• Revenue grows to $1.82b; NNPC Ltd to acquire additional 10% stake

nLeading Nigerian independent energy firm, Seplat Energy Plc has reported a strong financial and operational performance for the first half of 2026, posting a 498 per cent increase in profit after tax (PAT) to $164 million and declaring a total interim dividend of 12.0 US cents per share as robust oil prices, higher production and stronger operational efficiency boosted earnings.

The leading Nigerian independent energy company, listed on both the Nigerian Exchange and the London Stock Exchange, also grew revenue by 30 per cent year-on-year to $1.82 billion from $1.398 billion in the corresponding period of 2025, while gross profit rose 68 per cent to $815.9 million from $484.6 million.

According to the company’s unaudited financial results for the six months ended June 30, 2026, cash generated from operations increased by 29 per cent to $985.9 million, reflecting the strong earnings momentum recorded during the period.

Operationally, Seplat recorded average production of 139,509 barrels of oil equivalent per day (boepd), representing a four per cent increase from the 134,492 boepd achieved in the first half of 2025 and remaining within its full-year production guidance of 135,000 to 155,000 boepd. Working interest production comprised 99,518 barrels of oil per day and 182.9 million standard cubic feet of gas per day.

Second-quarter production averaged 149,070 boepd, up nine per cent from the corresponding period of 2025 and 15 per cent higher than the first quarter of 2026, supported by stronger performance across its West, East and Elcrest assets.

Onshore production contributed 60,690 boepd, an 11 per cent increase year-on-year, while offshore production remained broadly stable at 78,819 boepd compared with 79,660 boepd recorded in the same period last year.

The company said its idle well restoration programme continued to deliver significant gains, adding 26,000 barrels per day of gross joint venture production capacity from 24 restored wells during the six-month period. Natural gas liquids production also more than doubled to 8,459 barrels per day from 3,772 barrels per day in the corresponding period of 2025.

Seplat also reported continued progress in its environmental and safety performance. Group carbon emissions intensity declined by 18 per cent year-on-year to 33.5 kilograms of carbon dioxide per barrel of oil equivalent, while emissions intensity across its operated onshore assets fell by 37 per cent, reflecting the impact of its End of Routine Flaring programme.

The company maintained an accident-free record during the period, with its operated assets delivering 18.8 million man-hours without a Lost Time Injury.

Financially, adjusted EBITDA rose by 28 per cent to $939 million from $735 million recorded a year earlier. Earnings per share climbed by 565 per cent to 26.6 US cents compared with 4.0 US cents in the first half of 2025.

Although unit production operating costs increased to $15.8 per barrel of oil equivalent from $12.5 per barrel, largely due to restoration work at the Yoho field, the company noted that excluding Yoho-related expenses, operating costs would have been $14.0 per barrel.

Capital expenditure during the period stood at $109.8 million, with higher investment expected during the second half of the year as planned projects gather pace.

Seplat also strengthened its balance sheet by repaying and cancelling $200 million under its Advanced Payment Facility, reducing the outstanding balance to $100 million. Cash at bank increased to $433.8 million at the end of June, excluding restricted cash of $130.8 million.

Net debt fell by 45 per cent to $370.7 million from $673.3 million at the end of 2025, while the company’s net debt-to-EBITDA ratio improved significantly to 0.25 times from 0.53 times. During the period, S&P Global upgraded Seplat’s credit rating to B+.

The board declared a second-quarter dividend of 12.0 US cents per share, comprising a core dividend of 5.0 US cents and a special dividend of 7.0 US cents per share.

Management also announced plans to increase the full-year dividend to 45.0 US cents per share, representing an 80 per cent increase over 2025, based on confidence in the company’s financial outlook.

In addition, Seplat plans to pay a transaction dividend of 23.3 US cents per share upon completion of the sale of a 10 per cent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited. The proposed transaction, valued at $281.6 million, is expected to close in the second half of 2026, with proceeds to be shared equally between the transaction dividend and further debt reduction.

If completed as planned, shareholders are expected to receive a combined dividend of 68.3 US cents per share, amounting to approximately $410 million, representing a 173 per cent increase over 2025 and accounting for 41 per cent of Seplat’s $1 billion dividend distribution target for 2026 to 2030.

The company retained its production guidance of 135,000 to 155,000 boepd and capital expenditure forecast of between $360 million and $440 million for the year, while revising unit operating cost guidance upward to between $14.5 and $15.5 per barrel due to higher Yoho operating costs.

Seplat also confirmed previously announced leadership changes. Effective August 1, 2026, Engr. Effiong Okon will succeed Roger Brown as Chief Executive Officer and Executive Director, while Mr. Tony O. Elumelu will assume the role of Chairman from Senator Udoma Udo Udoma on January 1, 2027. Independent Non-Executive Director Dr. Emma FitzGerald will retire from the board on December 31, 2026, with a search underway for her replacement.

Commenting on the results, Chief Executive Officer Roger Brown said the company was in its strongest position yet as he prepared to hand over leadership.

He noted that production had improved from the first quarter and was expected to increase further in the second half of the year as temporary restrictions ease and planned operational activities are completed.

Brown said strong commodity prices had supported robust cash generation, enabling the company to strengthen its balance sheet through a $200 million debt repayment while simultaneously increasing returns to shareholders.

He described the declared quarterly dividend of 12.0 US cents per share as Seplat’s highest ever quarterly payout, representing a 33 per cent increase over the first quarter of 2026 and 161 per cent higher than the second quarter of 2025.

According to him, the combination of continued strong operational performance and the planned sale of a 10 per cent interest in the offshore joint venture to NNPC Limited means total dividends expected to be paid during the current financial year would amount to nearly half of all dividends previously paid by the company throughout its history.

Brown expressed confidence in his successor, Engr. Effiong Okon, stating that the incoming chief executive possesses the operational experience and leadership required to unlock the next phase of growth and value creation for shareholders while maintaining Seplat’s commitment to its host communities and other stakeholders.