NNPC’s June Profit Rose 16% to N535bn, Statutory Transfers Hit N6.29trn

*Seplat posts 498% rise in H1 profit, set to sell 10% stake to national oil company

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Company Limited (NNPC) recorded a Profit After Tax (PAT) of N535 billion in June, up from N462 billion in May, representing an increase of about 16 per cent month-on-month.
This comes as Seplat Energy Plc also released its financial performance for the first half of 2026, with PAT soaring by 498 per cent year-on-year to $164 million, buoyed by stronger crude oil prices, improved production and robust operational performance.

The NNPC  in its monthly report summary released yesterday stated that its cumulative statutory payments to the federation also rose to N6.286 trillion in the first six months of this year, while total revenue increased from N4.335 trillion in May to N4.389 trillion in June.
A THISDAY analysis of the report indicated that the jump of total remittances from N4.858 trillion recorded in May to N6.286 trillion in June reflected an additional N1.428 trillion transferred during the month.

Operationally, crude oil and condensate production was 1.72 million barrels per day in June from 1.73 million bpd in May, while natural gas production increased from 7,774 million standard cubic feet per day (mmscf/d) in May to a 7,841 mmscf/d in June.
Besides, gas sales improved marginally to 4,970 mmscf/d in June from 4,921 mmscf/d in May, reversing the slight decline recorded in the previous month.

In terms of downstream operations, the data showed that petrol availability across NNPC Retail Limited stations declined to 53 per cent in June from 57 per cent in May.
The also report showed further progress on major gas infrastructure projects, as the Obiafu-Obrikom-Oben (OB3) gas pipeline project advanced from 97 per cent completion in May to 98 per cent in June, with the final tie-in works on the River Niger crossing ongoing to ensure first gas in August 2026.

Also, the NNPC announced that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline remained at 94 per cent completion, with stakeholder collaboration being sustained to expedite construction and installation activities towards achieving early gas delivery to Abuja.
Meanwhile, Seplat Energy Plc has released its financial performance for the first half of 2026, with PAT soaring by 498 per cent year-on-year to $164 million, buoyed by stronger crude oil prices, improved production and robust operational performance.

Seplat also announced that it had reached an agreement to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture (JV) to the Nigerian National Petroleum Company Limited (NNPC) in a transaction valued at $281.6 million.
According to the company, the NNPC deal, expected to close in the second half of the year, would significantly enhance shareholder returns, with total planned dividends for 2026 projected to rise to 68.3 cents per share, equivalent to about $410 million and representing a 173 per cent increase year-on-year.

The indigenous energy company, listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), also recorded a 30 per cent increase in revenue to $1.82 billion from $1.398 billion in the corresponding period of 2025, while cash generated from operations climbed 29 per cent to $985.9 million.

The company declared a total interim dividend of 12 US cents per share for the second quarter of 2026, comprising a core dividend of 5 cents and a special dividend of 7 cents, marking its highest-ever quarterly dividend payout.
Average production during the period rose 4 per cent to 139,509 barrels of oil equivalent per day (boepd), from 134,492 boepd recorded in the first half of 2025. The output remains comfortably within Seplat’s full-year production guidance of between 135,000 and 155,000 boepd.

In the same vein, working interest production comprised 99,518 barrels of oil per day and 182.9 million standard cubic feet of gas per day during the review period.
Second-quarter production strengthened further, averaging 149,070 boepd, representing a 9 per cent increase compared to the corresponding period of last year and a 15 per cent improvement over the first quarter of 2026.

The company attributed the improved output to stronger production from its West, East and Elcrest assets, continued success of its idle well restoration programme and higher natural gas liquids (NGLs) production.
In the same vein, gross profit surged 68 per cent to $815.9 million from $484.6 million a year earlier, while adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 28 per cent to $939 million.
Also, earnings per share climbed 565 per cent to 26.6 cents from 4.0 cents recorded in the corresponding period of 2025.

Seplat maintained a strong balance sheet, ending June with cash at bank of $433.8 million, excluding restricted cash of $130.8 million. Net debt fell by 45 per cent to $370.7 million from $673.3 million at the end of 2025, reducing its net debt-to-EBITDA ratio to 0.25 times from 0.53 times.

The company also strengthened its financial standing by repaying and cancelling $200 million under its Advanced Payment Facility (APF), leaving an outstanding balance of $100 million.

On the operational sustainability front, Seplat said its operated assets delivered 18.8 million man-hours without a Lost Time Injury (LTI), while group carbon emissions intensity declined 18 per cent year-on-year to 33.5 kilogrammes of carbon dioxide per barrel of oil equivalent.

Emissions intensity from its onshore operations declined by 37 per cent following the implementation of its End of Routine Flaring programme, the company pointed out.

Commenting on the results, outgoing Chief Executive Officer, Roger Brown, said the company entered the second half of the year from a position of considerable strength.

“As I hand over leadership of Seplat, the company is stronger than ever. 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 said.

Brown noted that higher commodity prices had translated into stronger cash generation, enabling the company to reduce debt significantly while rewarding shareholders.

“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation. Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200 million of our outstanding APF debt, equivalent to 20 per cent of gross debt. At the same time, robust cash flows enabled us to continue enhancing shareholder returns,” he stated.

Brown added that the announced sale of the 10 per cent interest in the offshore joint venture to NNPC Limited, together with continued strong operational performance, positions Seplat to deliver one of the highest shareholder returns in its history.

He expressed confidence in the company’s future as he prepares to hand over to Effiong Okon on August 1, saying the incoming chief executive possesses the experience and operational expertise required to drive the company’s next phase of growth and value creation.