Seplat lost another 5% today closing at N359.9. This is the first time it has dropped below N360 and is yet another year low for the company. Seplat has hit many year lows in a bearish run that began on September 29, 2014. Back then Seplat was trading at N667, meaning it has lost over 46% in barely over 2 months. A look at its share price from its year high of N720.7 back in July also suggest it has now lost over 50% since then. It also means Seplat will need to rise by 100% to gain back all that it has lost (without adjusting for inflation).
This quite an unprecedented loss of value in such a short time and I doubt if this has ever happened since the crash of 2009. The crash in Seplat’s oil price is connected to the fall in the price of oil. Incidentally, Seplat year high bullish period also correlates with the same period Brent Crude was trading about $115.This suggest there is a correlation between Seplat share price and the price of the Brent Crude.
Even at this price Seplat is astonishingly cheap and is now 1.7x its last year earnings per share and 5x our projected EPS of N83.