Seplat Energy profit soars 498% to $164m, sells 10% JV stake to NNPC for $281.6m – EnviroNews

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Seplat Energy PLC, a leading independent energy company listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), on Thursday, July 30, 2026, released its unaudited financial and operational results for the six months ended June 30, 2026.

The energy giant recorded a massive 498% year-on-year (YoY) surge in Profit After Tax (PAT) to $164.0 million, driven by a supportive commodity price environment, rising production output, and disciplined capital management. Total revenue for the period expanded by 30% YoY to $1.82 billion (up from $1.398 billion in 6M 2025), with cash generated from operations reaching $985.9 million.

Key Financial Highlights

• Gross Profit: Rose 68% YoY to $815.9 million (6M 2025: $484.6 million).
• Adjusted EBITDA: Increased 28% YoY to $939.0 million (6M 2025: $735.0 million).
• Earnings Per Share (EPS): Surged 565% YoY to USD 26.6 cents (6M 2025: USD 4.0 cents).
• Deleveraging: Repaid early and cancelled $200 million under its Advanced Payment Facility (APF). Net Debt dropped 45% since YE2025 to $370.7 million, driving the Net Debt/EBITDA ratio down to 0.25x (from 0.53x).
• Liquidity & Credit Rating: Cash at bank stood at $433.8 million (excluding $130.8 million restricted cash). S&P upgraded Seplat’s credit rating to B+ in May 2026.

Record Returns for Shareholders

Reflecting strong business fundamentals, Seplat declared a total dividend of USD 12.0 cents per share ($72 million) for 2Q 2026, comprising a USD 5.0 cents core dividend and a USD 7.0 cents special dividend – marking a new quarterly record for the company.

Management has set a planned full-year core dividend of USD 45.0 cents per share ($270 million), representing an 80% YoY growth.

Furthermore, subject to completion of a newly announced transaction with NNPC Limited – where Seplat agreed to sell a 10% interest in the NNPCL-SEPNU Joint Venture for $281.6 million – the company plans to distribute an additional Transaction dividend of USD 23.3 cents per share ($140 million). Upon completion, total 2026 expected distributions will reach USD 68.3 cents per share ($410 million), up 173% YoY and accounting for 41% of Seplat’s 2026–2030 $1 billion dividend target.

Operational Excellence and Decarbonisation

• Group Production: Daily production averaged 139,509 boepd in 6M 2026 (up 4% YoY), comfortably within full-year guidance (135–155 kboepd). 2Q 2026 production accelerated significantly, averaging 149,070 boepd (+9% vs 2Q 2025; +15% vs 1Q 2026).
• Production Mix: Working interest oil production averaged 99,518 bopd and gas averaged 182.9 MMscfd. Onshore operations added 60,690 boepd (+11% YoY), while offshore contributed 78,819 boepd.
• Restoration Programme: The idle well restoration programme added 26 kbopd gross JV capacity from 24 wells. NGLs working interest production reached 8,459 bopd, up from 3,772 bopd in 6M 2025.
• Safety & Environment: Group-operated assets achieved 18.8 million man-hours without Lost Time Injury (LTI). Carbon emissions intensity dropped 18% YoY to 33.5 kg CO2/boe, backed by a 37% emissions reduction in operated onshore assets under the End of Routine Flaring initiative.

Corporate Governance Transitions

Seplat Energy also confirmed upcoming leadership transitions:

1. CEO Transition: Effective August 1, 2026, Effiong Okon will succeed Mr. Roger Brown as Chief Executive Officer and Executive Director on the Board.
2. Board Chairmanship: Effective January 1, 2027, Mr. Tony O. Elumelu, CFR, will succeed Senator Udoma Udo Udoma as Board Chairman.
3. Board Retirement: Dr. Emma FitzGerald, Independent Non-Executive Director, will step down on December 31, 2026. A formal search for a replacement is underway.

Commenting on the stellar performance, outgoing CEO, Roger Brown, stated: “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… Our declared quarterly dividend of USD 12.0 cents per share represents a new quarterly high-water mark… As I hand over to Effiong, I do so with great confidence. He brings the experience, capability and operational focus needed to unlock the next phase of value creation.”

Meanwhile, Seplat Energy Plc has signed a binding Heads of Agreement with the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) to sell a 10 per cent working interest in the NNPCL/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture for $281.6 million.

The company disclosed this in a corporate filing with the Nigerian Exchange Ltd. (NGX) on Thursday.

Seplat said the agreement was executed through its subsidiaries, Seplat Energy Offshore Ltd. (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), following earlier discussions with NNPC Ltd.

It said the transaction remained subject to regulatory approvals and other customary conditions, with completion expected in the second half of 2026. The effective date of the transaction is April 1, 2026.

Upon completion, SEPNU will retain a 30 per cent working interest in the joint venture and continue as operator, while NNPC Ltd.’s interest will increase from 60 per cent to 70 per cent.

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The company added that Seplat Energy would continue to own 100 per cent of the share capital of SEPNU.

Seplat said it planned to deploy the transaction proceeds in line with its capital allocation strategy, with about half earmarked for debt reduction and the balance for enhanced shareholder returns.

According to the company, about 140 million dollars, equivalent to 23.3 U.S. cents per share, will be distributed as a special cash dividend to shareholders upon completion, in addition to its regular dividend.

It said it also planned to repay up to 300 million dollars in gross debt, noting that 200 million dollars under its Advanced Payment Facility had already been settled in the second quarter of 2026, while the remaining 100 million dollars would be repaid after the transaction closes.

Seplat said the disposal would not affect the joint venture’s 2026 production target, although SEPNU’s contribution to the group’s overall production guidance would decline following the transaction.

It added that its long-term production target for 2030 would be revised to 170,000 barrels of oil equivalent per day (boepd) from 200,000 boepd, while group 2P reserves would decline by about 13 per cent to 872.9 million barrels of oil equivalent upon completion.

Commenting on the transaction, the Chief Executive Officer of Seplat Energy, Mr. Roger Brown, described the NNPCL/SEPNU Joint Venture as one of Nigeria’s most strategic oil assets.

He said the company remained aligned with NNPC Ltd. on delivering value from the joint venture and unlocking its long-term production potential.

Brown added that Seplat’s strong financial position would enable it to use the proceeds to reward shareholders, reduce leverage and strengthen future cash flows.