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Nostrum Oil & Gas (GB:NOG)
LSE:NOG

Nostrum Oil & Gas (NOG) AI Stock Analysis

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Nostrum Oil & Gas

(LSE:NOG)

Rating:47Neutral
Price Target:
3.50p
▲(2.94%Upside)
Nostrum Oil & Gas's overall stock score is primarily hindered by its weak financial performance, characterized by persistent net losses and negative equity, which pose significant risks. Technical analysis supports a bearish outlook, compounded by a poor valuation with negative earnings. However, recent corporate events indicating strong operational performance and strategic developments provide some optimism for future growth, partially offsetting the financial challenges.

Nostrum Oil & Gas (NOG) vs. iShares MSCI United Kingdom ETF (EWC)

Nostrum Oil & Gas Business Overview & Revenue Model

Company DescriptionNostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is 100% owned Chinarevskoye field located in North-western Kazakhstan. As of December 31, 2021, the company had proved and probable reserves of 34 million barrels of oil equivalent (mmboe) and 28 mmboe of contingent resources. Nostrum Oil & Gas PLC was founded in 1997 and is based in London, the United Kingdom.
How the Company Makes MoneyNostrum Oil & Gas generates revenue through the extraction and sale of hydrocarbons, including crude oil, condensate, LPG, and dry gas. The company operates through a network of production facilities and pipelines, which enable it to efficiently bring its products to market. Key revenue streams include the sale of crude and condensate to international oil trading companies and refineries, as well as the sale of LPG and dry gas to regional consumers. Significant factors contributing to its earnings include the company's ability to optimize production costs, maintain stable output levels, and capitalize on favorable market pricing conditions. Additionally, strategic partnerships and contracts with international buyers and service providers enhance its revenue potential.

Nostrum Oil & Gas Financial Statement Overview

Summary
Nostrum Oil & Gas faces substantial financial challenges, including inconsistent revenue trends, persistent net losses, and negative equity. While operational cash generation is strong, the company's high leverage poses significant risks. The firm must address its profitability issues and leverage to enhance financial health and stability.
Income Statement
45
Neutral
Nostrum Oil & Gas has experienced a volatile revenue trend with significant fluctuations in profitability. The gross profit margin for 2024 is approximately 47.5%, a notable improvement from 2023. However, the net profit margin is negative at -19.4%, indicating the company is struggling with profitability. Revenue growth from 2023 to 2024 was approximately 14.6%, showing resilience in top-line growth. EBIT margin for 2024 is 15.9%, while EBITDA margin stands impressively at 104.6%, suggesting strong operational cash generation despite net losses.
Balance Sheet
30
Negative
The company's balance sheet reveals significant financial distress, with negative stockholders' equity of -$92.5 million as of 2024, indicating insolvency issues. The debt-to-equity ratio is not calculable due to negative equity, reflecting high financial leverage and risk. The equity ratio is also negative, reinforcing concerns about the company's financial stability and potential default risk.
Cash Flow
40
Negative
Nostrum Oil & Gas shows a weak cash flow position, with inconsistent free cash flow figures. The operating cash flow to net income ratio is negative due to net losses, indicating cash flow challenges. Free cash flow to net income ratio is similarly affected. Despite a small positive free cash flow in 2024, the growth rate is unstable due to previous periods' negative results.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
137.08M119.63M199.72M195.28M175.94M
Gross Profit
65.07M42.00M115.66M99.65M50.55M
EBIT
21.80M656.00K24.37M44.68M-19.96M
EBITDA
143.38M973.69M76.21M101.97M69.81M
Net Income Common Stockholders
-26.58M831.66M-116.44M-26.12M-327.43M
Balance SheetCash, Cash Equivalents and Short-Term Investments
150.42M161.71M233.58M165.25M78.58M
Total Assets
606.00M519.34M590.12M565.31M505.42M
Total Debt
571.37M471.75M1.40B1.29B1.19B
Net Debt
420.95M310.04M1.16B1.12B1.11B
Total Liabilities
698.48M585.01M1.53B1.39B1.27B
Stockholders Equity
-92.54M-66.17M-940.23M-823.25M-759.75M
Cash FlowFree Cash Flow
535.00K-19.48M87.43M108.58M56.47M
Operating Cash Flow
33.08M-2.22M102.20M117.42M82.75M
Investing Cash Flow
-26.47M-28.08M-15.78M-19.78M-40.10M
Financing Cash Flow
-17.71M-41.62M-17.48M-10.86M-58.43M

Nostrum Oil & Gas Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.40
Price Trends
50DMA
3.76
Negative
100DMA
3.41
Negative
200DMA
3.60
Negative
Market Momentum
MACD
-0.17
Negative
RSI
43.58
Neutral
STOCH
51.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NOG, the sentiment is Negative. The current price of 3.4 is below the 20-day moving average (MA) of 3.55, below the 50-day MA of 3.76, and below the 200-day MA of 3.60, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NOG.

Nostrum Oil & Gas Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.16B3.10-4.49%5.66%0.82%-49.15%
GBEOG
50
Neutral
£5.04M-95.12%-46.40%-688.89%
50
Neutral
£8.96M
GBNOG
47
Neutral
£5.61M
-0.72%72.76%
GBTRP
£6.89M-2.81%
£7.92M-2.34%
33
Underperform
£7.90M-39.00%27.27%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NOG
Nostrum Oil & Gas
3.40
-1.46
-30.04%
GB:EOG
Europa Oil & Gas (Holdings)
0.55
-0.35
-38.89%
GB:MSMN
Mosman Oil and Gas
0.04
0.01
33.33%
GB:TRP
Tower Resources
0.02
0.01
100.00%
GB:BLOE
Block Energy Plc
1.02
-0.33
-24.44%
GB:ORCA
Orcadian Energy Plc
10.00
0.50
5.26%

Nostrum Oil & Gas Corporate Events

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Nostrum Oil & Gas Releases 2024 Annual Report and Announces 2025 AGM
Neutral
Jun 6, 2025

Nostrum Oil & Gas PLC has published its Annual Report and Accounts for the year ending 31 December 2024, alongside the notice for its 2025 Annual General Meeting. The meeting is scheduled for 30 June 2025 in London, and the documents have been submitted to the Financial Conduct Authority for inspection. This publication is a routine disclosure that provides shareholders and stakeholders with insights into the company’s financial health and strategic direction.

The most recent analyst rating on (GB:NOG) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Nostrum Oil & Gas stock, see the GB:NOG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Nostrum Oil & Gas Reports Strong Q1 2025 Performance and Strategic Milestones
Positive
May 20, 2025

Nostrum Oil & Gas PLC reported a strong start to 2025 with a 41% year-over-year increase in average daily titled production and a 68% rise in total processed volumes, driven by the ramp-up of Ural Oil & Gas LLP production and new output from Chinarevskoye well No.301. Despite a slight dip in revenue to $30 million due to a temporary crude oil inventory build-up, the company achieved a 2.8% increase in EBITDA and reduced operating expenses per barrel by 39.5%. The approval of a phased full-field development plan for the Stepnoy Leopard fields marks a significant milestone, targeting production start-up between late 2026 and early 2027, while an extended processing agreement with Ural O&G secures long-term value until 2031.

The most recent analyst rating on (GB:NOG) stock is a Buy with a £13.00 price target. To see the full list of analyst forecasts on Nostrum Oil & Gas stock, see the GB:NOG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Nostrum Oil & Gas Achieves Strong Q1 2025 Performance Amid Strategic Developments
Positive
Apr 30, 2025

Nostrum Oil & Gas reported a strong operational performance in Q1 2025, with a 41% increase in average daily titled production volumes and a 68% rise in total processed volumes compared to the previous year. This growth was driven by increased production from Ural Oil & Gas and the completion of well No.301. The company also secured approval for a phased development plan for the Stepnoy Leopard fields, extending until 2044, and entered a new processing agreement with Ural O&G to ensure sustainable cash flows. Financially, Nostrum’s revenue was slightly impacted by a temporary crude oil inventory build-up, but the company maintained a stable cash position and continues to focus on cost control and operational efficiency.

Regulatory Filings and Compliance
Nostrum Oil & Gas Releases 2024 Government Payments Report
Neutral
Apr 25, 2025

Nostrum Oil & Gas PLC has published its 2024 report on payments to governments, detailing financial transactions in compliance with UK regulations. This transparency initiative is part of the company’s adherence to the Financial Conduct Authority’s rules, potentially impacting its reputation and stakeholder trust.

Business Operations and StrategyFinancial Disclosures
Nostrum Oil & Gas PLC Reports Strong 2024 Performance and Strategic Developments
Positive
Apr 23, 2025

Nostrum Oil & Gas PLC reported robust financial and operational performance for the year ended 31 December 2024, with a 48% increase in production volumes and nearly doubled processed volumes. The company achieved significant revenue and EBITDA growth, driven by increased processing efficiencies and disciplined cost management. Key milestones included the ramp-up of raw gas feedstock from Ural Oil & Gas LLP, additional production from the Chinarevskoye drilling program, and the approval of a phased development plan for the Stepnoy Leopard fields by Kazakhstan’s Ministry of Energy. The company also extended its agreement with Ural O&G for processing third-party hydrocarbons, ensuring sustainable cash flows and plant operations until 2031. Nostrum maintained a strong liquidity position with net positive operating cash flows and a substantial unrestricted cash balance, while also achieving a zero-fatality record and reducing emission intensity by 28%.

Other
Nostrum Oil & Gas PLC Announces Change in Voting Rights Structure
Neutral
Apr 10, 2025

Nostrum Oil & Gas PLC has announced a change in its voting rights structure following an acquisition or disposal of shares. First Equity Limited, acting as the investment manager for Armstrong Investments Limited, has adjusted its holdings, resulting in a decrease in voting rights from 7.037366% to 6.892191%. This change reflects a shift in the company’s shareholder composition, which may influence future decision-making processes and stakeholder relations.

Delistings and Listing ChangesBusiness Operations and Strategy
Nostrum Oil & Gas Adjusts Share Capital with Share Cancellation
Neutral
Apr 7, 2025

Nostrum Oil & Gas PLC announced the cancellation of 4,136,578 ordinary shares, adjusting its issued share capital to 165,244,983 shares, each with a nominal value of £0.01. This move impacts the company’s total voting rights and is significant for shareholders calculating their interests under the FCA’s Disclosure Guidance and Transparency Rules. The cancellation reflects the company’s ongoing management of its share capital and may influence its market positioning and stakeholder interests.

Business Operations and Strategy
Nostrum Oil & Gas Secures Approval for Stepnoy Leopard Field Development
Positive
Apr 4, 2025

Nostrum Oil & Gas PLC announced that the Ministry of Energy of Kazakhstan approved a phased, full-field development plan for the Stepnoy Leopard fields, extending until 2044. This approval marks a significant milestone in Nostrum’s strategy, enhancing the utilization of its gas processing facilities and boosting future cash flows. The development plan aligns with the company’s target production start-up between late 2026 and early 2027, optimizing capital allocation and strengthening its market position.

Business Operations and Strategy
Nostrum Oil & Gas Extends Processing Agreement with Ural O&G to 2031
Positive
Mar 21, 2025

Nostrum Oil & Gas has extended its processing agreement with Ural Oil & Gas for hydrocarbons from the Rozhkovskoye field until May 2031. This extension is expected to enhance Nostrum’s operational capacity and support its growth strategy by securing additional third-party hydrocarbon feedstock, while also benefiting Ural O&G by facilitating further development of the Rozhkovskoye field.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.