By Kirk Leigh
Nigeria-focused oil and gas producer Seplat Energy has reported a sharp rise in profits and production after its first full year operating an expanded offshore portfolio, as the London- and Lagos-listed group increased its dividend by more than half and pledged further growth in 2026.
The company said group production averaged 131,506 barrels of oil equivalent per day (boepd) in 2025, up 148% from 52,947 boepd in 2024, reflecting the consolidation of offshore assets and stronger onshore performance. Fourth-quarter output dipped to 119,200 boepd, hit by a shutdown at the Yoho platform and planned maintenance.
Revenue for the year to 31 December climbed 144% to $2.73bn (£2.1bn), compared with $1.12bn a year earlier, while adjusted earnings before interest, tax, depreciation and amortisation rose 137% to $1.28bn. Cash generated from operations surged 276% to $1.17bn.
Unit production operating costs fell 5% year on year to $15.7 per barrel of oil equivalent, which the company attributed to higher volumes and operational efficiencies. Net debt declined 25% to $673m, leaving leverage at 0.53 times EBITDA.
Roger Brown, Seplat’s chief executive, said the results showed the group’s ability “to operate at scale” following its transformation into a combined onshore and offshore operator.
“In 2025 we clearly illustrated our ability to operate at scale,” Brown said. “We benefitted from successful execution of several key offshore activities that kick-started life for Seplat as an offshore operator, while at the same time delivering onshore production performance that was the strongest in recent memory.”
Onshore production rose 14% year on year, supported by completion of the Sapele gas plant and the addition of new wells. Offshore output grew 9% on a pro-forma basis, though performance was tempered by the Yoho outage, with a restart expected in the second quarter of 2026.
A restoration programme targeting idle wells added 48,600 boepd of gross production capacity from 49 wells, exceeding internal expectations. The company also completed its EAP IGE offshore project, helping lift peak gross natural gas liquids recovery to about 33,000 barrels per day in February 2026, up from around 20,000 in 2025.
In January 2026, the ANOH gas plant achieved first gas, with production currently running at 50–70m standard cubic feet per day and condensate in storage. Seplat expects gas output to rise 30% year on year in 2026, with natural gas liquids forecast to increase by 85% as recently completed projects feed through.
The group’s independently audited 2P reserves fell by about 42m barrels of oil equivalent to just over 1bn boe at year-end, reflecting what it described as a focus on maintenance and asset integrity. However, combined 2P plus 2C resources increased by 181m boe to 2.49bn boe, bolstered by revisions to offshore oil resources and the inclusion of additional gas volumes.
Seplat declared a fourth-quarter dividend of 8.3 US cents per share, comprising a 5 cent base dividend and a 3.3 cent special payment. Total dividends for 2025 amount to 25 cents per share, equivalent to $150m and 52% higher than in 2024.
Brown said the increased payout underlined the “cash generative nature” of the company’s enlarged asset base and positioned it to meet its target of delivering $1bn in cumulative returns to shareholders by 2030.
For 2026, Seplat is guiding for production of 135,000 to 155,000 boepd, with the midpoint implying roughly 10% growth. The company has earmarked capital expenditure of $360m to $440m and plans to drill 17 new wells, including two offshore from the third quarter, as it pursues its ambition to raise working interest production to 200,000 boepd by the end of the decade.
Unit operating costs are expected to fall further to between $13.5 and $14.5 per barrel, driven by higher volumes. Brown said drilling would be “a decisive factor” in meeting the group’s long-term growth plans, adding that its first contracted jack-up rig is due to arrive at the Oso field in the third quarter to begin a multi-year campaign.
The results cement Seplat’s emergence as one of Nigeria’s most significant independent energy producers at a time when international oil majors have been retreating from onshore positions, reshaping the country’s upstream landscape.
