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Otto Energy Limited (AU:OEL)
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Otto Energy Limited (OEL) AI Stock Analysis

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AU:OEL

Otto Energy Limited

(OTC:OEL)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
AU$0.01
▲(30.00% Upside)
The score is held back primarily by weakening fundamentals (multi-year revenue contraction and negative 2025 free cash flow) and a high P/E valuation, partially offset by lower financial risk from a debt-free balance sheet. Technicals and earnings-call insights could not be assessed due to missing data.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet reduces financial risk and provides flexibility, especially in the cyclical oil and gas industry.
Leadership Changes
Strategic leadership changes can enhance operational efficiency and align the company with growth and shareholder value enhancement.
Strong Shareholder Support
Strong shareholder support reflects confidence in management and strategic direction, which can positively impact market positioning.
Negative Factors
Revenue Decline
Consistent revenue decline indicates challenges in market demand or operational efficiency, affecting long-term growth potential.
Negative Free Cash Flow
Negative free cash flow suggests higher spending or inefficiencies, which can strain financial resources and limit reinvestment capacity.
Volatile Profitability
Volatile profitability undermines financial stability and may hinder the company's ability to sustain operations during market downturns.

Otto Energy Limited (OEL) vs. iShares MSCI Australia ETF (EWA)

Otto Energy Limited Business Overview & Revenue Model

Company DescriptionOtto Energy Limited (OEL) is an oil and gas exploration and production company, primarily engaged in the development and extraction of hydrocarbons. The company operates within the energy sector and focuses on identifying and capitalizing on opportunities for oil and gas exploration, particularly in regions with established hydrocarbon basins. Otto Energy leverages its technical expertise to optimize resource extraction and deliver value to its stakeholders.
How the Company Makes MoneyOtto Energy Limited generates revenue primarily through the sale of oil and gas extracted from its exploration and production activities. The company invests in exploration projects to discover new reserves and develop existing fields, which are then monetized through partnerships and sales agreements. Otto Energy may also engage in joint ventures and partnerships with other energy companies to share resources and risks associated with exploration and production. Factors contributing to its earnings include the global demand for oil and gas, commodity prices, and the company's ability to efficiently manage its operations and production costs.

Otto Energy Limited Financial Statement Overview

Summary
Otto Energy Limited demonstrates mixed financial health characterized by revenue instability and ongoing net losses, impacting profitability. The company's strong equity position and absence of debt provide financial resilience, yet asset and equity declines present challenges. Cash flow management exhibits variability, highlighting potential risks in sustaining positive cash generation.
Income Statement
Otto Energy Limited has faced significant revenue volatility with a general declining trend from 2022 to 2024. The company's gross profit margin decreased from 2023 to 2024, impacting its financial stability. Although EBIT was positive in recent years, the company has experienced consistent net losses, indicating challenges in profitability.
Balance Sheet
The company maintains a strong equity position with no total debt as of 2024, reflecting prudent financial management. However, the decreasing total assets and equity since 2022 suggest potential challenges in asset growth and capital management. The equity ratio remains strong, bolstering the company's financial stability.
Cash Flow
Otto Energy's free cash flow showed improvement in the latest period, supported by positive operating cash flow. However, the company has experienced significant fluctuations in free cash flow over the years, which may indicate inconsistencies in cash generation and investment stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue24.43M23.64M31.08M49.70M47.17M40.40M
Gross Profit13.25M12.85M13.33M27.64M38.18M22.77M
EBITDA-2.50M-244.62K-870.00K27.13M40.10M5.46M
Net Income643.34K1.12M-2.52M-10.42M21.39M-603.26K
Balance Sheet
Total Assets45.29M45.29M82.09M91.32M104.99M81.69M
Cash, Cash Equivalents and Short-Term Investments22.64M22.64M60.71M39.63M44.10M25.61M
Total Debt0.000.000.001.95M2.83M13.86M
Total Liabilities11.15M11.15M12.08M18.54M24.35M28.55M
Stockholders Equity34.13M34.13M70.01M72.78M80.64M53.15M
Cash Flow
Free Cash Flow-4.34M-3.78M11.70M3.09M19.92M5.10M
Operating Cash Flow1.64M1.83M11.70M25.48M20.67M20.42M
Investing Cash Flow-2.39M-1.95M10.18M-23.31M13.71M-15.39M
Financing Cash Flow-39.46M-38.65M0.00-3.42M-12.76M-12.36M

Otto Energy Limited Technical Analysis

Technical Analysis Sentiment
Last Price0.01
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEL, the sentiment is undefined. The current price of 0.01 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for AU:OEL.

Otto Energy Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
59
Neutral
AU$13.56M-100.00-8.36%-7.30%
52
Neutral
AU$19.18M43.332.14%-22.76%
48
Neutral
AU$19.46M-1.71-59.58%4.41%-49.06%
48
Neutral
AU$22.05M-1.39-70.94%
48
Neutral
AU$159.32M19.11168.99%
40
Underperform
AU$11.00M-2.40-7.92%16.52%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OEL
Otto Energy Limited
0.01
<0.01
18.18%
AU:ADX
ADX Energy
0.03
0.00
0.00%
AU:BRU
Buru Energy
0.02
-0.02
-46.34%
AU:ROG
Red Sky Energy Limited
AU:GAS
State Gas Ltd.
0.02
-0.02
-42.50%
AU:FDR
Finder Energy Holdings Limited
0.37
0.33
886.49%

Otto Energy Limited Corporate Events

Otto Energy’s AGM Reflects Strong Shareholder Support
Nov 27, 2025

Otto Energy Limited held its 2025 Annual General Meeting, where key resolutions were passed, including the adoption of the remuneration report and the re-election of director Geoff Page. The results indicate strong shareholder support for the company’s management and strategic direction, which could positively impact its market positioning and stakeholder confidence.

Otto Energy Updates on Reserves and Resources Assessment
Nov 27, 2025

Otto Energy Limited has released a presentation detailing its reserves and resources as of June 30, 2025. The company has engaged Ryder Scott Company, an independent petroleum engineering consultant, to assess its reserves. The report highlights the company’s adherence to industry standards and provides insights into its potential future production capabilities. This announcement underscores Otto Energy’s commitment to transparency and strategic planning in the competitive oil and gas sector.

Otto Energy Reports Strong FY2025 Performance and Strategic Leadership Changes
Nov 27, 2025

Otto Energy Limited reported a profitable FY2025, maintaining a strong balance sheet and remaining debt-free amidst a volatile commodity market. The company achieved a total profit after tax of US$0.7 million, distributed USD$25 million to shareholders, and reduced administration expenses by 26%. Leadership changes, including the appointment of a new CEO, align with the company’s focus on capital discipline and asset optimization, positioning it for future growth and shareholder value enhancement.

Otto Energy Reports Strong Cash Flow and Leadership Changes in Q3 2025
Oct 31, 2025

Otto Energy Limited reported a cash balance of US$16.9 million with no debt and a net operating cash inflow of US$2.0 million for the quarter ending September 2025. The company saw an 11% increase in oil production due to improved uptime, although gas production slightly decreased. Notably, there were significant corporate changes, with the appointment of Chris Dorros as CEO and board restructuring, which could influence the company’s strategic direction and stakeholder relations.

Otto Energy Releases 2025 Corporate Governance Statement
Oct 27, 2025

Otto Energy Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations. This disclosure is part of Otto Energy’s commitment to transparency and accountability, ensuring stakeholders are informed about the governance practices in place to manage and oversee the company’s operations effectively.

Otto Energy Introduces Unmarketable Parcel Sale Facility
Oct 27, 2025

Otto Energy Limited has announced the establishment of an Unmarketable Parcel Sale Facility to assist shareholders holding less than A$500 worth of shares. This initiative aims to help these shareholders sell their shares without incurring brokerage or handling costs, while also reducing Otto Energy’s administrative expenses. The facility is expected to streamline operations by minimizing the number of small shareholdings, which can be costly to manage.

Otto Energy Limited Announces 2025 Annual General Meeting
Oct 24, 2025

Otto Energy Limited has announced its Annual General Meeting, scheduled for November 27, 2025, in Perth. The meeting will address key agenda items, including the consideration of the company’s financial statements and reports, the adoption of the Remuneration Report, and the re-election of Director Geoff Page. Shareholders are encouraged to participate as their votes are crucial for these resolutions, although the vote on the Remuneration Report is advisory and non-binding.

Otto Energy Announces Leadership Change with New Interim Chairman
Oct 1, 2025

Otto Energy Limited has announced a change in its board leadership, with Mr. Justin Clyne stepping in as the Interim Company Chairman effective October 1, 2025. Mr. Clyne brings extensive experience in international law and corporate regulations, having served in various capacities for both publicly listed and unlisted companies in Australia and North America. This leadership change is expected to leverage Mr. Clyne’s expertise in corporate advisory services, potentially enhancing Otto’s strategic operations and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Dec 30, 2025