Seplat Energy’s 9M pre-tax profit rises 52.75% to N1.34 trillion, declares dividend.

Seplat Energy Plc reported a pre-tax profit of N1.34 trillion in its unaudited financial results for the nine months ended 30 September 2026, representing an increase of 52.75% from N878.99 billion recorded in the corresponding period of 2025.

Profit after tax increased by 142.47% to N355.55 billion from N146.64 billion, while earnings per share rose to N580.72 from N240.18, reflecting improved earnings attributable to shareholders.

The nine-month profitability growth was supported by a 12.51% increase in revenue to N3.78 trillion from N3.36 trillion, driven by stronger crude oil prices and higher production volumes.

The board declared a third-quarter dividend of $0.19 per share, comprising a $0.05 core dividend and a $0.14 special dividend. The qualification date is 12 November 2026, while the register of shareholders will close on 13 November 2026.

The dividend brings total distributions declared year-to-date to 40 US cents per share

Key Highlights

The figures compare 9M 2026 with 9M 2025, except balance sheet items, which are compared with December 2025.

• Revenue: N3.78 trillion (Up 12.51% YoY from N3.36 trillion).
• Cost of sales: N2.15 trillion (Up 7.60% YoY from N2.00 trillion).
• Gross profit: N1.62 trillion (Up 19.75% YoY from N1.36 trillion).
• Adjusted EBITDA: N2.09 trillion (Up 21.93% YoY from N1.71 trillion).
• Operating profit: N1.46 trillion (Up 33.05% YoY from N1.10 trillion).
• Finance costs: N163.42 billion (Down 26.88% YoY from N223.49 billion).
• Net finance costs: N149.21 billion (Down 29.41% YoY from N211.36 billion).
• Total assets: N8.18 trillion (Down 6.31% from N8.73 trillion).
• Total equity: N2.42 trillion (Down 8.49% from N2.64 trillion).

Management Commentary

Effiong Okon, Chief Executive Officer, said the company has a clear line of sight to continued growth that will be underpinned by operational excellence as offshore gas production comes back online.

• “In my first update as CEO, I am delighted to report another quarter of robust production growth, averaging over 155 kboepd in 3Q 2026, which puts us firmly on track to meet the upper half of our full year guidance. This was delivered in a period of continued high crude prices, we realised $100.4/bbl in the quarter, a full $10.2/bbl higher than the average Brent price in the period, further enhancing our results.”

He said the company’s strong financial performance supports the interim dividend payment of USD 19.0 cents per share, adding that when paid, the 3Q 2026 dividend will lift cumulative dividends declared since its IPO to over $1.0 billion.

He noted that the company is firmly on track to return its second $1.0 billion to shareholders as it delivers on our 5-year plan.

Driving the numbers

Seplat Energy’s nine-month performance was driven by stronger crude oil prices, increased production and improved contributions from gas and natural gas liquids (NGLs), which helped offset lower crude lifting volumes and rising production costs.

Revenue increased by 12.51% to N3.78 trillion from N3.36 trillion, supported largely by crude oil and condensate sales, which generated N3.38 trillion, accounting for 89.53% of total revenue.

The improvement was supported by a 34% increase in average realised crude oil prices, despite crude and condensate lifting volumes declining by 8% to 25.7 million barrels.

• Gas revenue also increased by 19%, supported by the continued ramp-up of the ANOH gas processing facility, while NGL revenue rose by 276%, benefiting from improved product recovery following the replacement of the Inlet Gas Exchanger at the EAP complex.

However, dry gas sales volumes declined by 17% to 38.4 billion standard cubic feet, indicating that stronger prices and NGL sales helped offset lower volumes.

Production performance was mixed, with average daily working interest production increasing by 7% to 144,999 barrels of oil equivalent per day.

• Onshore production increased by 22% to 67,445 boepd, supported by contributions from ANOH and improved output from Elcrest, while offshore production declined by 3% to 77,554 boepd.
• The offshore performance was affected by the delayed restart of the Yoho platform and pipeline damage that disrupted gas sales.

On the cost side, the cost of sales increased by 7.60% to N2.15 trillion from N2.00 trillion, reflecting higher production expenses, royalties and depreciation.

In dollar terms, the underlying financial review showed that production costs increased by 22%, while non-production costs rose by 21%.

• Unit production operating costs increased by 14% to $16.00 per barrel of oil equivalent, partly reflecting expenditure associated with the Yoho restoration programme.
• Royalty expenses increased by 17%, reflecting stronger commodity prices, while depreciation, depletion and amortisation rose by 27%.

General and administrative expenses also increased by 17%, partly due to higher share-based payment charges.

Despite these cost pressures, gross profit increased by 19.75% to N1.62 trillion from N1.36 trillion, while operating profit rose by 33.05% to N1.46 trillion from N1.10 trillion.

• Adjusted EBITDA increased to N2.09 trillion from N1.71 trillion, with the EBITDA margin improving to 55% from 51%.
• The improvement in operating earnings, alongside a 26.88% reduction in finance costs to N163.42 billion, supported a 52.75% increase in pre-tax profit to N1.34 trillion.

Profit after tax grew faster, increasing by 142.47% to N355.55 billion from N146.64 billion, despite income tax expenses rising by 34.79% to N987.15 billion.

The effective tax rate declined to 74% from 83%, which helped reduce the tax burden relative to pre-tax earnings.

Balance sheet

On the balance sheet, total assets stood at N8.18 trillion, compared with N8.73 trillion in December 2025, while interest-bearing borrowings declined by 27.11% to N1.05 trillion from N1.44 trillion.

• Cash generation remained substantial, although higher tax payments weighed cash retained from operations. Post-tax operating cash flow declined by 9%, while free cash flow fell by 10%.
• Nevertheless, lower capital expenditure and debt repayments strengthened the group’s financial position, with net debt-to-EBITDA improving to 0.14 times from 0.53 times at the end of 2025.

The company also disclosed that it repaid the outstanding balance on its acquisition financing facility on 27 October 2026, completing the repayment of debt raised for the MPNU acquisition.

Market reaction

Seplat Energy’s share price closed unchanged at N16,000.10 on 28 October 2026, with 57,476 shares traded, compared with 9,884 shares in the preceding session.

The stock has gained 175% year-to-date from its opening price of N5,809.