Seplat Energy Plc has reported one of its strongest financial performances in recent years, posting a 498 per cent increase in profit after tax (PAT) to $164 million for the first half of 2026.

This comes as higher oil prices, increased production and improved operational efficiency boosted earnings.

Also, Seplat Energy has reached an agreement to sell a 10 per cent interest in the NNPCL-SEPNU joint venture to the Nigerian National Petroleum Company Limited (NNPC Ltd.) in a deal valued at $281.6 million, representing about 25 per cent of the company’s acquisition cost to date.

The transaction, which is expected to be completed in the second half of 2026, will see the proceeds shared almost equally between a special dividend payment and debt reduction. Seplat said its operational guidance for the year would be updated after the completion of the deal.

Despite the divestment, the company retained its production forecast of between 135,000 and 155,000 barrels of oil equivalent per day (boepd) and maintained its capital expenditure guidance of between $360 million and $440 million. However, it revised its unit operating cost guidance upward to $14.5-$15.5 per barrel of oil equivalent, attributing the increase to higher costs associated with the Yoho restoration programme.

The dual-listed energy company also recorded a 30 per cent rise in revenue to $1.82 billion, up from $1.398 billion in the corresponding period of 2025, while cash generated from operations rose by 29 per cent to $985.9 million.

The company announced an interim dividend of 12 cents per share, comprising a core dividend of five cents and a special dividend of seven cents, reflecting management’s confidence in its outlook and strong cash flow position.

It disclosed its unaudited results for the six months ending on June 30, 2026, on Thursday.

The results underscore the growing importance of indigenous producers in Nigeria’s oil and gas industry as local operators continue to assume control of assets divested by international oil companies while expanding investment across both onshore and offshore operations.

The company revealed that production averaged 139,509 barrels of oil equivalent per day (boepd) during the first half of the year, representing an increase of four per cent compared with the 134,492 boepd recorded during the same period in 2025.

Production during the second quarter stood at 149,070 boepd, reflecting an increase of nine per cent compared with the corresponding period last year and a 15 per cent improvement over the first quarter of 2026.

Working interest production comprised 99,518 barrels of oil per day (bopd) and 182.9 million standard cubic feet of gas per day (MMscfd).

Onshore operations contributed 60,690 boepd, representing an increase of 11 per cent, while offshore assets accounted for 78,819 boepd.

The company attributed the improved production performance to stronger output from its western, eastern and Elcrest operations, alongside gains recorded under its idle well restoration programme.

According to Seplat, the restoration initiative added approximately 26,000 barrels of oil per day in gross joint venture production capacity through the reactivation of 24 wells during the period under review.

Natural gas liquids production also recorded substantial growth, with output rising to 8,459 barrels per day from 3,772 barrels per day a year earlier.

Gross profit rose by 68 per cent to $815.9 million, compared with $484.6 million in the first half of 2025, while adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 28 per cent to $939 million.

Earnings per share climbed by 565 per cent to 26.6 cents, compared with four cents in the corresponding period last year.

The company attributed part of the strong performance to favourable market conditions, noting that its average realised oil price stood at $94.13 per barrel, representing a premium of $7.47 per barrel above Brent crude prices.