Seplat Energy Plc reported a surge in operating cash flow to over $1 billion for the first nine months of 2025, allowing Nigeria’s leading independent energy producer to cut net debt by 43 percent and raise its quarterly dividend by more than 60 percent.
The company’s unaudited results showed that after-tax cash flow from operations rose 183 per cent year-on-year to $1.01 billion, supported by strong crude liftings, expanded offshore operations, and disciplined cost control. Net debt dropped to $386 million from $676 million in the previous quarter, improving Seplat’s net leverage ratio to 0.27 times EBITDA, well below its target ceiling of 1.0x.
Revenue tripled to $2.18 billion in the nine months ended Sept. 30, compared with $715 million a year earlier, while adjusted EBITDA jumped 190% to $1.11 billion. Profit before tax rose 133% to $570 million, even as Seplat faced higher royalties and maintenance expenses from its expanded portfolio following the integration of former Mobil Producing Nigeria Unlimited (MPNU) assets.
The board declared a third-quarter dividend of 7.5 US cents per share, comprising a 5.0 cent base payout and a 2.5 cent special dividend, up 63% quarter-on-quarter and more than double the year-earlier payout. Seplat said its robust cash generation aligns with its new dividend policy announced at its September Capital Markets Day, which targets $1 billion in cumulative dividends by 2030.
The company used the windfall to pay down debt aggressively. During the period, Seplat repaid and cancelled its Westport junior facility, refinanced its senior reserve-based loan at a lower interest rate, and cleared the remaining $100 million balance on its revolving credit facility, which now remains fully undrawn.
Third-quarter output averaged 137,888 boepd, 1 percent higher than the previous quarter, with onshore production up 5% and offshore volumes dipping slightly due to scheduled maintenance on the East Area Project platform. Seplat narrowed its full-year production guidance to the upper end of 130,000–140,000 boepd.
In the gas segment, production rose 68 percent to 47.7 billion standard cubic feet, boosted by higher uptime at the Oben and Sapele plants. The ANOH gas processing plant, a key growth project, remains on track for first gas in the fourth quarter.
Seplat Energy has a 45% working interest in OMLs 4, 38 and 41 which are located in Edo (OML 4) and Delta (OMLs 38 and 41) States onshore Nigeria.
Seplat Energy is operator of the three blocks, which together form one contract area, on behalf of the NPDC/Seplat Joint Venture.
As operator, Seplat Energy is empowered with running the day-to-day operations activities and is able to set production and operational improvement goals and lead exploration and appraisal activities, subject to the approval of its partner. Production is predominantly from seven fields, namely Amukpe, Oben, Okporhuru, Ovhor, Orogho, Sapele and Sapele Shallow, and the partners aim to bring additional fields onstream in the future.
Note by Alessandro Bazzoni