By Obinna Uballa
Seplat Energy PLC has posted a strong performance for the first quarter ended March 31, 2026, raising its dividend by 96 per cent as higher crude prices and a favourable hedge position boosted earnings.
The company declared a Q1 dividend of 9.0 cents per share, made up of a core dividend of 5.0 cents and a special dividend of 4.0 cents, underlining confidence in its cash-generating capacity despite operational headwinds.
Chief Executive Officer, Roger Brown, said global developments, particularly tensions in the Middle East, have reshaped the outlook for the energy sector and strengthened Seplat’s earnings prospects.
“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 cash flows in 2026,” Brown said.
“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). Production in 1Q 2026 improved quarter-on-quarter but modestly missed our internal expectations, largely due to unplanned downtime on third-party infrastructure onshore.”
He, however, expressed optimism about improved output in subsequent months, adding: “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 come6 back onstream before the end of 2Q 2026, and full ramp-up of ANOH. As such, we remain comfortable with our 2026 guidance.”
Brown who spoke during the company’s Q1 Board meeting also cautioned that while oil prices have strengthened, uncertainty remains over how long the trend will persist. “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,” he said.
Operationally, Seplat recorded average production of 129,841 barrels of oil equivalent per day (boepd) during the quarter, slightly lower than the 131,745 boepd achieved in the same period last year, largely due to downtime on third-party infrastructure, including the Trans Forcados Pipeline.
However, output has since rebounded, with production averaging about 153,000 boepd in the first 26 days of April, bringing year-to-date production to approximately 135,000 boepd, within the company’s full-year guidance of 135,000 to 155,000 boepd.
The company also recorded a key milestone with ANOH Gas Plant, which achieved first gas in January 2026 and contributed 17 million standard cubic feet per day, with volumes expected to increase from the second quarter.
Seplat maintained strong operational discipline, reporting zero lost time injuries during the quarter and extending its safety performance to more than 9.1 million man-hours without incident.
Financially, the company benefited from stronger oil prices, with realised prices averaging $86.16 per barrel. Gross revenue rose to $840.7 million, while cash generated from operations increased to $337.9 million.
However, unit operating costs rose to $17.1 per barrel of oil equivalent due to maintenance activities at the Yoho field and lower production volumes, although management expects costs to moderate to between $13.5 and $14.5 per barrel in subsequent quarters.
Seplat’s balance sheet also strengthened, with net debt reduced by 21 per cent to $531.6 million and cash reserves standing at $461.7 million, lowering its leverage ratio to 0.43 times.
Looking ahead, the company reiterated its 2026 production guidance and capital expenditure plans of between $360 million and $440 million. It also confirmed that the Yoho field is expected to return to production in the second quarter, while the Oso-BRT Phase 1 gas expansion project is scheduled to commence in the third quarter, a development expected to significantly boost offshore gas output.
