Seplat Energy Plc announced a 74% increase in pre-tax profit to N790 billion for the first half of 2026, compared to N454 billion in the same period last year. The strong performance was fueled by higher crude oil production and favourable global oil prices. The company also declared a quarterly interim dividend of US$0.12 per share, marking the highest in its history.
Revenue and Production Boost
Revenue surged by 82% to N1.5 trillion, driven by a 15% increase in average daily production to 65,000 barrels of oil equivalent per day (boe/d). The company attributed the production growth to successful drilling campaigns and improved operational efficiency across its assets in the Niger Delta.
“Our focus on operational excellence and cost discipline has delivered exceptional results,” said Chief Executive Officer, Mr. Roger Brown. “The record dividend reflects our commitment to rewarding shareholders while maintaining a strong balance sheet.”
Record Dividend Payout
The board proposed a quarterly dividend of US$0.12 per share for the period ended June 30, 2026, payable on September 15 to shareholders on record as of August 25. This represents a 50% increase over the previous quarterly dividend of US$0.08. The total dividend payout amounts to approximately US$71 million, based on outstanding shares.
Seplat Energy has consistently paid dividends since listing on the Nigerian Exchange and the London Stock Exchange. The company’s dividend policy targets a payout ratio of 30-50% of free cash flow.
Cost Management and Profitability
Operating expenses rose by 35% to N320 billion, but the company maintained a healthy operating margin of 45%, up from 38% last year. Net profit after tax climbed to N520 billion from N300 billion, a 73% increase. Earnings per share improved to N82.50, compared to N47.80 in H1 2025.
Capital expenditure during the period was N180 billion, primarily directed at drilling and field development projects. The company’s debt-to-EBITDA ratio improved to 0.8x from 1.2x, reflecting deleveraging.
Outlook and Market Reaction
Seplat expects to maintain production levels above 60,000 boe/d for the remainder of the year, supported by new wells coming onstream. The company also anticipates stable oil prices amid OPEC+ supply management and geopolitical tensions. Shares of Seplat rose 5% on the NGX following the announcement, closing at N1,850 per share.
Analysts at Cordros Capital commented, “Seplat’s results beat our estimates. The dividend hike signals management’s confidence in future cash flows. We maintain a Buy rating with a target price of N2,100.”
