Seplat Vitality Plc has reported one in all its strongest performances thus far, with income surging 213% YoY to N3.36 trillion within the first 9 months of 2025 greater than the corporate’s whole income between 2020 and 2024 mixed.
The expansion was fuelled by the combination of Mobil Producing Nigeria Limitless (MPNU) offshore belongings, which boosted output and cemented Seplat’s place as one in all West Africa’s main independents.
Nevertheless, whereas the top-line development is explosive, tax liabilities have squeezed revenue margins, with over N700 billion in taxes consuming a lot of Seplat’s pre-tax revenue.
Additionally, behind these report numbers lies a vital query: how is Seplat managing the debt that funded the MPNU acquisition fueling the expansion?
However first, allow us to take a look at the impression of the upstream belongings
The mixing of Mobil Producing Nigeria Limitless (MPNU) belongings added greater than 80,000 barrels of oil equal per day, immediately boosting Seplat’s capability and earnings energy.
Within the first 9 months of 2025, crude oil gross sales jumped 231% to N3.1 trillion, up from N936 billion final yr.
The corporate’s regular work reviving idle wells, decreasing pipeline downtime, and enhancing export reliability helped push output to 27.9 million barrels, a 270% surge that greater than offset the 13% dip in oil costs to $71.93 per barrel.
However Seplat isn’t counting on oil alone. Its fuel enterprise grew 59% year-on-year to N215 billion, powered by the Oben and Sapele crops that offer fuel to Nigeria’s energy grid and industries.
In the meantime, its transfer into Pure Fuel Liquids (NGLs) added one other N51 billion, marking its first native LPG cargo as a step that widens its revenue base and helps shield it from oil market swings.
When Seplat acquired Mobil Producing Nigeria Limitless (MPNU) in December 2024, it wasn’t simply shopping for oilfields — it was shopping for scale.
To make it occur, the corporate raised about $1.38 billion by means of a wise mix of debt devices:
For traders, that call mattered. Seplat selected debt over new shares, a transfer that expanded the enterprise with out diluting possession.
It was daring, however calculated, giving Seplat the muscle to shut Nigeria’s largest upstream deal whereas exposing it to greater international borrowing prices.
Barely months later, Seplat began cleansing up. It refinanced the $650 million notes to mature in 2030, renewed its $80 million RBL on higher phrases, and absolutely repaid the $350 million revolving credit score and $50 million junior facility all from its working money circulation.
That robust money circulation helped reduce borrowings to N929 billion from N1.01 trillion, proving that the MPNU belongings are already paying their means.
By including native lenders like Zenith Bank to its funding combine, Seplat additionally strengthened its credit score, standing a quiet assurance to traders that its debt just isn’t a danger, however an indication of self-discipline and rising confidence.
That money circulation, powered by rising offshore manufacturing, allowed Seplat to chop whole borrowings to N929 billion, down from N1.01 trillion on the finish of 2024.
The transfer additionally diversified its lenders, bringing native gamers like Zenith Bank into the combo, a uncommon mix for a Nigerian upstream producer that alerts Seplat’s rising credibility at dwelling and overseas.
Regardless of Seplat Vitality’s spectacular development in income, gross revenue, and working revenue, and deleveraging, the corporate’s internet revenue margin got here below vital strain through the nine-month interval ended September 2025.
The primary layer of strain got here from curiosity bills on borrowing and leases, which ballooned by 135% to N180.41 billion.
Nevertheless, Seplat’s strong working earnings and deleveraging improved its curiosity protection ratio to six.1x in comparison with 5.4x in the identical interval of 2024.
Additional down the revenue assertion, present tax bills surged to N731.37 billion from N98.29 billion in 2024, representing a six-fold improve and accounting for over 83% of pre-tax revenue.
Consequently, Seplat’s internet revenue got here all the way down to N146.369 billion, and margin declined to 4.4% from 5% a yr earlier, regardless of pre-tax revenue almost tripling to N878.99 billion.
Albeit one other of Seplat’s enduring strengths lies in its money circulation era.
Commenting on the corporate’s efficiency, Chief Govt Officer Roger Brown stated:
“Our robust money flows, over $1 billion after tax and deleveraging to 0.27× ND/EBITDA help our dedication to greater shareholder distributions.”
He added that integrity investments will stay a key focus following the Yoho fireplace incident, whereas reaffirming progress towards ending routine flaring onshore in This autumn 2025 and finishing the PIA conversion course of for Seplat’s onshore enterprise, which is anticipated to boost tax effectivity.
Seplat Vitality’s share value has proven much less volatility amid a risky equities market.
Seplat Vitality’s share value has proven much less volatility amid a risky equities market.
The corporate has additionally been constant in rewarding shareholders, paying a complete of 167 US cents (about N152 billion) in dividends to date in 2025, rating it the best of Nigeria’s dividend-paying corporations for the 2025 {financial} yr as of Q3 2025.
