Seplat Energy Plc has narrowed its full-year 2025 production guidance to the upper half of its original range, citing strong operational performance and robust cash generation that has driven a sharp reduction in debt and enabled a higher dividend payout.
In its unaudited results for the nine months ended 30 September 2025, the dual-listed Nigerian energy company reported average working-interest production of 135,636 barrels of oil equivalent per day (boepd), up 185 per cent from the same period last year, reflecting the full consolidation of its offshore assets and steady gains onshore
Seplat said it now expects full-year production of between 130,000 and 140,000 boepd, compared with earlier guidance of 120,000 to 140,000 boepd, placing output firmly at the top end of expectations.
Cash flow surge drives deleveraging
The surge in production translated into a sharp improvement in financial performance. Revenue for the nine-month period rose to $2.18 billion, more than tripling year-on-year, while adjusted EBITDA climbed 190 per cent to $1.11 billion.
After-tax cash flow from operations exceeded $1 billion, allowing Seplat to cut net debt to $386 million by the end of September, down 43 per cent from the previous quarter.
Net debt-to-EBITDA improved to 0.27x, well below the company’s internal targets and lending covenants.
The balance-sheet strengthening was supported by the repayment and cancellation of its junior reserve-based lending facility, refinancing of the senior facility at a lower cost, and the full repayment of its $100 million revolving credit facility, which is now undrawn and available.
Dividend increased on strong performance
On the back of the improved cash position, the board declared a dividend of 7.5 US cents per share for the third quarter of 2025, representing a 63 per cent increase quarter-on-quarter and more than double the payout in the same period last year.
The dividend comprises a base payout of 5.0 US cents per share and a special dividend of 2.5 US cents per share, in line with the dividend policy unveiled at the company’s September Capital Markets Day.
Operational highlights and setbacks
Operationally, Seplat recorded continued growth onshore, with production rising 16 per cent year-on-year, supported by improved pipeline availability and new wells.
Offshore production remained strong despite planned downtime associated with the East Area Project inlet gas exchanger replacement.
The company also reported its first sale of liquefied petroleum gas to the domestic market and said the ANOH gas plant remains on track to deliver first gas in the fourth quarter of 2025.
However, Seplat flagged a setback following a fire incident at the Yoho production platform in late September.
While no injuries were reported, the platform is expected to remain offline until year-end, with a fourth-quarter production impact of about 10,000 to 12,000 boepd factored into guidance.
Outlook
Chief Executive Roger Brown said the results demonstrated Seplat’s ability to operate “a business at scale” following the acquisition of Mobil Producing Nigeria Unlimited, adding that the company remains on track to end routine flaring onshore by the end of 2025 and to complete conversion to the Petroleum Industry Act framework for its onshore assets.
Seplat maintained its capital expenditure guidance for 2025 at a narrowed range of $270 million to $290 million and said its strengthened balance sheet positions it to pursue its longer-term target of 200,000 boepd of working-interest production and up to $1 billion in cumulative dividends by 2030.