M&P slumps after US revokes licence for Venezuela activities

Shares in Maurel et Prom MAUP.PA drop more than 12% after the French oil group said the U.S. had revoked its specific licence for activities in Venezuela

M&P had been granted a specific U.S. license for its 40% consolidated interest in the mixed company Petroregional del Lago (PRDL), which operates in Venezuela, in 2024

"While this decision should not jeopardize the financial stability of the group, it will deprive the company of a quality asset that generates FCF," Portzamparc analysts say in a note

Portzamparc excludes from its projections the valuation of Venezuelan assets, estimated at EUR 2.66/share, corrected for additional cash considerations

The brokerage downgrades the stock to "hold" from "buy"

The shares are at the bottom of France's SBF 120 Index .SBF120 and on track for their worst day since August 2023 if the losses hold