Seplat Energy, a leading Nigerian oil and gas company co-founded by Austin Avuru and Ambrosie Orjiako, has taken a decisive step toward reducing its debt burden by repurchasing $567.46 million worth of its 7.75% senior notes due 2026. The buyback, which represents 87.3% of the outstanding amount, aligns with the company’s broader goal of optimizing its capital structure and financial flexibility.
$650 Million Debt Refinancing Plan
In a recent regulatory filing with the Nigerian Exchange (NGX), Seplat confirmed the completion of its cash tender offer, with settlement expected on March 21, 2025.
“As of the expiration deadline, $567,462,000 in aggregate principal amount of the 2026 notes, representing approximately 87.3% of the aggregate principal amount outstanding, were validly tendered and not validly withdrawn,” the company stated.
This repurchase is part of Seplat’s larger $650 million senior notes offering due 2030, which aims to refinance existing debt and strengthen liquidity. All validly tendered notes will be bought back at $1,000 per principal amount, with settlement scheduled for March 21, 2025. Any remaining 2026 notes will be fully redeemed on April 1, 2025.
Expansion and Growth Strategy
Beyond debt restructuring, Seplat is doubling down on expansion and operational efficiency. In recent years, the company has executed key acquisitions, including its $800 million purchase of ExxonMobil’s Nigerian assets, solidifying its position as a major player in the country’s energy industry.
To fuel this expansion, Seplat has earmarked $320 million in capital expenditure to scale up its onshore oil and gas operations, enhancing production output and long-term profitability.
Strong Financial Performance
Seplat’s financials reflect its growth trajectory. For the 2024 fiscal year, the company recorded a 137% surge in revenue, reaching N1.652 trillion ($1.11 billion), up from N696.9 billion ($1.06 billion) in 2023.
•Operating profit skyrocketed to N647.9 billion ($437.9 million), compared to N163.7 billion ($249.4 million) in 2023.
•This financial strength has enabled Seplat to fund expansion projects while managing its debt obligations effectively.
Looking Ahead
Seplat’s debt reduction strategy and aggressive expansion plans reinforce its status as a key force in Nigeria’s energy sector. With a strong balance sheet, optimized capital structure, and strategic acquisitions, the company is well-positioned for long-term growth and dominance in the oil and gas industry.
