Seplat Energy has reported a significant boost in its quarterly profit, hitting ₦35.4 billion, thanks largely to its $1.3 billion acquisition of ExxonMobil’s onshore business in Nigeria.
The landmark deal, finalized in December after nearly two years of regulatory holdup, gave Seplat full ownership of Mobil Producing Nigeria Unlimited, marking a strategic shift as international oil companies (IOCs) increasingly retreat from onshore operations.
According to Seplat’s latest earnings report, the ExxonMobil asset contributed nearly 60% of the company’s average production during the quarter, helping to reverse a ₦2.9 billion loss recorded in the same period last year.
Revenue and Production Skyrocket
Revenue for Q1 surged more than fourfold, reaching ₦1.3 trillion, driven by stronger output and improved operational efficiency.
“Production has been strong, showing the benefit of the continuous drilling programme, investment in asset integrity, and the availability of multiple evacuation routes,” said Seplat CEO Roger Brown.
He noted that Seplat’s solid financial performance enabled the company to aggressively reduce gross debt, maintain a low-leverage balance sheet, and fortify its position amid a volatile global economic outlook.
Strategic Shifts in Nigeria’s Oil Industry
The acquisition highlights the growing trend of local companies stepping into the space vacated by global oil giants such as Shell and TotalEnergies, which are shifting offshore due to concerns over security risks, oil theft, and potential litigation related to environmental damage.
Indigenous firms like Aradel, ND Western, and Waltersmith Group are capitalizing on this transition, acquiring onshore assets and expanding their footprint in Nigeria’s energy sector.
Gas Flaring Costs and Dividends
Despite the strong performance, Seplat reported a ₦20 billion ($13.2 million) gas flare penalty, part of a broader increase in cost of sales, which rose by 237.9%.
Still, the company saw profit before tax triple to ₦314.6 billion, reflecting its growing profitability and operational scale.
In a move to reward shareholders, Seplat increased its dividend per share to US 4.6 cents, a 28% rise from the previous quarter.
Seplat remains Nigeria’s largest publicly listed energy company by market value, and its recent growth reinforces its role as a key player in the country’s evolving oil and gas landscape.
