Key Points
- Seplat Energy repurchased $567.46 million of its 2026 senior notes, reducing debt by 87.3% as part of its $650 million refinancing plan.
- The company’s revenue surged 137% to $1.11 billion in 2024, driven by strong operational growth and strategic acquisitions.
- Seplat is investing $320 million in onshore oil and gas expansion, reinforcing its leadership in Nigeria’s energy sector.
Seplat Energy, the Nigerian energy company co-founded by Austin Avuru, has taken a major step in reducing its debt by buying back $567.46 million of its outstanding 7.75 percent senior notes due 2026. The transaction, which covers 87.3 percent of the total outstanding amount, is part of the company’s broader plan to streamline its capital structure and ease debt obligations.
Seplat’s $650 million debt refinancing plan
In a regulatory filing with the Nigerian Exchange (NGX), Seplat confirmed the successful completion of its cash tender offer, with settlement expected on Mar. 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representing approximately 87.3% of the aggregate principal amount outstanding, were validly tendered and not validly withdrawn," the company stated.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 comes after Seplat announced a $650 million senior notes offering due 2030, aimed at refinancing existing debt and improving financial flexibility. The company will repurchase all validly tendered notes at $1,000 per principal amount, with settlement set for Mar. 21, 2025. Any remaining 2026 notes will be redeemed on Apr. 1, 2025, in line with the terms of the indenture.
Expanding operations and financial growth
Seplat Energy, co-founded by Avuru and Ambrosie Orjiako, has been strengthening its position in Nigeria’s energy sector through strategic acquisitions, including its $800 million purchase of ExxonMobil’s Nigerian assets. The company is also ramping up its operational footprint, setting aside up to $320 million in capital expenditure to expand its onshore oil and gas operations.
The company’s strong financial performance underscores its growth. For the financial year ending December 2024, Seplat reported a 137 percent surge in revenue, reaching N1.652 trillion ($1.11 billion), up from N696.9 billion ($1.06 billion) in 2023. Operating profit also soared to N647.9 billion ($437.9 million), a significant jump from N163.7 billion ($249.4 million) the previous year.
Looking ahead
Seplat’s ongoing debt restructuring, along with its investment in growth and expansion, is positioning it for long-term success. By maintaining a strong balance sheet and securing new funding, the company is reinforcing its leadership in Nigeria’s energy sector. As it continues to scale operations and optimize its financial structure, Seplat remains a key player in the country’s energy sector.
