Anene Peters is an intern with Naija247news Media. He's focus is on tech and science.
He's a graduate of Abia State University with a major in Computer Science and Communications.
You can contact him for press events on 0903 927 6505
- Oil price deck of USD58/bbl in 2021 and USD53/bbl until 2024
- Domestic gas prices of about USD2.9/mcf on average until 2024
- Upstream production ramping up to above 60kboe/d in 2023
- Dividends of about USD59 million a year up to 2024
Fitch's Key Assumptions for Recovery Analysis:
- The recovery analysis assumes that Seplat would be reorganised as a going-concern (GC) in bankruptcy rather than liquidated.
- Seplat's post-reorganisation, going-concern EBITDA is estimated at around USD223 million, based on the current asset base. A drop in EBITDA to the going-concern level reflects risks associated with hydrocarbon price volatility, potential unplanned downtime and other adverse factors
- We have applied a distressed enterprise value (EV)/EBITDA multiple of 4.5x to calculate a going-concern EV, reflecting a mid-cycle multiple for the natural resources sector in the EMEA region and the risks associated with the operating environment in the country of operation.
- We assume a 10% administrative claim to be deducted from the going-concern EV
- Our principal waterfall analysis assumes the USD350 million senior secured RCF and the USD100 million Eland RBL rank senior to Seplat's senior notes
- Taking into account our Country-Specific Treatment of Recovery Ratings Criteria, our waterfall analysis generated a ranked recovery in the 'RR4' band, indicating a final 'B-' instrument rating. The waterfall analysis output percentage on current metrics and assumptions is 50%.