MON APRIL 28 2025-theGBJournal| Seplat Energy on Monday beat estimate for first-quarter earnings as higher oil and gas production went well above the company’s midpoint estimate of 2025 guidance.
Its revenue was $809.3 million (N1,227.5 billion) up c.350% on prior year (1Q 2024: $180 million or N268.6 billion).
Seplat’s lower unit production operating cost of $12.6/boe (1Q 2024: $9.5/boe), better than guidance of $14-$15/boe, due to timing of planned maintenance activities, helped bolster the company’s profits.
Seplat became one of the biggest domestic oil producers, following the acquisition of ExxonMobil’s onshore and shallow-water assets in 2024, a deal worth $1.28 billion.
The company reported gross profit of $353.0 million (N535.4 billion) for 1Q 2025, up 726.4 % from the year earlier.
Adjusted EBITDA settled at $401 million N607.6 billion), up 226% on prior year (1Q 2024: $123 million) as cash generated from operations of $306.5 million (N464.9 billion), went up materially from $16.8 million in 1Q 2024.
Production of crude oil averaged 131,561 boepd up 167% from 1Q 2024 (49,258 boepd), above the midpoint of 2025 guidance (120 – 140 kboepd) while onshore production contribution of 56,196 boepd, was 14% higher than 1Q 2024, and above 2025 guidance.
Within this, liquids went up +10% and gas +21% vs 1Q 2024, following strong performance at Oben Gas Plant and first contribution from Sapele Gas Plant. SEPNU production contribution of 75,365 boepd fell well within guidance, of which 88% crude and condensate, 4% NGL and 8% gas.
Seplat’s results were helped by lower unit production operating cost of $12.6/boe (1Q 2024: $9.5/boe), better than guidance of $14-$15/boe, due to timing of planned maintenance activities.
The company posted reduced gross debt by ~21% following early repayment of $250 million of RCF and $19.3 million repayment of Eland RBL. Balance sheet also remains robust. By end-March, cash at bank was $334.6 million (YE 2024: $469.9 million), excluding $128.9 million restricted cash.
Amidst the gains, Seplat declared 1Q 2025 dividend of US$ 4.6c/share, reflecting the company’s financial position and confidence in it’s outlook.
Seplat says it plans to set out a revised capital allocation policy in the Capital Markets Day scheduled for September 2025
”2025 has started positively for Seplat,” Roger Brown, Chief Executive Officer, said, adding, ”we are committed to our plan of growth and maximising value for our stakeholders.”
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