Seplat market value hits $5.24bn as Elumelu’s stake surges past $1bn

Seplat Energy Plc market capitalisation has risen to about $5.24 billion, pushing the value of the 20.07 per cent stake held by Nigerian businessman Tony Elumelu’s Heirs Holdings above the $1 billion mark.

Heirs Holdings became Seplat’s largest shareholder in December 2025 after acquiring 120.4 million shares from French energy company Maurel & Prom for approximately $500 million.

Based on Seplat’s current share prices of N11,200.60 on the Nigerian Exchange and £6.47 on the London Stock Exchange, the stake is now worth roughly $1 billion, representing a significant increase in value in less than eight months.

The investment came shortly after Seplat completed its acquisition of Mobil Producing Nigeria Unlimited (MPNU), a transaction that substantially expanded the company’s production capacity and asset base.

Seplat’s stock began 2026 strongly, gaining 6.2 per cent during the first trading week and reaching a new 52-week high.

The rally accelerated in subsequent months. From N5,809 at the end of 2025, the share price crossed N9,000 by March and became the first stock listed on the Nigerian Exchange to trade above N10,000 per share.

The stock closed at N10,450 on April 14, representing a year-to-date gain of almost 80 per cent at the time. It has since climbed above N11,000, leaving it more than 90 per cent higher than its end-2025 level.

An investment analyst, Chinedu Okafor, said the market’s response reflected growing confidence in Seplat’s enlarged asset base and earnings potential.

“Investors are increasingly pricing Seplat as a larger and more diversified energy company. The MPNU acquisition materially changed the scale of the business, and the subsequent financial results have helped validate some of the optimism,” he said.

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In 2025, revenue jumped 144 per cent to $2.73 billion, while adjusted EBITDA increased 137 per cent to $1.28 billion. Operating cash flow rose 276 per cent to $1.17 billion, while net debt declined by 25 per cent to $673.3 million.

The momentum continued into the first half of 2026. Revenue reached N2.50 trillion, while profit before tax increased 74 per cent to N790.4 billion. Profit after tax also rose sharply to N225.5 billion from N42.5 billion in the corresponding period.

At the same time, interest-bearing borrowings declined from about N1.44 trillion at the end of 2025 to N1.11 trillion by June, while cash increased to N598.3 billion.

Energy analyst Amina Yusuf said the combination of stronger earnings and lower leverage was particularly important.

“The market can tolerate a significant rerating when earnings and cash generation are moving in the same direction. Seplat’s challenge now is to demonstrate that the improved performance is sustainable rather than simply the result of the initial consolidation of MPNU,” she said.

Average working-interest production reached 139,509 barrels of oil equivalent per day (boepd) in the first half of 2026, compared with 134,492 boepd a year earlier.

Offshore assets contributed more than half of total production, while natural gas liquids production more than doubled to 8,459 barrels per day.

The company’s average production had already risen sharply in 2025 to 131,506 boepd from 52,947 boepd in 2024 following the consolidation of MPNU.

Analysts said the diversification of production sources could strengthen Seplat’s resilience, although the company remains exposed to crude prices, operational risks and regulatory developments.

Elumelu’s growing role also adds to the strategic significance of the investment. He joined Seplat’s board in January 2026 and is expected to become chairman from January 1, 2027.

“The $1 billion valuation of Heirs’ stake is impressive, but the real story is whether Seplat can continue converting its expanded asset base into earnings and dividends,” Yusuf added.