Investment more than doubles in value as Seplat shares rally on stronger earnings, higher production and debt reduction
Tony Elumelu’s investment in Seplat Energy has crossed the $1bn mark, less than eight months after his company, Heirs Holdings, acquired a substantial stake in the Nigerian energy producer for about $500m.
Heirs Holdings acquired a 20.07 per cent interest in Seplat, equivalent to approximately 120.4 million shares, from French energy company Maurel & Prom in December 2025. The transaction immediately made Elumelu one of the company’s most significant shareholders.
Since the acquisition, however, Seplat’s share price has climbed sharply, more than doubling the value of the investment and underscoring the strong market performance of one of Nigeria’s leading independent energy companies.
Seplat shares closed at N11,200.60 on the Nigerian Exchange, compared with N5,809 at the end of 2025. The stock has therefore gained more than 90 per cent so far this year, pushing the company’s overall market capitalisation to approximately $5.24bn.
The dramatic appreciation in the value of Elumelu’s holding has come against the backdrop of a major expansion in Seplat’s operations and a significant improvement in its financial performance.
Acquisition transforms Seplat’s scale
A major catalyst for the company’s growth was Seplat’s acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil.
The transaction substantially expanded Seplat’s production capacity and asset base, strengthening its position in Nigeria’s oil and gas industry and providing additional exposure to offshore production.
The impact was evident in the company’s 2025 financial results. Revenue surged by 144 per cent to $2.73bn, while operating cash flow reached $1.17bn.
At the same time, Seplat reduced its net debt to $673.3m, indicating stronger cash generation despite the scale of its expansion.
Shareholders also benefited from the improved performance, with Seplat’s total dividend for 2025 rising by 52 per cent to 25 cents per share.
Strong momentum continues in 2026
The company has maintained its growth trajectory into 2026.
For the first half of the year, Seplat reported revenue of N2.50tn, while profit before tax increased by 74 per cent to N790.4bn.
Profit after tax recorded an even sharper improvement, climbing to N225.5bn from N42.5bn in the corresponding period of the previous year.
Seplat also strengthened its balance sheet during the period. Interest-bearing debt fell from approximately N1.44tn at the end of 2025 to N1.11tn by June 2026, while cash increased to N598.3bn.
The combination of higher earnings, stronger cash generation and declining debt has helped reinforce investor confidence in the company and contributed to the sharp appreciation in its share price.
Production climbs after ExxonMobil deal
Seplat’s operational performance has also benefited from the integration of the former Mobil Producing Nigeria assets.
Average production rose to 139,509 barrels of oil equivalent per day in the first half of 2026, compared with 134,492 barrels per day during the same period a year earlier.
Offshore assets now account for more than half of Seplat’s total production, reflecting the growing importance of the assets acquired through the ExxonMobil transaction.
Production of natural gas liquids also more than doubled, reaching 8,459 barrels per day.
The stronger production profile gives Seplat greater scale and provides the company with additional opportunities to benefit from Nigeria’s growing energy demand and its extensive oil and gas reserves.
Elumelu takes bigger role
Elumelu’s financial interest in Seplat has been accompanied by a greater role in the company’s governance.
He joined Seplat’s board as a non-executive director in January 2026 and is expected to become chairman of the company from January 1, 2027.
For Heirs Holdings, the development represents a significant return on an investment made only months ago.
The company’s approximately $500m purchase of the 20.07 per cent stake has now grown to more than $1bn in market value, based largely on Seplat’s surge on the Nigerian and London stock markets.
The appreciation represents a gain of more than $500m on paper and highlights how rapidly investor value can increase when a major corporate acquisition is followed by stronger earnings, rising production and improved balance-sheet performance.
For Seplat, the rally reflects renewed investor confidence in its expanded asset base and earnings prospects. For Elumelu and Heirs Holdings, it marks one of the most significant early gains from their investment in the energy company.