Investor Presentaiton
H1 2020 FINANCIAL RESULTS
A profitable business with strong cash flow generation and a robust balance sheet
$ million
H1 2020
H1 2019
Total revenue
233.6
355.1
Cost of sales
(195.9)
Gross profit
37.7
(148.0)
207.0
Change
(34.2%)
32.9%
> H1 2020 results reflect contribution of Eland, acquired at the end of Q4 2019
> Lower oil revenues reflect price falls in Q2; average price of $34.94 achieved
across H1 with a low of $17.50
G&A
(47.6)
(42.1)
Other income
51.4
8.6
(81.8%)
13.2%
496%
Impairments
(160.9)
(40.1)
301%
Operating profit/(loss)
(112.9)
139.1
Net finance costs
(34.8)
(18.9)
(181.2%)
84.2%
(Loss)/Profit before tax
(145.3)
120.4
Tax credit / (expense)
35.1
(1.4)
(220.7%)
(2565%)
(Loss)/Profit after tax
(110.2)
119.0
(193%)
Capital investment
86.0
28.1
206%
Cash flow from operations
176.2
255.2
(31%)
NPDC receivables (vs. 31/12/19)
174.4
222.3
21.6%
> H1 2020 gas sales did not include tolling (H1 2019: $67m); $2.88/Mscf achieved
> In cost of sales, royalties, crude handling and DDA now includes consolidated
amounts from Eland, including US$10.7m barging costs, but reduction in barging
costs will be felt in H2
› Operating expenses include impact of Eland consolidation, IAS36 impairment on
assets to reflect the impact of oil price decline $146m in Q1 2020, and $14.8m
impairment of financial assets
> H1 2020 finance cost is made up of interest repayments impacted by interest on
additional $350m RCF in December and consolidation of Eland finance cost
compared to H1 2019
> Hedging: FV gain on hedge due to significantly low oil prices
> Tax expense: H1 2020 contains a deferred tax credit of $39m and a tax charge
of $3.9m
> Capex for H1 2020 includes mainly costs for ramped up activities on Ovhor wells,
Sapele and Gbetiokun oil wells, Oben-48 gas well, Sapele gas plant project and
other projects
> Good relationship with NPDC drives fall in receivables
45 SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | INVESTOR PRESENTATIONView entire presentation