Results for 3Q25 bounced back QoQ and the results for the year to September further highlight the transformative impact of the SEPNU offshore acquisition, coupled with a strong performance from the legacy onshore operations. For 9M25, production jumped 185% YoY to 135.6kboed driving a 169% increase in net profit to US$95.1m, despite a 13% reduction in the realised oil price. Very strong cash generation saw net debt reduced to US$385.9m with leverage down to just 0.27x. That performance saw the company declare a USc2.5 special dividend in addition to the new USc5.0 quarterly base dividend level under the new dividend policy. FY25 guidance was narrowed up. We have made modest changes to our forecasts but these look likely to be conservative, despite some headwinds in 4Q25. Based on consensus estimates, Seplat is trading on attractive ratings versus peers.
