May 04, (THEWILL) – Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has announced its interim unaudited results for the three months ended March 31, 2025 — showing strong performance in all metrics.
Seplat Energy Plc started the year on a strong footing as its first quarter (Q1 2025) performance reflects a growth trajectory that could surpass last year’s results.
This points to the opportunities for local content initiatives widening during the year and beyond on the windows of activities offered by the foremost energy firm.
The Figures
Seplat, which delivered robust production and cost performance during Q1 2025 at a new scale, is firmly on track to deliver FY 2025 guidance, according to the details of the results.
Financial highlights revealed that revenue was $809 million, up approximately 350 percent on prior year (Q1 2024: $180 million). On this account, unit production operating cost of $12.6/boe (1Q 2024: $9.5/boe) was better than guidance of $14-$15/boe, due to timing of planned maintenance activities.
Furthermore, adjusted EBITDA of $401 million rose up 226 percent on prior year (Q1 2024: $123 million). Cash generated from operations of $306.5 million was up materially from $16.8 million in 1Q 2024.
Also, cash capital expenditure of $40.2 million was recorded (Q1 2024: $47 million) while onshore drilling activity is to ramp up from Q2 2025.
The declared dividend of US$ 4.6c/share in Q1 2025 was an increase on the prior quarter dividend (US$ 3.6c/share), reflecting the strength of its financial position and confidence in their outlook.
The company disclosed that “Strong cash position supports early repayment of $250 million reducing the RCF (Revolving Credit Facility) to $100 million, and an increase in our quarterly dividend to US$ 4.6c/share.”
Seplat Energy plans to set out a revised capital allocation policy in the Capital Markets Day scheduled for September 2025.
Production Surge
Speaking on the production performance, Seplat disclosed that production averaged 131,561 boepd, up 167 percent from Q1 2024 (49,258 boepd), above the midpoint of 2025 guidance (120 – 140 kboepd).
Also, onshore production contribution of 56,196 boepd was 14 percent higher than Q1 2024, and above 2025 guidance. Within this, liquids increased 10 percent and gas 21 percent vs 1Q 2024, following strong performance at Oben Gas Plant and first contribution from Sapele Gas Plant.
SEPNU production contribution of 75,365 boepd, within guidance, of which 88 percent was crude and condensate, 4 percent NGL and 8 percent gas.
SEPNU idle well restoration programme added approximately 11 kbopd gross JV production from the first 10 wells restored to production.
Sapele Integrated Gas Plant was commissioned and achieved first commercial gas sales in February 2025. The plant is delivering high quality processed gas, and condensate yields of approximately 2 kbopd.
CEO Speaks
Commenting on the Q1 2025 performance, Roger Brown, Chief Executive Officer, said:
“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.
“Production has been strong, showing the benefit of the continuous drilling programme, investment in asset integrity and the availability of multiple evacuation routes. Financial performance was also strong, allowing us to be proactive in materially reducing gross debt, maintaining low balance sheet leverage, and further strengthening our company as the near term global economic outlook becomes less predictable.
“We remain conservative in our approach, but our confidence in the future trajectory for our business, combined with our strong financial position, means that we are delighted to increase our quarterly dividend to $ 4.6c/share, a 28 percent increase in our quarterly dividend versus 4Q 2024.
“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.”
ExxonMobil Acquisition
In naira terms, Seplat had earlier stated that its acquisition of ExxonMobil’s onshore business helped lift quarterly profit to N35 billion. Revenue for the quarter sped up more than four times to N1.3 trillion, compared to the same period of last year.
Seplat Energy’s buyout of ExxonMobil’s Nigeria onshore asset last year, a deal worth $1.3 billion at initial consideration, was the cornerstone on which it built its latest quarterly profit of N35.4 billion.
The company’s earnings report, out on Monday, acknowledged the acquisition contributed nearly three-fifths of the average production for the period, driving turnover in addition to helping reverse a N2.9 billion loss recorded a year earlier.
NCDMB, Industry Impact
Industry experts emphasise that the strategic acquisition of the formerly owned international oil companies’ (IOC) facilities by Nigerian investors marks a landmark achievement by the indigenous oil and gas operators. They also consider it a huge opportunity for the Nigerian Content Monitoring and Development Board (NCDMB).
The primary objective of NCDMB is to promote and develop Nigerian content in the Nigerian oil and gas industry, ensuring the growth and utilisation of local capabilities, goods, and services.
This year, April 22, 2025, marks the 15th anniversary of the establishment of the Nigerian Content Policy through the Local Content Law signed by former President Goodluck Jonathan on April 22, 2010.
During this period, the scheme has recorded remarkable success that portends rapid economic development through expanding local capacity, creating jobs and boosting foreign exchange earnings.
The NCDMB success story includes the recent groundbreaking ceremony for a Compressed Natural Gas (CNG) Mother Station at Iwhreken, Ughelli South, Delta State.
It has been documented that the earlier phase of this scheme was marked by capital flight amounting to an estimated US$380 billion, loss of two million jobs as a result of human capital deficits, and less than five per cent in local content.
In sharp contrast is the post-NOGICD Act era which has witnessed phenomenal development of in-country capacity and capabilities as a result of creative enforcement and monitoring of industry operations as well as strategic interventions by the NCDMB.
Data by the NCDMB revealed that local content hit 56 per cent at the end of 2023, which translates into in-country retention of 56 per cent of oil and gas industry yearly spend on operations.
Today, the NCDMB is on the fast lane to the 70 percent local content target in 2027, ensuring that equipment and tools as well as services required for oil and gas operations are made and procured in Nigeria.
Opportunity Windows
The expertise acquired by the Nigerian operators in Engineering, Procurement, Installation, Operation and Maintenance (EPICOM) space equips them to undertake a wide range of technical jobs in the regions.
These include installation and servicing of the metering system, construction of loading bay, LPG installation, tank farm construction, installation of actuators, colons, mechanical seals, valves, steam trap and other process equipment.
Human Capital Drive
The NCDMB is partnering with educational institutions and skill acquisition centres towards equipping Nigerian youths for the challenge of managing the facilities acquired by indigenous operators.
For instance, the NCDMB and Shell Petroleum Development Company (SPDC), with its joint venture (JV) partners, last year unveiled a world-class engineering design studio and an information and communication technology (ICT) hub at the Federal University of Technology, Owerri (FUTO).
The facilities were conceived and donated in furtherance of the Nigerian Content Human Capacity Development (HCD) programme which had focused lately on institutional strengthening, equipping universities and revamping select technical and vocational schools across the country.
It was in a bid to develop competent technical manpower and craftsmen needed in the oil and gas industry and the linkage sectors.
The new facilities include two state-of-the-art Engineering Design Studios and a fully furnished 100-seater Main ICT Lecture Hall, equipped with computers and smartboards. The studios are designed to serve as a “visually stimulating collaborative workspace that fosters an environment where students can engage in group work, brainstorming sessions, and ideation meetings.”
Other facilities are a 200KVA diesel generator, diesel storage tank, generator house, borehole, overhead water tank, perimeter mesh wire fence, a car park, as well as shallow drains and landscaping.
According to the NCDMB boss, who was represented by the Board’s Director in charge of Capacity Building, Dr. Ama Ikuru, “We shall keep enhancing institutional capacity to equip our students with the requisite knowledge and skills needed to compete globally in the wake of the 4th industrial revolution where Artificial Intelligence, data science, Internet of Things, robotics dominate.”
Recalling several interventions by the NCDMB in academic institutions to boost acquisition of contemporary skills, Engr. Ogbe said, “the Board has carried out the upgrade of many vocational schools and universities under its Technical and Vocational Education and Training Centres (TVETs) upgrade programme” and that it believes in “the significance of education particularly the Science, Technology, Engineering and Mathematics (STEM) courses.”
The recent acquisition of the facilities of divested IOCs by local investors will lead to increased participation by Nigerians for rapid economic development of the country.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
