Seplat Energy PLC demonstrated a robust financial position in the first quarter of 2026. The company’s balance sheet remains strong, providing a solid foundation for its operational and strategic objectives. As of 31 March 2026, total assets stood at $6.16 billion, a slight increase from $6.08 billion at the end of 2025. Total liabilities were recorded at $4.30 billion, while total shareholders’ equity grew to $1.86 billion.

A key highlight is the significant reduction in leverage. Net debt decreased by 21% from the previous quarter to $531.6 million, improving the Net Debt to EBITDA ratio to a healthy 0.43x. The company ended the quarter with a strong cash position of $461.7 million at the bank, underscoring its solid liquidity and financial stability.

Condensed Statement of Comprehensive Income (Profit and Loss)

For the three months ended 31 March 2026, Seplat Energy reported a strong revenue of $840.7 million, marking a 4% increase compared to the same period in the previous year (Q1 2025: $809.3 million). This growth was driven by higher Natural Gas Liquids (NGLs) liftings and favourable realised oil prices of $86.16/bbl.

Operating profit for the quarter was $213.5 million. Despite a decrease in operating profit, the company achieved a significant 63% year-on-year increase in profit after tax, which reached $37.9 million (Q1 2025: $23.3 million). This was largely due to a lower effective tax rate following the conversion of onshore assets to the new Petroleum Industry Act (PIA) fiscal regime. Consequently, Earnings Per Share (EPS) for the quarter doubled to $0.06, up from $0.03 in Q1 2025.

Condensed Statement of Cash Flows

Seplat Energy’s operational efficiency translated into strong cash generation during the first quarter. The company generated pre-tax cash flow from operating activities of $337.9 million, a 10% increase year-on-year. Post-tax cash flow from operations was also up 11% to $243.4 million.

Cash capital expenditure for the period was $42.6 million, reflecting a disciplined approach to investment. The strong operational performance resulted in a free cash flow of $199.2 million for the quarter, an 11% improvement over Q1 2025. Net cash outflow from financing activities was significantly lower at $77.4 million, compared to $310.7 million in the prior year, which included major bond refinancing activities.

Condensed Statement of Changes in Equity

Total shareholders’ equity saw a modest increase to $1.86 billion by the end of the quarter. The movement was primarily influenced by the profit generated during the period. In a significant return to shareholders, the Board approved a Q1 2026 dividend of 9.0 US cents per share, comprising a 5.0 cents base dividend and a 4.0 cents special dividend. This represents a 96% increase over the Q1 2025 dividend and reflects management’s confidence in the company’s financial strength and positive market outlook. The total dividend payout amounts to approximately $54 million and is scheduled for payment in June 2026. The company also executed a share repurchase of $25.0 million during the quarter.

Selected Explanatory Notes

A significant event during the reporting period was the change in major shareholding. Maurel & Prom S.A. disposed of its entire 20.07% equity stake in Seplat Energy Plc to Heirs Energies Limited and Heirs Holdings Limited. This has resulted in a notable shift in the company’s ownership structure, with Mr Tony O Elumelu CFR subsequently appointed to the Board of Directors. Additionally, the company completed the conversion of its operated onshore assets to the Petroleum Industry Act (PIA) fiscal regime, which has favourably impacted its tax and royalty obligations.

Management Commentary and Strategic Outlook

Chief Executive Officer, Roger Brown, highlighted the favourable market conditions, stating, “The conflict in the Middle East has dramatically changed the outlook for the oil and gas industry in 2026… Nigeria’s favourable geographic positioning, combined with our oil rich portfolio… means we are well placed to deliver strong cash flows in 2026.”

Management acknowledged that Q1 production was modestly below expectations due to unplanned downtime on third-party infrastructure. However, production in April has averaged approximately 153 kboepd, demonstrating the potential of the asset base. The company has reiterated its full-year 2026 guidance, with production expected to be between 135-155 kboepd and capital expenditure in the range of $360-440 million. The strategic focus remains on a growth-oriented work programme aimed at enhancing asset reliability and achieving portfolio growth towards its 2030 targets.

Risks and Challenges

• Third-Party Infrastructure Downtime: The company’s onshore production was significantly impacted by 38 days of unplanned downtime on the third-party operated Trans Forcados Pipeline, highlighting a key operational dependency.
• Market Volatility: While the current oil price outlook is firm, management notes that its duration is uncertain, which could impact future cash flows and financial planning.
• Pipeline Constraints: Evacuation constraints on key pipelines, such as the Trans Niger Pipeline (TNP), have temporarily restricted the ability to ramp up gas production from new projects like ANOH.
• Industrial Relations: The company successfully resolved industrial action with the PENGASSAN union during the quarter with minimal operational impact, but this remains an area to monitor.

This summary was generated by an AI model for informational purposes only and is not financial advice. It is based on the unaudited interim financial statement for the three months ended 31 March 2026. This summary may contain errors or omissions. Investors should consult the complete and original financial statement document for comprehensive details before making any investment decisions.

Indicative Share Trading Liquidity

The total indicative share trading liquidity for Seplat Energy Plc (SEPLAT.ng) in the past 12 months, as of 3rd April 2026, is US$120.11M (NGN164.4B). An average of US$10.01M (NGN13.7B) per month.

Seplat Energy Plc 2026 interim results for the first quarter

https://drive.google.com/file/d/1ChHqjTBCxmnFiriq5yaT2ivOuckC8y0C/view