tiprankstipranks
Trending News
More News >
Kinetiko Energy Ltd. (AU:KKO)
ASX:KKO
Australian Market

Kinetiko Energy Ltd. (KKO) AI Stock Analysis

Compare
6 Followers

Top Page

AU

Kinetiko Energy Ltd.

(Sydney:KKO)

Rating:42Neutral
Price Target:
Kinetiko Energy Ltd. faces significant challenges with no revenue generation and persistent losses, impacting its financial performance and valuation negatively. The technical analysis does not show signs of recovery, with the stock trading below key moving averages. Strong equity and low leverage are positives, but reliance on external funding is a concern. Overall, the stock reflects high risk with limited immediate upside potential.

Kinetiko Energy Ltd. (KKO) vs. iShares MSCI Australia ETF (EWA)

Kinetiko Energy Ltd. Business Overview & Revenue Model

Company DescriptionKinetiko Energy Limited explores for gas and coal bed methane. Its flagship property is the Amersfoort project located in South Africa. The company was incorporated in 2010 and is based in Subiaco, Australia.
How the Company Makes MoneyKinetiko Energy Ltd. generates revenue primarily through the exploration and development of coal bed methane gas projects. The company monetizes its gas reserves by extracting and selling natural gas to local and regional energy markets. It may also enter into joint ventures or partnerships with other energy companies to share resources and expertise, which can lead to shared revenue streams. Additionally, Kinetiko's operations are supported by funding from investors and government incentives aimed at promoting clean energy projects. The company's success in converting its exploration activities into commercial production is a key factor contributing to its earnings.

Kinetiko Energy Ltd. Financial Statement Overview

Summary
Kinetiko Energy Ltd. operates in a challenging sector with no revenue generation, leading to continuous losses and negative margins. Despite strong equity and low leverage, the company is heavily reliant on external financing to cover operational deficits. Improvement in revenue generation is critical for sustainable growth.
Income Statement
20
Very Negative
Kinetiko Energy Ltd. has consistently reported zero revenue over the past years, leading to gross and net losses. The net profit margin is negative due to continuous net losses, and the absence of revenue growth indicates a challenging business environment. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.
Balance Sheet
60
Neutral
The company maintains a strong equity position with a minimal debt load, as evidenced by a low debt-to-equity ratio. The equity ratio is robust, indicating financial stability and low leverage. However, the continuous net losses impact the overall equity growth and return on equity.
Cash Flow
50
Neutral
Operating cash flow is negative, reflecting ongoing challenges in generating cash from operations. Free cash flow is consistently negative; however, substantial financing activities suggest reliance on external funding. The free cash flow to net income ratio is unfavorable due to persistent net losses.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-310.00-784.46K-46.86K-21.94K-5.58K-530.00
EBIT
-3.98M-3.61M-3.58M-1.78M-1.44M
EBITDA
-3.98M-3.56M-3.56M-1.78M-1.44M
Net Income Common Stockholders
-5.32M-4.34M-5.82M-1.70M-1.87M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.01M7.21M3.56M1.35M190.86K1.11M
Total Assets
8.53M74.96M13.22M9.86M7.84M7.87M
Total Debt
0.001.47M250.00K250.00K0.000.00
Net Debt
-1.01M-5.74M-3.31M-1.10M-190.86K-1.11M
Total Liabilities
734.73K2.73M999.42K720.62K298.91K558.15K
Stockholders Equity
7.79M72.14M12.22M9.14M7.54M7.32M
Cash FlowFree Cash Flow
-3.78M-3.99M-3.83M-1.97M-1.70M
Operating Cash Flow
-3.75M-3.86M-3.64M-1.96M-1.70M
Investing Cash Flow
-4.03M-1.73M-1.24M-234.53K-325.95K
Financing Cash Flow
11.44M7.81M6.04M1.27M3.06M

Kinetiko Energy Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.06
Negative
100DMA
0.06
Negative
200DMA
0.07
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
9.94
Positive
STOCH
78.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KKO, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 9.94 is Positive, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KKO.

Kinetiko Energy Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.23B3.16-4.49%5.63%0.82%-49.15%
AUKKO
42
Neutral
AU$71.63M-9.01%32.31%
$1.97B32.002.70%3.83%
$128.17M20.793.89%
$11.84B12.6214.75%5.52%
$13.85B11.677.94%5.31%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KKO
Kinetiko Energy Ltd.
0.05
-0.02
-28.57%
BEPTF
Beach Energy
0.86
-0.11
-11.34%
CVONF
Carnarvon Energy Limited
0.08
-0.05
-38.46%
OGFGF
Origin Energy Limited
6.88
0.27
4.08%
STOSF
Santos Limited
4.41
-0.31
-6.57%

Kinetiko Energy Ltd. Corporate Events

Kinetiko Energy Reports Positive Developments in Gas Production Efforts
Apr 30, 2025

Kinetiko Energy Ltd reported significant progress in its gas production efforts during the first quarter of 2025. The company achieved successful gas flaring from its second production test well and observed stronger gas presence in its first well, indicating potential for increased gas production. The company is conducting a drilling optimization study to address initial gas flow restrictions, with preliminary findings suggesting improvements in drilling techniques could enhance gas recovery. Kinetiko maintains a strong financial position with no debt and substantial available funds.

Kinetiko Energy Optimizes Drilling Techniques Following Positive Flow Assurance Report
Apr 23, 2025

Kinetiko Energy Ltd has completed a positive flow assurance report conducted by Oilfield Technologies Australia Pty Ltd, which identified significant impairments in gas flow performance due to drilling techniques. Laboratory tests revealed that water and foam used in drilling significantly reduced gas permeability by up to 85%, explaining the underperformance of initial production test wells. The company plans to implement optimized drilling techniques to minimize fluid invasion and improve gas deliverability, with the next test well drilling scheduled for early May.

Kinetiko Energy’s Drill Optimisation Enhances Gas Recovery Prospects
Mar 18, 2025

Kinetiko Energy Ltd has released an interim drill optimisation report highlighting findings from its production test wells in South Africa. The report, conducted by Oilfield Technologies Australia, identifies excessive water introduction during drilling as a temporary impediment to gas flow. However, simple remediation strategies have been proposed to enhance gas recovery, supporting Kinetiko’s transition from exploration to commercial production. The insights from this program are expected to improve future well performance and accelerate resource conversion, reinforcing the commercial viability of Kinetiko’s gas resources.

Kinetiko Energy Ltd Releases Interim Financial Report for H2 2024
Mar 10, 2025

Kinetiko Energy Ltd has released its interim financial report for the half-year ending December 31, 2024. The report provides insights into the company’s financial performance, including profit or loss, comprehensive income, financial position, changes in equity, and cash flows. This release is crucial for stakeholders to assess the company’s financial health and strategic positioning in the energy sector.

Kinetiko Energy Reports Positive Gas Production Test Results
Feb 10, 2025

Kinetiko Energy Ltd has announced positive outcomes from its production test wells, confirming the presence of gas and improved gas flows. The second test well, 271-KV06PT, successfully reached a depth of 631m and demonstrated a sustained gas presence, while the first test well, initially thought to have a limited reservoir, also showed increasing gas presence. The company has initiated a drilling optimization study to assess possible temporary gas blockages caused by drilling techniques. These developments affirm the ubiquity of gas-bearing geology across Kinetiko’s exploration rights, supporting the potential for future gas fields.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.