Seplat Energy shares hit record N14,907 as oil market disruption boosts energy stocks

Seplat Energy Plc's shares have hit a record high of N14,907.80 on the Nigerian Exchange Limited (NGX), following a 10% surge in the last 10 days. The stock has seen its value more than double this year, and closed at N14,907.80 on September 16, holding steady from the previous trading session. This sharp rise comes amid ongoing global energy market disruption due to the US-Iran conflict, which has affected shipping through the Strait of Hormuz, a key oil trading route.

Seplat's performance shows a rapid increase rather than a steady growth. On March 17, its shares traded at N9,099, indicating a 63.9% rise from then to its current price. Disruption in the Gulf has reduced vessel traffic through the strait, with only three commercial vessels passing through on September 16, compared to 12 the day before and the 10-day average of 17.

The situation has kept crude oil prices above $100 per barrel, although they eased slightly on September 17 due to moderated supply concerns. Seplat's strong performance contrasts with other oil and gas companies on the NGX, indicating the broader energy market strength isn't uniformly benefiting all Nigerian oil and gas stocks.

The company's recent success is also driven by its expansion in 2025, with production averaging 131,506 barrels of oil equivalent per day, up 148% from 2024, and annual revenue reaching $2.73 billion. This growth, combined with Seplat's larger production base, has bolstered the company's market value and generated significant gains for its shareholders.