Seplat Energy Plc has seen its market capitalisation rise to $5.24 billion as the value of Heirs Holdings’ stake in the Nigerian energy company crosses the $1 billion mark.

 

Heirs Holdings, the investment vehicle of Nigerian businessman and Africapitalism advocate Tony Elumelu, became Seplat’s largest shareholder in December 2025 after acquiring a 20.07 per cent stake, representing 120.4 million shares, from French energy company Maurel & Prom for about $500 million.

At Seplat’s current share prices of N11,200.60 on the Nigerian Exchange and £6.47 on the London Stock Exchange, Heirs Holdings’ stake is now valued at approximately $1 billion, more than doubling the value of the original investment in less than eight months.

The acquisition represented a major bet on Seplat’s growth prospects following the company’s acquisition of Mobil Producing Nigeria Unlimited, a transaction that significantly expanded its asset base and production capacity.

Seplat’s share price gained 6.2 per cent during the first trading week of 2026 and continued its upward movement in the months that followed.

The stock rose from N5,809 at the end of 2025 to above N9,000 by March. In April, Seplat became the first company listed on the Nigerian Exchange to cross the N10,000-per-share mark, closing at N10,450 on April 14.

The stock has since traded above N11,000, representing a gain of more than 90 per cent from its end-2025 price.

The strong performance has significantly increased the value of Heirs Holdings’ investment, with its 120.4 million shares now worth more than twice the approximately $500 million purchase price.

 

Beyond the share price performance, Seplat’s financial results have provided further support for the company’s higher market valuation.

The acquisition of MPNU transformed Seplat into a significantly larger energy producer with expanded offshore operations.

In 2025, the first full year reflecting the enlarged business, Seplat recorded revenue of $2.73 billion, representing a 144 per cent increase from the previous year.

Adjusted EBITDA rose 137 per cent to $1.28 billion, while operating cash flow increased 276 per cent to $1.17 billion.

The company also reduced net debt by 25 per cent to $673.3 million and increased its total dividend for 2025 by 52 per cent to 25 cents per share.

The positive performance continued in the first half of 2026.

Seplat generated N2.50 trillion in revenue during the period, while profit before tax increased by 74 per cent to N790.4 billion.

Profit after tax also rose significantly, from N42.5 billion in the corresponding period of the previous year to N225.5 billion.

At the same time, the company strengthened its balance sheet, reducing interest-bearing borrowings from approximately N1.44 trillion at the end of 2025 to N1.11 trillion by June 2026.

Cash holdings increased to N598.3 billion during the period.

The figures indicate that Seplat has been able to leverage its expanded asset base to generate stronger earnings while reducing financial leverage.

Seplat’s expanded scale is also reflected in its production figures.

Average working-interest production reached 139,509 barrels of oil equivalent per day in the first half of 2026, compared with 134,492 boepd during the same period in 2025.

Offshore operations accounted for more than half of total production, while natural gas liquids production more than doubled to 8,459 barrels per day.

The development has increased the diversity of Seplat’s production base and created additional sources of revenue and earnings.

The impact of the MPNU acquisition was already evident in 2025, when average production increased to 131,506 boepd from 52,947 boepd in 2024 following the consolidation of the offshore assets.

Tony Elumelu’s growing involvement in Seplat is expected to add another dimension to the company’s long-term outlook.

Elumelu joined Seplat’s board as a non-executive director in January 2026 and is expected to become chairman from January 1, 2027.

His position as the company’s largest shareholder, alongside his expected leadership role, could strengthen alignment around Seplat’s long-term growth strategy.

Elumelu has built a reputation for long-term investments through businesses and institutions associated with him, including United Bank for Africa and Transcorp.

However, the long-term value of Heirs Holdings’ investment will ultimately depend on Seplat’s ability to sustain production growth, manage costs, strengthen its balance sheet and generate consistent returns for shareholders.

For now, the rise in Heirs Holdings’ Seplat stake from an investment of about $500 million to more than $1 billion highlights the significant shift in market valuation since the acquisition.

More importantly, Seplat’s stronger earnings, increased production and improving financial position suggest that the company’s market rerating is increasingly being supported by underlying business performance.