We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Seplat Energy Plc | LSE:SEPL | London | Ordinary Share | NGSEPLAT0008 | ORD NGN0.50 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.40 | 0.28% | 144.80 | 144.40 | 144.80 | 145.00 | 144.40 | 144.60 | 71,394 | 16:19:53 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Oil & Gas Field Services,nec | 696.87B | 54.58B | 92.7479 | 0.02 | 1.08B |
TIDMSEPL
RNS Number : 3453V
SEPLAT Petroleum Development Co PLC
08 April 2019
8 April 2019
Seplat Petroleum Development Company Plc
2018 Annual Report and Notice of AGM
Seplat Petroleum Development Company Plc ("Seplat" or the "Company") confirms it has today published its Annual Report and Accounts for the year ended 31 December 2018 together with the notice of the Company's sixth Annual General Meeting ("AGM") and forms of proxy. The Company will hold its AGM at 11:00am (local time) on Thursday 16 May 2019 at the Civic Centre, Ozumba Mbadiwe Road, Victoria Island, Lagos, Nigeria.
In accordance with Listing Rule 14.3.6 copies of the Company's Annual Report and Accounts for the year ended 31 December 2018, the Notice of AGM and proxy forms have also been submitted to the FCA for publication through the document viewing facility of the National Storage Mechanism and will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM
In accordance with Disclosure Guidance and Transparency Rule ("DTR") 6.3.5R(3), copies are available on the Company's website, www.seplatpetroleum.com
The Company's audited financial statements and extracts of the management report, were included in the Company's Final Results announcement on 6 March 2019. That information, together with the Appendices to this announcement, which contains the following additional information that has been extracted from the 2018 Annual Report, constitutes the material required for the purposes of compliance with DTR 6.3.5 only:
-- the Statement of Directors' Responsibilities; -- a description of principal risks and uncertainties that the Company faces; and -- related party transactions.
This announcement should be read in conjunction with and is not a substitute for reading the full 2018 Annual Report. Page and note references in the text below refer to page numbers and notes in the 2018 Annual Report and terms defined in that document have the same meanings in these extracts.
Enquiries
Seplat Petroleum Development Company plc Roger Brown, CFO +44 (0) 203 725 6500 Andrew Dymond, Head of Investor Relations Ayeesha Aliyu, Investor Relations +234 (01) 277 0400 Chioma Nwachuku, GM - External Affairs and Communications FTI Consulting Ben Brewerton / Sara Powell +44 (0) 203 727 1000 seplat@fticonsulting.com
Notes to editors
Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange ("LSE") (LSE:SEPL) and Nigerian Stock Exchange ("NSE") (NSE:SEPLAT).
Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds. For further information please refer to the company website, http://seplatpetroleum.com/
Appendices
Appendix A: Statement of Directors' responsibilities
The following Statement of Directors' responsibilities is extracted from the 2018 Annual Report and Accounts (page 114).
The Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004, requires the Directors to prepare financial statements for each financial year that give a true and fair view of the state of financial affairs of the Group at the end of the year and of its profit or loss. The responsibilities include ensuring that the Group:
1. keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Group and comply with the requirements of the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004;
2. establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and
3. prepares its financial statements using suitable accounting policies supported by reasonable and prudent judgements and estimates, consistently applied.
The Directors accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards (IFRS), the requirements of the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004 and Financial Reporting Council of Nigeria Act, No. 6, 2011.
The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Group and of its financial performance and cash flows for the year. The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control.
Nothing has come to the attention of the Directors to indicate that the Group will not remain a going concern for at least twelve months from the date of this statement.
Signed on behalf of the Directors by:
A.B.C Orjiako Austin Avuru
Chairman Chief Executive Officer
FRC/2014/IODN/00000003161 FRC/2014/IODN/00000003100 6 March 2019 6 March 2019
Appendix B: Principal risks and uncertainties
The following principal risks and uncertainties table is extracted from the 2018 Annual Report and Accounts (pages 48 to 51).
The implementation of our strategy can be hindered by various risks and uncertainties. The risks that the Board considers most significant are described here.
Key risk Description Mitigation KPI/Performance Strategic Assessment Trend metric pillars Operational risks Field Failure Focus on risk High We continue operations to manage management * Net working interest production to refine and project operational at planning phase our project deliverability activities and mitigation management in line plans activated. * Operating costs per boe approach with planned Compulsory for improved expectations 'peer-to-peer' speed of can lead review for delivery to production high-value and misses, projects and efficiency project better delays project and cost management overruns, techniques. high production Protracted costs and land acquisition, earlier preparation and than expected rig startup have field been contributory decommissioning. factors which have received focused attention and significant process improvements and improved communications with JV partner and approving regulators to mitigate delays. Use of smart/intelligent wells to improve recovery and improved rig performance monitoring and reporting to manage NPTs. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Third An over-reliance Work is ongoing Very Remarkably party on third to secure a * Net working interest production high improved
infrastructure party operated second uptime downtime transportation export line to of Forcados infrastructure complement * Days downtime export can expose Forcados. system the Company Export via and progress to extended barging * EBIT made towards periods is also retained completing of production to do limited Amukpe being shut-in. volumes - Escravos in extreme cases. exportline Have two as contingency alternative tanks in Amukpe for partial storage during shut-in over shorter periods. More tanks are planned. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- HSSE Oil and Deployment of an High Though gas activities HSSE Management * HSSE scorecards the risk carry significant System in line is inherent, levels with best we will of HSSE practices. * LTIF continue risks if Monitoring and to deploy not properly reporting of HSSE our HSSE managed. performance * TRIR risk As activity scorecards management levels at management and in line continue Board levels. Our with best to increase HSSE systems and practices there is process are and with a strong subject strong focus on to independent emphasis preventing review and on major identified prevention. environmental, improvement health initiatives or safety are deployed. incidents. Continual focus on HSSE training and initiatives on incidence prevention. Emergency Response plan set for any eventuality and comprehensive Incident Review panels to identify and channel lessons learnt to improvement activities. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Sustained Exploration Strict compliance Very Reduced E&A programme and appraisal with reservoir * Reserve replacement high E&A failure activities management activities. carry significant guidelines. Will monitor levels Building internal the outcomes of subsurface capacity with as E&A risk. Sustained skilled activities E&A drilling subsurface ramp up. failure expertise. will impact the Company's ability to organically replace reserves and production. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- External risks Niger The Company Continuous Very Significant Delta operates security * LTIF high drop in stability in a region monitoring and targeted and security where security intelligence oil and incidents work. * TRIR gas such as Quick mechanism facilities kidnappings, for security attacks vandalism advisory * Security incidents in the and criminal to staff and region attacks movement in 2018. on O&G restriction for We will installations high alert continue can occur. situations. our Active monitoring
participation and in industry vigilance. pressure groups to find lasting solution. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Failure Failure Successful High We continue to manage to manage operation * Net working interest production to enjoy stakeholder stakeholders of the GMOU good working relationships can result agreement relations in business with host * LTIR with our disruptions communities, stakeholders. and interference. periodic The Company engagement * TRIR prioritises and feedback the effective forums. management Tailored CSR * Host community incidences of relationships programmes, with all capacity building stakeholders and including infrastructure host communities, developments with JV partners, the host government, communities. regulatory Organisational bodies focus and clear and shareholders. strategy to deliver shareholder value pursued by the Board and management. Corporate governance, transparency and proactiveness in dealings with regulators and JV partners. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Geo-political Nigeria Scenarios and High With risk has at response * Occurrences of civil unrest and terrorism elections times in options plan set. in 2019, its history Crisis management we will faced political team in place for continue uncertainties high alert to monitor and threats political situations such as periods. Business closely. terrorism continuity plans aimed at actioned in light de-stabilising of current and undermining geo-political the orderly situation. and effective rule of central government. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Financial risks Oil price Oil prices Hedging continues Very Though volatility have exhibited to be our price * Realised oil price high oil price a history risk management rallied of volatility tool. Price to above and can sensitisation * Operating cash flow $80 in fluctuate on project 2018, we sharply economics will continue in line and cost to take with external discipline hedge factors for capital positions projects and apply sanctioning. cost Aggressive reduction focus on cost strategies. reduction. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Changes If the Perform High PIB is to tax tax evaluation * Effective tax rate going through status regime/legislation of business plan legislative and under which and performance process. legislation the Company metrics exclusive * Tax status Versions operates of tax benefits. in its assets Project economics circulation were to were determined do not change, on maximum tax have profitability basis to mitigate significant may be the impact of the impact impacted. now expired on Seplat pioneer valuation. tax status. Impact assessment of potential tax legislature monitored at Board level. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Availability The oil Working on High JV partners
of capital and gas different * JV receivables cash calls industry funding are now is highly arrangements on time capital with JV partners. * Capex and legacy intensive. Board review and cash call Significant approval of receivables amounts financial * New M&A activities have been of capital strategy and debt cleared. are required portfolio to continue management development with strong activities banking and fund relationships M&A. Non funding of cash calls by JV partners impacts activities and liquidity. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Ineffective Cost reduction Comprehensive High Cost cost remains budgeting * Operating cost per boe discipline control central process approved remains to the by the joint key focus Company's venture * EBIT of the current partner and the business. operating Board. Clear cost strategy. management * Capex High operating targets. cost and Grading of ineffective portfolio * Well costs capital opportunities and cost control project ranking negatively for capital impact allocation. operating Focus on reducing cash flows drilling costs and profitability. at well design phase. Cost monitoring and periodic reporting. Focus on effective contracting strategies for cost reduction. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Liquidity Liquidity Manage liquidity High Improved risk is risk by ensuring * Operating cash flow uptime the risk that sufficient of TFP; that the funds are improved Company available * Capex JV cash will not to meet call payment; be able commitments oil price to meet as they fall due. rally; its financial Uses both and debt obligations long-term refinance as they and short-term have all fall due. cash flow greatly projections improved to monitor liquidity funding risk. requirements for activities and to ensure there are sufficient cash resources to meet operational needs. Cash flow projections take into consideration the Company's debts and covenant compliance. Surplus cash held is transferred to the treasury department which invests in interest bearing current accounts, time deposits and money market deposits. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Foreign The Company The Company has High Historically, exchange is exposed options to manage * Operating cash flow the Company to exchange its foreign holds rate risk exchange majority to the exposure * Capex of its extent including cash and that balances financial hedge cash and transactions instruments such equivalent are denominated as forward in US dollar. in a currency exchange Gas contracts other than contracts. are indexed the US in US dollar. dollar. However,
the Naira may be devalued post elections. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Strategic risks Portfolio High dependency Focus on Very The Company concentration on a concentrated portfolio * Successful execution of new acquisition and farm-in high is in risk portfolio expansion opportunities portfolio of producing strategy expansion blocks from the Board phase. and limited level to number diversify of wells current can leave portfolio. the Company Integrated more susceptible long-term to declining planning on crude long-term oil and gas growth business. and reserves depletion. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Merger Growth New business Very DRB process & Acquisition through development * Successful execution of new acquisition and farm-in high in place ('M&A') M&A activities unit is always opportunities to vet risk is part looking for the opportunities of Seplat's right and deals. strategy opportunities But current to pursue for Seplat. M&A landscape a focused Decision is acquisition review board competitive. and farm-in. (DRB) M&A deals process is in and transactions place come with to ensure deals significant are properly risk including vetted structural, and adequate due commercial diligence done and integration on new risks. opportunities. There is The DRB ensures also the the commercial, risk of structural, KYC non achievement and integration of acquisition risks are fully targets considered and due to addressed with highly mitigation plan competitive approved and in landscape. place prior to deal closin ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Bribery Bribery Extensive High As and corruption and corruption training * Whistleblowing reports geographical risk presents on anti-bribery location a risk and corruption. continues throughout Embedding * Number of disciplinary cases to be the global corporate susceptible oil and governance to gas industry principles corruption. and represents with key focus an ongoing on areas of the risk to business which any oil may be more and gas susceptible company. to corruption such as the contracting and procurement process. Processes exist to guide dealings with public officials. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Loss The oil Annual benchmark Low Remains of key and gas reviews to ensure * Staff turnover low risk employees industry competitiveness for the is very in reward and Company. specialised recruitment. in certain Succession areas and planning there is in place as part competition of business within continuity. the industry Focus on training to secure as a key talent differentiating and highly-skilled factor in the and experienced operating personnel environment. in core areas ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Fraudulent Fraudulent Extensive High Risk is activity activity whistleblowing * Number of reported cases still high risk presents campaign. and the a risk Continuous Company throughout monitoring and continues the global improvement of to maintain oil and the system of a zero gas industry internal tolerance and represents controls by all policy.
an ongoing lines of defence risk to with strong any oil internal and gas audit activity. company. Automation of processes where possible to reduce manual intervention. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- -------------- Information Potential We monitor and Medium While cyber security cyber attacks regularly upgrade * Information security identification and containment security risk and information the Company's reports continues technology information to hold security technology and international breaches security systems. attention, could result The Company has there has in loss a clearly defined not been or compromise employee user a material of sensitive policy IT breach proprietary and control of on our information, access rights. operations. communication Our information and IT security business framework continuity and disruption infrastructure across have been operations. externally reviewed in line with the requirements of ISO 27001. IT business continuity plan is in place for quick deployment. ------------------- ------------------ ---------------------------------------------------------- ---------- ----------- --------------
Appendix C: Related Party Transactions
The following Related party relationships and transactions are extracted from the 2018 Annual Report and Accounts (pages 177 to 179)
37 Related party relationships and transactions
The Group is controlled by Seplat Petroleum Development Company Plc (the parent Company). The parent Company is owned 7.81% either directly or by entities controlled by A.B.C. Orjiako (SPDCL(BVI)) and members of his family and 12.04% either directly or by entities controlled by Austin Avuru (Professional Support Limited and Platform Petroleum Limited). The remaining shares in the parent Company are widely held.
37a Related party relationships
The services provided by the related parties:
Abbeycourt Trading Company Limited: The Chairman of Seplat is a director and shareholder. The company provides diesel supplies to Seplat in respect of Seplat's rig operations.
Cardinal Drilling Services Limited (formerly Caroil Drilling Nigeria Limited): Is owned by common shareholders with the parent Company. The company provides drilling rigs and drilling services to Seplat.
Charismond Nigeria Limited: The sister to the CEO works as a General Manager. The company provides administrative services including stationery and other general supplies to the field locations.
Helko Nigeria Limited: The Chairman of Seplat is shareholder and director. The company owns the lease to Seplat's main office at 25A Lugard Avenue, Lagos, Nigeria.
Keco Nigeria Enterprises: The Chief Executive Officer's sister is shareholder and director. The company provides diesel supplies to Seplat in respect of its rig operations.
Montego Upstream Services Limited: The Chairman's nephew is shareholder and director. The company provides drilling and engineering services to Seplat.
Stage Leasing (Ndosumili Ventures Limited): Is a subsidiary of Platform Petroleum Limited. The company provides transportation services to Seplat.
Neimeth International Pharmaceutical Plc: The Chairman of Seplat is also the chairman of this company. The company provides medical supplies and drugs to Seplat, which are used in connection with Seplat's corporate social responsibility and community healthcare programmes.
Nerine Support Services Limited: Is owned by common shareholders with the parent company. Seplat leases a warehouse from Nerine and the company provides agency and contract workers to Seplat.
Oriental Catering Services Limited: The Chief Executive Officer of Seplat's spouse is shareholder and director. The company provides catering services to Seplat at the staff canteen.
ResourcePro Inter Solutions Limited: The Chief Executive Officer of Seplat's in-law is its UK representative. The company supplies furniture to Seplat.
Shebah Petroleum Development Company Limited ('BVI'): The Chairman of Seplat is a director and shareholder of SPDCL (BVI). The company provided consulting services to Seplat.
The following transactions were carried by Seplat with related parties:
37b Related party transactions
Year-end balances arising from related party transactions:
2018 2017 2018 2017 million million US$ US$ '000 '000 -------------------------------------------------- --------- --------- -------- -------- Shareholders of the parent Company SPDCL (BV) 333 413 1,088 1,350 -------------------------------------------------- --------- --------- -------- -------- Total 333 413 1,088 1,350 -------------------------------------------------- --------- --------- -------- -------- Entities controlled by key management personnel: Contracts > $1million in 2018 Nerine Support Services Limited* 2,335 2,161 7,627 7,066 Cardinal Drilling Services Limited 621 1,001 2,029 3,272 Helko Nigeria Limited - 444 - 1,453 Abbey Court Trading Company Limited 334 199 1,090 650 Stage Leasing (formerly Ndosumuli Venture Limited) 434 171 1,419 560 -------------------------------------------------- --------- --------- -------- -------- 3,724 3,976 12,165 13,001 -------------------------------------------------- --------- --------- -------- -------- Contracts < $1million in 2017 Montego Upstream Services Limited 24 131 79 427 Oriental Catering Services Limited 199 159 650 520 Keco Nigeria Enterprises 78 110 254 361 ResourcePro Inter Solutions Limited 3 9 9 31 Neimeth International Pharmaceutical Plc - 1 - 2 Charismond Nigeria Limited 23 17 74 55 -------------------------------------------------- --------- --------- -------- -------- 327 427 1,066 1,396 -------------------------------------------------- --------- --------- -------- -------- 4,051 4,403 13,231 14,397 -------------------------------------------------- --------- --------- -------- --------
1 Nerine on average charges a mark-up of 7.5% on agency and contract workers assigned to Seplat. The amounts shown above are gross i.e. it includes salaries and Nerine's mark-up. Total cost for agency and contracts during 2018 is 0.2 billion, 2017: 1.4 billion ($0.6 million, 2017: $4.6million).
37c Balances
The following balances were receivable from or payable to related parties as at the end of the year:
2018 2017 2018 2017 million million US$ '000 US$ '000 --------------------------------------- --------- --------- ---------- ---------- Entities controlled by key management personnel Cardinal Drilling Services Limited - current portion 1,495 1,681 4,869 5,498 Montego Upstream Services Limited 8 - 26 - ResourcePro Inter Solutions Ltd 2 - 6 - --------------------------------------- --------- --------- ---------- ---------- 1,505 1,681 4,901 5,498 --------------------------------------- --------- --------- ---------- ---------- 2018 2017 2018 2017 million million US$ '000 US$ '000 --------------------------------------- --------- --------- ---------- ---------- Entities controlled by key management personnel Montego Upstream Services Limited - 115 - 375 Nerine Support Services Limited - 2 - 8 Keco Nigeria Enterprises 19 8 61 25 Oriental Catering Services Ltd 14 - 47 Cardinal Drilling Services Limited - 292 - 954 Abbey Court Trading Company Limited 9 - 28 Charismond Nigeria Limited - - 1 Stage Leasing Limited 13 - 43 --------------------------------------- --------- --------- ---------- ---------- 55 417 180 1,362 --------------------------------------- --------- --------- ---------- ----------
The outstanding balances payable to/receivable from related parties are unsecured and are payable/receivable in cash.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
NOABUGDSCSGBGCU
(END) Dow Jones Newswires
April 08, 2019 02:01 ET (06:01 GMT)
1 Year Seplat Energy Chart |
1 Month Seplat Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions