By Uche Usim
Tony Elumelu’s investment in Seplat Energy Plc has more than doubled in value, with his $500 million 20.07 per cent stake now worth over $1 billion.
The stake, held through his investment vehicle, Heirs Holdings, was bought for about $500 million in December 2025, making Heirs Holdings the largest shareholder in the Nigerian oil and gas company.
Seplat’s rising share price has driven the sharp increase in the value of the investment. The company’s shares were trading at about N11,200.60 on the Nigerian Exchange (NGX) and £6.47 on the London Stock Exchange, putting the value of Elumelu’s 120.4 million shares at more than $1 billion.
This means the investment has gained more than $500 million in less than eight months, although the gain remains an unrealised profit unless the shares are sold.
Seplat’s share price has risen sharply since the beginning of the year.
The stock closed 2025 at N5,809 per share but moved above N9,000 by March 2026. In April, it became the first company listed on the Nigerian Exchange to cross the N10,000-per-share mark, closing at N10,450 on April 14.
It 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’ stake and placed Elumelu’s Seplat investment among the notable gains recorded on the Nigerian stock market this year.
The rise in Seplat’s share price has been supported by stronger business performance, particularly following its acquisition of Mobil Producing Nigeria Unlimited (MPNU).
The acquisition significantly expanded Seplat’s operations, giving the company a much larger production base and greater exposure to offshore oil and gas assets.
Seplat’s 2025 results reflected the impact of the enlarged business. Revenue increased by 144 per cent to $2.73 billion, while adjusted earnings before interest, tax, depreciation and amortisation rose 137 per cent to $1.28 billion.
The company’s operating cash flow also jumped 276 per cent to $1.17 billion, while net debt fell by 25 per cent to $673.3 million. Seplat subsequently increased its total 2025 dividend by 52 per cent to 25 cents per share.
Seplat recorded N2.50 trillion in revenue, while profit before tax rose by 74 per cent to N790.4 billion. Profit after tax also increased sharply from N42.5 billion in the same period of the previous year to N225.5 billion.
At the same time, interest-bearing borrowings dropped from about N1.44 trillion at the end of 2025 to N1.11 trillion by June 2026, while cash increased to N598.3 billion.
The company’s production has also increased significantly following the MPNU acquisition.
Seplat’s average working-interest production reached 139,509 barrels of oil equivalent per day in the first half of 2026, compared with 134,492 barrels per day a year earlier.
Offshore assets accounted for more than half of total production, while natural gas liquids production more than doubled to 8,459 barrels per day.
The company’s average production had already jumped from 52,947 barrels of oil equivalent per day in 2024 to 131,506 barrels per day in 2025 following the consolidation of its offshore operations.
Elumelu’s influence at Seplat is also expected to increase.
He joined the company’s board in January 2026 and is expected to become chairman from January 1, 2027. This will give Seplat’s largest shareholder a more direct role in the company’s strategic direction.
The development follows Heirs Holdings’ acquisition of Maurel & Prom’s 20.07 per cent stake in Seplat for approximately $500 million. The deal involved about 120.4 million shares and made Heirs Holdings the company’s largest shareholder.
For Elumelu and Heirs Holdings, the investment has so far turned out to be a major financial win.
However, the current valuation is based on Seplat’s market price and could rise or fall with movements in the company’s shares. The long-term value of the investment will therefore depend on Seplat’s ability to maintain production, grow earnings, control costs and deliver returns to shareholders.
For now, the jump from an investment of about $500 million to a stake worth more than $1 billion represents a gain of over 100 per cent in less than eight months.
The post Elumelu’s $500m Seplat stake doubles to over $1bn in 8 months appeared first on The Sun Nigeria.
<small>Source: The Sun Nigeria — read the original story there.</small>