Seplat Eyes Higher Cash Flow Gains

Seplat Energy says rising geopolitical tensions between the United States and Iran could support higher crude oil prices and create stronger cash flow opportunities for the company in 2026.

The company’s Chief Executive Officer, Roger Brown, disclosed this during Seplat’s 13th Annual General Meeting where shareholders approved several resolutions relating to dividends and board appointments.

Brown said Seplat prepared its 2025 budget using conservative oil price assumptions of between $65 and $70 per barrel before recent geopolitical tensions triggered fresh increases in crude prices.

“We will likely see higher oil prices while the Iran-U.S. squabbles exist, and we will likely benefit from additional cash flow,” Brown stated during the meeting.

According to him, the expected improvement in revenue would support operations, reduce leverage levels and create more value for shareholders.

Brown added that the company’s core business fundamentals remained strong, describing Nigeria as a reliable supplier of hydrocarbons to the international energy market despite ongoing global uncertainties.

He disclosed that operational issues affecting Seplat’s gas plant had been resolved and confirmed that the company recently delivered its first liquefied petroleum gas cargo, comprising butane, into the domestic market.

Brown described the development as significant to Nigeria’s efforts to deepen local gas utilisation and strengthen energy security.

Speaking on the company’s reserve position, the Seplat CEO said the firm currently holds about one billion barrels in proven and probable reserves, with oil and gas accounting for nearly equal proportions.

“We have a billion barrels of 2P reserves. Roughly half of it is oil and roughly half is gas,” he said.

Brown further disclosed that Seplat also controls approximately 1.5 billion barrels in contingent resources, much of which is tied to its gas operations.

According to him, the company’s combined 2P and 2C reserves stand at roughly 2.5 billion barrels, providing long-term production sustainability across its onshore and offshore assets.

“We have a lot of resource to produce well into the future. Our onshore gas operations remain strong, with substantial reserves,” Brown added.

He noted that Seplat was also advancing offshore projects expected to create additional long-term value for investors and expand the company’s production capacity.

At the Annual General Meeting, shareholders approved a total dividend payout equivalent to N113.78 per share for the financial year ended December 31, 2025.

The dividend approval followed an earlier recommendation by the board proposing a final dividend of 5 U.S. cents and a special dividend of 3.3 U.S. cents per share.

The combined payout was converted using an exchange rate of N1,370.89 based on the Central Bank of Nigeria’s official rate as of May 14, 2026.

Based on Seplat’s outstanding share count of approximately 599.9 million shares, the total dividend payout was valued at about N68.26 billion.

The dividend is expected to be paid from the company’s retained earnings for the 2025 financial year, which rose by 9.5 percent year-on-year to N342.4 billion.

Seplat reported a pretax profit of N755.5 billion for the 2025 financial year, representing a significant increase from N394.6 billion recorded in the previous year.

The company’s revenue also climbed sharply to N4.1 trillion from N1.6 trillion, driven mainly by stronger crude oil sales and improved gas revenues.

Crude oil sales contributed N3.7 trillion to total revenue, while gas sales generated N279.4 billion and natural gas liquids accounted for N81.7 billion.

Shareholders at the meeting also approved the appointment of Larry Ettah as an independent non-executive director and Tony Elumelu as a non-executive director.

The meeting further re-elected Udoma Udo Udoma and Christopher J.N. Okeke to the board.

Seplat shares traded at N11,486.20 during the pre-market session on the Nigerian Exchange, with the stock delivering a year-to-date return of 97.73 percent.