TotalEnergies Gabon, Maurel et Prom and miner Eramet drop by more than 20% as military officers seize power
30 August 2023 - 17:43
byDanilo Masoni
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A military vehicle drives through Port Gentil after military officers announced they had taken power in Gabon, August 30 2023, in this still image from social media. Picture: GAETAN M-ANTCHOUWET/REUTERS
Milan — Shares in European oil producers, miners and other companies with large exposures to Gabon plummeted on Wednesday after a military coup raised concerns over their operations in the resource-rich African country.
London-listed oil producer Tullow Oil fell as much as 12% in afternoon trading, while French energy companies TotalEnergies Gabon and Maurel et Prom and miner Eramet all dropped by more than 20% at one point.
Eramet, the world’s top producer of high-grade manganese ore thanks to its Moanda mine in Gabon, said it had suspended all operations in the country as a “precautionary measure”.
“In view of the events under way in Gabon and as a precautionary measure, the group has activated procedures to ensure the security of its staff and the integrity of its operations,” a spokesperson for Eramet. Its manganese operations, led by its Comilog unit operating the Moanda mines in Gabon, were the main contributor to the company’s profits last year.
The Gabonese government holds a 29% stake in Comilog.
“Shares are reacting to concerns over the backdrop in Gabon,” said Investec equity analyst Alex Smith in London.
The coup raised concerns over companies’ operations in the resource-rich African country in Gabon said they had seized power on Wednesday and put President Ali Bongo under house arrest, stepping in minutes after the state’s election body announced he had won a third term.
France, Gabon’s former colonial ruler which has troops stationed in the African nation, condemned the coup.
Timber company Woodbois also said production at its facilities in the Gabonese city of Mouila were suspended, sending its London-listed shares almost 16% lower.
However, Assala Energy, which current owner Carlyle has agreed to sell to Maurel, said its oil production in Gabon was unaffected.
Tullow Oil also told analysts its production was continuing as normal.
“Note Gabon production represents around 20% of group production. However, assets are based offshore and importantly oil revenue is dollar denominated,” said Investec’s Smith.
Gabon produces about 200,000 barrels a day (bpd) of crude oil, making it the second-smallest Opec producer.
Oslo-listed Panoro Energy and BW Energy were down 5% and 7%, respectively, and US-based Vaalco Energy fell 13.8%.
According maritime sources, at least 30 commercial ships dropped anchor on Wednesday around Gabon’s waters.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gabon-exposed stocks in Europe plummet after coup
TotalEnergies Gabon, Maurel et Prom and miner Eramet drop by more than 20% as military officers seize power
Milan — Shares in European oil producers, miners and other companies with large exposures to Gabon plummeted on Wednesday after a military coup raised concerns over their operations in the resource-rich African country.
London-listed oil producer Tullow Oil fell as much as 12% in afternoon trading, while French energy companies TotalEnergies Gabon and Maurel et Prom and miner Eramet all dropped by more than 20% at one point.
Eramet, the world’s top producer of high-grade manganese ore thanks to its Moanda mine in Gabon, said it had suspended all operations in the country as a “precautionary measure”.
“In view of the events under way in Gabon and as a precautionary measure, the group has activated procedures to ensure the security of its staff and the integrity of its operations,” a spokesperson for Eramet. Its manganese operations, led by its Comilog unit operating the Moanda mines in Gabon, were the main contributor to the company’s profits last year.
The Gabonese government holds a 29% stake in Comilog.
“Shares are reacting to concerns over the backdrop in Gabon,” said Investec equity analyst Alex Smith in London.
The coup raised concerns over companies’ operations in the resource-rich African country in Gabon said they had seized power on Wednesday and put President Ali Bongo under house arrest, stepping in minutes after the state’s election body announced he had won a third term.
France, Gabon’s former colonial ruler which has troops stationed in the African nation, condemned the coup.
Timber company Woodbois also said production at its facilities in the Gabonese city of Mouila were suspended, sending its London-listed shares almost 16% lower.
However, Assala Energy, which current owner Carlyle has agreed to sell to Maurel, said its oil production in Gabon was unaffected.
Tullow Oil also told analysts its production was continuing as normal.
“Note Gabon production represents around 20% of group production. However, assets are based offshore and importantly oil revenue is dollar denominated,” said Investec’s Smith.
Gabon produces about 200,000 barrels a day (bpd) of crude oil, making it the second-smallest Opec producer.
Oslo-listed Panoro Energy and BW Energy were down 5% and 7%, respectively, and US-based Vaalco Energy fell 13.8%.
According maritime sources, at least 30 commercial ships dropped anchor on Wednesday around Gabon’s waters.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Military coup erupts in Gabon after Ali Bongo’s re-election
Russia concerned about Gabon coup
Gabon finalises first ‘debt-for-nature’ swap
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.