• Posts $2.73 bn revenue in 2025, projects 135,000-155,000 boepd in 2026

Sopuruchi Onwuka

Leading Nigerian independent energy company, Seplat Energy Plc, has reiterated its resolve to deliver billion-dollar cumulative return of capital to shareholders by 2030, pointing at the cash generative nature of operated asset base which enabled increase in dividends by over 50% to $0.25  per share.

The company which declared its audited results for the 12 months ended December 31, 2025 stated in its operational highlights that it pumped oil and gas from its operations at daily average of 131,506 barrels of oil equivalents (boe), indicating a 148% jump from 52,947 boepd in 2024.

The company pointed out that output would have been better if not the shutdown of its Yoho facilities and other planned maintenance activities that limited production to 119,200 boepd in the last quarter of the year.

Managing Director, Mr Roger Brown, said in a statement that the 2025 result reflected the first full year of offshore consolidation. He added that the performance aligned with the company’s revised production guidance.

“Finally, the cash generative nature of our asset base is clearly evident in our results, and by raising dividends by over 50% to USD 25 cents per share alongside continued strengthening of our balance sheet and delivery of our work programs, we are already well positioned to deliver on our planned $1 billion cumulative return of capital to shareholders by 2030,” he said.

“Furthermore, the strength of the enlarged group has reflected in a notable lowering of our cost of debt, providing additional scope for long-term value creation,” he pointed out.

Mrs Brown stated that Seplat clearly demonstrated ability to operate at scale in 2025, benefitting from successful execution of several key offshore activities that kick-started life for the company as an offshore operator while delivering onshore production performance that was the strongest in recent memory.

He said the company laid out a long-term ambition to “Build an African Energy Champion” with a clear roadmap to grow working interest production to 200,000 boepd by 2030.

“In 2025 we delivered the IGE replacement project offshore and the Sapele Gas plant onshore. In recent weeks we were delighted to achieve first gas at the ANOH Gas Plant and are on track to doubling Joint Venture gas volumes at Oso-BRT to 240 MMscfd in 2H 2026,” Mr Brown declared in the statement.

“Looking ahead, the company projected 2026 production in the range of 135,000 to 155,000 boepd, with the midpoint representing about 10 percent growth over 2025. Crude and condensate output is expected to remain broadly flat, while natural gas liquids are forecast to grow by 85 percent and gas production by 30 percent, supported by ANOH and the completion of Oso-BRT Phase 1.”

In posting operational outlook for the company, Mr Brown said Seplat would drive drilling as a decisive factor in meeting long-term growth ambitions, adding that the first jack-up drilling rig would arrive Oso field in the third quarter of 2026 to commence a multi-year, multi-well drilling campaign.

Mr Brown said the board raised total dividends for the year by the equivalent to $150 million, indicating confidence in the company’s financial position and outlook.

He explained that the strengthened balance sheet and lower cost of debt following offshore consolidation provide additional scope for long-term value creation.

In its operational details for 2025 the company stated that onshore production grew 14 percent year-on-year, supported by completion of the Sapele Gas Plant and new well inventory, while offshore output increased 9 percent on a pro-forma basis despite the Yoho platform outage.

The company also reported a successful idle well restoration program that added 48.6 kboepd of gross production capacity from 49 wells, exceeding expectations.

Seplat which announced first gas shipment from the ANOH Gas Plant in January 2026, stated that production at the facility has stabilized at a range between 50 and 70 million standard cubic feet per day (Mscfd).

The company also said it remains on track to double Joint Venture gas volumes at Oso-BRT to 240 Mscfd in the second half of 2026.

Year-end independently audited proven and probable (2P) reserves declined by about 42 million barrels of oil equivalent to 1.001 billion barrels, reflecting a focus on maintenance and asset integrity investments, the company reported.

However, Group 2P+2C reserves increased by 181 million barrels to 2,486.6 million barrels, driven by positive offshore oil resource revisions and gas resource upgrades.

Financially, the company recorded revenue of $2.73 billion, up 144 percent from $1.12 billion in 2024, largely due to a full year contribution from offshore assets.

Adjusted EBITDA rose 137 percent to $1.28 billion, while cash generated from operations climbed 276 percent to $1.17 billion.

Unit production operating costs declined 5 percent to $15.7 per barrel of oil equivalent.

Net debt fell 25 percent year-on-year to $673.3 million, reducing the Net Debt to EBITDA ratio to 0.53 times.

The company started that it made $326.2 million in completion payments to ExxonMobil and confirmed that no MPNU contingent consideration was payable for 2025.

For the fourth quarter, Seplat declared a dividend of 8.3 US cents per share, comprising a 5.0 cent base dividend and a 3.3 cent special dividend. The total dividend for 2025 amounted to 25 cents per share, a 52 percent increase over 2024.

Looking ahead, the company projected 2026 production in the range of 135,000 to 155,000 boepd, with the midpoint representing about 10 percent growth over 2025. Crude and condensate output is expected to remain broadly flat, while natural gas liquids are forecast to grow by 85 percent and gas production by 30 percent, supported by ANOH and the completion of Oso-BRT Phase 1.

Initial capital expenditure guidance is set between $360 million and $440 million, including plans to drill 17 new wells.

Brown said Seplat remains focused on its long-term ambition to build an African energy champion, targeting working interest production of 200,000 barrels of oil equivalent per day by 2030.