We have significantly increased our ReNAV for the company from £0.65 to £1.53 following a meeting with the company. The main areas of changes were associated with (i) capital allowances (tax losses) that were much higher than we had assumed and (ii) better visibility on the high level of G&A and the fact that most of it would be deductible for tax purposes from the 85% Petroleum Profit Tax (PPT). While we have taken a more prudent view on oil production growth, we have now als
20 Jan 2017
Updating our valuation following meeting with management
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Updating our valuation following meeting with management
Seplat Energy PLC (SEPL:LON) | 159 4.5 1.8% | Mkt Cap: 935.5m
- Published:
20 Jan 2017 -
Author:
Stephane Foucaud -
Pages:
7
We have significantly increased our ReNAV for the company from £0.65 to £1.53 following a meeting with the company. The main areas of changes were associated with (i) capital allowances (tax losses) that were much higher than we had assumed and (ii) better visibility on the high level of G&A and the fact that most of it would be deductible for tax purposes from the 85% Petroleum Profit Tax (PPT). While we have taken a more prudent view on oil production growth, we have now als