Seplat Energy Plc has released its unaudited financial results for the first quarter of 2026, revealing a 48.4 percent increase in net profit despite a decline in revenue and rising financial pressures. The company recorded a profit after tax of ₦52.51 billion for the three months ended March 31, 2026, up from ₦35.38 billion in the same period of 2025. This improvement was driven by lower income tax expenses and better cost management, even as revenue dropped by 5.2 percent year-on-year to ₦1.16 trillion from ₦1.23 trillion.
The decline in revenue reflects softer performance in the oil and gas segment, likely influenced by pricing fluctuations and operational challenges. However, the cost of sales decreased to ₦650.79 billion from ₦692.08 billion, which helped to partially offset the revenue loss. As a result, gross profit stood at ₦512.65 billion, down slightly from ₦535.43 billion in Q1 2025.
Operating performance, however, weakened significantly. Other net losses surged to ₦126.41 billion from ₦67.29 billion, while impairment losses on financial assets rose to ₦7.54 billion from ₦810 million. Fair value losses also climbed to ₦19.14 billion, up from ₦7.65 billion. Despite a reduction in general and administrative expenses to ₦64.17 billion from ₦98.42 billion, operating profit fell by 18.2 percent to ₦295.41 billion.
Finance costs increased to ₦64.51 billion from ₦49.52 billion, reflecting higher borrowing costs and tighter financial conditions. Net finance cost rose to ₦60.46 billion, and the share of loss from joint ventures expanded to ₦5.84 billion. These factors contributed to a sharp 27.2 percent decline in profit before tax, which fell to ₦229.10 billion from ₦314.65 billion.
The company’s income tax expense dropped to ₦176.60 billion from ₦279.26 billion, supporting the net profit increase. Profit attributable to shareholders rose to ₦46.76 billion, while earnings per share improved to ₦77.95 from ₦52.14. However, the most significant setback came from foreign exchange exposure. Seplat Energy recorded a foreign currency translation loss of ₦90.27 billion, reversing a ₦2.38 billion gain in Q1 2025.
This led to a total comprehensive loss of ₦37.76 billion, contrasting sharply with the ₦37.76 billion comprehensive income reported in the prior year. The sharp swing underscores the impact of currency volatility on the company’s international operations and financial reporting. While Seplat Energy showed resilience at the net profit level, the underlying pressures from declining revenue, rising finance costs, and foreign exchange losses suggest potential challenges for earnings sustainability in the near term. The company will need to navigate these headwinds carefully to maintain momentum in the coming quarters.
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