It was a steep drop Friday for Seplat’s stock price after a leap the day before. The drop seems to mirror oil price now at under $50. At the close of trading Friday December 28, the company with dual listing fell more than 10 per cent to N578.7 from N680, losing more than a hundred naira in value in a day’s trading. Seplat, the Nigerian energy company with a dual listing, has proved book makers right in the last nine months, upping revenue and profits, leading to a rise in stock price.
Incidentally, oil price is also trending downwards “as Brent crude was trading at $53.70 a barrel, up 1.84 per cent from yesterday’s close, and West Texas Intermediate was changing hands for $45.63 a barrel, up by as much as 2.29 per cent”. Despite the huge drop in value, the stock is still outperforming the All Share Index (ASI) albeit at a narrower margin compared to the situation one month ago.
As noted last month, the nine month performance of Seplat ending September showed a company getting the best of oil price resurgence, hitting revenue of N173.7 billion, up 104 per cent from N85.2 billion achieved in the equivalent period in 2017. This was significantly helped by the vault in oil price now at $72 for Bonny Light.