Seplat Energy (SEPL) investor relations material

Executive summary

• Revenue increased 4% year-over-year to $840.7 million, driven by higher NGL liftings and improved realised prices, despite lower crude and gas volumes.

• Adjusted EBITDA was $371.3 million (44% margin), down 7% year-over-year due to higher operating costs and lower volumes.

• Net income rose 63% year-over-year to $37.9 million, with EPS at $0.06, up from $0.03.

• Free cash flow grew 11% to $199.2 million, supporting a 96% year-over-year increase in dividend to 9.0 cents/share.

• Net debt reduced by 21% to $531.6 million, with a net debt/EBITDA ratio of 0.43x.

Financial highlights

• Gross revenue: $840.7 million (+4% YoY); adjusted for overlift: $748.7 million (-1% YoY).

• Adjusted EBITDA: $371.3 million (-7% YoY); margin 44%.

• Operating profit: $213.5 million (-10% YoY); margin 25%.

• Net income: $37.9 million (+63% YoY); EPS: $0.06 (+64% YoY).

• Free cash flow: $199.2 million (+11% YoY).

• Cash at bank: $461.7 million (YE 2025: $332.3 million).

• Net debt: $531.6 million (YE 2025: $673.3 million).

• Dividend: 9.0 cents/share (5.0c base, 4.0c special), up 96% YoY.

Outlook and guidance

• 2026 production guidance reiterated at 135-155 kboepd.

• Capex guidance maintained at $360-440 million; unit opex guidance at $13.5-14.5/boe.

• Dividend policy targets $1 billion return to shareholders over 2026-2030, with 40-50% of free cash flow distributed.

• Potential divestment of 10% working interest in SEPNU-NNPC JV under discussion.