Seplat Vitality targets $1 billion in cumulative dividends payout by 2030

Seplat Vitality Plc has dedicated to a progressive dividend coverage that can see shareholders obtain at the least $120 million (N179 billion) in dividends yearly.

That is primarily based on its projections following its acquisition of Mobil Producing Nigeria Limitless (now Seplat Vitality Producing Nigeria Limitless, SEPNU).

Seplat expects this coverage to ship $1 billion in cumulative dividends over the 5 years, with a assured minimal of $120 million yearly.

At its Capital Markets Day on September 18, 2025, the dual-listed power firm introduced a rise in its Q3 2025 dividend to five.0 cents per share, setting a brand new base degree for future quarterly payouts.

That is up from the 4.6 cents per share paid in Q1 and Q2. The revised dividend framework will return 40–50% of free money circulate to shareholders yearly between 2026 and 2030.

Sturdy money circulate outlook

Seplat’s confidence within the new dividend dedication is backed by improved monetary efficiency.

• The corporate generated $486.9 million in working money circulate in H1 2025, almost 60% greater than full-year 2024.
• Over the previous 5 years, it has delivered $1.037 billion in free money circulate from $1.9 billion in complete working money circulate.
• Regardless of these robust numbers, revenue attributable to shareholders dropped to $23.6 million in H1 2025, translating to earnings per share of $0.04 (N62.19), down from $0.07 in H1 2024.
• Retained earnings additionally declined by 21% to N250.7 billion from N319 billion in December 2024.

Progress plan to 2030

The corporate laid out an bold five-year roadmap to assist its dividend and development technique. Key targets embrace:

• Rising working curiosity manufacturing to round 200,000 boepd by 2030 (from H1 2025 ranges).
• Producing $5–6 billion in working money circulate over 5 years.
• Investing $2.5–3 billion in capex, together with 120–150 new wells and a number of fuel initiatives.
• Decreasing working prices from $12.5/boe to $10/boe.
• Sustaining web leverage between 0.5x and 1.5x, assuming oil stays above $50 per barrel.

CEO’s remarks: Roger Brown, Seplat’s CEO, mentioned:

• “Since our IPO in 2014, we now have grown reserves and manufacturing fourfold whereas returning greater than $700 million in dividends. Our roadmap to 2030 is targeted on materially rising manufacturing, money circulate, and shareholder returns.”

Seplat additionally confirmed discussions with the Nigerian Nationwide Petroleum Firm Restricted (NNPC) for a possible sale of a ten% curiosity within the SEPNU three way partnership.

If finalized, Seplat’s stake would scale back to 30%, however it can retain operatorship. Administration confused the dividend coverage stays unaffected.

What it is best to know

Regardless of constant quarterly dividends and an upgraded outlook, Seplat’s share value has lagged.

• The inventory closed final week at ₦5,379.30, displaying a year-to-date decline and remaining flat since mid-August.
• With development and dividend commitments now extra specific, the market might quickly reprice the inventory as the brand new technique positive aspects traction.