Seplat Records 278.7% Net Profit Growth, EPS Rises To N143.96

Directors of Seplat Petroleum Development Company Plc, on Wednesday gave investors reasons to cheer, as all of its major indicators for the year ended December 31, 2017 were green, with profit after tax growing significantly faster than revenue for the period, leaving a robust N143.96 Earnings Per Share (EPS), compared with the N79.73 loss in the corresponding period of 2016.

According to the result presented to the Nigerian Stock Exchange (NSE), the company’s revenue grew by N74.897bn or 118.16% from N63.384bn in 2016 to N138.281bn; while cost of sales jumped 55.95% up to N73.314bn, as against N47.076bn in the preceding full year; leaving a gross profit of N64.867bn, which was 297.76% better than the N16.308bn reported the year before.
General and administrative expenses for the year however dropped by 16.55% from N30bn to N25.037bn; just as net gains on foreign exchange stood at N209m, as against the previous N28.684bn loss.
Fair value loss for the period rose from N2.782bn to N5.663bn; bringing operating profit to N34.376bn, which was 176.48% better than the N44.949bn loss in 2016.

Finance income however dropped by 91.61% from N15.8bn to just N1.326bn; while finance costs ballooned to N22.248bn from N18.27bn.
Profit before tax stood at N13.454bn, from the previous N47.419bn loss; while a tax rebate of N67.657bn, compared to the N2.035bn in 2016, resulted in profit after tax of N81.111bn; compared to the loss of N45.384bn, representing a 278.72% growth. Net profit for the period translated to EPS of N143.96, compared to the N79.73; just as net profit margin stood at 58.66%, the highest so far, compared to a 71.6% contraction.

Meanwhile, the company also on Wednesday announced the launch of its 5 or 7-year US$ denominated Regulation S/144 A senior notes offering to be issued and which would guaranteed by certain of its subsidiaries.
“Proceeds of the Notes will be used to refinance existing indebtedness and for general corporate purposes,” according to Roger Brown, its Chief Financial Officer.

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