Seplat Energy Plc has released its unaudited Q2 2025 results for the period ended June 30, 2025, posting a pre-tax profit of N139.465 billion, marginally down by 0.76% compared to N140.535 billion in Q2 2024.
Combined with Q1 performance, first half pre-tax profit surged by 86% year-on-year to N454.11 billion.
The strong bottom-line performance was supported by a significant growth in revenue. Q2 2025 revenue jumped by 206.5% to N939.205 billion, bringing H1 2025 revenue to N2.166 trillion—already 31% higher than full-year 2024 revenue.
The topline growth was largely driven by a sharp increase in crude oil production. In H1 2025, Seplat achieved an average daily working interest production of 134,492 barrels of oil equivalent per day (boepd), nearly triple the 48,407 boepd recorded in H1 2024.
This exceeded the midpoint of its full-year production guidance of 120,000–140,000 boepd. Crude and condensate output rose by 236% to 18.2 million barrels, from 5.4 million barrels in the same period last year.
The rise in crude oil production is directly reflected in revenue composition, with crude oil sales accounting for over 90% of total revenue in Q2 and 92% of total revenue for the first half of 2025.
Commenting on the results, CEO Roger Brown stated:
“Seplat has continued its positive trajectory in Q2 to deliver a strong performance for the first half of 2025. Our focus on integrity, reliability, and production improvement activities are bearing fruit, as evidenced by strong production in Q2, with onshore at the upper end of guidance and offshore growing 11% quarter-on-quarter. The company delivered first-half production over 10% higher than pro-forma output in the same period last year, supporting both our ambitions and Nigeria’s oil and gas growth goals.”
Despite the impressive topline and pre-tax profit figures, rising direct costs and overheads outpaced revenue growth, putting pressure on margins.
Gross profit rose by 18% year-on-year to N216 billion in Q2, bringing H1 gross profit to N751 billion, up 204%. However, gross profit margin declined sharply to 23% in Q2 2025, compared to 59.94% in Q2 2024.
Similarly, operating profit grew by 47% to N239.9 billion in Q2, and by 111% to N601 billion for the half year. Yet, operating profit margin fell significantly—dropping by 52% to 25% in Q2 and by 44% to 28% in H1 2025—highlighting cost pressures despite solid absolute earnings growth.
Other headwinds include rising finance and tax costs
Interest expense on loans surged to N84.96 billion in Q2 2025, taking the half-year figure to N116 billion, compared to N45.93 billion in Q2 2024.
According to the notes to the account, “The increase in interest expense reflects increased drawn debt facilities (associated with the offshore assets acquisition) and higher interest rates on the newly issued Eurobond.”
Tax expenses also spiked, with a total tax charge of N411.6 billion for Q2 alone, which significantly weighed down the bottom line. As a result, profit after tax fell to N7.13 billion in Q2 and stood at N42.5 billion for the half year.
According to the notes to the accounts, the income tax expense of N411.6 billion includes a current tax charge of N555.5 billion and a deferred tax credit of N144 billion.
The computation is based on a projected full-year effective tax rate (ETR) of 91%, consistent with IAS 34.30c, which requires tax expense in interim periods to reflect the best estimate of the annual rate. Adjustments may be made in future quarters if expectations change.
On the balance sheet side, total assets declined by 4.7% to N9.36 trillion, representing a N465.69 billion drop over six months, driven mainly by reductions in oil and gas properties and property, plant & equipment (PPE).
Shareholders’ equity also dipped to N2.77 trillion, as retained earnings dropped to N250.8 billion.
However, management remains optimistic. Roger Brown stated: “We are well placed to weather the recent increase in macro volatility. Strong revenues and a focus on costs delivered significant positive cash flows, enabling us to further reduce net leverage, continue our strong quarterly dividend track record and, in the past week, pay down an additional $100 million of debt.”
Seplat maintained its commitment to shareholder returns, declaring a Q2 dividend of US$4.6 cents per share, in line with the prior quarter.
This represents a total payout of $67.7 million a 28% increase compared to the $53 million paid in H1 2024.
As of close of trading on July 30, 2025, the share price was priced at N5,450, marking a 4.39% decline.
