Shares in Seplat Petroleum Development Co. may have slumped more than 50% in London this year, but analysts are maintaining their positive view on the Nigerian oil and gas producer: it has 10 buy recommendations, two holds and no sell ratings, data tracked by Bloomberg show. Natural gas sales at fixed rates give Seplat some protection from the swings in oil markets, while it shielded itself from the worst declines in crude through price-hedging agreements, analysts said. The acquisition of Eland Oil & Gas Plc, announced in October, will boost Niger Delta production this year, they added.
Seplat rose 1% to 59p as of 10:57 a.m. in London on Wednesday, paring its worst year since the Nigerian company’s shares began trading in the U.K. capital in 2014. The dual-listed oil producer’s Lagos stock is down 35%, compared with a 5.2% drop in the local benchmark index. The stock fell 10% on Wednesday, the most allowed by the exchange in a single session, at 428.8 naira as of 10:50 a.m. in the Nigerian commercial capital.