Seplat Posts 498% H1 Profit Growth, Set to Sell 10% Stake to NNPC

Emmanuel Addeh in Abuja

Seplat Energy Plc has released its financial performance for the first half of 2026, with Profit After Tax (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, will 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 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.

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.