Seplat Energy (SEPL) Q1 2026 earnings summary

Executive summary

• Achieved strong free cash flow and further deleveraging, supporting a special dividend for 1Q 2026.

• 1Q 2026 working interest production at 129.8 kboepd, with group revenue of $840.7 million and adjusted EBITDA of $371.3 million (44% margin).

• Net income rose to $37.9 million, up 63% year-over-year, with a 96% YoY increase in dividend to 9.0 US cents per share.

• Maintained a robust balance sheet with net debt reduced by 21% to $531.6 million and net debt/EBITDA at 0.43x.

• Free cash flow grew 11% to $199.2 million, supporting enhanced shareholder returns.

Financial highlights

• Group revenue increased 4% YoY to $840.7 million, driven by higher realised oil and gas prices and NGL liftings.

• Adjusted EBITDA: $371.3 million (44% margin), down 7% YoY but up 127% sequentially.

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

• Free cash flow: $199.2 million (+11% YoY), supporting dividend growth.

• Net debt reduced to $531.6 million, with gross cash at $461.7 million.

Outlook and guidance

• 2026 production guidance reiterated at 135-155 kboepd, with 17 new wells planned (15 onshore, 2 offshore).

• Capex guidance for 2026 set at $360-440 million, focused on drilling, gas infrastructure, and asset integrity.

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

• Plan to reduce unit production opex below $10/boe by 2030.

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