Nigeria’s Energy Sector H1 2026: Seplat Leads with Robust Growth

Nigeria's energy sector witnessed divergent performances among its listed companies in the first half of 2026, collectively recording about N2.57 trillion in revenue. The contrasting results highlight the robust growth of oil and gas firm Seplat Energy Plc, while power generation companies Geregu Power Plc and Transcorp Power Plc faced a more challenging operating environment.

Seplat Energy emerged as the market leader, benefiting from increased production volumes and favorable commodity prices. Its revenue surged 30% to $1.82 billion for the six months ending June 2026, compared to $1.40 billion in the same period the previous year. Converted at an exchange rate of N1,300 to the dollar, this equates to approximately N2.37 trillion. Adding the contributions from Geregu Power's N18.66 billion and Transcorp Power's N181.96 billion revenues brings the total combined revenue for the trio to around N2.57 trillion.

The growth at Seplat was primarily driven by an uptick in oil and gas production, which averaged 139,509 barrels of oil equivalent per day (boepd) during the first half. This represents a 4% increase year-on-year. Production momentum accelerated in the second quarter, rising 9% to 149,070 boepd. This higher output, coupled with strong commodity prices, underpinned the company’s financial gains.

Financial performance highlights:

• Gross profit increased by 68%, reaching $815.9 million.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 28% to $938.6 million.
• Operating profit climbed 69% to $655.9 million.
• Profit before tax nearly doubled, up 96% to $574.9 million from $292.9 million.
• Most notably, profit after tax soared 498% to $164 million, compared to $27.4 million in the first half of 2025.

The significant jump in net profit indicates improved operational efficiency and better management of costs, financing, and taxation for Seplat. This strong financial footing contrasts with the experiences of Geregu Power and Transcorp Power, which operate within Nigeria's electricity sector—a space currently grappling with structural and market challenges.

Geregu Power and Transcorp Power recorded comparatively weaker revenues of N18.66 billion and N181.96 billion, respectively, reflecting ongoing hurdles in power generation and distribution. Issues such as infrastructure deficits, regulatory constraints, and inconsistent demand have limited their growth potential during the period.

Overall, the half-year results underscore the resilience and growth potential of Nigeria’s oil and gas producers amid macroeconomic volatility, while also highlighting the need for reform and investment in the power sector to unlock its full value. Investors and stakeholders will be closely monitoring how these companies navigate the evolving energy landscape in the remainder of 2026.