Seplat Grows Q1 Revenue to $840.7m, Gross Profit Hits $370.5m

• Profit after tax rises by 62.7% to $37.9m 

•Oil production jumps 9% to 129,841 bpd 

•Energy firm declares 9 cents dividend, up 96% YoY

Emmanuel Addeh in Abuja

Seplat Energy Plc yesterday announced a gross revenue of $840.7 million for the first quarter ended March 31, 2026, up four per cent from $809.3 million in the same period last year, while the company’s gross profit stood at $370.5 million.

The company also posted a Profit After Tax (PAT) of $37.9 million, representing a 62.7 per cent increase from $23.3 million recorded in the corresponding period of 2025.

In its unaudited results, Seplat declared a total dividend of 9 cents per share for the quarter, comprising a base dividend of 5 cents and a special dividend of 4 cents. The pay-out represents a 96 per cent increase compared to the first quarter of 2025.

Besides, cash generated during the period rose to $243.4 million, while cash from operations increased by 10 per cent to $337.9 million. The company reported an adjusted EBITDA of $371.3 million, reflecting a 44 per cent margin, although this was seven per cent lower than the $400.6 million recorded in the prior year.

Average group production for the quarter was 129,841 barrels of oil equivalent per day (boepd), up nine per cent from 119,200 boepd in the fourth quarter of 2025.

Seplat said production performance improved further in April, averaging approximately 153,000 boepd in the first 26 days, bringing year-to-date production to about 135,000 boepd, within its full-year guidance.

In the same vein, onshore production averaged 50,700 boepd, representing a 10 per cent decline year-on-year, largely due to 38 days of unplanned downtime on the Trans Forcados Pipeline, which affected western assets. The company said operations on the pipeline resumed on March 24, with production normalising thereafter.

According to Seplat, offshore production rose by five per cent to 79,141 boepd from 75,478 boepd in the corresponding period of 2025.

Seplat also reported the commencement of gas production at its ANOH project in January 2026, contributing 17 million standard cubic feet per day, with plans to ramp up output in the second quarter. Natural gas liquids production rose significantly to 9,802 barrels per day from 3,376 barrels per day in the prior year.

The company also maintained strong safety performance, recording over 9.1 million man-hours without a lost time injury.

Unit production operating cost increased to $17.1 per barrel of oil equivalent from $12.6 in the same period of 2025, exceeding the company’s guidance of $13.5–$14.5 per boe. This was attributed to accelerated maintenance activities and lower production volumes during the quarter.

Capital expenditure rose by six per cent to $42.6 million, with spending expected to increase in subsequent quarters.

Similarly, Seplat said its balance sheet remained strong, with cash at bank rising to $461.7 million at the end of March 2026, compared to $332.3 million at the end of 2025. Net debt declined by 21 per cent to $531.6 million, while its net debt to EBITDA ratio improved to 0.43x from 0.53x.

The company also announced the refinancing and upsizing of its revolving credit facility to $400 million, with borrowing costs reduced to SOFR plus 4.5 per cent.

Looking ahead, Seplat reiterated its 2026 production guidance of 135,000 to 155,000 boepd, with expectations of flat crude and condensate output, alongside growth of 85 per cent in natural gas liquids and 30 per cent in gas production. Capital expenditure guidance was maintained at $360 million to $440 million.

Commenting on the results, Chief Executive Officer, Roger Brown, said the company delivered a solid start to the year, despite production challenges linked to third-party infrastructure disruptions, adding that improved oil prices and upcoming asset restarts are expected to support stronger performance in the second quarter.

Brown stated, “The conflict in the Middle East has dramatically changed the outlook for the oil and gas industry in 2026, and quite possibly beyond. Nigeria’s favourable geographic positioning, combined with our oil rich portfolio, which is fully exposed to higher oil prices, and our strong balance sheet, means we are well placed to deliver strong cashflows in 2026. As a result, we have increased our 1Q 2026 dividend to 9.0 cents per share (core: 5.0 cents and special: 4.0 cents).”

The Seplat CEO stated, “Production in 1Q 2026, improved Q-o-Q but modestly missed our internal expectations, largely due to unplanned downtime on third-party infrastructure onshore. That said, April to date production has averaged c.153 kboepd, illustrating the potential of our asset base. Notably, this is before the return of Yoho, scheduled to come back onstream before end 2Q 2026, and full ramp-up of ANOH, as such we remain comfortable with our 2026 guidance.

“While the firmer oil price outlook should enhance cash flows its duration is uncertain, as such, we expect to retain our current growth-focused 2026 work programme, which will deliver enhanced asset reliability and overall portfolio growth on route to our 2030 targets. Overall, we have delivered a solid start to 2026, with expectations that 2Q 2026 will see a step forward in performance.”