Seplat Energy Reports Strong Q1 2026 Results, Increases Dividend to 9.0 Cents Per Share

Seplat Energy’s first-quarter update is one of those results that looks stronger the deeper you go. On the surface, production was slightly lower year on year and profitability took a knock at the EBITDA level, but the bigger picture is better than that. Cash flow was solid, debt came down sharply, April production picked up, and shareholders are getting a much bigger dividend.

For retail investors, the main takeaway is simple: Seplat is still generating serious cash, it has fixed some operational disruption that hurt the quarter, and management is confident enough to lift the payout to USD 9.0 cents per share. That does not make it risk-free, but it does make this update more encouraging than the headline production dip might suggest.

Seplat Energy Q1 2026 results at a glance

Metric	1Q 2026	1Q 2025	Change
Gross revenue	$840.7 million	$809.3 million	Up 3.9%
Adjusted EBITDA	$371.3 million	$400.6 million	Down 7.3%
Profit before tax	$165.6 million	$207.4 million	Down 20.2%
Profit after tax	$37.9 million	$23.3 million	Up 62.7%
Cash generated from operations	$337.9 million	$306.5 million	Up 10%
Working interest production	129,841 boepd	131,745 boepd	Down 1.4%
Net debt	$531.6 million	$673.0 million at YE 2025	Down 21%
Dividend	USD 9.0 cents/share	USD 4.6 cents/share	Up 96%

Seplat production in Q1 2026: a soft quarter, but April looks much better

Production averaged 129,841 barrels of oil equivalent per day, or boepd, in the first quarter. That was down 1% from 1Q 2025, but up 9% from 4Q 2025, so the trend inside the numbers is improving rather than deteriorating.

The main problem was not the reservoirs. It was infrastructure. Seplat said onshore production was hit by 38 days of unplanned downtime on the third-party operated Trans Forcados Pipeline, which affected its Western Assets. That matters because pipeline outages can choke off output even when wells are ready to produce.

The encouraging bit is that pipeline operations resumed on 24 March and Western Assets production has normalised. Seplat also said production during the first 26 days of April averaged about 153 kboepd, with year-to-date working interest production at about 135 kboepd. That puts the group within its full-year guidance range of 135-155 kboepd.

Offshore helped steady the ship, with production contribution of 79,141 boepd, up 5% from 1Q 2025. Onshore contribution was 50,700 boepd, down 10% year on year. That split tells you the weaker quarter was largely an onshore logistics issue rather than a broad collapse across the business.

Gas and NGL growth give Seplat another leg of support

There were a couple of genuine growth markers in the update. First gas at ANOH arrived in January 2026 and contributed working interest volumes of 17.0 mmscfd, with a planned increase from 2Q 2026 onwards. NGL production also jumped, with working interest output of 9,802 bopd versus 3,376 bopd a year earlier.

NGLs are natural gas liquids, products like propane and butane that sit between gas and oil in value terms. Stronger NGL output is useful because it broadens the revenue mix and reduces reliance on plain crude volumes.

Seplat also said the Yoho restart is on track for 2Q 2026 and the Oso-BRT 1 gas expansion project remains on track for 3Q 2026 start-up. If those milestones land on time, the second half should look stronger operationally than the first quarter did.

Seplat financial results: revenue rose, but costs were the weak spot

Revenue increased to $840.7 million, up 4% year on year, helped by a higher realised oil price of $86.16 per barrel. That is a solid result given lifted volumes were lower at 8.7 million barrels versus 9.9 million barrels a year earlier.

There is one nuance worth flagging. Reported revenue included an overlift of $92.0 million, versus $53.5 million in 1Q 2025. An overlift is when a producer sells more crude cargoes in the period than its underlying entitlement. It is a normal industry accounting feature, but investors should remember it can make one quarter look stronger than another.

The weaker line in this update was cost. Unit production operating cost came in at $17.1 per boe, above Seplat’s guidance of $13.5-$14.5 per boe and up from $12.6 per boe in 1Q 2025. Management blamed accelerated planned maintenance at Yoho and lower volumes in the quarter, and said costs should normalise in later quarters.

That higher cost base fed straight into EBITDA, which fell 7.3% to $371.3 million, with margin at 44%. Operating profit dropped 10.4% to $213.5 million and profit before tax fell 20.2% to $165.6 million. Interestingly, profit after tax rose 62.7% to $37.9 million, but the detailed drivers of that swing are not disclosed in this announcement.

Cash generation and debt reduction are the standout positives

This is where the result gets more convincing. Cash generated from operations rose 10% to $337.9 million, while end-March cash at bank increased to $461.7 million from $332.3 million at the end of 2025.

Net debt fell to $531.6 million from $673.0 million at year-end. Net debt to EBITDA improved to 0.43x from 0.53x. That leverage ratio is a simple measure of how many years of EBITDA would be needed to cover net debt, and lower is better.

Seplat also refinanced and upsized its undrawn revolving credit facility to $400 million, cutting borrowing cost to SOFR plus 4.5% from SOFR plus 5% plus CAS. Management says that is a saving of 76 basis points. In plain English, the balance sheet is getting stronger and cheaper to fund.

Seplat dividend increase to 9.0 cents per share: why income investors will care

The headline investors will probably remember is the dividend. Seplat declared a 1Q 2026 dividend of USD 9.0 cents per share, made up of a USD 5.0 cents base dividend and a USD 4.0 cents special dividend. The total cost is about $54 million.

That is up 8% quarter on quarter and a hefty 96% year on year. You do not usually see that sort of increase unless management feels pretty comfortable about cash flow and balance sheet strength. On that basis, the dividend move sends a strong signal.

Seplat also highlighted its put-option hedge strategy, saying it preserves 100% of price upside. In simple terms, that means the company has downside protection from weaker prices without capping the benefit if oil prices rise. In a volatile market, that is a useful set-up.

What matters most for Seplat shareholders in the 2026 outlook

Guidance was reiterated across the board. Production is still expected at 135-155 kboepd, capex remains guided at $360-440 million, and unit operating cost guidance stays at $13.5-$14.5 per boe.

That tells me management sees the first quarter as a temporary wobble rather than a change in direction. The big question is execution. Seplat now needs to prove that April’s stronger production, the Yoho restart, and ANOH ramp-up can translate into better second-quarter and second-half numbers.

There are also a couple of softer positives that should not be ignored. Carbon emissions intensity improved 13% year on year to 41.6 kg CO2/boe, and the company remained lost time injury free in the quarter, taking total hours without LTI to more than 9.1 million. Those are not the figures that move the share price on their own, but they do point to a business improving operational discipline.

My take on the Seplat Energy Q1 2026 RNS

I think this was a good update with one obvious blemish: costs. The production miss was frustrating, but it was tied mainly to third-party pipeline downtime rather than an apparent deterioration in the asset base. April’s rebound makes that explanation more believable.

The strongest parts of the release were cash flow, debt reduction and the dividend increase. When a company is producing strong free cash flow, deleveraging, refinancing more cheaply, and paying shareholders more, that deserves attention.

The catch is that Seplat now has to deliver on the promised normalisation. If operating costs stay high or if project timing slips, the market may be less forgiving next time. But based on this RNS alone, Seplat looks like a company that had a messy quarter operationally and still managed to strengthen financially – and that is usually a decent place to start.

• Positive: Dividend up to USD 9.0 cents/share, strong cash generation, lower net debt, April production recovery.
• Negative: Unit operating cost of $17.1/boe was above guidance, EBITDA and profit before tax fell, and lifted volumes were lower year on year.
• Key watchpoint: Delivery of Yoho restart, ANOH ramp-up and a return to guided cost levels.