Seplat Energy PLC has reported a robust first-quarter performance for the period ended March 31, 2026, lifting its dividend by 96 per cent on the back of stronger crude oil prices and improved cash flow generation.
The company declared a total dividend of 9.0 cents per share for the quarter, comprising a base dividend of 5.0 cents and a special dividend of 4.0 cents, reflecting management’s confidence in its financial resilience despite operational challenges.
Chief Executive Officer, Roger Brown, attributed the performance to favourable global oil market dynamics, particularly geopolitical tensions that have driven prices upward.
“The conflict in the Middle East has dramatically changed the outlook for the oil and gas industry in 2026, and quite possibly beyond,” Brown said, noting that Seplat’s exposure to rising oil prices, coupled with its strong balance sheet, positions it to generate solid cash flows.
He added that although production improved on a quarter-on-quarter basis, it slightly fell short of internal projections due to disruptions linked to third-party infrastructure onshore.
Despite this, Brown expressed optimism about near-term output recovery. According to him, average production in April has climbed to about 153,000 barrels of oil equivalent per day (boepd), underscoring the strength of the company’s asset base.
He further noted that production is expected to rise with the anticipated restart of the Yoho field before the end of the second quarter, alongside increased output from the ANOH gas project.
Operational data showed that Seplat recorded average production of 129,841 boepd in the first quarter, marginally below the 131,745 boepd posted in the same period of 2025. The decline was largely attributed to downtime on key export infrastructure, including the Trans Forcados Pipeline.
However, improved performance in April has brought year-to-date production closer to 135,000 boepd, aligning with the company’s full-year production target of between 135,000 and 155,000 boepd.
The ANOH Gas Plant, which achieved first gas in January 2026, also contributed to output during the quarter, delivering about 17 million standard cubic feet per day, with volumes expected to ramp up further in the coming months.
On safety, the company maintained a strong record, reporting zero lost-time injuries and extending its incident-free operations to over 9.1 million man-hours across its assets.
Financially, Seplat benefited from improved oil prices, with its realised crude price averaging $86.16 per barrel during the quarter. Gross revenue rose to $840.7 million, while cash flow from operations increased to $337.9 million, highlighting the company’s solid earnings base.
However, the firm faced cost pressures, with unit operating costs rising to $17.1 per barrel of oil equivalent. The increase was linked to maintenance activities at the Yoho field and lower production volumes during the period. Management expects these costs to ease in subsequent quarters, trending toward its guidance range of $13.5 to $14.5 per barrel.
The company also strengthened its balance sheet, reducing net debt by 21 per cent to $531.6 million, while maintaining a cash position of $461.7 million. This brought its leverage ratio down to 0.43 times, reflecting improved financial stability.
Looking ahead, Brown said the company would maintain its growth-focused strategy despite uncertainties around the sustainability of higher oil prices.
“While the firmer oil price outlook should enhance cash flows, its duration is uncertain,” he said, adding that Seplat remains committed to its 2026 work programme aimed at improving asset reliability and supporting long-term production growth.
The company reaffirmed its capital expenditure plan of between $360 million and $440 million for the year, alongside expectations of improved performance in the second quarter.
It also confirmed that the Oso-BRT Phase 1 gas expansion project is on track for startup in the third quarter, a development expected to significantly boost offshore gas sales and support future earnings growth.
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