Maurel et Prom’s shares fell over 12% after the U.S. revoked its license for Venezuelan activities. The company, holding a 40% stake in Petroregional del Lago, is not facing immediate financial threats but loses a key asset. Analysts downgraded the stock from “buy” to “hold,” leading to its lowest position in France’s SBF 120 Index since August 2023.

Shares of Maurel et Prom (M&P) have experienced a notable decline, dropping more than 12% following the revocation of a specific U.S. license allowing the company to operate in Venezuela. This license, granted for M&P’s 40% interest in the mixed company Petroregional del Lago (PRDL), was obtained in 2024.

Analysts from Portzamparc indicated that while the revocation will not threaten the financial stability of M&P, it will result in the loss of a valuable asset contributing to free cash flow (FCF). Consequently, they have removed the estimated valuation of Venezuelan assets, previously calculated at EUR 2.66 per share, from their projections.

Additionally, Portzamparc has adjusted its recommendation for M&P from “buy” to “hold.” Following this downgrade, the company’s shares are positioned at the lowest point within France’s SBF 120 Index (PX4), on pace for their worst day since August 2023 if the current losses persist.

In summary, the revocation of M&P’s license to operate in Venezuela has significantly impacted its stock performance. Despite the company’s ongoing financial stability, the loss of a valuable asset is a concern for investors. The adjustments made by Portzamparc reflect a cautious outlook moving forward for M&P in light of these developments.

Original Source: www.tradingview.com

Related posts:

Oil Prices Rise Following Cancellation of Chevron’s License in Venezuela U.S. Ends Chevron’s Oil Export License, Impacting Venezuela’s Economy US Orders Chevron to Halt Operations in Venezuela: Significant Economic Implications U.S. Administration Considers Ordering Companies to Cease Venezuelan Operations