…Revenue Rises to $1.82 Billion as Company Delivers Strong Operational Performance and Maintains 2026 Production Guidance
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1Seplat Energy PLC, Nigeria’s leading indigenous energy company listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), has announced an exceptional financial and operational performance for the six months ended June 30, 2026, posting a 498 per cent increase in Profit After Tax (PAT) to $164 million and declaring a record interim dividend of US 12.0 cents per ordinary share.
The impressive performance reflects stronger production, favourable commodity prices, disciplined capital management, improved operational efficiency, and robust cash generation, reinforcing the company’s position as one of Africa’s leading independent energy producers.
During the period under review, Seplat Energy recorded revenue of $1.82 billion, representing a 30 per cent increase from $1.398 billion recorded in the corresponding period of 2025. Gross profit also rose significantly by 68 per cent to $815.9 million, while adjusted EBITDA increased by 28 per cent to $939 million.
Cash generated from operations climbed by 29 per cent to $985.9 million, underscoring the company’s strong cash-generating capacity and operational resilience.
Production for the first half of 2026 averaged 139,509 barrels of oil equivalent per day (boepd), representing a 4 per cent increase over the corresponding period in 2025 and remaining within the company’s full-year production guidance of 135,000 to 155,000 boepd.
Production momentum strengthened further during the second quarter, with average output rising to 149,070 boepd, driven largely by improved performance across Seplat Energy’s onshore assets and continued production optimisation initiatives.
The company attributed the strong operational performance to increased production from its West, East and Elcrest assets, continued success of its idle well restoration programme—which added approximately 26,000 barrels per day of gross joint venture production capacity from 24 restored wells—and significant growth in natural gas liquids production.
Reflecting its commitment to operational excellence and sustainability, Seplat Energy also announced that its operated assets achieved 18.8 million man-hours without a Lost Time Injury (LTI) during the reporting period. In addition, the company reduced its carbon emissions intensity by 18 per cent year-on-year, while emissions from its operated onshore assets declined by 37 per cent, supported by the successful implementation of its End of Routine Flaring programme.
The company’s financial position also strengthened considerably during the period. Net debt declined by 45 per cent from $673.3 million at the end of 2025 to $370.7 million, while cash balances increased to $433.8 million. Seplat Energy also repaid and cancelled $200 million under its Advanced Payment Facility, further improving its balance sheet and financial flexibility.
The Board declared a second-quarter dividend of US 12.0 cents per share, comprising a core dividend of US 5.0 cents and a special dividend of US 7.0 cents per share. The declared dividend represents the highest quarterly dividend in the company’s history and reflects management’s confidence in the company’s financial outlook and cash flow generation.
Looking ahead, Seplat Energy reaffirmed its intention to deliver a planned full-year dividend of US 45.0 cents per share for 2026, representing an 80 per cent increase over the previous year.
In addition, following the recently announced agreement with NNPC Limited for the sale of a 10 per cent interest in the NNPCL-SEPNU Joint Venture, the company intends, subject to completion of the transaction, to distribute an additional transaction dividend of US 23.3 cents per share.
Combined, shareholders are expected to receive US 68.3 cents per share in dividends during the 2026 financial year—equivalent to approximately $410 million, representing a 173 per cent increase year-on-year and delivering more than 40 per cent of Seplat Energy’s planned $1 billion shareholder distribution programme for the 2026–2030 period.
The company disclosed that the transaction, valued at $281.6 million, is expected to be completed during the second half of 2026. Approximately half of the proceeds will be returned to shareholders through the transaction dividend, while the balance will be applied toward further debt reduction.
Seplat Energy also reaffirmed its 2026 production guidance of 135,000 to 155,000 boepd, while maintaining planned capital expenditure of between $360 million and $440 million. However, the company revised its unit operating cost guidance to between $14.5 and $15.5 per barrel of oil equivalent, reflecting higher restoration costs associated with the Yoho asset.
The company further announced key leadership transitions that will shape its next phase of growth. Engr. Effiong Okon will assume office as Chief Executive Officer on August 1, 2026, succeeding Mr. Roger Brown, while Mr. Tony O. Elumelu, CFR, will become Chairman of the Board on January 1, 2027, succeeding Senator Udoma Udo Udoma.
Commenting on the results, Seplat Energy’s Chief Executive Officer, Mr. Roger Brown, described the first-half performance as evidence of the company’s resilience and disciplined execution.
“As I hand over leadership of Seplat, the company is stronger than ever. Production improved from the first quarter and remains on track to grow further in the second half of 2026 as temporary restrictions are lifted and planned activities are completed.
“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation. Given the limited visibility on how long these elevated prices may persist, we prioritised strengthening our balance sheet while continuing to enhance shareholder returns.
“Our declared quarterly dividend of US 12.0 cents per share represents a new quarterly high-water mark. Combined with the announced sale of a 10 per cent interest in our offshore joint venture to NNPC Limited, we expect total dividends for the current financial year to represent nearly half of all dividends ever paid by the company since listing.
“The performance of our offshore business over the past 18 months reinforces our confidence in the quality of our portfolio. As I hand over to Effiong Okon, I do so with absolute confidence in his ability to lead Seplat Energy into its next phase of growth and value creation for shareholders, host communities, employees and all stakeholders.”
The company’s performance underscores Seplat Energy’s continued ability to combine operational excellence, financial discipline, sustainable business practices and attractive shareholder returns, while maintaining its strategic focus on long-term growth and value creation.
