Carnarvon Energy Limited (CVN) AI Stock Analysis

• Market Cap: AU$187.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 2
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): <0.01
• Shares Outstanding: 1,789,086,900
• 10 Day Avg. Volume: 1,746,968
• 30 Day Avg. Volume: 1,312,807
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.14
• Price Target Upside: 40.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Carnarvon Energy Limited's overall stock score of 47 reflects its significant financial challenges, particularly the lack of revenue and persistent losses. The company's liquidity strength is a positive factor, but negative cash flow and operational inefficiencies weigh heavily on its performance. The technical analysis suggests a bearish trend, and while the P/E ratio indicates moderate valuation, the absence of dividends reduces investment appeal. Overall, the stock is under pressure due to its unstable financial position and uncertain future growth prospects.

Carnarvon Energy Limited Business Overview & Revenue Model

Company Description

Carnarvon Energy Limited explores for, develops, and produces oil and gas in Australia. The company owns interests in the Dorado project located in the Bedout Sub-basin permits of Western Australia; the Buffalo project situated in Bonaparte Basin; and the Labyrinth project located in the Roebuck Basin in the North West Shelf of Western Australia. It also holds interests in the Taurus project located in the North West Shelf; the Condor and Eagle projects located in the Vulcan Sub-Basin; the Outtrim project located in the Exmouth Sub-Basin; and the Pepper project that is situated in Barrow Sub-basin of the Northern Carnarvon Basin. The company was formerly known as Carnarvon Petroleum Limited and changed its name to Carnarvon Energy Limited in November 2021. Carnarvon Energy Limited was incorporated in 1983 and is headquartered in West Perth, Australia.

How the Company Makes Money

Carnarvon Energy Limited generates revenue primarily through the exploration, development, and production of oil and gas resources. The company's key revenue streams include the sale of crude oil and natural gas extracted from its operated and non-operated ventures. Carnarvon often partners with other energy companies to share the costs and risks associated with exploration and production activities. By participating in joint ventures and farm-out agreements, Carnarvon enhances its capacity to explore and develop its resource acreage. These partnerships also provide access to advanced technology and expertise, which contribute significantly to Carnarvon's ability to monetize its hydrocarbon discoveries.

Carnarvon Energy Limited Financial Statement Overview

Summary

Carnarvon Energy Limited faces significant financial challenges, particularly with its income statement showing no revenue and persistent losses. While the balance sheet displays liquidity strength with substantial cash reserves and low debt, the negative return on equity and ongoing cash flow issues present concerns. Overall, the company's financial position is unstable, and improvements in revenue generation and operational efficiency are crucial for future stability.

Income Statement

Carnarvon Energy Limited shows persistent challenges in generating revenue, as total revenue has been consistently zero over the years. The net profit margin remains negative due to ongoing losses, and there are no signs of revenue growth. Margins such as EBIT and EBITDA are also negative, reflecting operational inefficiencies and a lack of profitability.

Balance Sheet

The company's balance sheet indicates strong liquidity with substantial cash reserves compared to its minimal debt, resulting in a low debt-to-equity ratio. However, the return on equity is negative due to recurring losses, which is a concern. The equity ratio is healthy, indicating a solid asset base relative to equity.

Cash Flow

Despite negative free cash flow in recent years, there is a noticeable improvement in operating cash flow for the most recent period. However, the company's ability to generate cash from operations remains weak compared to its net losses. Continued negative free cash flow growth rate highlights the company's struggle to cover its capital expenditures from operational activities.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-231.00K	-256.00K	-269.00K	-256.00K	-232.00K
	EBIT
-6.69M	-8.25M	-8.15M	-5.97M	-5.76M
	EBITDA
-549.00K	-3.05M	-22.85M	17.47M	-3.90M
	Net Income Common Stockholders
-656.00K	-4.10M	-53.75M	17.14M	-4.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
179.55M	95.52M	112.42M	98.44M	113.63M
	Total Assets
267.59M	268.57M	273.65M	257.27M	239.24M
	Total Debt
601.00K	220.00K	441.00K	644.00K	830.00K
	Net Debt
-178.95M	-95.30M	-111.98M	-97.79M	-112.80M
	Total Liabilities
1.26M	2.22M	3.67M	2.76M	2.59M
	Stockholders Equity
266.33M	266.36M	269.98M	254.51M	236.66M
Cash Flow		Free Cash Flow
-1.95M	-18.28M	-43.76M	-14.39M	-41.91M
	Operating Cash Flow
1.26M	-4.64M	-5.62M	-4.86M	-4.67M
	Investing Cash Flow
83.77M	-13.79M	-52.56M	-9.47M	-34.98M
	Financing Cash Flow
467.00K	-58.00K	68.36M	378.00K	78.53M

Carnarvon Energy Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CVN, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CVN.

Carnarvon Energy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDS	72 Outperform	AU$38.45B	7.09	10.07%	9.29%	0.71%	120.95%
Sector *	56 Neutral	$6.91B	3.46	-4.86%	5.95%	0.08%	-49.21%
CVN	47 Neutral	AU$187.85M	17.54	3.89%	―	―	―

Carnarvon Energy Limited Corporate Events

Carnarvon Energy Maintains Strong Financials Amid Dorado Project Delays

Carnarvon Energy Limited reported a strong financial position with A$186 million in cash and no debt, while initiating capital management strategies, including a share buyback and potential capital return to shareholders. Despite delays in the Dorado project, the company is exploring alternative options to accelerate development and remains committed to realizing shareholder value through potential transactions and exploration activities in the Bedout Sub-basin.

Carnarvon Energy Plans Capital Return Amid Dorado Project Delays

Carnarvon Energy Limited has announced plans to return capital to shareholders, proposing a potential distribution of up to $0.07 per share, amounting to A$125 million. This decision follows delays in the Dorado project and the absence of alternative opportunities. The capital return is contingent on shareholder approval, tax treatment confirmation, and the identification of better capital uses. Despite this, Carnarvon plans to retain sufficient cash to fund future drilling and advance the Dorado project, ensuring continued investment in its core assets.

Carnarvon Energy Releases Interim Financial Report for 2024

Carnarvon Energy Limited has released its interim financial report for the period ending 31 December 2024. The company, listed on the Australian Securities Exchange under the code CVN, has provided details about its corporate structure, including its directors, auditors, and registered office. This report is crucial for stakeholders as it offers insights into the company’s financial health and operational status, which can impact its market positioning and investor confidence.