Mixed fortunes for indigenous oil firm

7 ENERGY upstreamBy OKORO CHINEDU
LAGOS, (CAJ News) – SEVEN Energy, the indigenous Nigerian oil and integrated gas company, has released a mixed set of results for the nine months ended September 30.

Earnings before interest, taxes, depreciation, amortization and exploration fell to $106 million (2014: $164 million).

Loss after tax was $74 million (2014: $41 million profit).

Cash flow provided by operating activities was $139 million, up $30 million from 2014.

Gas deliveries by Accugas, Seven Energy’s gas processing, distribution and marketing subsidiary, up 179 percent, averaging 64 million cubic feet of gas per day (“MMcfpd”) (2014: 23 MMcfpd)

Phillip Ihenacho, Chief Executive Officer, Seven Energy, commenting on the results said Seven’s business continues to develop its focus on domestic gas distribution with an increasing proportion of our sales volumes andrevenues being to our local gas customers.

He said the ramp-up in gas deliveries had been slower than the company had forecast, principally due to completion of necessary electricity transmission infrastructure.

Significant progress has however been made recently on the infrastructure and Seven Energy is well positioned to meet the anticipated increase in demand during the first half of 2016.

“We continue to tightly manage our resources, particularly in light of the current oil price environment, restricting capital expenditure to essential projects only and focussing rigorously on operating cost reductions,” said Ihenacho.

CAJ News

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