Seplat to grow domestic gas market for profitability

Seplat Petroleum Development Company Plc said it will focus on expanding its domestic natural gas business to improve on its profitability.

Briefing newsmen at the company’s 2017 Annual General Meeting (AGM) held in Lagos, yesterday, the chairman of Seplat, Ambrose Orjiako explained that the company made good progress as it focused on key priority to de-risk future cash flows through diversification of oil export routes, invest in and scale up its domestic gas business.

He said the company control about 30 per cent of domestic gas market and that gas was a key driver underlining Seplat’s gas domestication strategy and demonstrating the robustness of gas source of growth and diversification, as well as delivering a much-needed reliable supply of gas to the Nigerian power sector.

Orjiako stated that following repeated disruption to the TransForcados export route, the company is now focused on providing multiple export routes.

He said in 2017, it completed repairs and upgrades on two jetties at the Warri refinery that will enable sustained exports of 30,000 barrels per day (bpd) from 15,000 bpd.

Seplat announced a return to full year profitability in 2017 with a profit before tax of $44 million; in the third and fourth quarters, it stood at $24m and $26m respectively.

Chief executive officer of company, Austin Avuru, explained that in the first half of 2017, the company was plagued by force majeure at the Forcados terminal but with the management proactive it emerged to a much fitter and stronger business that is well equipped to deliver long-term value for its shareholders.