The Seplat Boss is a big spender who have no qualms releasing the money where ever or when ever he deem it necessary. Obvious the Seplat Boss is a fun loving man but then it appears his spending is starting to get to him due to his rapid dwindling financial fortune that is now threatening to affect the stability of his company, Seplat Petroleum.
Revelations from his company finances revealed ‘he is losing big money rapidly.
According to an inside information reaching us, ‘ his sales revenue have been doing the spiral downwards lately.
Inside information also insisted the situation is such that his petroleum outfit has lost more than the profit it earned as at this time last, which means it could shake the stability of Seplat. It brings to mind the situation with most of our commecial banks that time when for CBN gov Sanusi Lamido came on board. That was what led to the closure, or I should say the selling of those distressed banks then.
Checks revealed the situation the fallout of three major factors.
Sources disclosed the generous spender and his outfit have to contend with reduction in revenue due to what is labelled ‘output constraints’.The situation is said to such that the firm has lost about one and half of the earnings it made as at this time last year.
And this development is said to be compounded with growing cost of maintaining it’s magnificent debt profile.
‘You know with loss in revenue, servicing debts – and increasing one at that becomes a serious issue…especially with arrangement in the banking sector that discourages acquiring added debts to pay off another’ a source said.
And giving additional worry is said to be increasing ballooning administrative cost.
As at the end of the second quarter of this year, inside source confirmed administrative costs had risen very close to 200% more than the whole of last year- and is still rising.
And to create a perfect riddle Austin Avuru and his team claimed to have pencilled N16n as the minimum dividend to shareholders this year.
The payment is expected to come to fruition in Novemeber 2014.
Information revealed the money man and is team are currently at a loss on how to solve the spiraling money loss challenge – even as he spots a personal extravagant lifestyle to cover deepening company’s financial crises.
According to information sourced on it’s official website, Seplat is an independent oil and gas exploration and Production Company incorporated and operating in Nigeria with strategic focus on Nigeria.
In July 2010, it acquired a 45% participating interest in, and was appointed operator of, three on-shore producing oil and gas leases located in the western Niger Delta basin of Edo and Delta states (OMLs 4, 38 and 41) which include the Oben, Ovhor, Sapele, Okporhuru and Amukpe fields.It is yet to be known how or if the Seplat Boss will be able to overcome this messy situation in Seplat