Seplat Energy Plc has delivered one of the strongest earnings performances in Nigeria’s energy sector this year, reporting a 498 percent jump in profit after tax to $164 million for the first half of 2026 as higher crude oil prices, stronger production and disciplined capital management combined to boost profitability and cash generation.
The dual-listed indigenous energy company also rewarded shareholders with a record interim dividend of 12.0 US cents per share, comprising a 5.0-cent core dividend and a 7.0-cent special dividend, while projecting a total dividend payout of 68.3 US cents per share ($410 million) for the full year, subject to the completion of its agreement with Nigerian National Petroleum Company (NNPC) Limited.
The strong earnings underscore Seplat’s emergence as one of Africa’s strongest cash-generating independent energy producers, with management signalling confidence that operational momentum and an improving balance sheet will sustain value creation despite uncertainties surrounding global crude prices.
According to the company’s unaudited results for the six months ended June 30, 2026, revenue increased by 30 percent year-on-year to $1.82 billion, from $1.398 billion in the corresponding period of 2025, while gross profit surged 68 percent to $815.9 million.
Cash generated from operations rose to $985.9 million, up 29 percent from the previous year, reflecting the favourable pricing environment and improved operational efficiency.
Production also strengthened during the period, averaging 139,509 barrels of oil equivalent per day (boepd), a four percent increase over the first half of 2025 and comfortably within the company’s production guidance of 135,000 to 155,000 boepd.
Performance accelerated in the second quarter, with average production reaching 149,070 boepd, representing a nine percent increase from the same period last year and a 15 percent improvement over the first quarter, supported by stronger output from the company’s onshore assets.
The company recorded working-interest oil production of 99,518 barrels per day and gas production of 182.9 million standard cubic feet per day, while continued restoration of idle wells added approximately 26,000 barrels per day of gross joint venture production capacity during the period.
Beyond stronger earnings, Seplat significantly improved its financial position through aggressive debt reduction.
The company repaid and cancelled $200 million under its Advanced Payment Facility, reducing the outstanding balance to $100 million, while net debt declined by 45 percent to $370.7 million, compared with $673.3 million at the end of 2025.
Consequently, its Net Debt-to-EBITDA ratio improved to 0.25 times, from 0.53 times, strengthening the company’s financial flexibility ahead of future investments.
Cash balances also increased to $433.8 million, excluding restricted cash of $130.8 million, providing additional liquidity to support expansion plans.
In another major strategic development, Seplat announced an agreement to sell a 10 percent interest in the NNPCL-Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture to NNPC Limited in a transaction valued at $281.6 million.
The company said the proceeds would be shared roughly equally between a special transaction dividend and further debt repayment, reinforcing both shareholder returns and balance-sheet resilience.
If completed in the second half of the year, the transaction would lift total expected shareholder distributions for 2026 to $410 million, representing a 173 percent increase over the previous year and accounting for more than 40 percent of Seplat’s five-year $1 billion dividend commitment.
Operationally, the company maintained a strong safety and environmental record, achieving 18.8 million man-hours without a lost-time injury across operated assets.
Carbon emissions intensity declined 18 percent year-on-year to 33.5 kilograms of carbon dioxide per barrel of oil equivalent, while emissions from onshore operations fell by 37 percent, reflecting progress under its End of Routine Flaring programme.
Despite higher operating costs associated with restoration activities at the Yoho offshore field, Seplat maintained its full-year production guidance and expects capital expenditure to accelerate during the second half of the year as development programmes gather pace.
The company revised unit operating cost guidance modestly higher to $14.5-$15.5 per barrel of oil equivalent, largely reflecting Yoho-related expenditures.
The financial performance comes as Seplat prepares for a leadership transition.
Effective August 1, 2026, Effiong Okon will assume office as chief executive officer, succeeding Roger Brown, while Tony O. Elumelu is scheduled to become chairman of the Board from January 1, 2027, replacing Udoma Udo Udoma.
Commenting on the results, Brown described the first-half performance as evidence of a stronger and more resilient company, noting that improved production, elevated commodity prices and prudent financial management had positioned Seplat for sustained growth.
He said management deliberately prioritised strengthening the balance sheet through accelerated debt repayment while maintaining attractive shareholder returns, adding that the company’s offshore portfolio continued to demonstrate significant long-term value creation potential.
“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation.
“Our declared quarterly dividend represents a new high-water mark for the company and, together with the planned offshore transaction, means that shareholder returns this year are expected to approach half of all dividends paid throughout Seplat’s history,” Brown said.
