By Adebayo Obajemu

Nigeria’s biggest indigenous oil production company, Seplat Petroleum Development Company Plc, has stated that OPEC’s extended oil production cuts on Nigeria would result in a dip in its 3rd quarter earnings.

Making this disclosure on Wednesday during an investor call was the company’s CEO, Austin Avuru.

He said the company has handled the cuts so far and that its working interest production would take a little hit, even as the cuts are expected to have little impact on its overall full-year performance.

“We have managed the cut in such a way that it has had very little impact on our working interest production, and should have little impact on full-year results,” Avuru said.

Recall that Seplat Petroleum a posted total revenue of N80.1 billion in H1 2020, a 34.2% decline when compared to N108.9 billion reported in H1 2019. Similarly, the company reported a loss after tax of N37.7 billion during the period under review, as against a profit after tax of N37.5 billion in H1 2019.