Seplat Energy profits surge fivefold on cost cuts and oil price windfall
Seplat Energy's net profit jumped over fivefold in H1 2026 to N225.5 billion from N42.5 billion a year ago, driven by cost-cutting and higher oil prices amid Middle East turbulence. Revenue rose 15.5% to N2.5 trillion while cost of sales fell to 55.2% from 65.3% of turnover.
The London-listed driller saw Lagos shares gain 0.6% and LSE shares 0.9% after announcing results Thursday. CEO Roger Brown, departing Saturday after six years, credited Brent crude averaging $86.7/bbl (23% yearly rise) for strong cash flow but warned of limited price visibility.
Billionaire Tony Elumelu, who increased his stake to 20.7% ($500M via Heirs Energies) last December, becomes chairman in January following Udoma Udo Udoma's exit. Seplat declared interim dividend of USD5 cents Q2 2026 (up from USD4.6c) plus special USD7c payout, targeting USD68.3c total annual distribution per share.
With profits tied to temporary geopolitical factors and cost savings rather than organic growth, will investors view this surge as sustainable or brace for normalization when Middle East tensions ease?