By Abiodun Folarin
WorldStage— Seplat Energy Plc has reported a strong financial and operational performance for the first half of 2026, with Profit After Tax (PAT) surging by 498 per cent to $164 million, while the Board declared an interim dividend of 12.0 US cents per ordinary share.
The Nigerian independent energy company, listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), disclosed its unaudited results for the six months ended June 30, 2026, showing significant growth in revenue, profitability, production and cash generation.
Revenue increased by 30 per cent year-on-year to $1.82 billion from $1.398 billion recorded in the corresponding period of 2025, while gross profit rose by 68 per cent to $815.9 million from $484.6 million. Cash generated from operations also climbed 29 per cent to $985.9 million.
The company’s adjusted EBITDA rose 28 per cent to $939 million, while earnings per share increased by 565 per cent to 26.6 US cents from 4.0 US cents in the first half of 2025.
Operationally, Seplat Energy maintained strong production momentum, with average production rising four per cent to 139,509 barrels of oil equivalent per day (boepd), remaining within its full-year production guidance of 135,000 to 155,000 boepd.
Working interest production comprised 99,518 barrels of oil per day and 182.9 million standard cubic feet of gas per day, while second-quarter production averaged 149,070 boepd, representing increases of nine per cent over the corresponding quarter of 2025 and 15 per cent over the first quarter of 2026.
The company attributed the improved performance to stronger output from its onshore assets, particularly the West, East and Elcrest operations, alongside continued gains from its idle well restoration programme, which added 26,000 barrels per day of gross joint venture production capacity through the reactivation of 24 wells during the period.
Natural Gas Liquids (NGL) production also recorded significant growth, with working interest output rising to 8,459 barrels per day from 3,772 barrels per day in the corresponding period of 2025.
Seplat Energy also reported improvements in environmental and safety performance. Carbon emissions intensity declined by 18 per cent year-on-year to 33.5 kilograms of carbon dioxide per barrel of oil equivalent, while emissions intensity across its onshore operated assets dropped by 37 per cent following progress under its End of Routine Flaring programme.
The company further disclosed that its operated assets delivered 18.8 million man-hours without recording any Lost Time Injury (LTI) during the first half of the year.
On the balance sheet, Seplat strengthened its financial position by repaying and cancelling $200 million under its Advanced Payment Facility, reducing the outstanding balance to $100 million.
Cash at bank increased to $433.8 million at the end of June 2026, excluding restricted cash of $130.8 million, while net debt fell by 45 per cent to $370.7 million from $673.3 million at the end of 2025. The company’s net debt-to-EBITDA ratio improved to 0.25 times from 0.53 times.
During the period, global ratings agency S&P upgraded Seplat Energy’s corporate credit rating to B+, reflecting its strengthened financial profile.
The Board declared a second-quarter dividend of 12.0 US cents per share, comprising a core dividend of five US cents and a special dividend of seven US cents, amounting to a total payout of approximately $72 million.
The company also reaffirmed plans to pay a full-year dividend of 45.0 US cents per share, representing an 80 per cent increase over 2025, while shareholders could receive an additional transaction dividend of 23.3 US cents per share, subject to the completion of the proposed sale of a 10 per cent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited.
According to Seplat, the transaction, valued at $281.6 million, is expected to close in the second half of 2026. About half of the proceeds will be distributed as a special dividend, while the balance will be applied to further debt reduction.
If completed, total dividend payments for 2026 are projected to reach 68.3 US cents per share, valued at approximately $410 million, representing a 173 per cent increase over the previous year and accounting for 41 per cent of the company’s planned $1 billion shareholder distribution target for the 2026–2030 period.
Looking ahead, Seplat retained its production guidance of 135,000 to 155,000 boepd and maintained capital expenditure guidance of between $360 million and $440 million, although unit operating cost guidance was revised upward to between $14.5 and $15.5 per barrel of oil equivalent due to higher Yoho field restoration costs.
The company also confirmed key leadership changes, with Engr. Effiong Okon set to succeed Roger Brown as Chief Executive Officer from August 1, 2026, while Mr. Tony O. Elumelu, CFR, will assume the position of Chairman from January 1, 2027, succeeding Senator Udoma Udo Udoma.
Commenting on the results, outgoing Chief Executive Officer, Roger Brown, described the company’s first-half performance as evidence of a stronger and more resilient business, noting that production is expected to increase further in the second half of the year as temporary operational constraints ease.
He said strong commodity prices supported robust cash generation, enabling Seplat to strengthen its balance sheet through early debt repayment while simultaneously increasing shareholder returns.
Brown added that the declared quarterly dividend represented the highest in the company’s history and expressed confidence that the incoming management team would build on the company’s operational and financial achievements to unlock the next phase of growth.
