Onome Amuge
Seplat Energy PLC, a leading Nigerian independent oil and gas company listed on both the Nigerian Exchange and the London Stock Exchange, has reported a strong first quarter for 2025, fueled by an increase in production following its acquisition of Mobil Producing Nigeria Unlimited (MPNU). The company’s audited results for the three months ended March 31st revealed a more than threefold increase in revenue to N1.228 trillion, a notable surge compared to the N268.6 billion recorded in the same period last year.
According to the financials, Seplat’s acquisition, completed in 2024, has clearly begun to bear fruit, with production averaging 131,561 barrels of oil equivalent per day (boepd), a 167 per cent increase compared to the 49,258 boepd in the first quarter of 2024. This figure also surpasses the midpoint of the company’s 2025 guidance of 120-140 kboepd.
In a similar trend, gross profit soared to N535.4 billion, a substantial increase from the N63.8 billion reported year-on-year. Profit before tax also witnessed an uplift, reaching N314.6 billion from N103.5 billion in the first quarter of 2024.
Cash generation from operations also rose, climbing to N464.9 billion from N25.2 billion in the corresponding period last year.
Debt reduction and dividend hike signal confidence
Seplat’s strong financial performance has allowed the company to proactively manage its debt. It announced an early repayment of $250 million from its Revolving Credit Facility (RCF), reducing it to $100 million. This contributed to an approximately 21 per cent reduction in gross debt. Furthermore, the company successfully refinanced its $650 million senior notes, with the new notes maturing in 2030 and priced at a coupon of 9.125 per cent. Notably, Seplat’s notes were priced inside Nigerian sovereign debt for the first time, a testament to its established credit market reputation. Reflecting its strong financial position and confidence in its future outlook, Seplat declared a quarterly dividend of 4.6 cents per share, an increase from the 3.6 cents per share distributed in the previous quarter. The company intends to outline a revised capital allocation policy at its Capital Markets Day scheduled for September 2025.
Operational milestones and safety record
Operationally, Seplat highlighted the strong performance of its onshore assets, which contributed 56,196 boepd, a 14 per cent increase year-on-year. This growth was driven by strong output from the Oben Gas Plant and the first contribution from the newly commissioned Sapele Integrated Gas Plant (SIGP), which achieved its first commercial gas sales in February. SIGP is delivering high-quality processed gas and condensate yields of approximately 2 kbopd.
The integration of SEPNU is also progressing well, contributing 75,365 boepd, within the company’s guidance. An idle well restoration programme within SEPNU has already added approximately 11 kbopd of gross joint venture production from the first ten wells brought back online.
Seplat also emphasised its commitment to safety, achieving over 7.3 million man-hours without a Lost Time Injury (LTI), demonstrating a strong safety culture across its operations.
Leadership changes on the board
In a boardroom reshuffle, Bello Rabiu, senior independent non-executive director, and Babs Omotowa, independent non-executive director, resigned following their appointments to the board of NNPC Ltd. The Seplat board has unanimously appointed Bashirat Odunewu as the new senior independent non-executive director.
Outlook remains positive
Looking ahead, Seplat maintained its 2025 production guidance of 120-140 kboepd and its capital expenditure guidance of $260-320 million. The company anticipates unit operating costs for the group to be in the range of $14.0-15.0/boe.
Roger Brown, chief executive officer, commented: “2025 has started positively for Seplat. As we deliver the business at a significantly enhanced scale, our focus is on the successful integration of the combined companies, and I am pleased to report that we are making good progress. It is clear that we can benefit greatly from the combined expertise of our onshore and offshore workforce.”
According to Brown, production has been strong, showing the benefit of the continuous drilling programme, investment in asset integrity and the availability of multiple evacuation routes.
Brown added, “Our assets are high quality, and while we will remain agile to the prevailing oil price environment, our business plan is designed to be robust at lower oil prices and our gas revenues, which are largely delinked to oil prices, provide long-term stability for the business. We are committed to our plan of growth and maximising value for our stakeholders.”
