Seplat Energy Plc stands out as the most attractive upstream oil and gas stock on the Nigerian Exchange (NGX). Unlike pure-play exploration firms or non-operating asset holders, Seplat offers a rare combination of dollar-hedged cash flows, rapid production scaling, robust balance sheet deleveraging, and market-leading dividend yields.
In H1 2026, Seplat reported a 498% increase in Profit After Tax (PAT) to $164 million on $1.82 billion in gross revenue, driven by production averaging 139,509 boepd (with Q2 exit rates touching ~149,000 boepd).
Seplat Energy Plc, is a leading Nigerian independent energy company listed on both the Nigerian Exchange Group and the London Stock Exchange, rapidly expanding through strategic onshore asset acquisitions.
Seplat Dividend analysis
Period: FY24-25
In the period of analysis, Seplat Energy increased its dividend from 16.50 cent paid in 2024 to 25 cent paid in 2025, with the following annual increases:
- 2025: 52 percent
- 2024: 10 percent
A consistent dividend payment reflects the strength of the company’s balance sheet, strong underlying cash flow generation and positive earnings outlook.
Seplat offers a higher dividend yield of around 2.26 percent, compared to other NGX listed oil firms such as Aradel.
Seplat generates higher cash flow to support future dividend
Seplat generated massive cash flow supported by elevated refining margins and the War in the Middle East that underpin crude oil price. The company posted free cash flow of N447.70 billion in the first six months of 2026. The oil and gas is investing in more rigs to drill more oil that will help increase earnings. It has spent N92.70 billion in capital expenditure.
Seplat boasts healthy balance sheetÂ
Without ample cash reserves and low debt, Seplat is poised to weather the macroeconomic headwinds. Of course, aside from the fact that lenders are easily willing to extend credit facilities so that a firm can repay borrowed money, investors also have confidence in Seplat because it uses more equity than external financing to run its business.
Seplat’s investment has grown by a larger percentage from January 1st of the current year to today than peer rivals whose shares have not been rising since the start of the year. This means investors are paying attention to the sector players and their financial performance.
Seplat has a year to date (YTD) return of 92.81 percent that outperforms the NGXASI.
Seplat Wins on Valuation
Seplat, benefiting from dual LSE/NGX liquidity and hard-currency payouts, currently offers cleaner earnings translation and superior dividend visibility for income-focused equity investors.
Seplat is being priced more cheaply on both earnings and sales despite delivering earnings-per-share growth that outpaced net income growth — the opposite of dilution.
When measured strictly on the criteria that matter to a shareholder holding the stock today — dividends actually declared against current-period earnings, the share of profit that reaches ordinary shareholders after minority claims, and the price being asked for each naira of earnings and sales — Seplat Energy is the clearer value proposition.
Its dividend is growing and tied to current performance, on track for $410 million in 2026. Its minority-interest drag is shrinking, not growing. And it trades at a discount on both P/E and P/S despite a market cap that is larger than peers.
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