Seplat Energy Investors recorded a N70.56 billion loss in five days from trading in the shares of the company.
The loss comes on the back of repeated selling pressure witnessed on the shares of some blue-chip firms quoted on the Nigerian Exchange (NGX).
The sell-offs are on the back of cautious trading ahead of the 2023 general elections and global investment constraints following the Russian-Ukraine crisis, as well as insecurity challenges that continue to hamper food and crude oil production in Nigeria.
According to a report by Nairametrics, the oil firm’s stock lost by 8.44% to date to N1,300.00 per share from N1,419.90 it opened for trading on August 23rd.
Seplat Energy opened the period under review at N1,419.90 per share and N835.532 billion in market capitalisation on the NGX as against N1,300 per share and N764.977 billion in market capitalisation at the close of trading on 26th August hence suffered a loss of N70.555 billion or 8.44%.
Seplat Petroleum Development began the year with a share price of N650.00 and has since gained 100% on that price valuation, ranking it eighth on the NGX in terms of year-to-date performance. It is however recommended by market watchers that investors should take caution of the company’s recent bad performance, having lost 8.44% of its value in the last five trading days.
The NBS recent report identified the following sectors as having experienced contraction in the second quarter of this year: The highest contraction was in oil refining which was 42%, rail transportation 38%, crude oil and gas 11.8%, metal ores 25.5%, electricity vehicle assemblies 7.8%, electricity and air-conditioning 7%; motion pictures and music 6%, textiles 2.8%.
According to the Centre for the Promotion of Private Enterprise (CPPE), some of the delimiting factors include the continued inactivity of the country’s major refineries, all of which have been posting losses in recent years, the cloud of insecurity hovering over the railway system which has caused the suspension of railway services.
Also, crude oil theft and vandalization of oil facilities in the oil-producing areas have adversely affected output in the oil sector. By NNPC estimates, the country loses two billion dollars monthly on account of oil theft. Loses are also suffered on account of vandalization of oil facilities, pipelines and the activities of illegal refineries.
