Seplat Energy’s Profit Jumps 174% to $260m, Revenue Hits $2.76bn
The Nigerian energy company’s unaudited financial results, released on Wednesday, showed that adjusted earnings before interest, taxes, depreciation and amortisation increased by 38 per cent to $1.53bn from $1.11bn recorded in the corresponding period of 2025.
Earnings per share also climbed 172 per cent to 42 US cents, compared with 16 US cents in the same period last year.
Seplat attributed its improved financial performance to higher production volumes and stronger crude oil price realisations, which supported free cash flow of $749m during the nine-month period.
The company’s average realised oil price stood at $96.19 per barrel, representing an $8.12 premium over the average Brent crude price.
Its cash generated from operations increased to $1.48bn from $1.40bn in the corresponding period of 2025.
The improved performance also strengthened the company’s balance sheet, with net debt falling 65 per cent to $234.9m at the end of September from $673.3m at the end of 2025.
Seplat’s net debt-to-EBITDA ratio improved to 0.14 times from 0.53 times at the end of last year, while cash at bank rose to $556.9m from $332.3m.
The company also disclosed that it repaid the outstanding $100m balance on its Acquisition Payment Facility on October 27, completing the repayment of all debt raised to acquire Mobil Producing Nigeria Unlimited in 2024.
Operationally, Seplat’s working interest production averaged 144,999 barrels of oil equivalent per day during the nine-month period, up seven per cent from 135,636 barrels of oil equivalent per day in the corresponding period of 2025.
Production in the third quarter rose 13 per cent year-on-year to 155,801 barrels of oil equivalent per day from 137,888 barrels of oil equivalent per day, representing a five per cent increase from the preceding quarter.
The company said its onshore production increased by 22 per cent during the nine-month period, supported by improved operational performance and growing gas production.
Seplat also recorded progress at the Assa North-Ohaji South gas project, with initial debt principal repayments completed during the third quarter. The company said it sold its first commercial gas through the Obiafu-Obrikom-Oben pipeline in September.
Offshore, the company’s idle well restoration programme added 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day in gross joint venture production capacity during the year to date. The additional capacity came from 41 restored wells, including four gas wells.
The company also announced an oil and gas discovery across five reservoir intervals in the Aku-01 exploration well in Petroleum Prospecting Licence 2A25. The discovery has reduced the geological risk associated with four other prospects on the licence, with a second exploration well planned for 2027 to test one of them.
Despite the improved financial performance, Seplat revised some of its full-year 2026 cost and investment projections.
The company narrowed its production guidance to between 145,000 and 155,000 barrels of oil equivalent per day from the previous range of 135,000 to 155,000 barrels per day, reflecting strong production in the first nine months.
It also reduced its capital expenditure guidance to between $280m and $340m from $360m to $440m, primarily because of project timing following the late arrival of an offshore rig.
However, its unit operating cost guidance increased to between $15.50 and $16.50 per barrel of oil equivalent from $14.50 to $15.50, reflecting continuing costs associated with the Yoho project.
Commenting on the results, Seplat’s Chief Executive Officer, Effiong Okon, said the company’s third-quarter production performance put it on course to achieve the upper half of its full-year guidance.
Okon, who recently assumed leadership of the company, said Seplat realised an average oil price of $100.44 per barrel in the third quarter, a premium of $10.21 over the average Brent price.
He added that the company achieved record gas production levels in its onshore operations during the quarter, supported by the continued ramp-up of the ANOH project and strong performance across its western assets.
According to him, the Yoho restoration project was completed during the quarter, but its start-up was delayed by pipeline damage identified during operations. Production is expected to commence in the fourth quarter of 2026, following repairs.
On shareholder returns, Seplat declared a third-quarter dividend of 19 US cents per share, valued at $114m, representing a 58 per cent increase from the preceding quarter.
The dividend comprises a core payment of five US cents per share and a special dividend of 14 US cents per share.
The company said cumulative dividends declared for the first nine months of 2026 stood at 40 US cents per share, while its full-year dividend guidance remained at $270m, equivalent to 45 US cents per share.
Seplat also disclosed plans to pay a transaction dividend of approximately $140m, or 23.3 US cents per share, following the expected completion of the sale of a 10 per cent interest in the NNPCL-SEPNU joint venture to NNPC Limited in the fourth quarter.
Okon said the third-quarter dividend would take cumulative dividends declared since the company’s initial public offering above $1bn, adding that Seplat remained on course to return a second $1bn to shareholders as it implements its five-year plan.
On emissions, the company reported a 14 per cent year-on-year reduction in group carbon emissions intensity to 37.4kg of carbon dioxide per barrel of oil equivalent from 43.6kg in the corresponding period of 2025.
Emissions intensity from its operated onshore assets fell 34 per cent, which the company attributed to the continued impact of its End of Routine Flaring programme.
