Seplat’s Strong 2026 Results Face Pressure From Heavy Tax Charges

Seplat Energy reported stronger operations in the first nine months of 2026, with revenue of about ₦3.78 trillion and profit before tax of ₦1.34 trillion. Production rose 7% to roughly 145,000 barrels of oil equivalent per day, while net debt fell to $234.9 million from $673.3 million at the end of 2025. The company’s balance sheet remains sizeable, with total assets of about ₦8.18 trillion and shareholders’ equity of ₦2.42 trillion. Its book value works out to roughly ₦4,033 per share, compared with a market price of about ₦16,000. Investors should consider its assets, reserves, cash flow, production outlook and debt position rather than rely on book value alone. A major concern is the tax charge. Seplat recorded tax expenses of about $722.4 million against pre-tax profit of roughly $982.6 million, implying an effective tax rate near 74%. The company also faces operational disruptions, rising production costs and contingent legal liabilities estimated at ₦450 billion. Seplat’s production growth, lower debt and dividend payment point to improving resilience. However, clearer disclosure on the tax position and a more predictable fiscal environment would help investors assess the company’s long-term capacity to reinvest and reward shareholders.

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