Seplat grows H1 profit 498% to $164m, raises dividend

Seplat Energy Plc has reported a 498 per cent increase in profit after tax to $164 million for the first half of 2026, supported by higher oil prices, stronger production, improved operational efficiency and robust cash generation, as the company declared a 12.0 US cents interim dividend per share.

The Nigerian independent energy company, listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), also grew revenue by 30 per cent year-on-year to $1.82 billion from $1.40 billion, while gross profit rose 68 per cent to $815.9 million.

Cash generated from operations increased by 29 per cent to $985.9 million, while adjusted EBITDA climbed 28 per cent to $939 million.

Production averaged 139,509 barrels of oil equivalent per day (boepd) during the six months, up four per cent from 134,492 boepd recorded in the corresponding period of 2025 and within the company’s full-year production guidance of 135,000 to 155,000 boepd.

Second-quarter production averaged 149,070 boepd, representing increases of nine per cent year-on-year and 15 per cent over the first quarter.

Onshore production rose 11 per cent to 60,690 boepd, while offshore production stood at 78,819 boepd.

The company also reported strong growth in natural gas liquids production, with working interest output rising to 8,459 barrels per day from 3,772 barrels per day a year earlier.

Seplat said its idle well restoration programme added 26,000 barrels per day of gross joint venture production capacity from 24 wells during the period.

Operationally, the company maintained a strong safety record, delivering 18.8 million man-hours without a Lost Time Injury (LTI) across its operated assets.

Carbon emissions intensity declined 18 per cent year-on-year to 33.5 kilograms of CO₂ per barrel of oil equivalent, while emissions from onshore operations fell 37 per cent, reflecting progress under its End of Routine Flaring programme.

Despite increased activity, unit production operating costs rose to $15.8 per barrel of oil equivalent, compared with $12.5 in the corresponding period of 2025, largely due to restoration work at the Yoho field.

The balance sheet also strengthened considerably during the period. Seplat repaid and cancelled $200 million under its Advanced Payment Facility, reducing the outstanding balance to $100 million.

Cash at bank increased to $433.8 million, while net debt fell 45 per cent to $370.7 million, improving the company’s net debt-to-EBITDA ratio to 0.25 times from 0.53 times at the end of 2025.

The company also announced an agreement with the Nigerian National Petroleum Company Limited (NNPC Ltd.) to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture for $281.6 million.

Subject to completion in the second half of 2026, the proceeds will be shared equally between a special transaction dividend and further debt reduction.

Seplat said shareholders are expected to receive a total dividend of 68.3 US cents per share for the 2026 financial year, comprising a planned annual dividend of 45.0 US cents and a transaction dividend of 23.3 US cents, representing 173 per cent growth over the previous year.

The company maintained its production guidance of 135,000 to 155,000 boepd and capital expenditure guidance of $360 million to $440 million, although it revised unit operating cost guidance upward to $14.5-$15.5 per barrel of oil equivalent because of higher Yoho operating costs.

Seplat also confirmed key leadership changes, with Engr. Effiong Okon set to succeed Roger Brown as Chief Executive Officer from August 1, 2026, while Tony O. Elumelu will become Chairman from January 1, 2027, replacing Senator Udoma Udo Udoma

Commenting on the results, outgoing Chief Executive Officer Roger Brown said the company enters its next phase from a position of strength.

“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation. We strengthened the balance sheet by repaying $200 million of debt while increasing shareholder returns through a record quarterly dividend.

“The performance of our offshore business over the past 18 months has reinforced our confidence in the quality of the portfolio. I hand over leadership to Effiong Okon knowing the company is well positioned to deliver the next phase of value creation for shareholders,” Brown said.