Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — FY2015 Earnings Presentation
27 slides from Seplat Energy's earnings presentation, Mar 24, 2016
Slide 1: 2015 Full Year Results
2015 FULL YEAR RESULTS 24 MARCH 2016 1 2015 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 2015 FULL YEAR RESULTS
Slide 4: 2015 Highlights
2015 HIGHLIGHTS DELIVERING ON WHAT IS IN OUR CONTROL OPERATIONAL FINANCIAL STRATEGIC 2P working interest Profitability maintained in 2015, Acquired interests in OML 53 reserves up +71% albeit at lower levels and OML 55 480 W.I 2P Profit 6 reserves 252 before Number 4 281 MMboe tax of blocks 87 US$MM
Slide 5: 2016 Outlook
2016 OUTLOOK STRONG FUNDAMENTALS REMAIN AND LONG TERM POTENTIAL GREATLY ENHANCED • 2016 started strongly with working interest production averaging 30,340 bopd and 130 MMscfd (equivalent to 52,133 boepd) up to mid February when the Forcados terminal was shut-in - The terminal remains shut-in and oil
Slide 6: Operations Update
OPERATIONS UPDATE STUART CONNAL – COO 6 2015 FULL YEAR RESULTS
Slide 7: Track Record of Consistent Production Growth
TRACK RECORD OF CONSISTENT PRODUCTION GROWTH UNDERPINNED BY A STRONG PLATFORM OF PRODUCING FIELDS Average daily working interest production excluding unbudgeted downtime 50,000 • Average working interest production in 2015 Gas production 43,372 boepd (+41% year-on-year and ahead of 45,000 Oil & Cond
Slide 8: Reserves and Contingent Resources at 31/12/15
RESERVES AND CONTINGENT RESOURCES AT 31/12/15 A SIGNIFICANT RESERVE AND RESOURCE BASE OFFERS GOOD FUTURE GROWTH POTENTIAL TOTAL WI 2P RESERVES (MMboe) TOTAL WI 2P OIL RESERVES (MMbbls) TOTAL WI 2P GAS RESERVES (Bscf) 17 173 OML 4, 38,41 OML 4, 38,41 480 209 Oil 53 209 Pillar 1,573 786 Pillar MMbbls
Slide 9: Reserves Movement Year-on-Year and Contingent Resources
RESERVES MOVEMENT YEAR-ON-YEAR AND CONTINGENT RESOURCES A SIGNIFICANT RESERVE AND RESOURCE BASE OFFERS GOOD FUTURE GROWTH POTENTIAL YEAR-ON-YEAR MOVEMENT IN WI 2P RESERVES (MMboe) TOTAL WI HYDROCARBON RESERVES & RESOURCES 578 MMBOE 500 600 450 Gas Liquids 41 400 184 98 350 57 15 2 500 300 28 250 480
Slide 10: Track Record of Consistent Reserves Growth
TRACK RECORD OF CONSISTENT RESERVES GROWTH SINCE 2010 SEPLAT HAS CONVERTED 100 MMBBLS OIL AND 79 MMBOE GAS FROM 2C RESOURCES TO 2P RESERVES WI 2P RESERVE GROWTH (MMBOE) WI 2P OIL RESERVE BASE 2010 – 2015 (MMBBL)(1,2) WI 2P GAS RESERVE BASE 2010 – 2015 (MMBOE)(1,2) 2010 – 2015 CAGR: 28% 2010 – 2015 C
Slide 11: OMLs 4, 38 & 41 and Pillar (OPL 283) Work Programme
OMLs 4, 38 & 41 AND PILLAR (OPL 283) WORK PROGRAMME EFFICIENT PROJECT DELIVERY AND OPTIMISATION OF PRODUCTION OPERATIONS Drilling & seismic • Completed 8 new development wells in 2015 – 4 gas wells and 4 oil wells; also completed 1 oil well work-over • In 2016 work-over and convert Sapele-4 to water
Slide 12: Oben Gas Plant Expansion
OBEN GAS PLANT EXPANSION SEPLAT IS A KEY SUPPLIER OF GAS TO THE DOMESTIC MARKET AND UNDERPINS SIGNIFICANT POWER GENERATION • Installation and commissioning 25 work completed within five months • Takes current gross operated processing capacity to 300 MMscfd • Orders placed for 3 x 75 MMscfd processi
Slide 13: Gas Capacity and Contracted Volumes
GAS CAPACITY AND CONTRACTED VOLUMES COMMERCIALISING AND DEVELOPING A STRATEGIC RESOURCE GAS PLANTS CAPACITY AND CONTRACTED VOLUMES • Demand for sales gas continues to out-strip available supply 600 • Commercial pricing moving beyond US$3.50/Mscf Sapele • New and existing gas sales agreements such as
Slide 14: Nigeria's Key Domestic Gas Infrastructure Today
NIGERIA’S KEY DOMESTIC GAS INFRASTRUCTURE TODAY SEPLAT IS STRATEGICALLY WELL POSITIONED TO CAPITALISE ON FUTURE GROWTH OPPORTUNITIES IN THE GAS SECTOR 14 2015 FULL YEAR RESULTS
Slide 15: Planned Future Expansion of Domestic Gas Infrastructure
PLANNED FUTURE EXPANSION OF DOMESTIC GAS INFRASTRUCTURE GAS FIELDS KEY TO FUTURE SUPPLY IN THE WEST (INCLUDING OML 53) TO BE CONNECTED INTO THE OBEN HUB OMLs 4, 38, 41 Pillar (OPL 283) 1,951 Bscf gross 200 Bscf gross OML 53 1,700 Bscf gross OML 55 768 Bscf gross Note: Gas volumes stated are gross re
Slide 16: OML 53
OML 53 OML 53 IS CENTRAL TO OUR LONG TERM GAS STRATEGY AND ALSO OFFERS NEAR TERM OIL PRODUCTION UPSIDE Background • Holds the producing Jisike oil field and the undeveloped Ohaji South gas, condensate and oil field • Seplat designated operator; partnered with NNPC • Adds an estimated 138 MMboe of ne
Slide 17: OML 55
OML 55 FOCUS ON “QUICK WIN” OPPORTUNITIES TO ENHANCE PRODUCTION AND FORMULATE LONG TERM DEVELOPMENT STRATEGY Background • Holds five producing fields – Roberkiri, Inda, Belema North, Idama and Jokka • Seplat designated operator; partnered with NNPC • Adds approximately 47 MMboe of net working intere
Slide 18: 2016 Work Programme
2016 WORK PROGRAMME VALUE ADDING WORK PROGRAMME IN THE CURRENT LOW OIL PRICE ENVIRONMENT 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan OML 4 , 38 & 41 I Sapele 4 Ohaji South 3 Ohaji South 4ST OML 53 Umuseti East - 1 Pillar Oben Booster Oben AG Compression Ph 2 Ohaji OGPE South Pipeli
Slide 19: Finance Update
FINANCE UPDATE ROGER BROWN – CFO 19 2015 FULL YEAR RESULTS
Slide 20: Financial Summary
FINANCIAL SUMMARY 2015 PERFORMANCE REFLECTS LOW OIL PRICE ENVIRONMENT AND UNPLANNED 3 rd PARTY INFRASTRUCTURE DOWNTIME US$ million FY 2015 FY 2014 Y-o-Y Q3 2015 Q3 2014 Revenue 570 775 -26% Gross Oil Sales 444 778 Net hedging revenue 16 - Cost of sales (321) (316) +2% (Over)/Under-lift 34 (30) Gross
Slide 21: Cash Reconciliation
CASH RECONCILIATION UNDERPINNED BY A ROBUST CAPITAL STRUCTURE 1,400 62 1,200 194 122 1,000 137 313 71 72 800 US$ million 373 600 408 400 82 45 200 326 285 0 Cash 31 Dec Deposit for Return of Net proceeds Funds flow from Working capital PP&E Loan repayments Net interest Dividend Acquisition & Deposit
Slide 22: Capital Expenditures Incurred
CAPITAL EXPENDITURES INCURRED 2015 CAPEX OF US$152 MILLION SLIGHTLY BELOW GUIDANCE OF US$168 MILLION – DISCRETION MAINTAINED OVER SPEND 350 US$321 million 300 39 250 54 US$230 million 44 200 US$ million US$152 million 150 2016 FY guidance 69 US$130 million 59 228 66 100 29 117 50 44 64 20 0 FY 2016E
Slide 23: NPDC Receivables
NPDC RECEIVABLES PROGRESS MADE TOWARDS ADDRESSING THE NPDC RECEIVABLES BALANCE NPDC RECEIVABLE BALANCE AS AT 31 DECEMBER 2015 • Seplat entered into a signed agreement with US$ million NPDC in July 2015 for payment of arrears due to Seplat up to 31 December 2014 Opening balance at start year 463 • Pu
Slide 24: Capital Structure and Hedging
CAPITAL STRUCTURE AND HEDGING SUCCESSFUL DEBT REFINANCING IN 2015 UNDERSCORES THE QUALITY OF SEPLAT’S ASSET BASE AS AT 31 DECEMBER 2015 • Announced successful debt re-financing in January 2015 • US$700 million seven year term facility with Facility $ million Coupon Maturity local banks 7 year secure
Slide 25: Finance Summary
FINANCE SUMMARY A STRONG FOCUS ON FINANCIAL DISCIPLINE • Revenues impacted by 35% downtime in H1, but improved in H2 with downtime reduced to 6%. Gas revenues more prevalent in 2015 results and accounted for 14% of total revenues (2014: 3%). Gas revenues are de-linked to oil price • Flexibility of w
Slide 26: Q&A
Q&A 26 2015 FULL YEAR RESULTS
Slide 27: Head Office and London Office Contact Details
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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