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

• Market Cap: £4.80M
• Dividend Yield: N/A
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -46.40%
• EPS Growth: -688.89%
• Country: UK
• Employees: 12
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 959,184,200
• 10 Day Avg. Volume: 4,081,486
• 30 Day Avg. Volume: 3,997,526
• 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: 50 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 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 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
	EBIT
-2.05M	1.22M	1.62M	-591.00K	-1.17M
	EBITDA
-5.56M	702.00K	3.24M	-496.00K	-4.99M
	Net Income Common Stockholders
-6.78M	-852.00K	1.36M	-718.00K	-9.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.46M	5.17M	1.42M	683.00K	812.00K
	Total Assets
9.78M	15.64M	17.01M	8.27M	6.74M
	Total Debt
12.00K	22.00K	57.00K	50.00K	50.00K
	Net Debt
-1.45M	-5.14M	-1.34M	-591.00K	-718.00K
	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: Negative
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.59, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
EOG	50 Neutral	£4.80M	―	-95.12%	―	-46.40%	-688.89%
EME	25 Underperform	£1.03M	―		―	―	-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.

Europa Oil & Gas CEO Increases Stake with Share Purchase

Europa Oil & Gas (Holdings) plc announced that its CEO, William Holland, has acquired 765,763 ordinary shares in the company at an average price of 0.71 pence per share. This acquisition increases Mr. Holland’s total shareholding to 7,109,716 shares, representing approximately 0.741% of the company’s issued share capital, potentially signaling confidence in the company’s future prospects.

Europa Oil & Gas Reports Improved Financials and Project Progress

Europa Oil & Gas (Holdings) plc reported improved financial performance for the five-month period ending December 2024, with revenue increasing to £1.2 million and a reduced pre-tax loss of £0.3 million. The company is progressing with key projects, including the Cloughton gas field appraisal in the UK and the Barracuda prospect in Equatorial Guinea, both of which have attracted significant interest from potential partners. The company is also advancing its offshore Ireland exploration efforts, supported by favorable government policies. Despite challenges such as a weaker oil price and planning application setbacks, Europa remains optimistic about its future cash flow and project developments.