Zedcrest Wealth has maintained its BUY rating on Seplat Energy Plc, setting a target price of N8,049.46.
The firm says this valuation is supported by a mix of macroeconomic factors and the company’s improving financial position.
At Seplat’s current market price of N5,809.00, the target implies an upside of about 38.6%, based on a blend of Net Asset Value (NAV) and Discounted Cash Flow (DCF) valuation models.
Similarly, Zedcrest maintained a BUY recommendation on Aradel Holdings, projecting a 17% upside to a target price of N798.35 per share.
Both calls were part of its 2026 financial year outlook titled “Weak Global Pressures Meet Domestic Realities.”
The analysts highlighted positive factors, such as a 16-year low in crude oil theft due to improved security, Nigeria’s crude output recovery toward the 2.5 million barrels per day target, and strong midstream sentiment around the Assa North–Ohaji South (ANOH) gas processing plant.
Improved macroeconomic factors
According to Zedcrest, the first gas from the Assa North–Ohaji South (ANOH) project is expected by Q4 2025, with full ramp-up planned for Q1 2026.
- Phase 1 will deliver 300 million standard cubic feet per day (mmscfd), expanding to 600 mmscfd in subsequent phases.
The project, jointly developed by the Nigerian government (57.5%), has Seplat as the second-largest stakeholder (20%) and is expected to shift domestic energy consumption from traditional fuels to compressed natural gas (CNG) and liquefied natural gas (LNG) for transport, power generation, and industrial use.
On the upstream front, Nigeria’s crude production is projected to rebound to 2.5 million barrels per day by the end of 2026, a level last seen in 2005.
With a stable financial position, Seplat is well-positioned to benefit from these developments, reinforcing hope for its performance in 2026.
Latest performance
Seplat Energy Plc delivered one of its strongest performances to date, with revenue soaring 213% year-on-year to N3.3 trillion in the first nine months of 2025, surpassing the company’s total revenue from 2020 to 2024 combined.
Operating profit also rose sharply, settling at N1.09 trillion, up from N411.3 billion after accounting for expenses.
- Despite higher finance costs, the company recorded a pretax profit of N878.9 billion, more than double the N366.7 billion achieved in the prior year.
On the balance sheet, retained earnings stood at N314 billion, while shareholders’ equity was N2.6 trillion, down 4.6%. Total assets reached N9 trillion, slightly lower than N9.8 trillion reported in the previous year.
