Seplat Energy Q2 2025 Profit Slips 0.76% to N139.5 Billion as Production Triples

Seplat Energy has posted a pre‑tax profit of ₦139.465 billion in Q2 2025, a slight 0.76% decline from ₦140.535 billion in Q2 2024, despite revenue surging 206.5% year‑on‑year to ₦939.205 billion. With Q1 contributions, first‑half pre‑tax earnings reached ₦454.11 billion, an 86% increase over H1 2024.

The company’s boepd (barrels of oil equivalent per day) in H1 2025 averaged 134,492, nearly tripling the 48,407 boepd recorded in H1 2024 and surpassing its full‑year guidance midpoint of 120,000‑140,000 boepd.

Crude and condensate output climbed 236% to 18.2 million barrels from 5.4 million barrels year‑on‑year, with crude sales accounting for over 90% of Q2 sales and 92% of first‑half revenue.

Despite a rise in gross profit, ₦216 billion in Q2 (+18%) and ₦751 billion in H1 (+204%), gross profit margin plunged to 23% in Q2 from 59.94% a year earlier.

Operating profit rose to ₦239.9 billion in Q2 (+47%) and ₦601 billion in H1 (+111%), yet its margin declined sharply to 25% in Q2 and 28% for the half-year, underscoring the rising cost burdens.

Q2 interest expense ballooned to ₦84.96 billion, contributing to ₦116 billion for H1, compared to ₦45.93 billion in Q2 2024, reflecting increased debt linked to offshore acquisitions and higher Eurobond rates.

Compounding challenges, tax charges hit ₦411.6 billion in Q2 alone, based on a projected full‑year effective tax rate of 91%, resulting in profit after tax of ₦7.13 billion in Q2 and ₦42.5 billion for H1.

Total assets decreased by 4.7% to ₦9.36 trillion, driven by declines in oil & gas properties and PPE, while shareholders’ equity dipped to ₦2.77 trillion amid retained earnings of ₦250.8 billion.

Seplat declared a Q2 dividend of US$0.046 per share, aligned with the prior quarter, representing a total payout of US$67.7 million, up 28% from US$53 million in H1 2024. As of close on July 30, 2025, the share price stood at ₦5,450, down 4.39%.

CEO Roger Brown commented on the result, “Seplat has continued its positive trajectory in Q2 to deliver a strong performance for the first half of 2025. Our focus on integrity, reliability, and production improvement activities are bearing fruit, as evidenced by strong production in Q2, with onshore at the upper end of guidance and offshore growing 11% quarter-on-quarter. The company delivered first-half production over 10% higher than pro-forma output in the same period last year, supporting both our ambitions and Nigeria’s oil and gas growth goals.”

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