Seplat’s Profit Jumps 430%, Declares Special Dividend

• Seplat Energy grew half-year profit by more than 430% to N225.5 billion as stronger oil prices and lower operating costs boosted earnings.

• The company declared a five-cent interim dividend and a seven-cent special dividend, while projecting total shareholder payouts of up to $410 million this year.

• Seplat also reduced debt by $200 million during the period as management strengthened the balance sheet ahead of further expansion.

July 30, () — Seplat Energy Plc reported a sharp increase in profitability for the first half of 2026 after higher crude oil prices, disciplined cost management and lower finance costs lifted earnings.

The Nigerian independent energy company posted revenue of N2.5 trillion for the six months ended June 30, representing a 15.5 percent increase compared with the corresponding period of 2025.

Profit before tax rose by 74.1 percent to N790.4 billion, while profit after tax surged to N225.5 billion from N42.5 billion recorded a year earlier, representing an increase of more than 430 percent.

The company said stronger commodity prices and improved operational efficiency supported its performance during the period.

Cost discipline strengthens profitability

Beyond revenue growth, Seplat’s earnings received a significant boost from lower operating expenses and improved cost management.

Cost of sales fell to 55.2 percent of revenue from 65.3 percent recorded a year earlier, while general and administrative expenses declined by more than 20 percent to N166.4 billion following lower employee and share-based compensation costs.

Net finance costs also dropped by 24.8 percent to N107 billion as the company reduced debt servicing obligations.

Although EBITDA margin moderated slightly to 51.6 percent from 52.6 percent, Seplat maintained strong cash generation throughout the period.

Chief Executive Officer Roger Brown said the company’s first-half performance benefited from favourable commodity prices.

“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation,” Brown said.

Brent crude averaged about $86.7 per barrel during the first half of the year, around 23 percent higher than the corresponding period of 2025.

Shareholders receive special dividend

Reflecting the improved financial performance, Seplat announced an interim dividend of five US cents per share for the second quarter of 2026, compared with 4.6 US cents declared a year earlier.

The company also approved a special dividend of seven US cents per share.

Management said total shareholder distributions could reach 68.3 US cents per share, equivalent to about $410 million, for the 2026 financial year.

The company noted that its proposed acquisition of an additional 10 per cent interest in the NNPCL-SEPNU joint venture is expected to further strengthen future shareholder returns.

Debt reduction and leadership transition

Seplat also continued strengthening its balance sheet during the period by repaying $200 million of its outstanding acquisition financing, representing about one-fifth of its gross debt.

The company said the repayment reflects its commitment to maintaining financial flexibility while pursuing growth opportunities.

The earnings release also comes ahead of a major leadership transition.

Brown will step down as Chief Executive Officer on Saturday after six years in the role, while billionaire investor Tony Elumelu, who acquired a controlling 20.7 percent stake through Heirs Holdings and Heirs Energies late last year, is expected to assume the position of Chairman in January following the retirement of Udoma Udo Udoma.