Seplat Petroleum reports 34.2% reduction in H1 losses.

Half year results of Seplat Petroleum Development Company released on Thursday, has shown the company’s loss position for the half year period ended June, 2017, has reduced significantly by 34.2 per cent.

Although Seplat reported a loss after tax of N8.4 billion for the review period, the loss was about N4b lower than N12.8b reported as loss after tax in H1’2016.

Highlights of the results indicated that Revenue was up by 27.7 per cent to N40.3b from N31.6b in June, 2016.
Cost of sales was hiked by 41.9 percent to N23.9 billion from N16.9b reported one year ago.

Seplat’s gross profit thus grew at a rate of 11.4 per cent from N14.7b to N16.4 billion as at June 2017.

The financial results revealed that finance income reduced by over 95 percent to N270 million from N5.7 billion reported in the corresponding period of the previous year while finance cost soared 27.1 percent to N10.6b from N8.3b.

A loss before tax of N12.2b recorded in June 2016, consequently reduced by 33.7 percent to a loss after tax N8.1b in June 2017.

The company was levied with a tax of N342 million against N615 of the previous year representing a decline of 44.4 per cent.

The company’s statement of financial position showed Net assets was negatively impacted by 1.7 per cent. It fell to N369.8m from N376.4m recorded June, 2016.

Financial ratios compared to measure the financial strength of the oil company depicted declining profitable position.

Gross margin dropped from 46.6 percent to 40.7 per cent, net margin fell from a negative 40.6 percentage to a negative 20.9 per cent. While the percentage of cost to sales rose to 59.3 percent from 53.4 per cent recorded for 2016 half year.

Seplat is an independent indigenous Nigerian upstream exploration and production company with a focus on Nigeria.