Billionaire Tony Elumelu-backed Seplat lifts dividend as profit tops $260 million

Seplat Energy, the London- and Lagos-listed upstream operator backed by Nigerian billionaire Tony Elumelu, posted a 174 percent leap in nine-month net profit to $260.2 million, lifting payouts to shareholders as crude production surged and processing ramped up at its flagship gas development.

The indigenous producer posted strong operational numbers across its onshore and shallow-water concessions in the Niger Delta for the period ended Sept. 30. Pre-tax profit jumped 72 percent to $982.6 million from $570.1 million a year earlier, while adjusted EBITDA climbed 38 percent to $1.53 billion.

Cash returns step higher

Directors rewarded equity holders by declaring a third-quarter dividend of 19 cents a share, or $114 million. The board paired a 5-cent ordinary distribution with a 14-cent special payout, representing a 58 percent sequential hike that hoisted distributions declared so far this year to 40 cents.

Top-line revenue advanced 27 percent to $2.76 billion from $2.18 billion a year earlier, bolstered by firmer pricing for liquids and dry gas. Production expenses grew to $1.58 billion from $1.30 billion, as management poured capital into onshore facility turnarounds and offshore pipeline integrity repairs.

Premium barrels drive sales

Crude and condensate accounted for the bulk of earnings, pulling in $2.47 billion compared with $2 billion previously. Seplat realized an average crude price of $96.19 a barrel, capturing an $8.12 premium against the Brent benchmark thanks to steady refinery demand for light sweet barrels.

Downstream demand stretched well beyond regional borders, according to shipping bills of lading. Asian refiners bought the lion’s share of Seplat’s exports at $1.1 billion, followed by European buyers at $833.6 million, African regional markets at $764.3 million, and clients in the Americas at $64.3 million.

Gas revenue rose to $165.1 million as daily working interest volumes reached 194.9 million standard cubic feet. Output received an immediate lift from commercial deliveries fed through the OB3 trunkline by the newly commissioned ANOH processing hub, unlocking fresh domestic utility demand.

Offshore gains lift volumes

Revenues from natural gas liquids jumped almost fourfold to $124.1 million from $33.0 million after crews replaced the Inlet Gas Exchanger at the EAP offshore complex. Total group working interest output climbed 7 percent to 144,999 barrels of oil equivalent a day, spearheaded by onshore assets.

Corporate positioning strengthened in September when entities controlled by incoming Chairman Tony Elumelu, including Heirs Energies Limited, raised their combined equity stake to 21.07 percent. The move cements local strategic control over assets delivering essential feedstock to power plants and export docks across Nigeria.

Deleveraging clears legacy debt

Operating cash flow totaled $1.48 billion for the nine months, lifting cash balances to $556.9 million and total assets to $6.16 billion. Net debt plummeted 65 percent to $234.9 million, bringing net leverage down to a lean 0.14 times earnings before interest, taxes, depreciation, and amortization.

Management cleared its remaining major acquisition overhang shortly after the quarter closed. On Oct. 27, Seplat paid down the final $100 million tranche of its advance payment facility, wiping out all debt taken on during its landmark 2024 purchase of Mobil Producing Nigeria Unlimited.