Seplat Energy Posts 498% Surge in Half-Year Profit, Declares Higher Dividend for Shareholders
Seplat Energy Plc has reported a remarkable financial performance for the first half of 2026, posting a 498 per cent increase in profit after tax to $164 million, driven by stronger crude oil prices, higher production volumes and improved operational efficiency, as the company rewarded shareholders with an increased dividend.
The dual-listed energy company, quoted on the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), also announced a second-quarter dividend of 12.0 US cents per ordinary share and outlined plans to significantly increase total shareholder returns for the 2026 financial year.
According to the company’s unaudited financial results for the six months ended June 30, 2026, revenue rose by 30 per cent to $1.82 billion from $1.40 billion recorded in the corresponding period of 2025.
The strong revenue growth translated into improved profitability across key performance indicators. Gross profit climbed by 68 per cent to $815.9 million, while adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased by 28 per cent to $939 million.
Cash generated from operating activities also grew by 29 per cent to $985.9 million, reflecting the company’s strong operational cash flow and financial resilience.
Operationally, Seplat recorded average production of 139,509 barrels of oil equivalent per day (boepd) during the review period, representing a four per cent increase compared to the same period in 2025.
The production level remained comfortably within the company’s full-year production guidance of between 135,000 and 155,000 boepd.
Production strengthened further in the second quarter, rising to 149,070 boepd as the company benefited from increased output from its onshore operations.
The company attributed the improved performance to sustained production across its West, East and Elcrest assets, continued success of its idle well restoration programme and growing output of natural gas liquids.
Despite increased operating costs, largely associated with the Yoho restoration project, Seplat continued to strengthen its financial position by aggressively reducing debt.
During the period, the company repaid $200 million under its Advanced Payment Facility ahead of schedule, reducing the outstanding balance to $100 million.
As a result, net debt fell by 45 per cent to $370.7 million, while cash at bank increased to $433.8 million as of June 30, 2026.
Reflecting the improved financial performance, the Board declared a second-quarter dividend of 12.0 US cents per share, consisting of a core dividend of 5.0 US cents and a special dividend of 7.0 US cents. The payout amounts to an estimated shareholder distribution of approximately $72 million.
Seplat further announced plans to distribute a total dividend of 45.0 US cents per share for the 2026 financial year, representing an 80 per cent increase over the previous year’s payout.
The company disclosed that, subject to the completion of the proposed sale of a 10 per cent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited, shareholders could receive an additional transaction dividend of 23.3 US cents per share.
If approved and completed, the total dividend for 2026 would rise to 68.3 US cents per share, representing an overall shareholder distribution valued at approximately $410 million.
The proposed transaction, valued at $281.6 million, is expected to be completed in the second half of 2026. Seplat said proceeds from the deal would be shared between an additional special dividend for shareholders and further reduction of the company’s debt profile.
Commenting on the results, the Chief Executive Officer of Seplat Energy, Roger Brown, described the first-half performance as evidence of the company’s diversified asset portfolio and disciplined financial management.
Brown said stronger commodity prices, improved production levels and prudent capital allocation had enabled the company to significantly reduce debt while simultaneously enhancing returns to shareholders.
He expressed confidence that Seplat remained on track to achieve its production targets for the year and unlock additional value from its offshore assets.
Brown, who is scheduled to hand over leadership of the company on August 1 to Effiong Okon, said he was optimistic about Seplat’s future growth prospects under the incoming management.
The company also announced changes to its Board of Directors. Chairman Senator Udoma Udo Udoma is expected to step down in January 2027 and will be succeeded by Tony O. Elumelu.
In addition, Independent Non-Executive Director Dr Emma FitzGerald will retire from the board at the end of the year.
