August 17, (THEWILL) — Seplat Energy Plc, dually listed on the London Stock Exchange and the Nigerian Exchange, advanced its drive in gas expansion in the first half of the year, buoyed by the company’s buyout of ExxonMobil’s Nigeria onshore asset last year. The deal, worth $1.3 billion at initial consideration, was the cornerstone on which the firm built its H1 impressive report.
The Interim Management Report submitted to the Nigerian Exchange revealed strong production which underpinned its FY2025 guidance, resulting in the handsome cash flow generation of $766 million from its operations in H1 2025.
This enabled further reduction in net debt as the high interest environment continued to impact business operations harshly.
Both the onshore and offshore productions contributed significantly to the profitability recorded during the period.
In July, ANOH gas plant received dry gas to commence live hydrocarbon commissioning which will push the firm on global spotlight as the Nigerian government reinvigorates efforts towards gas production
Awash with cash generation which climbed 239% to $766.2 million from $226.0 million in H1 2024, revenue hit $1.39 billion against $422 million in the corresponding period of last year, constituting an increase of 231%.
The cash capital expenditure of $96.5 million was a build-up on $102.4 million recorded in H1 2024, contributing to the strong end-June balance sheet: cash at bank $419.4 million (Q1 2025: $334.6 million), excluding $133.0 million restricted cash.
A major foothold in the company’s operations is the ANOH Gas Processing Plant development at OML 53 (and adjacent OML 21) in Imo state, which the firm said would drive the next phase of its growth in expanding the gas business.
The project which comprises a Phase One 300MMscfd midstream gas processing plant has since been concluded.
The gas plant located in OML 53, Niger Delta, will deliver dry gas, condensate, and Liquefied petroleum gas (LPG) otherwise known as cooking gas, to customers locally and internationally.
ANOH is one of Nigeria’s most strategic gas projects. Experts say it will help the country to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
In his comment on the H1 2025 performance, Roger Brown, Chief Executive Officer, said:
“Seplat has continued its positive trajectory in Q2 to deliver a strong performance for the first half of 2025.
“Our focus on integrity, reliability and production improvement activities are bearing fruit as evidenced by strong production in 2Q 2025, with onshore in the upper end of guidance, and offshore production growing 11% quarter-on- quarter.
“The Company delivered first half production over 10% higher than the pro-forma output in the same period last year, delivering on both our ambitions and supporting Nigeria’s goals of oil and gas production growth.
“We are well placed to weather the recent increase in macro volatility. Strong revenues and a focus on costs delivered significant positive cash flows, enabling us to further reduce net leverage, continue our strong quarterly dividend track record and in the past week, pay down an additional $100 million of debt.
“We have hit the ground running in 2025 building a strong foundation with which deliver on our 2025 performance targets.
“Integration of the enlarged group continues at pace and we look forward to sharing our exciting plans for the Company when we set out the future of our business at the upcoming Capital Markets Day in September.”
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
