Seplat Energy's first-half 2026 profit jumped 498% to $164 million, driven by higher oil prices, stronger production and improved operational performance. The company also agreed to sell a 10% stake in its SEPNU joint venture to NNPC Ltd. for $281.6 million, with proceeds allocated to shareholder dividends and debt reduction.
Seplat Energy Plc reported a sharp increase in first-half earnings on Thursday, supported by higher oil prices, increased production and stronger operational performance, while announcing an agreement to sell a 10% interest in its NNPCL-SEPNU joint venture to the Nigerian National Petroleum Company Limited (NNPC Ltd.) for $281.6 million.
The transaction, expected to close in the second half of 2026, represents about 25% of Seplat's acquisition cost for the asset. The company said proceeds from the sale will be split almost equally between a special dividend payment to shareholders and reducing outstanding debt. Seplat added that its operational guidance will be updated once the transaction is completed.
The Nigerian energy producer posted profit after tax of $164 million for the six months ended June 30, 2026, a 498% increase from the same period a year earlier. Revenue rose 30% to $1.82 billion, while cash generated from operations climbed 29% to $985.9 million.
Gross profit increased 68% to $815.9 million, and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) reached $939 million, up 28% year over year. Earnings per share rose to 26.6 cents, compared with 4 cents in the corresponding period of 2025.
Seplat declared an interim dividend of 12 cents per share, consisting of a 5-cent core dividend and a 7-cent special dividend, reflecting the company's strong cash generation during the period.
Average production for the first half of the year rose 4% to 139,509 barrels of oil equivalent per day (boepd), while second-quarter production increased to 149,070 boepd, up 9% from a year earlier and 15% from the first quarter.
The company said stronger output from its western, eastern and Elcrest operations, together with its idle well restoration programme, supported production growth. The restoration initiative reactivated 24 wells, adding about 26,000 barrels of oil per day in gross joint venture production capacity.
Natural gas liquids production also expanded significantly, rising to 8,459 barrels per day from 3,772 barrels per day a year earlier.
Seplat maintained its full-year production guidance of 135,000 to 155,000 boepd and capital expenditure forecast of $360 million to $440 million. However, it raised its unit operating cost guidance to $14.50-$15.50 per barrel of oil equivalent, citing higher expenses related to the Yoho restoration programme.
The company also said its average realised oil price during the first half reached $94.13 per barrel, representing a $7.47 premium to Brent crude prices, helping support its strongest first-half financial performance in recent years.
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