Ramco estimate up due to expected gas price rise

Shareholders in Ramco Energy, the Scottish energy company that operates the Seven Heads gas field off the Cork coast, could soon double their money, according to a London stockbroker.

The company, which is quoted on London’s Alternative Investment Market, closed on Friday just over the stg£3.30 mark, but broker Seymour Pierce has revised its price estimate from £5.59 to £7.64, based on expected gas price rises and supply from the Seven Heads field.

Seymour Pierce also said it increased the company’s earnings forecast for next year by 48% to 78 pence per share and that the share was trading at a 60% discount to net asset value.