REG - Seplat Energy PLC - Unaudited 1st Quarter Results: 31 March 2026

Seplat EnergyAnnouncement

Today 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260430:nRSd4821Ca&default-theme=true

RNS Number : 4821C  Seplat Energy PLC  30 April 2026

 

 

Please see the Full Audited Results in attached PDF

 

http://www.rns-pdf.londonstockexchange.com/rns/4821C_1-2026-4-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4821C_1-2026-4-29.pdf)

 

 

Unaudited results for the three months ended 31 March 2026

30 April 2026

 

Overview

Lagos and London, 30 Apr 2026: Seplat Energy PLC ("Seplat Energy" or "the
Company"), a leading Nigerian independent energy company listed on both the
Nigerian Exchange and the London Stock Exchange, announces its unaudited
results for the three months ended 31 March 2026.

Summary

Crude and condensate liftings benefitting from our put-option hedge strategy
that exposes Seplat to 100% of price upside. Strong free cash flows and
further deleveraging supports an increase in dividend for 1Q 2026 to USD 9.0
cents/share, 96% higher than 1Q 2025 payout.

Operational highlights

 ·   Group production averaged 129,841 boepd down 1% from 1Q 2025 (131,745 boepd),
     but up 9% since 4Q 2025 (119,200 boepd).
     ·  Production during the first 26 days of April has averaged approximately
     153 kboepd, bringing group average daily working interest production for the
     year to 26 April to approximately 135 kboepd, within FY 2026 guidance.
 ·   Onshore production contribution of 50,700 boepd, down 10% YoY (1Q 2025: 56,267
     boepd).
     ·  YoY decline principally due to 38 days unplanned downtime on third-party
     operated Trans Forcados Pipeline, impacting Western Assets. Pipeline
     operations resumed on 24 March and Western Assets production has normalised.
     ·  First gas at ANOH in January 2026, contributed working interest volumes
     of 17.0 mmscfd, planned increase 2Q 2026 onwards.
 ·   Offshore production contribution of 79,141 boepd, up 5% vs. 1Q 2025: 75,478
     boepd.
     ·  Idle well restoration programme continued its strong performance, adding
     10 kbopd gross JV production capacity from 8 wells.
     ·  NGLs delivered strong growth, WI production of 9,802 bopd (1Q 2025: 3,376
     bopd), as EAP continued to perform at high levels.
     ·  Yoho restart on track for 2Q 2026, Oso-BRT 1 gas expansion project on
     track for 3Q 2026 start up.
 ·   Carbon emissions intensity for Seplat group assets: 41.6 kg CO(2)/boe improved
     by 13% YoY (1Q 2025: 47.9 kg CO(2)/boe), within this onshore operated
     emissions intensity reduced 24% on 1Q 2025, reflecting the positive impact of
     our End of Routine flaring programme.
 ·   1Q 2026 Lost Time Injury ('LTI') free. Group delivered more than 9.1 million
     man-hours without LTI. 3.0 million hours onshore-operated assets and 6.1
     million hours offshore.

Financial highlights

 ·   Gross revenue $840.7 million up 4% on prior year (1Q 2025: $809.3 million).
     Realised oil price of $86.16/bbl.
 ·   Onshore operated assets now reporting under PIA, group blended unit royalty
     rate 14.7% of revenue (1Q 2025 16.2%).
 ·   Unit production operating cost of $17.1/boe (1Q 2025: $12.6/boe), above our
     $13.5-14.5/boe guidance due to acceleration of planned maintenance activities
     at Yoho and lower volumes in the quarter, also impacting EBITDA, expected to
     normalise in subsequent quarters.
 ·   Adjusted EBITDA of $371.3 million (44% margin), down 7% vs prior year (1Q
     2025: $400.6 million).
 ·   Cash generated from operations of $337.9 million up 10% from $306.5 million in
     1Q 2025.
 ·   Cash capital expenditure of $42.6 million up 6% YoY (1Q 2025: $ 40.2 million).
     Capex run rate expected to increase 2Q 2026 onwards.
 ·   Balance sheet remains robust, end-March cash at bank $461.7 million (YE 2025:
     $332.3 million).
 ·   Net Debt at end-March of $531.6 million down 21% on prior quarter (YE 2025:
     $673 million). ND/EBITDA improves to  0.43x (YE: 0.53x).
 ·   Completed refinancing of our undrawn revolving credit facility ('RCF') and
     upsized to $400 million, cost of borrowing reduced to SOFR plus 4.5% (down
     from SOFR plus 5% plus CAS), an overall saving of 76 bps.

Dividend

 ·   1Q 2026 declared dividend of USD 9.0 cents per share, consisting of USD 5.0
     c/share base and USD 4.0 c/share special dividend, for a total cost of
     approximately $54 million. The declared dividend is up 8% QoQ and up 96% YoY.

2026 Outlook

 ·   2026 guidance reiterated
     ·  Production guidance of 135-155 kboepd (Crude & Condensate: flat, NGL:
     +85% YoY & Gas: +30% YoY)
     ·  Capex guidance remains $360-440 million, unit operating cost guidance
     reiterated at $13.5-$14.5/boe

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".

Summary of performance

                                                         $ million                   ₦ billion
                                                         1Q 2026  1Q 2025  % change  1Q 2026  1Q 2025
 Revenue **                                              840.7    809.3    3.9%      1,163.4  1,227.5
 Gross profit                                            370.5    353.0    4.9%      512.7    535.4
 EBITDA ***                                              371.3    400.6    (7.3) %   513.8    607.6
 Operating profit                                        213.5    238.2    (10.4) %  295.4    361.3
 Profit  before tax                                      165.6    207.4    (20.2) %  229.1    314.6
 Profit after tax                                        37.9     23.3     62.7%     52.5     35.4
 Cash generated from operations (post-tax)               243.4    219.9    10.7%     336.9    333.5
 Working interest production (boepd)                     129,841  131,745  (1.4) %
 Volumes lifted (MMbbls)                                 8.7      9.9      (12.6) %
 Average realised oil price ($/bbl)                      86.2     76.4     12.8%
 Average realised gas price ($/Mscf)                     3.1      3.0      3.0%
 Average realised NGL price ($/bbl)                      44.4     44.8     (0.8) %
 LTIF                                                    0        0
 CO(2) emissions intensity from operated assets, kg/boe  41.6     47.9     (13.2) %

 

** 1Q 2026 reported revenue includes an overlift of $92.0 million, 1Q 2025
includes an overlift of $53.5 million

*** Adjusted for non-cash items

Responsibility for publication

This announcement has been authorised for publication on behalf of Seplat
Energy by Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy PLC.

Signed:

 

Eleanor Adaralegbe

Chief Financial Officer

 

 Important notice

 The information contained within this announcement is unaudited and deemed by
 the Company to constitute inside information. Upon the publication of this
 announcement, this inside information is now considered to be in the public
 domain.

 Certain statements included in these results contain forward-looking
 information concerning Seplat Energy's strategy, operations, financial
 performance or condition, outlook, growth opportunities or circumstances in
 the countries, sectors, or markets in which Seplat Energy operates. By their
 nature, forward-looking statements involve uncertainty because they depend on
 future circumstances and relate to events of which not all are within Seplat
 Energy's control or can be predicted by Seplat Energy. Although Seplat Energy
 believes that the expectations and opinions reflected in such forward-looking
 statements are reasonable, no assurance can be given that such expectations
 and opinions will prove to have been correct. Actual results and market
 conditions could differ materially from those set out in the forward-looking
 statements. No part of these results constitutes, or shall be taken to
 constitute, an invitation or inducement to invest in Seplat Energy or any
 other entity and must not be relied upon in any way in connection with any
 investment decision. Seplat Energy undertakes no obligation to update any
 forward-looking statements, whether because of new information, future events
 or otherwise, except to the extent legally required.

Enquiries:

 Seplat Energy Plc
 Eleanor Adaralegbe, Chief Financial Officer                      +23412770400
 James Thompson, GM, Investor Relations                           ir@seplatenergy.com
 Chioma Afe, Director, External Affairs & Social Performance
 FTI Consulting
 Ben Brewerton / Christopher Laing                                +44 203 727 1000

                                                                  seplatenergy@fticonsulting.com
 Citigroup Global Markets Limited
 Peter Brown / Peter Catterall                                    +44 207 986 4000
 Canaccord Genuity Limited
 Henry Fitzgerald-O'Connor / George Grainger / Rory Blundell      +44 207 523 8000
 Peel Hunt LLP
 Richard Crichton / David McKeown / Georgia Langoulant            +44 207 418 8900

About Seplat Energy

Seplat Energy Plc is Nigeria's leading indigenous energy company. It is listed
on the Premium Board of the Nigerian Exchange Limited (NGX: SEPLAT) and the
Main Market of the London Stock Exchange (LSE: SEPL). Through our strategy to
build a sustainable business and deliver energy transition, we are
transforming lives by delivering affordable, reliable and sustainable energy
that drives social and economic prosperity.

Seplat Energy's portfolio consists of 11 PMLs, 17 PPLs and 5 OMLs in onshore
and shallow water locations in the prolific Niger Delta region of Nigeria,
which we operate with partners including the Nigerian Government and other
producers. Furthermore, we have an operated interest in three export terminals
including; the Qua Iboe export terminal, Yoho FSO, and Bonny River Terminal
(BRT), and operate two large offshore NGL recovery plants at Oso and EAP.

We operate three gas processing plants onshore, at Oben and Sapele on our
Western Assets and the 300 MMscfd ANOH Gas Processing Plant on our Eastern
Assets, an integrated joint venture with NGIC. Combined, these gas facilities
augment Seplat Energy's position as a leading supplier of natural gas to the
domestic power generation market.

For further information please refer to our website,
https://www.seplatenergy.com/

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRFUKURRNOUSUUR



            Copyright 2019 Regulatory News Service, all rights reserved