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Seplat Energy Plc has released its financial results for the six months ended June 30, 2026, reporting a 74.1% year-on-year increase in profit before tax to N790.4 billion from N454.1 billion in the prior-year period.
The unaudited financial results also show that the second quarter was particularly strong, with profit before tax reaching N561.3 billion, up 145.0% from N229.1 billion in the first quarter of 2026 and 302.1% higher than N139.5 billion recorded in Q2 2025.
The company’s earnings improvement was supported by stronger revenue growth, lower cost of sales, improved production, a supportive commodity price environment, and reduced finance costs.
The company has declared a dividend of US$0.12 per share for Q2 2026, consisting of a US$0.05 core dividend and a US$0.07 special dividend.
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The dividend was declared against Q2 2026 earnings per share of US$0.21, reflecting the company’s strong earnings performance and confidence in cash generation.
Management commentary
Roger Brown, Chief Executive Officer, said the company entered the second half of 2026 from a position of strength, noting that:
- “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.”
- He added that the first-half performance benefited from “a supportive commodity price environment, translating into strong cash generation,” while the company prioritized balance sheet strength by repaying $200 million of outstanding APF debt.
On shareholder returns, Brown said the declared quarterly dividend of US$12.0 cents per share represented “a new quarterly high-water mark,” supported by strong business performance and confidence in the 2026 outlook.
Key Highlights (H1 2026 vs. H1 2025)
- Revenue: N2.50 trillion (Up 15.5% YoY from N2.17 trillion)
- Gross profit: N1.12 trillion (Up 49.3% YoY from N751.2 billion)
- Operating profit: N901.7 billion (Up 50.0% YoY from N601.2 billion)
- Profit after tax: N225.5 billion (Up 430.3% YoY from N42.5 billion)
- Earnings per share: N365.43 (Up 487.6% YoY from N62.19)
- Dollar EPS: US$0.27 per share (Up 563% YoY from US$0.04 per share)
- Total production: 139,509 boepd (Up 3.7% YoY from 134,492 boepd)
- Crude and condensate production: 99,518 bopd (Down 0.8% YoY from 100,327 bopd)
- Gas production: 182.9 MMscfd (Up 3.7% YoY from 176.3 MMscfd)
- NGL production: 8,459 bopd (Up 124.1% YoY from 3,772 bopd)
- Crude oil sales: N2.25 trillion (Up 12.1% YoY from N2.00 trillion)
- Gas sales: N140.3 billion (Down 4.3% YoY from N146.7 billion)
- Natural gas liquid sales: N114.7 billion (Up 647.9% YoY from N15.3 billion)
- Cash and cash equivalents: N598.3 billion (Up 25.5% from N477.0 billion at December 2025)
- Total assets: N8.24 trillion (Down 5.6% from N8.73 trillion at December 2025)
Driving the numbers
Seplat’s earnings growth was driven by more than higher production. While total production increased 3.7% year-on-year, revenue grew much faster at 15.5%, reflecting the benefit of supportive commodity prices and stronger product mix.
An important angle is that while revenue increased, the cost of sales declined by 2.5% to N1.38 trillion from N1.42 trillion.
This helped gross profit expand by 49.3% as the company retained more value from each naira of revenue generated.
Revenue/profit drivers
Oil remained the main revenue driver, contributing N2.25 trillion in crude oil sales.
However, gas became an increasingly important profit contributor, with gas profit after tax rising to N111.6 billion from N27.0 billion.
The improvement was supported by stronger NGL sales, which increased sharply during the period.
Production also improved, particularly in the second quarter.
Total production increased to 149,070 boepd in Q2 2026 from 129,841 boepd in Q1 2026, while crude and condensate production rose to 106,768 bopd from 92,187 bopd.
Cost angle
The biggest cost benefit came from lower depletion, depreciation, and amortization expenses, which declined by 21.1% year-on-year to N388.2 billion.
Although operational and maintenance expenses increased by 19.4% to N468.4 billion, the overall cost structure improved.
Finance costs
Lower finance costs also supported profitability. Net finance cost declined by 24.8% to N107.0 billion from N142.3 billion, mainly due to lower interest on loans and borrowings.
This followed a reduction in debt, with management disclosing the repayment of $200 million of APF debt during the quarter.
Balance sheet
Beyond earnings growth, Seplat strengthened its financial position during the period. While total assets declined 5.6% due mainly to lower oil and gas properties and intangible assets, but liquidity improved.
- The decline in assets was mainly driven by lower non-current assets, which fell 8.5% to N6.21 trillion.
- Oil and gas properties, which represent the largest component of assets at 50.4% of total assets, declined by 7.2% to N4.15 trillion.
- Intangible assets also declined by 11.8% to N716.6 billion.
However, cash balances increased 25.5% to N598.3 billion. The company also reduced interest-bearing debt by 23.1% following the repayment of $200 million APF debt disclosed by management.
Market reaction
Seplat’s share price was priced at 11,363.90 as of July 29, 2026, reflecting a year-to-date gain of 95.63%, while month-to-date performance was unchanged at 0.00%.
