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

• Market Cap: £4.80M
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 12
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 959,184,200
• 10 Day Avg. Volume: 2,339,962
• 30 Day Avg. Volume: 2,295,716
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: £0.50
• Price Target Upside: -19.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 0.50p ▼(-19.35% Downside)

The overall stock score reflects significant financial challenges, with Europa Oil & Gas showing weak financial performance and valuation concerns. However, positive corporate events offer potential for improvement, partially offsetting current weaknesses.

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

Company Description

Europa Oil & Gas (Holdings) plc is a UK-based oil and gas exploration and production company. The company primarily engages in the exploration and development of oil and gas reserves across the United Kingdom and Ireland. Europa Oil & Gas focuses on both onshore and offshore licenses, aiming to discover and develop hydrocarbon resources that contribute to regional energy needs.

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 is facing significant financial challenges with a sharp decline in revenue and negative profitability. The income statement, balance sheet, and cash flow indicate operational inefficiencies and liquidity concerns, with a net loss and negative free cash flow impacting financial stability.

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: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 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 0.62 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.52, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 58.94 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
Sector *	67 Neutral	$15.01B	9.77	7.81%	5.64%	4.51%	-61.80%
EOG	51 Neutral	£4.80M	―	-95.12%	―	―	―
EME	25 Underperform	£6.29M	―		―	―	-312.90%

Europa Oil & Gas (Holdings) Corporate Events

Europa Oil & Gas Advances Farm-Out Negotiations for Equatorial Guinea Project

Europa Oil & Gas (Holdings) plc has announced that its associated company, Antler Global Limited, has entered into commercial discussions and signed a non-binding Heads of Terms with a major energy company to farm-out an interest in the EG-08 production sharing contract in Equatorial Guinea. This development marks a significant step forward in the company’s strategic plans, although the agreement is still subject to approval from the Minister for Energy of Equatorial Guinea. The EG-08 block contains substantial reserves, with the Barracuda prospect being a key focus. The company’s CEO expressed optimism about finalizing the farm-out agreement and progressing to drilling operations, which could enhance Europa’s positioning in the oil and gas industry.

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.