By Goodness Anenih
Seplat Energy Plc has reported a solid start to 2026, declaring an increased dividend and maintaining a positive production outlook despite minor operational setbacks in the first quarter.
The company announced a dividend of 9.0 cents per share for Q1 2026, comprising a base dividend of 5.0 cents and a special dividend of 4.0 cents, bringing the total payout to approximately $54 million.
This represents an 8 percent increase quarter-on-quarter and a significant 96 percent rise compared to the same period in 2025, reflecting improved financial performance and stronger cash flow expectations.
Seplat also completed the refinancing of its revolving credit facility, increasing it to $400 million while reducing borrowing costs to SOFR plus 4.5 percent, down from previous levels, resulting in savings of 76 basis points.
The company reiterated its 2026 production guidance of 135,000 to 155,000 barrels of oil equivalent per day, with projected growth in natural gas liquids by 85 percent year-on-year and gas output by 30 percent.
Capital expenditure is expected to remain between $360 million and $440 million, while unit operating costs are projected at $13.5 to $14.5 per barrel of oil equivalent.
Chief Executive Officer, Roger Brown, noted that shifting dynamics in the global oil and gas market, particularly tensions in the Middle East, have improved the outlook for energy prices, positioning Nigeria advantageously.
He added that Seplat’s strong asset base and balance sheet place the company in a favourable position to deliver robust cash flows throughout the year.
Although production in the first quarter slightly fell below internal expectations due to unplanned downtime on third-party infrastructure, output has since improved, averaging about 153,000 barrels per day in April.
The company expressed confidence in meeting its full-year targets, with anticipated production increases from key assets and continued investment in growth projects aimed at strengthening long-term performance.