Europa Oil & Gas (Holdings) (EOG) AI Stock Analysis

• Market Cap: £5.52M
• Dividend Yield: N/A
• Average Volume (3M): 3.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -46.40%
• EPS Growth: -688.89%
• Country: UK
• Employees: 12
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 959,184,200
• 10 Day Avg. Volume: 2,766,603
• 30 Day Avg. Volume: 3,403,944
• PEG Ratio: 0.11
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.74
• 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

• Rating: 49 Neutral
• Price Target: 0.50p ▼(-3.85%Downside)

Europa Oil & Gas exhibits significant financial weaknesses, notably in declining revenue and profitability. Technical indicators reflect bearish market sentiment. However, recent corporate events, including strategic financing and insider confidence, offer potential for future improvement.

Europa Oil & Gas (Holdings) Business Overview & Revenue Model

Company Description

Europa Oil & Gas (Holdings) plc, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties. The company owns a 99% working interest in the West Firsby; 100% working interest in the Crosby Warren fields; and a 65% working interest in the Whisby-4 oilfields located in the East Midlands, the United Kingdom. It also owns interests in the PEDL180 development license, as well as PEDL181, PEDL182, and PEDL343 exploration licenses in the United Kingdom; and FEL 3/19 and FEL 4/19 exploration licenses in Ireland. In addition, the company holds a 75% interest in the Inezgane Permit situated in Morocco. Europa Oil & Gas (Holdings) plc was founded in 1995 and is based in London, the United Kingdom.

How the Company Makes Money

Europa Oil & Gas generates revenue through the exploration, development, and production of oil and gas reserves. The company monetizes its hydrocarbon discoveries by extracting and selling crude oil and natural gas. Revenue streams primarily consist of the sale of produced oil and gas to refineries and energy companies. Additionally, Europa engages in farm-outs and partnerships with other exploration and production companies, which can provide capital investment and share the costs and risks associated with exploration activities. These partnerships often result in shared revenue from successful discoveries and production. The company's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies.

Europa Oil & Gas (Holdings) Financial Statement Overview

Summary

Europa Oil & Gas faces substantial financial challenges, with declining revenues and profitability, evidenced by negative EBIT and EBITDA margins. Despite a healthy cash position, the overall financial health is weak, necessitating operational improvements.

Income Statement

The income statement indicates a significant decline in revenue from the previous year, dropping from 6.65 million to 3.57 million. Gross profit margin is extremely low, at just 0.34%, and the company is experiencing negative EBIT and EBITDA margins, with a net loss significantly increasing to 6.78 million. This suggests operational challenges and decreased profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, supported by low total debt levels. However, the equity ratio has decreased due to reduced stockholders' equity, reflecting potential financial instability. Despite this, the company maintains a healthy cash position with negative net debt, indicating liquidity strength.

Cash Flow

Cash flow analysis reveals a declining operating cash flow and negative free cash flow, indicating deteriorating cash generation capacity. The company has a negative free cash flow to net income ratio, highlighting challenges in converting income into cash. This could impact future investments and operational sustainability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.57M	6.65M	6.58M	1.37M	1.24M
Gross Profit	260.00K	3.38M	2.21M	123.00K	-354.00K
EBITDA	-5.56M	702.00K	3.24M	-496.00K	-4.99M
Net Income	-6.78M	-852.00K	1.36M	-718.00K	-9.71M
Balance Sheet
Total Assets	9.78M	15.64M	17.01M	8.27M	6.74M
Cash, Cash Equivalents and Short-Term Investments	1.46M	5.17M	1.42M	683.00K	812.00K
Total Debt	12.00K	22.00K	57.00K	50.00K	50.00K
Total Liabilities	6.00M	5.16M	5.78M	5.02M	4.26M
Stockholders Equity	3.78M	10.48M	11.23M	3.25M	2.49M
Cash Flow
Free Cash Flow	-1.29M	-2.83M	814.00K	-1.52M	-2.10M
Operating Cash Flow	-614.00K	2.78M	2.46M	-535.00K	-844.00K
Investing Cash Flow	-3.30M	1.27M	-8.27M	-986.00K	-1.25M
Financing Cash Flow	-8.00K	-19.00K	6.59M	1.40M	-27.00K

Europa Oil & Gas (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.52
• 50DMA: Positive
• 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 GB:EOG, the sentiment is Positive. The current price of 0.52 is above the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.57, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 78.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EOG.

Europa Oil & Gas (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOG	49 Neutral	£5.52M	―	-95.12%	―	-46.40%	-688.89%
Sector *	44 Neutral	AU$1.40B	-6.68	-23.02%	6.59%	5.33%	-26.92%
EME	25 Underperform	£893.93K	―		―	―	-312.90%

Europa Oil & Gas (Holdings) Corporate Events

Europa Oil & Gas Secures Revenue Swap to Boost Cash Flow

Europa Oil & Gas has entered into a Revenue Swap Agreement with a Canadian investment company, allowing it to receive an upfront payment of US$500,000 in exchange for 4.5% of the gross revenues from the Wressle 1 well’s oil production. This agreement provides non-dilutive financing, enhancing cash flow without affecting the company’s ability to secure further project financing for the development of the Wressle site, which holds significant potential for resource expansion.

Europa Oil & Gas Grants Options to CEO Under EMI Scheme

Europa Oil & Gas (Holdings) plc announced the granting of 5,599,840 options over Ordinary Shares under its 2024 EMI scheme. These options, awarded to CEO William Holland, will vest in three years and are contingent upon performance conditions related to the company’s share price. This move increases the total outstanding options to 56,439,840, potentially impacting the company’s future financial strategies and stakeholder interests.

Europa Oil & Gas Chairman Increases Stake with Major Share Purchase

Europa Oil & Gas (Holdings) plc announced that its Chairman, Bo Kroll, has acquired 5,000,000 ordinary shares of the company at an average price of 0.648 pence per share. This purchase increases Mr. Kroll’s total shareholding to approximately 6.563% of the company’s issued share capital, potentially signaling confidence in the company’s future prospects and impacting stakeholder perceptions.

Europa Oil & Gas CEO Increases Stake in Company

Europa Oil & Gas (Holdings) plc announced that its CEO, William Holland, has acquired 299,951 ordinary shares in the company at an average price of 0.575 pence per share. This transaction increases his total shareholding to 7,409,667 shares, representing approximately 0.772% of the company’s issued share capital, indicating a significant personal investment in the company’s future.

Europa Oil & Gas Announces Change in Major Shareholder Holdings

Europa Oil & Gas (Holdings) PLC has announced a change in its major holdings, with Christian William Ahlefeldt-Laurvig reducing his voting rights from 6.00% to 5.67% as of the notification date. This adjustment in holdings reflects recent transactions and indicates a slight shift in shareholder dynamics, which could influence the company’s governance and decision-making processes.