Seplat Energy Posts $2.7bn Revenue, Raises Dividend by 52% in 2025

Seplat Energy PLC has reported a strong financial and operational performance for the year ended December 31, 2025, with revenue rising 144.2 per cent to $2.726bn, driven largely by a full year contribution from its offshore assets.

In its audited results released on Thursday, the Nigerian independent energy company, listed on both the Nigerian and London Stock Exchanges, said group production averaged 131,506 barrels of oil equivalent per day (boepd) in 2025, representing a 148 per cent increase from 52,947 boepd recorded in 2024.

The company said the significant growth reflected the first full year of offshore consolidation and performance within its revised production guidance. However, fourth quarter 2025 production dipped to 119,200 boepd due to the Yoho shutdown and other planned maintenance activities.

Onshore operations recorded a 14 per cent year-on-year production growth, supported by the completion of the Sapele Gas Plant and new well inventory. Offshore production grew nine per cent year-on-year on a pro-forma basis, although performance was moderated by the Yoho platform outage, with restart expected in the second quarter of 2026.

Seplat also disclosed that the ANOH gas plant achieved first gas in January 2026, with production stabilising at 50–70 million standard cubic feet per day (MMscfd), while about 60,000 barrels of condensate remain in storage.

The company’s idle well restoration programme added 48.6 thousand boepd of gross production capacity from 49 wells, exceeding expectations. Its EAP IGE project, the first major offshore project delivery, achieved peak gross natural gas liquids (NGL) recovery of about 33,000 boepd in February 2026, compared to a 2025 peak of roughly 20,000 boepd.

Seplat’s independently audited 2P reserves stood at 1,001 million barrels of oil equivalent (MMboe) at year-end 2025, down from 1,043 MMboe in 2024, reflecting a focus on maintenance and integrity investments. However, group 2P+2C resources rose by 181 MMboe to 2,486.6 MMboe, driven by positive offshore oil resource revisions and gas resource upgrades following the inclusion of Edop.

On safety, the company recorded one Lost Time Injury (LTI) in 2025 and achieved 11.4 million hours without LTI since September.

Financially, adjusted EBITDA surged 137 per cent to $1.275bn from $539m in 2024, while cash generated from operations rose 276 per cent to $1.166bn. Unit production operating costs declined five per cent to $15.7 per barrel of oil equivalent, compared to an adjusted $16.5/boe in 2024.

Cash capital expenditure for the year stood at $266.8m, up from $208.1m in 2024. The company made total completion payments of $326.2m to ExxonMobil but confirmed that no MPNU contingent consideration was payable for 2025.

Seplat said its balance sheet remained robust, with net debt reduced by 25 per cent year-on-year to $673.3m at the end of 2025, compared to $897.8m in 2024. Net debt-to-EBITDA ratio improved to 0.53x.

In line with its improved performance, the company declared a fourth quarter 2025 dividend of 8.3 US cents per share, comprising a base dividend of 5.0 cents and a special dividend of 3.3 cents. Total dividend declared for 2025 stood at 25.0 cents per share, equivalent to $150m, representing a 52 per cent increase from 2024.

Providing outlook for 2026, Seplat projected production guidance of 135,000–155,000 boepd, with the midpoint representing about a 10 per cent increase on 2025 levels. Gas production is expected to rise 30 per cent year-on-year, supported by contributions from ANOH, growth at the Sapele Integrated Gas Plant, and completion of the Oso-BRT phase one project targeted for the third quarter of 2026.

The company also forecast an 85 per cent year-on-year increase in NGL volumes, effective first quarter 2026, following completion of the EAP project. Initial capital expenditure guidance for 2026 is set between $360m and $440m, including plans to drill 17 new wells—15 onshore and two offshore.

Unit production operating costs are projected to decline further to between $13.5 and $14.5 per boe in 2026, reflecting anticipated volume-led efficiencies.

Commenting on the results, Chief Executive Officer Roger Brown said 2025 demonstrated the company’s ability to operate at scale, highlighting successful offshore project execution and strong onshore performance.

He reiterated the company’s ambition to build “an African Energy Champion,” targeting growth in working interest production to 200,000 boepd by 2030. Brown also noted that the company had contracted its first jack-up drilling rig, expected to arrive at Oso in the third quarter of 2026 to commence a multi-year drilling campaign.

He added that the company’s strong cash generation enabled it to raise dividends by over 50 per cent to 25 US cents per share, positioning it to deliver on its planned $1bn cumulative return of capital to shareholders by 2030.

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“The cash generative nature of our asset base is clearly evident in our results, and by raising dividends by over 50 per cent to USD 25 cents per share alongside continued strengthening of our balance sheet and delivery of our work programmes, we are already well positioned to deliver on our planned $1 billion cumulative return of capital to shareholders by 2030,” said Brown.

“The strength of the enlarged group has reflected in a notable lowering of our cost of debt, providing additional scope for long-term value creation.”