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Seplat Petroleum defies Bears, leads price gainers

By on February 11, 2015

Shares in Seplat Petroleum Development Company Plc on Monday recorded  the maximum  percentage growth to close as the highest price gainer  at the stock market.

The equities rose by  10.2 per cent or N34.21  from N333.90 to close at N368.11 per share in a day  the market closed on negative note. Trading at the stock market closed on bearish note with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) dipping by 2.1 per cent to close at 29,360.55. The market capitalisation shed N209 billion to close at N9.796 trillion. Market operators attributed the negative market performance to the reactions to the postponement of the general elections, which they said was dampening investors’ confidence.

However, some investors renewed demand for Seplat, which led to a surge in its share price to lead seven other price gainers for the day. Dangote  Flour Mills Plc closed at the second highest price gainer with 9.5 per cent. Vitafoam Nigeria Plc and R.T Briscoe Nigeria Plc went up by 4.9 per cent and 4.8 per cent respectively. Other price gainers were  Eterna Plc (4.7 per cent), Air Service Logistics Plc (4.6 per cent), United Capital Plc (2.7 per cent) and Royal Exchange Plc(2.0 per cent).

Market operators attributed the renewed demand for Seplat shares to the news of the company’s acquisition of a stake in Belemaoil Producing Limited which has a 40 per cent interest in the producing OML 55.

Speaking on the acquisition, Chief Executive Officer of Seplat, Austin Avuru said, “The addition of OML 55 to our portfolio, together with the separately announced acquisition of OML 53, expands our footprint in the Niger Delta to six blocks and further cements our position as a leading indigenous independent E&P in Nigeria.

“OML 55 provides us with a number of attractive opportunities to boost oil and gas output, and is consistent with our strategy of prioritising those that offer near-term production growth, cash-flow and reserve replacement potential in the onshore and shallow water offshore areas of Nigeria.”

According to him, “We are pleased to have extended our operating partnership with NNPC who we look forward to working with in our capacity as Operator pursuant to the Joint Operating Model.”

 

[ThisDay]