Seplat Energy (SEPL) Q2 2026 earnings summary

Executive summary

• Revenue rose 30% year-over-year to $1.82 billion, driven by higher oil prices and increased production across oil, gas, and NGLs.

• Net income surged 498% year-over-year to $164 million, with EPS up 565% to $0.27.

• Free cash flow reached $526 million, supporting debt reduction and record dividends.

• Dividends increased significantly, with Q2 dividend up 161% year-on-year and full-year guidance raised to $0.45 per share, plus a special dividend post-asset sale.

• Leadership transition: new CEO Effiong Okon takes over August 1, and a new Chairman will assume the role in January, supporting the 2030 growth plan.

Financial highlights

• Adjusted EBITDA increased 28% year-over-year to $939 million, with a 52% margin.

• Net debt reduced by 55% year-to-date to $370.7 million; net leverage improved to 0.25x.

• Free cash flow for H1 was $526 million, nearly matching all of 2025, with underlying free cash flow before debt at $632 million.

• Earnings per share rose to $0.27, more than five times the prior period.

• Cash at bank at period-end was $433.8 million, up from $332.3 million at FY2025.

Outlook and guidance

• 2026 production guidance maintained at 135-155 kboepd, tracking toward the midpoint.

• Capex guidance for 2026 set at $360-440 million, with higher spend expected in 2H 2026.

• Unit operating cost guidance revised to $14.5-15.5/boe due to Yoho repair costs.

• Planned full-year dividend of $270 million ($0.45/share), with an additional $140 million transaction dividend upon JV sale completion.

• 2030 production target adjusted to 170 kboepd net WI post-transaction.