Seplat Energy Plc has reported a solid financial and operational performance for the first quarter ended March 31, 2026, with revenue rising to $840.7 million and gross profit reaching $370.5 million.
The company declared a total dividend of 9.0 US cents per share for the period comprising a base dividend of 5.0 cents and a special dividend of 4.0 cents representing a 96 per cent increase compared to the payout in the corresponding period of 2025.
Profit after tax climbed to $37.9 million from $23.3 million a year earlier, while cash generated from operations stood at $337.9 million, reflecting a 10 per cent year-on-year increase. Overall cash generation for the quarter reached $243.4 million.
Average group production rose to 129,841 barrels of oil equivalent per day (boepd), marking a 9 per cent increase from the fourth quarter of 2025. The company benefitted from its put-option hedge strategy, which allowed full exposure to oil price upside and supported stronger free cash flow.
Operationally, Seplat maintained strong safety performance, recording over 9.1 million man-hours without any Lost Time Injury, including 3.0 million hours onshore and 6.1 million hours offshore.
Production momentum strengthened into April, with output averaging about 153,000 boepd in the first 26 days, bringing year-to-date average production to roughly 135,000 boepd within the company’s full-year guidance.
Onshore production declined 10 per cent year-on-year to 50,700 boepd, largely due to 38 days of unplanned downtime on the Trans Forcados Pipeline, which disrupted western asset output. Operations resumed in late March, with production now normalised.
Offshore output rose 5 per cent to 79,141 boepd, while the company’s idle well restoration programme added 10,000 barrels per day of gross joint venture capacity.
Gas and liquids output also improved significantly. Natural gas liquids production surged to 9,802 barrels per day from 3,376 barrels per day in Q1 2025, supported by strong performance from the East Area Project. The ANOH gas plant commenced production in January, contributing 17 million standard cubic feet per day, with further ramp-up expected in the second quarter.
Key projects remain on track, including the Yoho field restart in Q2 and the Oso-BRT 1 gas expansion scheduled for Q3 2026.
The company also recorded progress on emissions reduction, with carbon intensity improving by 13 per cent year-on-year to 41.6 kg CO₂ per barrel of oil equivalent, driven by its end-of-routine flaring programme.
Despite higher revenue, adjusted EBITDA declined 7 per cent to $371.3 million, reflecting elevated unit operating costs of $17.1 per barrel of oil equivalent, above guidance due to maintenance activities and lower production volumes earlier in the quarter. Costs are expected to moderate in subsequent quarters.
Capital expenditure rose modestly to $42.6 million, with a higher spend anticipated from the second quarter.
The balance sheet strengthened during the period, with cash at bank increasing to $461.7 million at the end of March, while net debt declined 21 per cent quarter-on-quarter to $531.6 million. The net debt-to-EBITDA ratio improved to 0.43x from 0.53x at year-end 2025.
Seplat also completed the refinancing and upsizing of its revolving credit facility to $400 million, reducing borrowing costs to SOFR plus 4.5 per cent.
The company reaffirmed its 2026 production guidance of 135,000–155,000 boepd, with flat crude output expected alongside strong growth in gas and natural gas liquids.
Capital expenditure guidance remains between $360 million and $440 million, while unit operating cost guidance is retained at $13.5–$14.5 per barrel.
Chief Executive Officer, Roger Brown, noted that geopolitical developments, particularly tensions in the Middle East, have reshaped oil market dynamics, potentially supporting stronger pricing in 2026.
He added that despite first-quarter production falling slightly short of internal expectations due to infrastructure disruptions, recent output trends and upcoming project milestones position the company for improved performance in the second quarter and beyond.
According to him, Seplat will maintain its growth-focused investment programme, aimed at enhancing asset reliability and scaling production as it works toward its 2030 targets.
