Seplat Energy Plc has committed to a progressive dividend policy that will see shareholders receive at least $120 million (N179 billion) in dividends annually.
This is based on its projections following its acquisition of Mobil Producing Nigeria Unlimited (now Seplat Energy Producing Nigeria Unlimited, SEPNU).
Seplat expects this policy to deliver $1 billion in cumulative dividends over the five years, with a guaranteed minimum of $120 million annually.
At its Capital Markets Day on September 18, 2025, the dual-listed energy company announced an increase in its Q3 2025 dividend to 5.0 cents per share, setting a new base level for future quarterly payouts.
This is up from the 4.6 cents per share paid in Q1 and Q2. The revised dividend framework will return 40–50% of free cash flow to shareholders annually between 2026 and 2030.
Strong cash flow outlook
Seplat’s confidence in the new dividend commitment is backed by improved financial performance.
- The company generated $486.9 million in operating cash flow in H1 2025, nearly 60% higher than full-year 2024.
- Over the past five years, it has delivered $1.037 billion in free cash flow from $1.9 billion in total operating cash flow.
- Despite these strong numbers, profit attributable to shareholders dropped to $23.6 million in H1 2025, translating to earnings per share of $0.04 (N62.19), down from $0.07 in H1 2024.
- Retained earnings also declined by 21% to N250.7 billion from N319 billion in December 2024.
Growth plan to 2030
The company laid out an ambitious five-year roadmap to support its dividend and growth strategy. Key targets include:
- Increasing working interest production to around 200,000 boepd by 2030 (from H1 2025 levels).
- Generating $5–6 billion in operating cash flow over five years.
- Investing $2.5–3 billion in capex, including 120–150 new wells and multiple gas projects.
- Reducing operating costs from $12.5/boe to $10/boe.
- Maintaining net leverage between 0.5x and 1.5x, assuming oil stays above $50 per barrel.
CEO’s remarks: Roger Brown, Seplat’s CEO, said:
- “Since our IPO in 2014, we have grown reserves and production fourfold while returning more than $700 million in dividends. Our roadmap to 2030 is focused on materially growing production, cash flow, and shareholder returns.”
Seplat also confirmed discussions with the Nigerian National Petroleum Company Limited (NNPC) for a potential sale of a 10% interest in the SEPNU joint venture.
If finalized, Seplat’s stake would reduce to 30%, but it will retain operatorship. Management stressed the dividend policy remains unaffected.
What you should know
Despite consistent quarterly dividends and an upgraded outlook, Seplat’s share price has lagged.
- The stock closed last week at ₦5,379.30, showing a year-to-date decline and remaining flat since mid-August.
- With growth and dividend commitments now more explicit, the market may soon reprice the stock as the new strategy gains traction.
