Seplat Energy Plc has recorded one of its strongest performances yet, posting ₦3.36 trillion in revenue in the first nine months of 2025. This figure on its own is already higher than everything the company earned between 2020 and 2024 combined. The surge in revenue is impressive, but the real story sits behind the scenes — in the company’s financing structure and how it is managing the debt that made this expansion possible.
A major driver of Seplat’s growth was the acquisition of Mobil Producing Nigeria Unlimited (MPNU) in December 2024. This acquisition instantly boosted the company’s portfolio with more than 80,000 barrels of oil equivalent per day, reshaping Seplat’s production capabilities. The outcome was clear by Q3 2025, as crude oil revenue climbed to about ₦3.1 trillion due to a massive rise in production from 7.6 million barrels in 2024 to almost 28 million barrels. Despite a slight decline in oil prices to an average of $71.93 per barrel, Seplat’s increased output ensured stronger earnings. Gas revenue also grew to ₦215 billion, supported by output from the Oben and Sapele plants, while natural gas liquids contributed another ₦51 billion as the company delivered its first LPG cargo.
To finance the MPNU deal, Seplat raised approximately US$1.38 billion through debt. The choice of debt financing, instead of issuing new shares, allowed the company to keep its ownership structure intact while still securing enough capital to complete one of Nigeria’s biggest upstream acquisitions. After closing the deal, Seplat began restructuring and repaying parts of this debt using its operating cash flow. The company refinanced its major borrowings, extended maturities and fully repaid some facilities, which helped reduce its total debt from about ₦1.01 trillion at the end of 2024 to ₦929 billion by September 2025. Participation from major local lenders like Zenith Bank further strengthened confidence in Seplat’s financial position.
Although Seplat posted strong growth in revenue and operating profit, net profit was pressured by rising expenses. Interest and lease costs more than doubled to around ₦180 billion, while tax expenses jumped to ₦731 billion, consuming more than 80% of the company’s pre-tax profit. These cost pressures reduced Seplat’s net profit margin to 4.4 percent, even though pre-tax profit almost tripled to ₦878.99 billion. Still, the company’s ability to cover its interest obligations improved due to stronger cash flow.
Seplat continues to demonstrate strong free cash flow generation, which has been one of its biggest strengths. Between 2020 and 2024, it generated more than ₦1.2 trillion in free cash flow, and in 2024 alone it produced nearly ₦459 billion. In the first nine months of 2025, the company delivered ₦1.15 trillion in free cash flow, showing that its operations are running at high efficiency and generating significant financial room. According to the CEO, this strong cash flow supports the company’s commitment to deleveraging and increasing shareholder distributions.
Looking ahead, Seplat’s continued success will depend on how effectively it controls its operating costs, delivers upcoming projects and manages the impact of oil price fluctuations. Regulatory developments and the operating environment in Nigeria will also play a big role in shaping future performance. The next phase for Seplat will be about turning its expanded scale and strong cash generation into consistent profitability in the long term.
In summary, Seplat’s upstream expansion has significantly boosted its financial performance, and the financing behind it — driven by debt — has been managed through disciplined repayments and cash flow strength. While tax pressures and interest costs remain challenges, the company is showing resilience as it works to convert its growth momentum into sustainable value.