Investec cut the energy company to “sell” from “buy,” and said there was now a worst-case scenario of zero value for Repsol’s 57.4 percent stake in YPF.
Repsol’s share price has already fallen by around 26 percent this year as the Argentina threat loomed, but the announcement that the government would move to nationalize YPF has sent it down even further. YPF’s market value has also plunged since the dispute began to look more serious.
Analysts at Investec said that “some of the bad news is in the price” for Repsol already, but added: “At a minimum, Repsol is now set to lose control of YPF and, of course, any compensation seems set to be at current depressed prices.”
They said that the complete removal of YPF from Repsol’s earnings would take close to 10 euros ($13.14) off the share price.
Miners were down across the board in London trading, as the specter of resource nationalism was raised by Argentina’s actions, but reversed this trend later in the day.
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