DROK ENERGY JOURNAL: SEPLAT First Quarter Pre-tax Profit by Dr Wole Kupolokun

It seems the low crude oil prices and pipeline persistent pipeline vandalism in Nigeria have had a tremendous effect on SEPLAT. Reuters notes that the company posted a 47 percent drop in first quarter pre-tax profit. The oil and gas exploration firm said its oil price during the first three months to end-March averaged $52.8 per barrel, booking a premium of $1.52 per a litre, compared with $112.9 bbl a year earlier.

Seplats' shares fell 5.6 percent on the London stock market to 129.25 pence, while the shares were flat in Lagos at 370 naira but have dropped by 36 percent since listing last April. "Whilst we continue to deal with the challenges presented by the lower oil price environment ... we are excited about the numerous growth opportunities available to us," Seplat CEO Austin Avuru said in a statement.

The shut-down of the Trans Forcados pipeline for 25 days is indicated as a main catalyst for the drop in profit as revenues fell by 10.3% to $131 million. The company however note that they have completed a $1 Billion refinancing deal of their debt facilities.

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