Union Jack Oil (UJO) AI Stock Analysis

• Market Cap: £6.16M
• Dividend Yield: N/A
• Average Volume (3M): 702.79K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 5
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 146,565,900
• 10 Day Avg. Volume: 70,727
• 30 Day Avg. Volume: 702,790
• PEG Ratio: -0.67
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 2.51
• P/FCF Ratio: -2.65
• 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): >-0.01
• Revenue Forecast (FY): £2.70M

• Rating: 58 Neutral
• Price Target: 3.50 p ▲(55.56% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is primarily supported by a very strong, low-risk balance sheet (no debt) and sustained profitability since 2022, but is held back by 2024’s sharp profitability compression and negative/volatile free cash flow. Technicals show short-term strength but overbought momentum and a weaker longer-term trend, while valuation is difficult to support due to the negative P/E and missing dividend yield.

Positive Factors

Zero debt balance sheet

A zero-debt balance sheet materially strengthens financial resilience: it reduces refinancing and interest-rate risk, preserves flexibility to fund development or acquisitions from equity/cash, and provides downside protection during commodity-price stress for an E&P with lumpy capex.

Sustained profitability since 2022

Transitioning from loss-making to sustained profit supports durable operational credibility and demonstrates the business can cover operating costs. Persistent profitability underpins retained earnings accumulation and improves capacity to fund future appraisal or development when cash generation stabilizes.

Production-linked business model

Revenue tied to non‑operated working interests provides asset-backed cash flow that endures while fields produce. Being non‑operator reduces day-to-day operating burden and capex execution risk, allowing the company to scale returns via portfolio management of licence stakes.

Negative Factors

Operating profitability deterioration

A sharp EBIT margin fall (from ~25% to ~2%) signals weaker earnings quality and higher cost or pricing pressure. Persistently compressed margins limit internal funding for capex, increase sensitivity to commodity swings, and raise risk of future impairments if not reversed.

Volatile, negative free cash flow

Sustained negative and volatile free cash flow threatens funding sustainability: it may force asset sales, partner funding, or external financing to meet development obligations, constraining strategic choices and heightening execution risk for future value-adding appraisal activity.

Declining revenue trend

Consecutive year revenue declines reduce scale and operating leverage, making margins more vulnerable to fixed costs and transport/processing charges. Continued top-line erosion would weaken cash generation and diminish the company's ability to fund growth or withstand lower commodity cycles.

Union Jack Oil Business Overview & Revenue Model

Company Description

Union Jack Oil plc operates as an onshore oil and gas company in the United Kingdom. The company focuses on production, drilling, development, and investment in hydrocarbon projects. It holds interests in the West Newton, Wressle Discovery, Broughton North, Biscathorpe, Keddington Oilfield Louth, North Somercotes, Louth Extension, Fiskerton Airfield Oilfield, North Kelsey, Dukes Wood, Kirklington, Widmerpool Gulf, Humber Basin, and Laughton projects. The company was incorporated in 2011 and is based in Bath, the United Kingdom.

How the Company Makes Money

UJO makes money primarily from its interests in producing oil and gas assets. Its core revenue stream is its share of hydrocarbon sales (net to its working interest) from fields in which it holds a licence interest; revenues are generally driven by production volumes and realized commodity prices (oil and gas). Cash flow is typically received after the operator markets the production and deducts applicable royalties/taxes (if any), transportation/processing charges, and operating costs (including the company’s share of field operating expenditure). UJO’s earnings are also influenced by capital allocation decisions across its portfolio: it funds its proportionate share of development and appraisal capital expenditures (capex) on projects, and successful development can increase future production and cash flows, while unsuccessful drilling/appraisal can result in expenses and asset impairments. In non-operated arrangements, the field operator manages day-to-day operations and marketing, and UJO’s financial performance depends in part on operator execution and agreed joint-venture terms. The company may also realize value through portfolio management activities such as acquiring or divesting licence interests; specific material partnership terms, offtake arrangements, hedging policies, or non-hydrocarbon revenue streams are null if not disclosed in the source materials provided.

Union Jack Oil Financial Statement Overview

Summary

Balance sheet strength is a major positive (zero debt and stable equity), and profitability has been sustained since 2022. However, 2024 showed sharp operating margin compression and continued revenue declines, while free cash flow was negative and volatile, raising sustainability risk despite positive operating cash flow.

Income Statement

Profitability has improved materially versus 2020–2021 (loss-making) with solid positive net margins in 2022–2024, but earnings quality has weakened recently: revenue fell in 2023 and again in 2024, and profitability compressed sharply in 2024 (EBIT margin ~2% vs ~25% in 2023). Gross margin remains healthy (~50% in 2024) yet the step-down in operating profitability suggests higher costs and/or lower realized pricing, increasing sensitivity to volatility.

Balance Sheet

The balance sheet is a clear strength: total debt is reported at zero across all periods, with sizeable and relatively stable equity (£~22m) supporting the asset base. Return on equity rebounded strongly in 2022 and remains positive in 2023–2024, though it has come down meaningfully in 2024, reflecting reduced profitability rather than balance-sheet strain.

Cash Flow

Cash generation is mixed and has deteriorated: operating cash flow is positive in 2022–2024, but fell sharply in 2024 versus prior years. Free cash flow is volatile and negative in 2023 and 2024 (large 2024 outflow), indicating heavy investment and/or working-capital drag that is not being funded by internally generated cash. While operating cash flow still exceeds net income in 2024, the large free-cash-flow deficit raises funding and sustainability risk if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88M	3.93M	5.07M	8.51M	1.89M	158.00K
Gross Profit	1.43M	1.97M	3.30M	5.10M	782.56K	-186.60K
EBITDA	-596.95K	562.42K	1.74M	5.23M	-223.24K	-1.72M
Net Income	-629.46K	649.21K	859.09K	3.61M	-853.01K	-1.87M
Balance Sheet
Total Assets	23.54M	23.85M	24.18M	26.36M	24.47M	21.34M
Cash, Cash Equivalents and Short-Term Investments	1.41M	2.53M	5.20M	7.16M	5.98M	7.27M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.16M	1.98M	2.28M	3.36M	4.27M	3.25M
Stockholders Equity	21.38M	21.87M	21.90M	23.01M	20.21M	18.09M
Cash Flow
Free Cash Flow	-2.50M	-3.72M	-597.12K	2.35M	-3.88M	-4.67M
Operating Cash Flow	-106.74K	344.37K	1.98M	5.92M	-579.71K	-1.41M
Investing Cash Flow	-1.36M	-2.75M	-2.10M	-3.66M	-3.40M	-4.36M
Financing Cash Flow	-266.42K	-266.42K	-1.84M	-1.08M	2.69M	6.41M

Union Jack Oil 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%
UJO	58 Neutral	£6.16M	-4.82	-2.88%	―	―	―
STAR	55 Neutral	£19.01M	-0.59	-29.57%	―	-20.85%	-105.70%
ANGS	54 Neutral	£11.97M	4.49	-21.11%	―	-12.15%	-200.00%
RBD	47 Neutral	£10.45M	-1.04	-7.46%	―	―	―
DELT	41 Neutral	£3.38M	-1.60	-594.72%	―	―	―

Union Jack Oil Corporate Events

Union Jack Oil Welcomes Key Permit Milestone at West Newton Gas Project

Union Jack Oil said its partner Rathlin Energy has secured a variation to the environmental permit for the West Newton A well site in East Yorkshire, allowing reservoir stimulation work on the WNA-2 well once certain pre-operational conditions are met. The recompletion aims to repair earlier wellbore damage and is viewed by Union Jack as a low-cost, low-risk step to de-risk the subsurface, optimise future production wells and clear a major regulatory hurdle for progressing the West Newton gas development, in which it holds a 16.665% interest, bolstering its role in UK domestic energy supply.

The permit variation is described as a key regulatory milestone that strengthens both Rathlin’s and Union Jack’s ability to advance their UK onshore assets within an environmental, social and governance framework. The company believes West Newton will become an important strategic asset for the UK as it seeks secure and affordable domestic energy, highlighting the broader significance of the project beyond the immediate operational benefits for the partners involved.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.

Union Jack Oil Reports Steady UK Output and US Growth as It Tightens Costs

Union Jack Oil has reported steady production and ongoing development across its core UK and US portfolios, highlighting its flagship Wressle field in Lincolnshire, which remains one of the UK’s most productive conventional oilfields with January output averaging around 267 barrels of oil per day and significant remaining 2P reserves, as well as a revived Keddington oilfield and the West Newton gas project, where contingent resources and further prospective targets underpin the company’s domestic growth options pending regulatory approvals. In the United States, the company’s Oklahoma operations with partner Reach Oil and Gas remain cash-flow positive despite lower oil prices, supported by successful production from the Moccasin and Andrews wells, near-term drilling at the high-impact Crossroads prospect, planned stimulation at Taylor 1-16, and an expanding mineral royalty portfolio, while management emphasises a renewed focus on costs and efficiencies to enhance corporate cash flow and position the business to benefit from future shifts in energy policy and market conditions on both sides of the Atlantic.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.

Union Jack Oil Says Second Requisition Notice Withdrawn Before Market Open

Union Jack Oil has disclosed that it received a second purported requisition notice for a general meeting from former director Craig Howie, which, after legal review, the board deemed invalid. The company further reported that Howie formally withdrew the notice before the market opened on 20 January 2026, rendering subsequent media commentary about the requisition premature and limiting any immediate governance or strategic implications for shareholders.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.

Union Jack Oil Rejects Former Director’s General Meeting Requisition as Invalid

Union Jack Oil has disclosed that it received a requisition notice for a general meeting from former director Craig Howie on 18 January 2026 but, following legal review, the board has determined that the notice is invalid. The move signals management’s intention to resist attempts by a former board member to convene a shareholder meeting, underlining the company’s focus on maintaining existing governance arrangements and control over its corporate agenda.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.

Union Jack Oil Strengthens Board With New Non-Executive Appointments and Corrects Major Shareholding

Union Jack Oil has strengthened its board with the appointment of senior energy executive Dr Donald Zac Phillips as an independent non-executive director and senior independent director, and accountant and significant shareholder John Americanos as a non-executive director, while confirming that Craig Howie has vacated his position as director. The company has also corrected the disclosed size of Americanos’s shareholding to 7,228,222 ordinary shares, representing about 4.73% of its issued share capital and 4.93% of total voting rights, underscoring efforts to enhance governance, technical oversight and financial expertise as it navigates a challenging period for the onshore oil and gas sector.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.

Union Jack Oil Strengthens Board with Two New Non-Executive Directors

Union Jack Oil has strengthened its board by appointing senior energy executive Dr Donald Zac Phillips as an independent Non-Executive Director and Senior Independent Director, and chartered certified accountant and significant shareholder John Americanos as a Non-Executive Director, both with immediate effect. The reshaped board, which also includes the removal of Craig Howie as a director, is expected to benefit from Phillips’s extensive technical and strategic oil and gas expertise and Americanos’s financial and property experience, supporting the company’s growth strategy and governance during a pivotal phase for its onshore UK and US operations amid challenging industry conditions.

The most recent analyst rating on (GB:UJO) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Union Jack Oil stock, see the GB:UJO Stock Forecast page.