Europe's Gabon-exposed stocks slide after military coup (updated)
30/08/2023 15:56
(Adds details, analyst comment from paragraph 3)
By Danilo Masoni
MILAN, Aug 30 (Reuters) - 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 TLW.L fell as much
as 12% in afternoon trading, while French energy companies
TotalEnergies Gabon EGAB.PA and Maurel et Prom MAUP.PA and
miner Eramet ERMT.PA all dropped by more than 20% at one
point.
"Shares are reacting to concerns over the backdrop in
Gabon," said Investec equity analyst Alex Smith in London.
Military officers 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.
Eramet, the world's No.1 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".
Timber company Woodbois WBI.L 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 CG.O
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 PENR.OL and BW Energy BWE.OL
were down 5% and 7%, respectively, and U.S.-based Vaalco Energy
EGY.N fell 13.8%.
According maritime sources, at least 30 commercial ships
dropped anchor on Wednesday around Gabon's waters.
(Reporting by Danilo Masoni, editing by Alun John, Kirsten
Donovan)
((Danilo.Masoni@TR.com))