Earnings Update- SEPLAT: 9M 2019.

For the third time this year, SEPLAT has missed its production and revenue targets. 9M:2019 topline was down by 12.57% Y-o-Y to NGN151.88bn (9M:2018: NGN173.71bn). Standalone Q3:2019 revenue printed at NGN42.91bn, weaker by 37.74%, compared to NGN68.92bn at this time last year. At the start of the year, SEPLAT had put out guidance of 24kbpd – 27kbpd for oil and 146MMscfd – 164MMscfd for gas, but has only achieved 23,658bpd for oil and condensates (vs. 25,286bpd in H1:2018) and 136MMscfd (vs. 155MMscfd last year) for gas, YtD. The company is facing operational challenges with its efforts to mobilize rigs to the site. On the back of an impending global glut in 2020 and weak demand growth, oil and gas prices have also largely underperformed; during the period, average oil price was down to USD64.22pb (9M2018: USD71.14pb) while gas was also discounted to USD2.80/Mscf (9M2018: USD3.06/Mscf). Consequently, the Crude Oil segment floundered – revenue from the segment is down 26.53% to NGN99.08bn, while gas sales similarly tumbled; down by 16.97% to NGN32.23bn. With NGN20.35bn in gas tolling fees recognized during the period, 9M topline was handed a significant boost, and would otherwise have printed at NGN131.34bn, a Y-o-Y decline of 24.39%. Kindly find attached the full report.

For the third time this year, SEPLAT has missed its production and revenue targets. 9M:2019
topline was down by 12.57% Y-o-Y to NGN151.88bn (9M:2018: NGN173.71bn). Standalone
Q3:2019 revenue printed at NGN42.91bn, weaker by 37.74%, compared to NGN68.92bn at this
time last year. At the start of the year, SEPLAT had put out guidance of 24kbpd – 27kbpd for oil
and 146MMscfd – 164MMscfd for gas, but has only achieved 23,658bpd for oil and condensates
(vs. 25,286bpd in H1:2018) and 136MMscfd (vs. 155MMscfd last year) for gas, YtD. The company
is facing operational challenges with its efforts to mobilize rigs to the site. On the back of an
impending global glut in 2020 and weak demand growth, oil and gas prices have also largely
underperformed; during the period, average oil price was down to USD64.22pb (9M2018:
USD71.14pb) while gas was also discounted to USD2.80/Mscf (9M2018: USD3.06/Mscf).
Consequently, the Crude Oil segment floundered – revenue from the segment is down 26.53% to
NGN99.08bn, while gas sales similarly tumbled; down by 16.97% to NGN32.23bn. With
NGN20.35bn in gas tolling fees recognized during the period, 9M topline was handed a
significant boost, and would otherwise have printed at NGN131.34bn, a Y-o-Y decline of
24.39%. Kindly find attached the full report.