099 51,099 boepd (H1 2017: 26,383 boepd) 50,000 - Li
Slide 8: Upstream Operations Update & 2018 Work Programme
UPSTREAM OPERATIONS UPDATE & 2018 WORK PROGRAMME FIELD DEVELOPMENT ACTIVITIES SET TO STEP UP IN H2 2018 OML’s 4, 38, 41 – 2018 activities OPL 283 – 2018 activities W • Anagba-1 appraisal well result will support • Drilling of one new gas production well at Oben unitisation discussions for OPL 283 pa
Slide 9: Midstream Gas Business Update & Work Programme
MIDSTREAM GAS BUSINESS UPDATE & WORK PROGRAMME TOTAL OPERATED PROCESSING CAPACITY AT ANOH COMPLETION WILL BE CAPABLE OF SUPPORTING ~3,000MW POWER GENERATION Oben Hub • Commissioning phase of the OMLs 4, 38, 41 459MW Azura-Edo IPP expected to complete in Q3 2018 after which deliveries will move to th
Slide 10: Finance Update
FINANCE UPDATE Roger Brown- Chief Financial Officer 10 2018 HALF YEARLY RESULTS
Slide 11: Quarterly Performance Trends
QUARTERLY PERFORMANCE TRENDS IMPROVED FINANCIAL PERFORMANCE REFLECTS STRONG PRODUCTION, COST EFFICIENCY AND OIL PRICE TAILWIND Revenue US$ million EBITDA US$ million 181 174 Oil Gas 162 147 116 106 93 136 141 116 84 115 67 55 38 40 46 28 29 32 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q2 '17 Q3 '17 Q4 '17
Slide 12: H1 2018 Financial Summary
H1 2018 FINANCIAL SUMMARY A PROFITABLE BUSINESS WITH STRONG CASH FLOW GENERATION AND ROBUST BALANCE SHEET US$ million H1 2018 H1 2017 H1 2018 H1 2017 Revenue 343 132 Gross Oil Sales 257 78 Gas sales 85 54 Cost of sales (168) (78) Total Revenue 343 132 Gross profit 174 54 G&A (38) (36) • Higher royal
Slide 13: Cash Reconciliation – H1 2018
CASH RECONCILIATION – H1 2018 DILIGENT MANAGEMENT OF GROUP LIQUIDITY 1400 Free cashflow US$224 million Hedging strategy aimed at 1200 245 providing cash flow assurance 21 655 • H1 2018 hedging – 3.60 MMbbls at US$40.0/bbl 15 • H2 2018 hedging – 3.00 MMbbls at 1000 US$50.0/bbl 535 800 US$ million 600
Slide 14: Capital Expenditures
CAPITAL EXPENDITURES REINSTATED WORK PROGRAMME DESIGNED TO START CAPTURING THE HIGHEST CASH RETURN OPPORTUNITIES 350 US$321 million 2018 CAPEX: US$21 million spent in H1 300 39 Selectively considered production drilling opportunities: • OMLs 4,38,41: One gas production well, one gas well workover, N
Slide 15: Debt Refinancing
DEBT REFINANCING OPTIMISING OUR BALANCE SHEET TO SUPPORT GROWTH • Successfully refinanced the balance sheet – proceeds Debt capital structure and liquidity (US$ million)* used to repay and cancel existing indebtedness Debt facilities Drawn down US$100m • Previous US$300 million RCF refinanced with a
Slide 16: Conclusions
CONCLUSIONS A WELL CAPITALISED, EXPERIENCED INDIGENOUS OPERATOR IN AFRICA’S MOST PROLIFIC OIL & GAS OPPORTUNITY SET • H1 2018 results demonstrate ability to generate strong cash flow and profitability from the asset base • On track to deliver 2018 production guidance in both oil and gas. The gas bus
Slide 17: Q&A
Q&A 2018 HALF YEARLY RESULTS 17 2018 HALF YEARLY RESULTS
Slide 18: Head Office and London Office
Head Office Seplat Petroleum Development Company Plc Address: 25A, Lugard Avenue, Ikoyi, Lagos, Nigeria. Phone: +234 (0)1 277 0400 Email: info@seplatpetroleum.com ir@seplatpetroleum.com Web: www.seplatpetroleum.com London Office Seplat Petroleum Development Company Plc Address: 4th Floor, 50 Pall Ma
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