Directors Forecast US$410m 2026 Total Dividend
In what may be investors trying to digest the numbers, the share price of Seplat Energy PLC, a foremost Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, remained unmoved Thursday, after its board presented its unaudited financials for the half-year ended June 30, 2026. Highlights of the result included a 498% jump in net profit, compared to the 68% improvement in revenue for the period, from which the board is offering a 2026Q2 interim dividend per share of US 12.0 Cents, from its USD 26.6 cents Earnings per share which was up 565% YoY from USD 4.0 cents in the 2025 first half. The interim dividend amounting to $72 million, consists “of USD 5.0 c/shr core and USD 7.0 c/shr special dividend.”
If all goes as planned, the board expects that total expected dividend for 2026 could be as much as USD 68.3 cents/share, bringing total payout to $410 million, on the back of the agreement with state-owned NNPC Limited to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture (JV), at a transaction value of $281.6 million, representing 25% of Seplat’s acquisition costs to date. The deal expected to be completed in the second half of 2026, following which proceeds will be split equally between transaction dividend and debt repayment, thereby further enhancing shareholder returns.
A breakdown of the full year dividend shows that USD 45.0 cents/share ($270 million), will be based on the strength of underlying business performance and management confidence in 2026 outlook, representing an 80% dividend growth YoY, in addition to the plan to distribute a transaction dividend of USD 23.3 cents/share ($140 million), subject to completion of the NNPCL deal. When these are combined with the planned dividend from the business, 2026 dividend is expected to grow to USD 68.3 cents/share ($410 million), up 173% YoY, and representing 41% of the planned 2026-2030 $1 billion dividend target.
According to the result, revenue improved to $1.82bn from $1.398bn Year-on-Year with cash generated from operations hitting $985.9m, a 29% improvement on prior half-year’s $766.2 million. Average realised oil price at $94.13/bbl, a $7.47/bbl premium to Brent. Cash capital expenditure stood at $109.8 million from $96.5 million, with the management expecting a higher run-rate in the second half of 2026.
Unit production operating cost amounted to $15.8/boe, compared to $12.5/boe in the corresponding period of 2025, primarily due to what the statement termed Yoho restoration ($14.0/boe excluding Yoho costs).
Helped by such superlative performance, the group repaid early and cancelled $200 million under the Advanced Payment Facility, reducing the balance to $100 million.
Profit After Tax (PAT) rose to $164m in a period when production averaged 139,509 boepd, up 4 per cent from 134,492 boepd in the corresponding period of last year.
Gross profit for the period stood at $815.9m rising by 68 per cent Year-on-Year from $484.6m.
The group operated assets delivered a total of 18.8 million man-hours without LTI.
Further highlights of the result showed that onshore production contributed 60,690 boepd, up 11% YoY (6M 2025: 54,831 boepd)
Seplat’s balance sheet duing the period remained strong with end-June bank balance of $433.8 million, up from $332.3 million at the end of last full-year, excluding the $130.8 million restricted cash.
Reacting to the results, Roger Brown, Chief Executive Officer noted that he is handing over a company that is now stronger than ever with production improving from the first quarter and staying “on track to grow further in the second half of 2026 as temporary restrictions are lifted and planned activities are completed.
“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.
“Our declared quarterly dividend of USD 12.0 cents per share represents a new quarterly high-water mark, up 33 per cent on 1Q 2026 and 161% higher than 2Q 2025. With continued strong business performance and the announced sale of a 10 per cent interest in our offshore JV to NNPC Limited, means that total dividends paid for the current financial year are expected to represent nearly 50% of all previous dividend paid to shareholders,” he stressed.
Continuing, Brown expressed satisfaction that the “performance of our offshore business over the past 18 months has reinforced our conviction in the quality and scale of the opportunity within the portfolio.“
The statement also restated that from august 1, 2026, Engr. Effiong Okon will succeed Roger Brown as Chief Executive Officer and Executive Director on the Board, while Tony O. Elumelu, will succeed Senator Udoma Udo Udoma as Chairman of the Board from on January 1, 2027.
“As I hand over to Effiong, I do so with great confidence. He brings the experience, capability and operational focus needed to unlock the next phase of value creation, supported by an exceptional team with a proven track record that continues to deliver for our shareholders, host communities and wider stakeholders,” Brown further stressed.
