Seplat Energy Plc has made history on the Nigerian Exchange Limited (NGX), becoming the first listed company to cross the N10,000 per share mark.
This follows renewed investor optimism triggered by Nigeria’s reclassification by FTSE Russell.
The stock surged by 9.42% or N900 to close at N10,450 on April 14, extending a rally that has seen it gain nearly 80% year-to-date. The milestone underscores strong investor confidence in Seplat’s fundamentals and positions it as the most expensive stock on the NGX, ahead of other heavyweight tickers.
The build-up to the rally began in late December 2025 when Tony Elumelu’s Heirs Energies acquired a 20% stake in Seplat Energy for $500 million, becoming the single largest shareholder in the company.
The deal was a sale of 120.4 million shares at a premium price of 305 pence per share, a 10.9% increase over the prevailing 275 pence per share as of December 31, 2025, when M&P disclosed the transaction.
This set the tone for the rally, boosted by FTSE Russell’s decision to upgrade Nigeria from “unclassified” to Frontier Market status, a move expected to unlock foreign portfolio inflows and improve liquidity across select large-cap stocks, particularly those with strong governance and earnings visibility like Seplat.
What the data is saying:
Seplat’s recent performance reflects both macro tailwinds and strong company fundamentals, with key indicators pointing to sustained momentum:
- Share price rose to N10,450, gaining 9.42% in one day
- Stock increased from N9,099.90 to N9,550 immediately after the reclassification announcement
- Year-to-date gain stands at 79.89%, up from N5,809 at end-2025
- Market capitalisation climbed to approximately N6.27 trillion
- Seplat contributed significantly to the NGX rally, pushing the All-Share Index to 205,831.38 points
- Oil & Gas index gained 4.36%, led by Seplat’s performance
Analysts at Cordros Research say that Nigeria’s reclassification could drive $840 million–$1.04 billion in inflows, projecting liquidity to concentrate in large-cap stocks.
More insights:
Analysts say Seplat’s rally reflects a combination of strong earnings performance and strategic positioning within Nigeria’s energy sector.
- The company’s inclusion among liquid frontier market stocks makes it a prime target for foreign investors seeking exposure to Nigeria’s equities market.
- According to market analysts, foreign capital typically flows into stocks with strong liquidity, governance, and execution capacity—factors that favour Seplat alongside other large-cap names.
- This explains the concentration of buying activity in a few dominant counters following the FTSE reclassification.
- Seplat’s recent acquisition of offshore assets previously held by Mobil Producing Nigeria Unlimited, now integrated into its operations, significantly boosted production capacity and revenue streams, reinforcing investor confidence.
Cordros Analysts note that the company’s focus on gas infrastructure and energy transition projects continues to position it as a key player in Nigeria’s evolving energy landscape.
What you should know:
Seplat’s financial performance in 2025 further supports its strong market valuation. The company reported revenue growth of 144% to $2.73 billion, driven by expanded production and full-year contribution from offshore assets.
- Profit before tax rose 86.7% to $497.8 million, while gross profit surged 156.4%, reflecting improved operational efficiency.
- The company also rewarded shareholders with a total dividend of 25 cents per share, representing a 52% increase year-on-year, underpinned by strong cash flow generation and reduced net debt, which fell by 25% to $673.3 million.
- Looking ahead, Seplat has set a production guidance of 135,000–155,000 barrels of oil equivalent per day for 2026, supported by new drilling campaigns and gas development projects.
- Recall that around December 31, 2025, Heirs Energies closed a $750 million financing deal with Afreximbank to fund its existing operations and expansion plans.
- The French oil and gas company Maurel & Prom (M&P) entered into a binding agreement to sell its entire 20.07% stake in Seplat Energy Plc to Elumelu’s Heirs Energies Ltd for a total consideration of $496 million.
With a strengthened balance sheet and growing investor interest, the company appears well-positioned to sustain its growth trajectory while benefiting from increased foreign participation in Nigeria’s capital market.
