Seplat Energy’s profit jumps 174% to $260m, raises dividend by 58%

By Onu Okorie

The Nigerian energy company records $749 million in free cash flow, cuts net debt by 65% and raises its third-quarter dividend to 19 cents per share as production climbs.
Seplat Energy Plc has reported a 174 per cent year-on-year increase in net income to $260.2 million for the nine months ended September 30, 2026, supported by higher production, strong crude oil prices and improved operational performance.
The company, listed on both the Nigerian Exchange Group and the London Stock Exchange, also recorded $749 million in free cash flow during the period, strengthening its balance sheet and supporting increased shareholder distributions.
In its unaudited nine-month 2026 results released on Thursday, Seplat Energy announced a third-quarter dividend of $0.19 per share, representing a 58 per cent increase from the preceding quarter.
The dividend comprises a core payment of $0.05 per share and a special dividend of $0.14 per share, bringing total dividends declared for the year to $0.40 per share.
The company said its strong operational and financial performance had improved its capacity to reward shareholders while funding future growth.
Revenue rose by 27 per cent to $2.764 billion from $2.177 billion in the corresponding period of 2025. Adjusted earnings before interest, taxes, depreciation and amortisation increased by 38 per cent to $1.53 billion, compared with $1.112 billion a year earlier.
Earnings per share climbed by 172 per cent to $0.42, up from $0.16 in the same period last year.
Cash generated from operations stood at $1.479 billion, compared with $1.395 billion in the corresponding period of 2025, representing an increase of six per cent.
Seplat’s financial performance was supported by higher crude oil price realisations. Its average realised oil price for the nine-month period was $96.19 per barrel, an $8.12 premium to the average Brent crude price.
In the third quarter, the average realised oil price rose to $100.44 per barrel, exceeding the average Brent price by $10.21.
Production Growth Strengthens Performance
The company recorded average working-interest production of 144,999 barrels of oil equivalent per day during the first nine months of 2026, up seven per cent from 135,636 barrels of oil equivalent per day in the corresponding period of 2025.
Onshore production increased by 22 per cent, contributing to the overall growth.
Third-quarter production averaged 155,801 barrels of oil equivalent per day, representing a 13 per cent increase from 137,888 barrels per day recorded in the same quarter of 2025. Production also rose by five per cent compared with the preceding quarter.
Seplat attributed the improved performance to stronger output across its assets, continued growth in gas production and progress in restoring previously idle offshore wells.
The company said its onshore operations achieved record gas production levels during the third quarter, supported by the continued ramp-up of the Assa North-Ohaji South gas project, known as ANOH, and strong performance across its western assets.
ANOH completed its initial debt principal repayments during the quarter, while its first commercial gas was sold through the OB3 pipeline in September.
The company also reported continued progress in its offshore idle-well restoration programme, which added gross joint-venture production capacity of 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day from 41 wells year to date. Four of the restored wells were gas wells.
However, the company said the start-up of its Yoho restoration project had been delayed after pipeline damage was identified. Although the restoration project was completed during the quarter, repairs were ongoing, with production expected to resume in the fourth quarter of 2026.
Net Debt Falls to $234.9m
Seplat Energy’s balance sheet strengthened considerably during the reporting period, with net debt declining by 65 per cent from $673.3 million at the end of 2025 to $234.9 million at the end of September 2026.
Its net debt-to-EBITDA ratio improved to 0.14 times from 0.53 times at the end of 2025, reflecting the reduction in borrowings relative to earnings.
Cash held at the end of September stood at $556.9 million, up from $332.3 million at the end of 2025.
The company further disclosed that it repaid the outstanding $100 million balance on its advance payment facility on October 27, 2026.
With the repayment, Seplat said it had fully repaid all debt raised to finance its acquisition of Mobil Producing Nigeria Unlimited in 2024.
The reduction in debt and improved cash position provide additional financial flexibility as the company pursues its production growth strategy and shareholder return commitments.
Seplat Retains $270m Dividend Guidance
The company retained its full-year 2026 dividend guidance of $270 million, equivalent to $0.45 per share.
It also expects to complete the sale of a 10 per cent interest in the NNPCL-SEPNU joint venture to NNPC Limited during the fourth quarter of 2026.
Following completion of the transaction, Seplat intends to pay a special transaction dividend equivalent to approximately half of the consideration received.
The proposed distribution is estimated at $0.233 per share, or approximately $140 million.
The company said the proposed payment would complement its existing dividend programme as it continues to deliver on its five-year business plan.
Commenting on the results, Seplat Energy’s Chief Executive Officer, Engr. Effiong Okon, said the company had recorded another quarter of robust production growth, with average output exceeding 155,000 barrels of oil equivalent per day in the third quarter.
Okon, in his first update as chief executive, said the performance placed the company on course to achieve the upper half of its full-year production guidance.
He noted that the strong production figures were achieved amid high crude oil prices, with Seplat realising $100.44 per barrel during the quarter.
According to him, continued growth in onshore gas production and the restoration of offshore production would support the company’s operational expansion.
He also highlighted the Aku-01 exploration well, where the company announced a discovery of oil and gas across five reservoir intervals after the reporting period.
The discovery was made in Petroleum Prospecting Licence 2A25 and has reduced exploration risk for four prospects on the licence. Seplat plans to test one of the prospects through a second exploration well in 2027.
Okon said the discovery demonstrated the potential of the company’s exploration portfolio and the quality of Nigeria’s subsurface resources.
Production Guidance Raised, Capital Spending Reduced
Seplat Energy revised its full-year production guidance to between 145,000 and 155,000 barrels of oil equivalent per day, narrowing the previous range of 135,000 to 155,000 barrels per day to reflect stronger-than-expected performance in the first nine months.
The company also reduced its capital expenditure guidance to between $280 million and $340 million from the earlier range of $360 million to $440 million.
It attributed the reduction primarily to the timing of expenditure, following the late arrival of an offshore drilling rig.
However, unit operating cost guidance was increased to between $15.50 and $16.50 per barrel of oil equivalent, compared with the previous estimate of $14.50 to $15.50, largely because of continuing costs associated with Yoho.
The revised outlook reflects the company’s assessment of production trends, project schedules and operating expenses for the remainder of the year.
Emissions Intensity Declines
Seplat also reported progress in reducing its carbon emissions intensity.
Group emissions intensity fell by 14 per cent year on year to 37.4 kilogrammes of carbon dioxide per barrel of oil equivalent, compared with 43.6 kilogrammes in the corresponding period of 2025.
Onshore-operated emissions intensity declined by 34 per cent, which the company attributed to the continuing impact of its End of Routine Flaring programme.
The company said the progress reflected its ongoing efforts to improve operational efficiency while reducing the environmental footprint of its oil and gas production.
In his remarks, Okon said he was encouraged by the strength of the company’s balance sheet, the quality of its workforce and the range of opportunities within its portfolio.
He added that Seplat was making progress on business integration, with several initiatives underway to strengthen its operational capabilities.
The chief executive said the company was positioned to pursue further growth and reinforce its role as a major energy supplier in Nigeria, a country of increasing strategic importance to global energy markets.
Seplat said its strong production performance, lower debt levels and continued investment in its asset base would support delivery of its five-year plan, alongside sustained distributions to shareholders.