Seplat Energy posts 430% profit surge, declares special dividends

Seplat Energy Plc, a Nigerian oil driller listed in London, announced a dramatic increase in its first-half 2026 net profit, which surged by over 430% compared to the previous year. This robust performance, translating to a profit of N225.5 billion from N42.5 billion, was largely attributed to effective cost management rather than solely topline growth. Revenue climbed 15.5% to N2.5 trillion, but the company's ability to reduce its cost of sales as a percentage of turnover from 65.3% to 55.2% was a key factor.

Further cost-saving measures were evident in general and administrative expenses, which decreased by over one-fifth to N166.4 billion, partly due to reduced spending on employee benefits. Net finance costs also fell by 24.8% as debt servicing moderated. The company's EBITDA margin saw a slight dip to 51.6% from 52.6%.

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

Roger Brown, the outgoing British CEO, highlighted the "supportive commodity price environment" as a significant contributor to strong cash generation. The escalation of the Middle East crisis boosted Brent crude prices, averaging $86.7/bbl in the first half of the year, a 23% increase from the prior year. Seplat's average realized crude oil price rose by 30%, with sales totaling N2.2 trillion to major buyers.

"Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200 million of our outstanding APF debt, equivalent to 20 per cent of gross debt," Mr Brown stated. The company declared an interim dividend per share of USD5 cents for Q2 2026 and a special dividend of USD7 cents. Seplat anticipates distributing up to USD68.3 cents per share ($410 million) this year, aiming to boost shareholder returns through a planned purchase of a 10% interest in the NNPCL-SEPNU joint venture.

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Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200 million of our outstanding APF debt, equivalent to 20 per cent of gross debt.