…set to sell 10% interest in NNPCL-SEPNU JV for $282m
Seplat Energy PLC has announced a massive 498 percent surge in Profit After Tax to $164 million for the six months ended June 30, 2026, alongside a milestone agreement to sell a 10 percent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited.
The transaction with NNPC Limited, valued at headline commercial terms of $281.6 million, recovers roughly 25 percent of Seplat’s acquisition costs to date.
Expected to close in the second half of 2026, the proceeds will be split evenly between further debt reduction and a special transaction dividend for shareholders.
Driven by this strategic divestment and strong underlying business operations, Seplat expects total 2026 dividend distributions to reach 68.3 US Cents per share ($410 million), marking a 173 percent increase year-on-year.
The dual-listed company on the Nigerian Exchange and London Stock Exchange attributed its stellar earnings jump to a favorable commodity price environment and improved production capacity.
The company’s revenue grew 30 percent year-on-year to $1.82 billion, up from $1.398 billion in the first half of 2025, while gross profit expanded 68 percent to $815.9 million. Adjusted EBITDA rose 28 percent to $939 million, supported by an average realized oil price of $94.13 per barrel.
Operational performance saw average daily output reach 139,509 barrels of oil equivalent per day (boepd) during the half-year period, keeping Seplat firmly within its full-year guidance. Output momentum accelerated into the second quarter, where production averaged 149,070 boepd, a 15 percent sequential increase over the first quarter.
The company achieved these operational gains while maintaining strong safety records, delivering 18.8 million man-hours on group-operated assets without any Lost Time Injuries.
Robust operating cash generation of $985.9 million enabled Seplat to aggressively strengthen its balance sheet.
The energy producer also repaid $200 million early under its Advanced Payment Facility, driving net debt down 45 percent to $370.7 million and improving its net debt-to-EBITDA ratio to 0.25x. This balance sheet discipline contributed to S&P upgrading the company’s credit rating to B+ in May 2026.
The financial results mark a high point as CEO Roger Brown prepares to hand over executive leadership to Engineer Effiong Okon on August 1, 2026.
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, said: “As I hand over leadership of Seplat, the Company is stronger than ever. Production improved from the first quarter and remains on track to grow further in the second half of 2026 as temporary restrictions are lifted and planned activities are completed.”
“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation. 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. At the same time, robust cash flows enabled us to continue enhancing shareholder returns.”
“Our declared quarterly dividend of USD 12.0 cents per share represents a new quarterly high-water mark, up 33 per cent on 1Q 2026 and 161% higher than 2Q 2025. With continued strong business performance and the announced sale of a 10 per cent interest in our offshore JV to NNPC Limited, means that total dividends paid for the current financial year are expected to represent nearly 50% of all previous dividend paid to shareholders.”
“The performance of our offshore business over the past 18 months has reinforced our conviction in the quality and scale of the opportunity within the portfolio. As I hand over to Effiong, I do so with great confidence. He brings the experience, capability and operational focus needed to unlock the next phase of value creation, supported by an exceptional team with a proven track record that continues to deliver for our shareholders, host communities and wider stakeholders,” he said.