Seplat Energy Plc announced its unaudited Q2 2025 financial results, reporting a pre-tax profit of N139.5 billion for the quarter ending June 30, a slight 0.76% dip from N140.5 billion in Q2 2024. However, the first half of 2025 saw an 86% surge in pre-tax profit to N454.1 billion, driven by robust revenue growth. The company’s revenue soared 206.5% to N939.2 billion in Q2, with H1 revenue reaching N2.17 trillion, surpassing full-year 2024 revenue by 31%.
The revenue boom was fueled by a 236% increase in crude oil and condensate production, with H1 2025 output averaging 134,492 barrels of oil equivalent per day (boepd), nearly tripling H1 2024’s 48,407 boepd. This exceeded Seplat’s full-year guidance midpoint of 120,000–140,000 boepd, with crude oil sales comprising 92% of H1 revenue. CEO Roger Brown attributed the performance to enhanced production reliability and integrity, stating, “Our focus on onshore and offshore production growth aligns with Nigeria’s oil and gas ambitions.”
Despite the strong topline, rising costs pressured margins. Gross profit rose 18% to N216 billion in Q2, with H1 gross profit up 204% to N751 billion, but the Q2 gross margin fell to 23% from 59.94% in 2024. Operating profit grew 47% to N239.9 billion in Q2 and 111% to N601 billion in H1, yet margins dropped to 25% and 28%, respectively. Interest expenses climbed to N84.96 billion in Q2 due to higher debt from offshore asset acquisitions and elevated Eurobond rates. A N411.6 billion tax charge, reflecting a 91% effective tax rate, reduced Q2 profit after tax to N7.13 billion, with H1 at N42.5 billion.
Total assets fell 4.7% to N9.36 trillion, driven by declines in oil and gas properties, and shareholders’ equity dropped to N2.77 trillion. Seplat declared a Q2 dividend of US$4.6 cents per share, totaling $67.7 million for H1, up 28% from 2024. Brown emphasized, “Strong cash flows enabled debt reduction and sustained dividends despite macro volatility.” Seplat’s share price closed at N5,450 on July 30, down 4.39%.
