Seplat Energy (SEPL) Q2 2025 earnings summary

Executive summary

• Achieved record half-year results with working interest production at 134,492 boepd, up 178% year-over-year, driven by offshore asset integration and robust operational execution.

• Revenue surged 231% year-over-year to $1.4 billion for H1 2025, with 93% from oil/NGLs and 7% from gas, reflecting a shift in portfolio mix.

• Adjusted EBITDA rose 175% to $735 million, with pre-tax cash flow from operations at $766 million, both significantly up year-over-year.

• Net debt reduced by 25% since year-end 2024, with leverage at 0.53x EBITDA, reflecting strong cash generation and prudent balance sheet management.

• Dividend of $0.046/share declared for Q2 2025, bringing cumulative dividends since IPO to $1.24/share.

Financial highlights

• Group revenue reached $1.4 billion, up 231% year-over-year; oil revenue up 259%, gas revenue up 54%.

• EBITDA for H1 2025 was $735 million, with pre-tax profit at $293 million, up 64% year-over-year.

• Free cash flow reached $390 million, up 458% from H1 2024; post-tax cash flow from operations $487 million, up 182%.

• Net debt at $676 million at end-June 2025; leverage below 1x.

• Operating margin at 27.7% (down from 49.6% in H1 2024) due to higher production and maintenance costs.

Outlook and guidance

• Production guidance for 2025 maintained at 120-140 kboepd, with H1 performance at the upper end.

• CapEx guidance for 2025 is $260-320 million, with heavier spend expected in H2.

• Unit operating cost guidance unchanged at $14-15/boe; H1 2025 actual at $12.5/boe.

• Key H2 2025 priorities: integration, cost optimization, first gas at ANOH, and completion of major onshore projects.

• Capital Markets Day scheduled for September 2025 to outline medium- and long-term growth plans and enhanced capital allocation policy.