Melbana Energy Limited (MAY) AI Stock Analysis

• Market Cap: AU$87.63M
• Dividend Yield: N/A
• Average Volume (3M): 3.88M
• Price to Earnings (P/E): 43.3
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 4
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 3,370,204,000
• 10 Day Avg. Volume: 2,032,064
• 30 Day Avg. Volume: 3,879,252
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score for Melbana Energy Limited reflects significant financial and operational challenges, with negative cash flows and a lack of consistent revenue generation. While technically the stock is on a downward trend, it remains overvalued with a high P/E ratio. These factors, combined with the absence of positive earnings call or corporate event catalysts, result in a low overall score.

Melbana Energy Limited Business Overview & Revenue Model

Company Description

Melbana Energy Limited (MAY) is an Australian-based independent oil and gas exploration company engaged in the development of energy resources. The company focuses on identifying and developing high-potential exploration projects primarily in the Asia-Pacific region and Cuba. Melbana Energy's core activities include the exploration, appraisal, and potential production of oil and gas deposits, aiming to capitalize on opportunities that can deliver significant shareholder value.

How the Company Makes Money

Melbana Energy Limited generates revenue primarily through its exploration and development activities in oil and gas sectors. The company's main revenue streams include potential sales of oil and gas extracted from successful exploration projects, as well as joint venture partnerships and farm-out agreements, which often involve selling or sharing a portion of its project interests with other companies in exchange for financial support or a share in future production. Additionally, strategic partnerships with other energy companies and stakeholders allow Melbana Energy to leverage technical expertise and financial resources, which can enhance project development and profitability.

Melbana Energy Limited Financial Statement Overview

Summary

Melbana Energy Limited faces significant financial challenges, particularly in generating consistent revenue and managing operational expenses. The company's reliance on equity financing provides some stability, but negative cash flows and operational losses continue to pose risks. Strategic shifts may be necessary to improve financial health in the long term.

Income Statement

The company has struggled with consistent revenue generation, as shown by the absence of revenue in recent years. The net profit margin turned positive in 2024 due to net income growth, but historically, net losses have been common. The EBIT and EBITDA margins indicate operating challenges, with EBIT remaining negative consistently.

Balance Sheet

The balance sheet reflects a relatively strong equity position with no debt, as the company has maintained a debt-free structure in recent years. However, the low total assets and fluctuating stockholders' equity present potential stability issues. The equity ratio remains favorable, indicating reliance on equity financing.

Cash Flow

Cash flow from operations has been negative, reflecting operational inefficiencies and investing heavily in capital expenditures. Free cash flow has also been negative, indicating liquidity concerns. However, the company has managed to maintain a cash position through equity financing, which mitigates immediate financial distress.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	10.39M	1.10M	―
	Gross Profit
-135.48K	-125.64K	10.27M	1.08M	―
	EBIT
-4.29M	-4.15M	-3.26M	-2.47M	-2.23M
	EBITDA
3.60M	-562.65K	-2.87M	-1.81M	-2.09M
	Net Income Common Stockholders
3.26M	-1.00M	6.33M	-1.40M	-2.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.32M	34.98M	35.57M	10.68M	1.78M
	Total Assets
96.35M	58.21M	50.25M	15.60M	10.40M
	Total Debt
0.00	130.82K	0.00	0.00	116.36K
	Net Debt
-12.32M	-34.85M	-35.57M	-10.68M	-1.64M
	Total Liabilities
40.42M	5.21M	13.08M	8.51M	1.55M
	Stockholders Equity
55.93M	52.99M	37.17M	7.09M	8.85M
Cash Flow		Free Cash Flow
-69.60M	-48.50M	-41.34M	-9.55M	-2.37M
	Operating Cash Flow
―	-2.62M	-2.12M	-2.00M	-2.13M
	Investing Cash Flow
-18.67M	-13.87M	3.26M	11.60M	498.03K
	Financing Cash Flow
0.00	15.77M	23.83M	-126.00K	-24.20K

Melbana Energy Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 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:MAY, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MAY.

Melbana Energy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STO	63 Neutral	$19.05B	10.20	7.94%	6.00%	-7.99%	-12.27%
ORG	62 Neutral	$18.40B	12.89	14.75%	5.47%	8.09%	-13.99%
BPT	56 Neutral	$2.69B	28.59	2.70%	4.31%	6.43%	―
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%
CVN	47 Neutral	$196.80M	19.30	3.89%	―	―	―
MAY	41 Neutral	AU$87.63M	43.33	3.72%	―	―	―

Melbana Energy Limited Corporate Events

Melbana Energy Advances Key Projects in Cuba and Australia

Melbana Energy Limited reported significant progress in its projects during the quarter ended March 31, 2025. In Cuba, the company commenced the workover of the Alameda-2 well and began constructing infrastructure for the Amistad-2 well, aiming to enhance production and prepare for the export of its first cargo. In Australia, Melbana announced a maiden Prospective Resource and Contingent Resource for its AC/P70 project, indicating substantial potential for future development. The company ended the quarter with $7.6 million in cash, underscoring its financial stability as it advances its strategic initiatives.

Melbana Energy Boosts Oil Production in Cuba’s Block 9

Melbana Energy Limited announced a successful workover of Unit 1B in Block 9, Cuba, resulting in a significant increase in production rates from 293 to 488 barrels of oil per day. This improvement is part of their ongoing efforts to optimize production, with plans to commence drilling a new production well, Amistad-2, next month. The workover program involved various technical interventions, including acid treatments and the use of a progressive cavity pump, which have provided valuable data to enhance future production strategies.

Melbana Energy Unveils Promising Resource Estimates for AC/P70

Melbana Energy Limited has announced the completion of maiden resource estimates for the undeveloped Vesta and Swan gas and oil fields within the AC/P70 permit. The estimates reveal significant prospective and contingent resources, highlighting the potential for LNG-scale gas accumulations. The proximity to existing infrastructure reduces the minimum economic pool size for development, enhancing the commercial viability of new discoveries. The company is seeking a partner to fund further exploration, which could strengthen its position in the industry and offer new opportunities for stakeholders.

Melbana Energy Director’s Securities Shift in Strategic Trade

Melbana Energy Limited has announced a change in the directorial interest of Michael John Sandy, involving a shift of 5,300,000 Fully Paid Ordinary (FPO) Shares from direct to indirect ownership. The transaction, completed via an on-market trade, results in Sandy holding a total of 7,300,000 FPO shares indirectly. This change reflects a strategic move in the director’s investment portfolio and may have implications for shareholder perception and market dynamics concerning director confidence in the company’s future performance.