… Free cash flow hits $749 million as production surges to 155 kboepd in Q3
Written By Rashidat O. Okunlade | Lagos
Seplat Energy Plc, a leading Nigerian independent energy company dual-listed on the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE), has announced impressive unaudited results for the nine months ended September 30, 2026.
The strong performance, driven by robust production and favorable price realisations, delivered a free cash flow of $749 million, further improving the Company’s net leverage and underpinning increased shareholder distributions.
Reflecting this financial strength, Seplat has raised its 3Q 2026 dividend by 58% sequentially to USD 19.0 cents/share.
Operational Highlights
Seplat recorded significant operational milestones across its onshore and offshore assets:
Production Growth: 9M 2026 working interest production averaged 144,999 boepd, up 7% from 9M 2025, with Onshore operations up 22%. Q3 2026 production averaged 155,801 boepd, up 13% year-on-year.
ANOH & OB3 Pipeline: Initial debt principal repayments for ANOH were completed during Q3, with first commercial gas sold via the OB3 pipeline in September.
Idle Well Restoration: The offshore restoration programme added 33.7 kbopd and 176 MMscf/d gross JV production capacity YTD from 41 wells.
Exploration Success: Post-period, Seplat discovered oil and gas across five reservoir intervals in the Aku-01 exploration well (PPL 2A25).
Decarbonisation: Group carbon emissions intensity fell 14% YoY to 37.4 kg CO2/boe, while onshore operated emissions intensity reduced by 34% YoY, reflecting the impact of the End of Routine Flaring programme.
Financial Highlights
The Company’s financial metrics demonstrated substantial growth across the board:
Revenue: $2,764 million, up 27% (9M 2025: $2,177 million). 9M 2026 average realised oil price was $96.19/bbl, an $8.12/bbl premium to average Brent.
Adjusted EBITDA: $1,530 million, up 38%.
Net Income: $260.2 million, up 174% YoY.
Earnings Per Share: USD 42 cents, up 172% YoY.
Cash at Bank: $556.9 million (FY 2025: $332.3 million).
Net Debt: Reduced by 65% to $234.9 million, with Net Debt/EBITDA improving to 0.14x.
Debt Repayment: On October 27, the Company repaid the $100 million balance on the APF, meaning all debt raised to acquire MPNU in 2024 has been cleared.
CEO’s Remarks
Commenting on the results, Seplat Energy’s Chief Executive Officer, Engr. Effiong Okon, expressed confidence in the Company’s trajectory.
“In my first update as CEO, I am delighted to report another quarter of robust production growth, averaging over 155 kboepd in 3Q 2026, which puts us firmly on track to meet the upper half of our full year guidance,” Okon said. “This was delivered in a period of continued high crude prices; we realized $100.4/bbl in the quarter, a full $10.2/bbl higher than the average Brent price.”
He also highlighted the Company’s financial resilience, noting that the strong performance supports the interim dividend.
“When paid, the 3Q 2026 dividend will lift cumulative dividends declared since our IPO to over $1.0 billion, and we are firmly on track to return our second $1.0 billion to shareholders as we deliver on our 5-year plan. A clear demonstration of the financial robustness of our business.”
What To Know About Seplat Energy
Seplat Energy Plc is Nigeria’s leading indigenous energy company. It is listed on the Premium Board of the Nigerian Exchange Limited (NGX: SEPLAT) and the Main Market of the London Stock Exchange (LSE: SEPL).
Through its strategy to build a sustainable business and deliver energy transition, Seplat is transforming lives by delivering affordable, reliable and sustainable energy that drives social and economic prosperity. Its portfolio consists of 11 PMLs, 17 PPLs and 5 OMLs in onshore and shallow water locations in the Niger Delta region.
Website: https://www.seplatenergy.com/
Why It Matters
Seplat Energy’s 9M 2026 results are a masterclass in operational resilience and financial discipline, arriving at a time when the global energy sector is navigating significant geopolitical volatility and transition pressures.
For the Nigerian economy, Seplat’s performance is deeply consequential. The Company’s ability to secure a premium on its crude realising $8.12/bbl above the average Brent price is a testament to the quality of its assets and its commercial acumen. More importantly, the Company’s aggressive debt reduction strategy, highlighted by the complete repayment of the $100 million APF balance, is a reassuring signal to investors. A Net Debt/EBITDA ratio of 0.14x is exceptionally healthy for a capital-intensive industry like oil and gas.
The new CEO, Engr. Effiong Okon, has hit the ground running. The strong Q3 production numbers, the successful exploration at Aku-01, and the progress on the ANOH gas project show that Seplat is not resting on its laurels. The pivot towards gas, a critical transition fuel for Nigeria, is clearly paying off.
However, challenges remain. The delayed start-up at the Yoho restoration project due to pipeline damage, and the rising unit operating costs, highlight the persistent infrastructural and security risks in the Niger Delta. How Seplat navigates these operational hurdles in the final quarter will determine whether it can fully deliver on its upgraded guidance.
For shareholders, the message is resoundingly positive: Seplat is generating cash, paying down debt, and returning substantial value through dividends. In a market starved for reliable returns, the Company is proving that indigenous energy firms can compete on a global scale.
© ROTAMEDIANEWS Digital Newspaper & BusinessEcho Magazine by ROTA Media Concepts
For advert placement, news tips and subscription enquiries, contact the Publisher/Editor-in-Chief, Rashidat Olushola Okunlade.
rotamedianews@gmail.com businessechomag@gmail.com
