Seplat Hikes Dividend by 96% After Strong Q1 Earnings on Oil Upside

Seplat Energy PLC has delivered a strong set of results for the first quarter ended 31 March 2026.

Benefitting from its put-option hedge strategy that exposes the company to 100% of the price upside, the company has increased its Q1 dividend to 9.0 cents per share (a 96% increase year-on-year), demonstrating high confidence in the cash-generative capability of its portfolio despite unplanned third-party downtime.

Roger Brown, Chief Executive Officer, said:

“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. 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 QoQ 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”.

Operational & Production Highlights

During the first quarter, Seplat’s production profile remained robust, particularly offshore, with an acceleration seen in April.

Source: Seplat Energy

• Production Recovery: Production during the first 26 days of April averaged 153 kboepd, bringing the year-to-date group working interest production to approximately 135 kboepd, well within the FY 2026 guidance.

• The ANOH Milestone: The ANOH Gas Plant achieved its first gas in January 2026, contributing working interest volumes of 17.0 mmscfd, with volumes planned to increase from the second quarter onward.

• Operational Integrity: The group recorded zero Lost Time Injuries (LTI) in 1Q 2026, achieving more than 9.1 million man-hours without an LTI across both onshore and offshore locations.

Financial Scorecard: Q1 2026

Despite a slight dip in production due to downtime on the Trans Forcados Pipeline, the firm’s financial position remains highly resilient with strong underlying prices.

Source: Seplat Energy

• Revenue and Hedges: Higher realised prices offset production impacts. Seplat’s realised oil price averaged $86.16/bbl, and the put-option hedge strategy provided the company with excellent upside participation.

• Cost Pressures: Unit production operating cost rose to $17.1/boe due to the acceleration of planned maintenance at Yoho and lower overall volume allocations in the quarter. This is expected to normalise in the subsequent quarters towards the guidance of $13.5–$14.5/boe.

• Liquidity and Deleveraging: The balance sheet remains strong, with a cash balance of $461.7 million at the end of March 2026. Net debt decreased by 21% to $531.6 million, reducing the leverage ratio (ND/EBITDA) to a comfortable 0.43x.

Strategic Outlook & 2026 Guidance

• Dividend Declaration: The Q1 2026 payout consists of a 5.0 cents/share base and a 4.0 cents/share special dividend, totaling about $54 million.

• Guidance Reiterated: Management maintains full-year production guidance of 135–155 kboepd, with total capital expenditure targeted between $360 million and $440 million.

• Yoho and Oso-BRT: The Yoho restart is on track for Q2 2026, and the Oso-BRT Phase 1 gas expansion project is scheduled for startup in Q3 2026, which is expected to double offshore gas sales.

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