Seplat Energy posts $164 million half-year profit as earnings soar 498%

Seplat Energy Plc, a dual-listed Nigerian independent energy company, posted a sharp increase in first-half earnings, reporting net income of $164 million, up 498 percent from $27.4 million a year earlier. The stronger performance was supported by higher production, favourable commodity prices and lower operating costs, according to interim financial statements.

Revenue climbed 30 percent to $1.82 billion in the first six months of 2026 from $1.4 billion a year earlier, reflecting stronger output and improved pricing across its operations. Gross profit increased 68 percent to $816 million from $484.6 million, while adjusted EBITDA rose 28 percent to $938.6 million from $735 million. Seplat said it realized an average oil price of $94.13 per barrel, a premium of $7.47 per barrel above Brent, helping lift earnings during the period.

Production gains strengthen financial position

Production also continued to improve. Group working interest production averaged 139,509 barrels of oil equivalent per day (boepd), up 4 percent from the same period last year and in line with the company’s 2026 guidance. A key contributor was Seplat’s idle well restoration program, which added about 26,000 barrels of oil per day in gross joint venture production capacity, supporting higher volumes from its existing asset base.

Seplat advanced one of its biggest portfolio transactions during the period. The company, which operates onshore and shallow-water assets in Nigeria’s Niger Delta, agreed to sell a 10 percent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited for $281.6 million. The transaction is expected to close in the second half of 2026, with proceeds earmarked for debt reduction and a special transaction dividend. If completed, Seplat expects total dividends for 2026 to reach 68.3 cents per share, or about $410 million. 

The company’s stronger cash generation also reinforced its balance sheet. Free cash flow increased 35 percent to $526.4 million from $390.4 million, allowing Seplat to repay $200 million early under its Advanced Payment Facility. Net debt fell 45 percent to $370.7 million at the end of June, reducing its net debt-to-EBITDA ratio to 0.25 times and leaving the company with greater financial flexibility.

Leadership transition follows ownership reshuffle

Seplat’s results come as the company prepares for a leadership transition and adjusts to changes in its shareholder base. The Lagos- and London-listed energy producer, valued at $4.6 billion, reshaped its ownership in late 2025 after Heirs Energies acquired a 20.07 percent stake worth $496 million from Maurel & Prom. The deal made Heirs Energies Seplat’s largest shareholder, and Tony Elumelu joined the board as a non-executive director in January 2026.

The leadership transition will continue this week. Effiong Okon will succeed Roger Brown as chief executive officer on Aug. 1, 2026, while Tony Elumelu is scheduled to become chairman on Jan. 1, 2027, succeeding Senator Udoma Udo Udoma. The changes come as Seplat enters the second half of the year with stronger earnings, lower debt and a major asset transaction expected to further strengthen its financial position.