Last Update 15 Nov 25
SEPLAT ENERGY PLC – Strong Production Growth and Gas Expansion Drive Robust 9M 2025 Operational Performance Despite Isolated Setbacks
Executive Summary
Seplat Energy Plc delivered a strong operational performance in the nine months ended September 30, 2025, underpinned by record production volumes, improved asset reliability, and continued progress on its gas expansion strategy. The Group achieved significant output growth across both onshore and offshore assets, while maintaining a solid health, safety, and environmental (HSE) record. Average working interest production rose 185% YoY to 135,636 boepd, reflecting the full-year contribution from the MPNU acquisition and continued success of the idle well restoration programme. Third-quarter production of 137,888 boepd marked Seplat’s third consecutive quarter of growth, positioning the company at the upper end of its 130–140 kboepd guidance range. Operational cash flow remained strong, generating over $1 billion in after-tax cash inflows, supporting deleveraging to 0.27x Net Debt/EBITDA and enabling the declaration of a special dividend of 2.5 US cents/share, bringing total Q3 2025 payout to 7.5 US cents/share.
Operational Highlights
• 9M 2025 production averaged 135,636 boepd, up 185% YoY (47,525 boepd in 9M 2024) and up 18% versus pro-forma 2024 production.
• 3Q 2025 production averaged 137,888 boepd, up 1% QoQ, driven by robust onshore recovery and stable offshore performance. • Onshore production of 56,219 boepd (+5% QoQ), supported by strong OML 40 performance and improved export availability.
• Offshore production of 81,669 boepd (-2.5% QoQ) impacted by planned EAP downtime due to Inlet Gas Exchanger (IGE) replacement and lower A/K output.
• Idle well restoration programme added 33.4 kbopd of gross capacity from 33 restored wells, ahead of plan and delivered at a net cost < $40 million.
• First LPG cargo sold domestically, advancing Seplat’s contribution to clean cooking and energy access. • Yoho fire incident (Sept 27, 2025): no injuries; expected to be offline through year-end, impacting 4Q output by c.10–12 kboepd.
• ANOH Gas Plant on track to deliver first gas in 4Q 2025.
• Onshore carbon intensity: 25.2 kgCO₂/boe (↓21% YoY); routine flaring elimination on schedule for completion by end-2025. • Offshore carbon intensity: 51.2 kgCO₂/boe; long-term flaring reduction plan under development.
“As we approach the first anniversary of the MPNU acquisition, Seplat continues to demonstrate operational excellence and scale efficiency. Our strong cash generation has supported balance sheet strengthening and enhanced shareholder returns, in line with our 2030 vision of achieving 200 kboepd and $1 billion cumulative dividends.” — Seplat Management, CMD 2025.
Production Overview
Upstream Output:
- Total liquids production: 68,623 bopd (9M 2025) across OMLs 67, 68, 70, and 104.
- Offshore liquids declined 1% QoQ (70,024 bopd vs. 70,409 bopd) due to planned EAP downtime.
- NGLs production: 3,719 bpd (-13% QoQ) following scheduled EAP maintenance.
- Amenam-Kpono contributed 712 bopd in 9M 2025.
- First 12,600 MT LPG cargo exported from Bonny River Terminal, reinforcing domestic gas supply.
Onshore Performance:
- Western Assets (OMLs 4, 38, 41): Production rose 12% YoY to 16,921 bopd, supported by new wells and stable export routes (AEP uptime 91%, TFP uptime 89%).
- OML 40: Output +60% QoQ to 12,779 bopd, recovering strongly from 2Q downtime.
- Eastern Assets (OML 53): Production up 87% YoY to 2,828 bopd, aided by improved Trans Niger Pipeline availability (83% vs. 6% prior year).
- OPL 283: Output stable at 1,566 bopd, minor 3% decline YoY.
Drilling & Development Activities
• 13 new onshore wells targeted for FY2025: 9 (Western), 2 (Eastern), 2 (Elcrest). • Five wells completed YTD across Western Assets — Sapele-39, Orogho-10/11, Okporhuru-10, Oben-58 — with three already producing at a combined rate of 3,440 bopd and 25 MMscfd. • Eastern and Elcrest wells progressing to be completed by 4Q 2025, contributing to FY2026 volumes. • Drilling programme on schedule and within budget, ensuring sustained production momentum into 2026.
Gas Business Performance
Group Gas Production:
- 47.7 Bcf produced in 9M 2025 (+68% YoY).
- Average working interest production: 174.7 MMscfd (+69% YoY).
- Growth supported by new wells, improved processing uptime, and the Sapele Gas Plant ramp-up.
Onshore Gas:
- Output rose 28% YoY to 132.5 MMscfd, driven by Sapele and Oben plants.
Offshore Gas:
- Output averaged 42.4 MMscfd, slightly lower QoQ due to planned EAP downtime.
Midstream Expansion Projects:
- Oso-BRT Gas Pipeline Upgrade (Phase 1): Engineering 75% complete; fabrication starts 1Q 2026.
- Sapele Gas Plant: Train 2 reliability test completed; LPG module commissioning underway (commercial operations expected by year-end).
- ANOH Gas Plant: Nearing completion; first gas expected 4Q 2025, with commercial contracts secured for nameplate capacity operations.
Carbon & Sustainability
- Onshore emissions intensity: 25.2 kgCO₂/boe (↓21% YoY).
- Flare-out projects: Compressors and Vapour Recovery Units (VRUs) installed at Oben, Sapele, and Amukpe.
- EORF projects: Fully on track for 2025 completion across all onshore assets.
- Offshore flaring roadmap under development for phased reduction.
Health, Safety & Environment (HSE)
- Recorded one Lost Time Injury (LTI) in Q3 (minor hand injury at Oben).
- Yoho fire incident (Sept 27): no casualties; fire suppressed effectively.
- Post-incident safety record: 1.47 million LTI-free manhours across operated assets.
- Five Tier-1 Loss of Primary Containment (LOPC) incidents YTD — one fire, two gas releases, two spills — all contained without fatalities.
- Continuous reinforcement of asset integrity and maintenance strategy ongoing.
Strategic Insights
• Demonstrating capability to operate efficiently at >130 kboepd scale. • Gas monetization and LPG commercialization advancing revenue diversification. • Deleveraging achieved ahead of guidance (ND/EBITDA: 0.27x). • Committed to carbon reduction and routine flaring elimination by 2025. • Enhanced shareholder returns through disciplined capital deployment.
Analyst View
“Seplat’s operational delivery in 9M 2025 underscores its transition into a high-performing integrated energy company. Sustained production growth, gas expansion, and efficient capital management continue to underpin earnings resilience. While isolated operational setbacks like the Yoho fire are manageable, the Company’s focus on asset integrity, gas value chain development, and shareholder returns supports a strong investment case heading into 2026.”
Conclusion
Seplat Energy Plc recorded a landmark operational year-to-date performance, achieving record production volumes, strengthened gas monetization, and material progress on its decarbonization roadmap. With first gas from ANOH imminent, continued gas plant expansion, and a disciplined capital structure, Seplat remains on track to deliver its medium-term growth and dividend targets under the 2030 roadmap.
Executive Summary
Seplat Energy Plc delivered an exceptional performance for the nine months ended 30 September 2025, sustaining strong operational and financial momentum amid elevated production volumes and improved cost efficiency. The Company reported a Profit Before Tax (PBT) of ₦878.99 billion, representing a 140% YoY increase from ₦366.71 billion in 9M 2024, while Profit After Tax (PAT) soared 178% YoY to ₦146.64 billion (9M 2024: ₦52.78 billion). Earnings growth was primarily driven by a 214% YoY rise in revenue, reflecting higher crude output, improved lifting volumes, and contributions from the acquired MPNU assets. EBITDA surged to ₦1.715 trillion (9M 2024: ₦573.4 billion), demonstrating the firm’s robust cash flow generation capacity. Earnings Per Share (EPS) rose sharply to ₦240.18 from ₦98.37 in the prior year, underscoring enhanced shareholder value creation. The Board declared a total dividend of 7.5 US cents per share (5.0 cents base + 2.5 cents special), supported by strong liquidity and cash flows.
Financial Highlights – Statement of Profit or Loss
₦’million
Line Item Q3 2025 Q3 2024 9M 2025 9M 2024
Revenue 1,189,470 495,845 3,356,187 1,070,897
Cost of Sales (584,711) (211,814) (2,000,184) (539,379)
Gross Profit 604,759 284,031 1,356,003 531,518
Other Income/(Loss) – net (38,126) (88,526) 40,944 32,084
Admin & Operating Expenses (52,438) (66,334) (261,880) (143,538)
Impairment on Financial Assets (net) (8,936) (2,419) (13,654) (4,001)
Fair Value Loss (10,241) (589) (25,207) (4,723)
Operating Profit 495,018 126,163 1,096,206 411,340
Finance Income 3,848 4,295 12,123 11,702
Finance Costs (72,936) (32,839) (223,485) (86,956)
Net Finance Cost (69,088) (28,544) (211,362) (75,254)
Share of (Loss)/Profit – JV (1,052) 25,044 (5,855) 30,625
Profit Before Tax 424,878 122,663 878,989 366,711
Tax Expense (320,758) (137,947) (732,350) (313,935)
Profit After Tax 104,120 (15,284) 146,639 52,776
Basic EPS (₦) 178.25 3.91 240.18 98.37
Revenue and Income Drivers
- Revenue surged 214% YoY to ₦3.36 trillion, driven by production growth from the MPNU asset integration, stable oil prices, and higher sales volumes.
- Gross Profit more than doubled to ₦1.36 trillion (+155% YoY), reflecting stronger margins and operational efficiency.
- EBITDA rose to ₦1.715 trillion, supported by cost optimization and stronger upstream performance.
- Operating Profit jumped 166% YoY to ₦1.10 trillion, despite higher administrative and finance costs.
Profitability and Margins
- Net Profit Margin improved to 4.4% (9M 2024: 4.9%), reflecting solid operating leverage.
- Operating Margin rose to 32.7% from 38.4%, supported by scale efficiency and reduced cost per barrel.
- EBITDA Margin stood at 51.1%, reflecting improved cash generation from production efficiency.
- Profit Before Tax climbed 140% YoY, underscoring Seplat’s resilient cost structure and scale benefits.
- Profit After Tax advanced 178% YoY, with strong contribution from oil and gas operations and a favourable tax regime.
Balance Sheet Overview
₦’million
Item Sept 2025 Dec 2024 Δ%
Total Assets 9,052,826 9,821,261 -8%
Total Liabilities 6,355,127 6,992,278 -9%
Total Equity 2,697,699 2,828,983 -5%
Cash & Cash Equivalents 849,502 721,385 +18%
Borrowings (Interest-bearing) 1,414,933 2,099,750 -33%
Retained Earnings 314,054 319,013 -2%
Foreign Currency Translation Reserve 2,334,937 2,393,251 -2%
Interpretation
- Seplat maintained a strong balance sheet with ₦849.5 billion in cash, demonstrating high liquidity and financial flexibility.
- Total borrowings declined by one-third, underscoring significant deleveraging and balance sheet strength.
- Equity position remained robust at ₦2.70 trillion, supported by retained earnings and foreign currency translation gains.
- Asset base of ₦9.05 trillion reflects sustained capital investment in upstream and gas assets.
Key Ratios & Indicators
Metric 9M 2025
Revenue Growth +214%
EBITDA Margin 51.1%
Operating Margin 32.7%
Net Profit Margin 4.4%
PBT Growth +140%
PAT Growth +178%
Net Debt/EBITDA 0.27x
ROE (Annualized) ~7%
Seplat’s robust production ramp-up, high-margin operations, and disciplined cost structure underscore its strengthened earnings power and improved capital efficiency.
Strategic Insights
- The MPNU acquisition has been transformative, enabling Seplat to scale operations and drive a 185% YoY production growth.
- ANOH Gas Project remains on track for first gas in Q4 2025, supporting the company’s strategic gas monetization and energy transition agenda.
- Achieved first domestic LPG sale, strengthening domestic energy access and ESG alignment.
- Management remains committed to ending routine flaring onshore by year-end 2025 and completing the PIA conversion, reinforcing regulatory compliance and sustainability.
Strengths
- Tripled revenue base and doubled profit performance
- Strong cash generation and deleveraging
- Strategic gas expansion and clean energy transition
- Robust liquidity and balance sheet resilience
Weaknesses
- Exposure to global crude price volatility
- High taxation impact on net profitability
- Exchange rate translation risks affecting equity reserves
Outlook
Seplat is poised for a strong close to FY2025, supported by sustained high production volumes, the upcoming ANOH gas plant commissioning, and enhanced domestic gas sales. Medium-term outlook remains positive, anchored on diversified energy portfolio, ESG leadership, and robust cash generation, positioning the firm for consistent dividend payouts and growth beyond 2025.
Key watchpoints include crude price volatility, regulatory timing on PIA conversion, and FX movements.
Analyst View
“Seplat Energy’s Q3 2025 results mark another milestone in its transformation into a leading integrated energy producer. With production up 185% and EBITDA surpassing ₦1.7 trillion, the Company has demonstrated strong operating leverage and disciplined financial management. Continued investment in gas and decarbonization projects provides a sustainable growth pathway, while the declaration of a special dividend signals confidence in future cash flows.”
Conclusion
Seplat Energy Plc posted a record-breaking 9M 2025 performance, underpinned by soaring production, triple-digit revenue growth, and robust profitability. With solid liquidity, declining leverage, and expanding gas operations, Seplat is strategically positioned to sustain earnings momentum, enhance shareholder value, and drive Nigeria’s energy transition through 2030.
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