Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — H1 2019 Earnings Presentation
19 slides from Seplat Energy's earnings presentation, Jul 30, 2019
Slide 1: 2019 Half Yearly Results - 30 July 2019
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
Slide 2: Important Notice - Disclaimer
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 2019 HALF YEARLY RESULTS Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 4: Well positioned to build, grow & deliver value
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
Slide 5: Operations update
Operations update Effiong Okon - Operations Director 5 2019 HALF YEARLY RESULTS Seplat Petroleum Development Company Pl c | www. seplatpetroleum.com
Slide 6: H1 2019 working interest production & FY 2019 guidance
H1 2019 WORKING INTEREST PRODUCTION & FY 2019 GUIDANCE UNDERPINNED BY A STRONG PLATFORM OF PRODUCING FIELDS boepd 60,000 FY 2019 guidance range 49,000-55,000 boepd • Average working interest Oil production Gas production production for H1 2019 stood at 48,004 boepd 49,867 50,000 48,004 (H1 2018: 51,
Slide 7: H1 2019 activities and H2 2019 outlook
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 • Sape
Slide 8: 2019 work programme summary
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 01 Sapele 02 Sapele 03 Sapele 04 Mosogar Ovhor 06 Appraisal Oghareki Sapele 29 Ovhor 01 Oben Ovhor 02 re-entry
Slide 9: Finance update
Finance update Roger Brown - Chief Financial Officer 9 2019 HALF YEARLY RESULTS Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 10: H1 2019 financial dashboard
H1 2019 FINANCIAL DASHBOARD SEPLAT HAS DELIVERED EXCELLENT FINANCIAL OUTCOMES Profitability sustained Strong cash generation EBITDA US$120 million US$255 million US$224 million (Profit before tax) (Cash flow from operations) H1 2018: US$121 million H1 2018: US$245 million H1 2018: US$229 million Low
Slide 11: H1 2019 financial summary
H1 2019 FINANCIAL SUMMARY A PROFITABLE BUSINESS WITH STRONG CASH FLOW GENERATION AND ROBUST BALANCE SHEET US$ million H1 2019 H1 2018 change H1 2019 H1 2018 Revenue 355 342 4% Gross Oil Sales 216 257 Gas sales and tolling 139 85 Cost of sales (148) (168) (12)% Total Revenue 355 342 Gross profit 207
Slide 12: AGPC – Funding update
AGPC – FUNDING UPDATE SIMPLE STRUCTURE DRAWING ON SEPLAT BRAND AND PARTNERS TO COVER US$700 MILLION DEVELOPMENT COST EQUITY: ANOH DECONSILIDATED FROM SEPLAT TO AGPC PROPOSED FINANCE STRUCTURE Q1 Q2 Q3 TOTAL 2019 2019 2019 TOTAL PENDING NGC US$100 m US$50 m US$60 m US$150 m US$60 m Seplat Plc NGC SEP
Slide 13: Cash reconciliation – H1 2019
CASH RECONCILIATION – H1 2019 STRONG FREE CASH FLOW GENERATION AND DILIGENT MANAGEMENT OF GROUP LIQUIDITY 900 28 800 255 154 700 17 103 600 10 585 100 US$ million 500 Hedging strategy aimed at 29 400 providing cash flow assurance 433 • FY 2019 hedging – 4.00 MMbbls at US$50.0/bbl 300 200 100 0 Cash
Slide 14: Stepping up capital expenditures in H2 2019
STEPPING UP CAPITAL EXPENDITURES IN H2 2019 SEPLAT’S CAPEX REMAINS DISCRETIONARY WITH THE FLEXIBILITY TO “DIAL UP” OR “DIAL DOWN” SPEND AS APPROPRIATE 350 2019 CAPEX GUIDANCE REVISED TO US$150 MILLION • Decision taken to defer exploration/appraisal wells in favour of focusing on short term productio
Slide 15: Underpinned by a robust capital structure
UNDERPINNED BY A ROBUST CAPITAL STRUCTURE DISCIPLINED ALLOCATION OF CAPITAL WITH FURTHER DELEVERAGING IN Q1 2019 DIVERSE CAPITAL STRUCTURE & HEADROOM TO FUND GROWTH CURRENT DEBT MATURITY PROFILE (US$ MILLION) Debt facilities US$ million Drawn down US$ million Senior Notes 300 RCF Currently Undrawn 3
Slide 16: Conclusion
Conclusion Austin Avuru - Chief Executive Officer 16 2019 HALF YEARLY RESULTS Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 17: Outlook
OUTLOOK A COMPELLING COMBINATION OF FACTORS TO MAKE SEPLAT A NIGERIAN SUCCESS STORY DIVIDEND YIELD VISIBILITY ON MORE THAN DOUBLING for shareholders size and financial contribution of gas business DIVERSIFICATION of oil export routes and asset base STEP CHANGE potential from SUCCESSFUL acquisition o
Slide 18: Questions & Answers
Questions & Answers 2019 Half Yearly Results Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 19: 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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