Seplat Raises Q1 Dividend on Robust Oil Price Outlook

Seplat Energy PLC has increased its dividend per share by 8 percent quarter-on-quarter and 96 percent year-on-year to $0.09 on projected "strong cash flows" driven by high oil prices.

"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 favorable 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", chief executive Roger Brown said in an online statement Thursday.

The dividend increase comes from the special portion of $0.04 per share. The core dividend remains at $0.05.

Seplat reported $37.9 million in profit after tax for the January-March 2026 quarter, up 62.7 percent from the same three-month period last year. Pre-tax income was $165.6 million, down 20.2 percent year-on-year.

Output averaged 129,841 barrels of oil equivalent a day (boed), down 1 percent year-on-year. Onshore contribution fell 10 percent "principally due to 38 days unplanned downtime on third-party operated Trans Forcados Pipeline, impacting Western Assets", Seplat said. "Pipeline operations resumed on 24 March and Western Assets production has normalized".

Seplat maintained full-year production guidance at 135,000-155,000 boed. That assumes flat crude and condensate production, a 30 percent increase in gas and an 85 percent increase in natural gas liquids (NGLs).

Realized oil prices in Q1 2026 rose 12.8 percent year-on-year to an average of $86.2 a barrel. The average realized gas price was $3.1 per thousand cubic feet. Realized NGL prices dropped 0.8 percent to $44.4 per barrel.

Revenue grew 3.9 percent year-over-year to $840.7 million. Gross profit increased 4.9 percent to $370.5 million.

However, adjusted EBITDA fell 7.3 percent to $371.3 million. Operating profit declined 10.4 percent to $213.5 million.

Post-tax cash generation from operations was $243.4 million, up 10.7 percent year-on-year.

"Balance sheet remains robust, [with] end-March cash at bank $461.7 million (YE 2025: $332.3 million)", Seplat said.

Net debt fell 21 percent quarter-on-quarter to $531.6 million.

"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 program, which will deliver enhanced asset reliability and overall portfolio growth on route to our 2030 targets", Brown said. "Overall, we have delivered a solid start to 2026, with expectations that 2Q 2026 will see a step forward in performance".

To contact the author, email jov.onsat@rigzone.com