THE EFFECT OF CRUDE OIL PRICE VOLATILITY ON PROFITABILITY AND FINANCIAL SUSTAINABILITY: A CASE STUDY OF SEPLAT ENERGY PLC

This study examined the effect of crude oil price volatility on the profitability and financial sustainability of Seplat Energy Plc. The study was motivated by the significant dependence of Nigeria's oil and gas industry on crude oil revenues and the persistent fluctuations in international crude oil prices. The study specifically examined the effect of crude oil price volatility on Seplat Energy's profitability and financial sustainability. A case study research design was adopted, using relevant financial information from Seplat Energy and crude oil-price data for the selected study period. Profitability was assessed using appropriate financial performance indicators, while financial sustainability was considered in terms of the company's ability to generate sufficient financial resources to maintain operations, meet obligations and support longterm investment. Descriptive and inferential statistical techniques, including correlation and regression analysis, were used to examine the relationships between the variables. The findings indicated that crude oil price volatility had a statistically significant effect on profitability, while it also had a statistically significant effect on financial sustainability. The study therefore concluded that changes in crude oil prices represent an important financial factor influencing Seplat Energy's performance and long-term financial stability. The study recommends stronger crude oil-price risk management, revenue diversification through
gas and other energy activities, effective cost control, prudent debt management, adequate liquidity reserves and flexible capital expenditure planning. These measures can help Seplat Energy reduce its exposure to adverse oil-price movements while strengthening its long-term financial sustainability.

Funding: This is a self-funded research.

Conflict of Interest: The authors declare no conflicts of interest.

Ethics Approval: Not_applicable

Data Availability: Data will be made available upon reasonable request.

AI-Assisted Writing: No AI tools were used in the preparation of this manuscript.