Seplat Energy Plc reported a solid financial and operational performance for the first quarter of 2026, posting revenue of $840.7 million and gross profit of $370.5 million, as the company capitalised on favourable oil prices and improved offshore output.
Profit after tax rose to $37.9 million from $23.3 million a year earlier, while cash generated from operations climbed to $337.9 million, underscoring stronger underlying cash flows. The dual-listed energy firm also declared a total dividend of 9.0 US cents per share, nearly doubling its payout compared to Q1 2025.
Production averaged 129,841 barrels of oil equivalent per day (boepd), reflecting a 9% increase from the previous quarter, with offshore assets driving growth. Early April figures show further momentum, with production rising to approximately 153,000 boepd, positioning the company within its full-year guidance range of 135,000 to 155,000 boepd.
Operationally, Seplat maintained a strong safety record, achieving over 9.1 million man-hours without a lost time injury across its onshore and offshore assets.
Operational performance and growth drivers
The company’s upstream portfolio delivered mixed results. Onshore production declined 10% year-on-year due to disruptions on the Trans Forcados Pipeline, a third-party export route, though operations resumed in late March. Offshore output rose 5%, supported by steady performance and ongoing well restoration programmes.
Gas production also gained traction, with the ANOH gas project delivering first gas in January 2026 and expected to scale further in the second quarter. Natural gas liquids output recorded significant growth, reflecting improved processing performance.
Key projects—including the Yoho field restart and the Oso-BRT gas expansion—remain on track for completion later in 2026, reinforcing Seplat’s medium-term production outlook.
Financial strength and balance sheet improvement
Despite higher operating costs of $17.1 per barrel—driven by maintenance activities and lower volumes—Seplat maintained a robust financial position. Adjusted EBITDA stood at $371.3 million, while net debt fell 21% to $531.6 million, improving leverage to 0.43x.
The company also strengthened its liquidity by refinancing and expanding its revolving credit facility to $400 million at a lower borrowing cost, enhancing financial flexibility amid market volatility.
Outlook: Positioned for stronger 2026 performance
Chief Executive Officer Roger Brown said the evolving global energy landscape—shaped in part by geopolitical tensions in the Middle East—has improved oil price dynamics, benefiting companies with strong asset bases and market exposure.
He noted that while first-quarter production slightly underperformed internal targets due to infrastructure disruptions, recent output trends and upcoming project ramp-ups support confidence in meeting full-year guidance.
Seplat reaffirmed its 2026 outlook, including capital expenditure of $360 million to $440 million and a continued focus on asset reliability, production growth, and long-term value creation.
For global investors and energy market watchers, the company’s Q1 results highlight both the resilience of Nigeria’s upstream sector and the growing importance of efficient, well-capitalised indigenous operators in a tightening global energy market.
