25th Jan 2016 09:42
LONDON (Alliance News) - Seplat Petroleum Development Co PLC on Monday said a challenging year for the oil industry hit its revenue, but that its work with gas production could provide a buffer.
The Nigerian oil company said 2015 saw revenue drop to between USD550 million and USD600 million, versus last year's USD775 million, and said with a growing consensus that low oil prices would continue, the company would be looking at ways to maximise profitability.
It pointed to its revenue stream from gas, which looked set to grow from the company's rising production. Gas output was up 11% year-on-year in 2015.
Working interest production rose to 43,372 barrels of oil equivalent per day, ahead of the company's guidance of 32,000 to 36,000 barrels of oil equivalent per day. Total production comprised of 68,825 barrels of liquids and 192 million standard cubic feet of gas.
The company said it would be pursuing cost reductions and optimising operations in a bid to strengthen its balance sheet.
"Production strength, with past investment strategies translating into the up-tick in output, provides some cushion to lower oil pricing and our gas business takes on additional importance by providing a revenue stream that is de-linked to the oil price together with revenue continuity in the event of disruptions to third party oil export infrastructure," said Chief Executive Austin Avuru.
Seplat shares were down 0.8% at 60,.00 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Seplat Energy