Seplat Energy has unveiled plans to deliver a $1 billion dividend payout to shareholders over the next four to five years. The indigenous energy firm is intensifying efforts to expand production following the successful acquisition and integration of Mobil Producing Nigeria Unlimited assets.
The company stated that the planned $1 billion dividend payout underscores its commitment to delivering stronger shareholder returns and sustaining value creation despite prevailing challenges in the energy industry. Seplat noted that it is already making progress towards the target, having declared a dividend of 35 cents for the current financial year, while assuring investors that its growth strategy and improved operational performance would continue to support consistent and enhanced returns over the medium term.
Speaking during a press briefing in Lagos after the company's yearly general meeting, Chairman Udoma Udo Udoma said the company was also on course to significantly increase production to 200,000 barrels per day on an equity basis and 500,000 barrels per day in overall joint venture production. He described the targets as ambitious but achievable. He noted that the company had already demonstrated its ability to fulfill strategic commitments made to shareholders, citing the completion of the MPNU acquisition and the subsequent integration of the business as major milestones achieved within the timelines earlier communicated to investors.
According to him, when the current board assumed office three years ago, it pledged to complete the MPNU acquisition despite widespread doubts arising from previous delays in closing the transaction. He stated that the company successfully concluded the acquisition before the end of that year and followed it up with the integration process, which has now been substantially completed. Udoma explained that Seplat has now consolidated operations into a single headquarters as part of measures aimed at reducing operational costs and improving profitability. He said the company relinquished its former office premises in a move designed to strengthen efficiency and maximize returns for shareholders.
Also speaking, Chief Executive Officer of Seplat Energy, Roger Brown, said the successful integration of the MPNU assets has significantly transformed the company into a larger and more resilient energy business with stronger operational capacity and improved scale. Brown stated that the enlarged asset base and integrated operations were already translating into stronger financial performance, reflected in significant growth in revenues and profitability. According to him, the company now possesses a strong workforce across both onshore and offshore operations, while the integration process has focused on creating a unified operational culture under what he described as a 'One Seplat' future.
He said that although offshore and onshore operations remain operationally distinct, the broader business structure has now been fully integrated, positioning the company to better withstand volatility in global oil prices and maintain profitability even during periods of weaker crude prices. He added that the transformation of the business has also been reflected in the company's market valuation and investor confidence, noting that Seplat's share price recently crossed the N10,000 mark on the Nigerian market for the first time, while the company has also maintained strong performance on the London market.
The Seplat CEO said the company's long-term objective is not only to deliver returns to shareholders but also to sustain investments in host communities as it builds what he described as a future-ready energy business capable of operating competitively across its product portfolio.
