Otto Energy Limited (OEL) AI Stock Analysis

• Market Cap: AU$21.58M
• Dividend Yield: N/A
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): 43.3
• Beta (1Y): -0.22
• Revenue Growth: -22.76%
• EPS Growth: N/A
• Country: AU
• Employees: 8
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): <0.01
• Shares Outstanding: 4,795,010,000
• 10 Day Avg. Volume: 6,418,300
• 30 Day Avg. Volume: 3,371,545
• PEG Ratio: -0.08
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -3.91
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• 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 Business Overview & Revenue Model

Company Description

Otto 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 Money

Otto 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

Financial performance is mixed: a conservative, no-debt balance sheet (strong) offsets volatile profitability and a weak cash-flow profile. Revenue has declined for three straight years and 2025 operating profitability weakened, while free cash flow turned materially negative in 2025 despite positive net income.

Income Statement

Profitability has been volatile. Revenue has contracted for three straight years (2025 annual: -14.2% after declines in 2024 and 2023), and operating profitability weakened to a loss in 2025 (negative EBIT and EBITDA margin). Offsetting this, 2025 still produced a small net profit (~4.8% net margin) and gross margins remain solid (~54%), but the multi-year swing from strong 2022 profitability to losses in 2023–2024 highlights an uneven earnings profile.

Balance Sheet

The balance sheet is conservatively positioned with no debt in 2024 and 2025 (debt-to-equity at 0), reducing financial risk materially versus earlier years. Equity remains meaningful ($34.1M in 2025), though it has fallen sharply from 2024 levels ($70.0M), signaling value erosion or significant capital movements. Returns on equity are modest in 2025 (~3.3%), but the low leverage provides flexibility in a cyclical industry.

Cash Flow

Cash generation is mixed. Operating cash flow was positive in 2025 ($1.8M) but far below prior years, and free cash flow turned meaningfully negative in 2025 (-$3.8M) after being strongly positive in 2024 and 2022. Cash flow did not translate well to earnings in 2025 (free cash flow negative despite positive net income), suggesting higher spending or working-capital pressures; the history also includes a very weak 2020 with negative operating and free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.43M	23.64M	31.08M	49.70M	47.17M	40.40M
Gross Profit	13.25M	12.85M	13.33M	27.64M	38.18M	22.77M
EBITDA	-2.50M	-244.62K	-870.00K	27.13M	40.10M	5.46M
Net Income	643.34K	1.12M	-2.52M	-10.42M	21.39M	-603.26K
Balance Sheet
Total Assets	45.29M	45.29M	82.09M	91.32M	104.99M	81.69M
Cash, Cash Equivalents and Short-Term Investments	22.64M	22.64M	60.71M	39.63M	44.10M	25.61M
Total Debt	0.00	0.00	0.00	1.95M	2.83M	13.86M
Total Liabilities	11.15M	11.15M	12.08M	18.54M	24.35M	28.55M
Stockholders Equity	34.13M	34.13M	70.01M	72.78M	80.64M	53.15M
Cash Flow
Free Cash Flow	-4.34M	-3.78M	11.70M	3.09M	19.92M	5.10M
Operating Cash Flow	1.64M	1.83M	11.70M	25.48M	20.67M	20.42M
Investing Cash Flow	-2.39M	-1.95M	10.18M	-23.31M	13.71M	-15.39M
Financing Cash Flow	-39.46M	-38.65M	0.00	-3.42M	-12.76M	-12.36M

Otto Energy Limited Technical Analysis

• Last Price: 0.01

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ROG	59 Neutral	AU$10.84M	―	-8.36%	―	-7.30%	―
OEL	52 Neutral	AU$21.58M	43.33	2.14%	―	-22.76%	―
ADX	50 Neutral	AU$22.67M	-1.96	-59.58%	―	4.41%	-49.06%
BRU	48 Neutral	AU$23.06M	-1.46	-70.94%	―	―	―
FDR	48 Neutral	AU$206.02M	21.73	168.99%	―	―	―
GAS	43 Neutral	AU$9.46M	-2.50	-7.92%	―	―	16.52%

Otto Energy Limited Corporate Events

Otto Energy Completes Sale of Unmarketable Share Parcels to Streamline Register

Otto Energy Limited has completed its share sale facility for holders of unmarketable parcels, defined as holdings worth less than A$500 based on the October 24, 2025 record date, resulting in the sale of 42,750,844 shares from 1,680 small shareholders on market for total proceeds of A$172,860.91. Following the clean-up of 53,054,332 originally identified unmarketable shares, Otto’s shareholder register has been reduced to 1,602 holders while the total shares on issue remain unchanged at 4.8 billion, a move the company says will lower ongoing administrative, printing, mailing and registry costs associated with maintaining a large number of very small holdings, thereby improving operational efficiency for the company and its investors.

The most recent analyst rating on (AU:OEL) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Otto Energy Limited stock, see the AU:OEL Stock Forecast page.

Otto Energy’s AGM Reflects Strong Shareholder Support

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

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

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

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

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

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

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.