Bengal Energy (BNG) AI Stock Analysis

• Market Cap: C$7.28M
• Dividend Yield: N/A
• Average Volume (3M): 64.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.93
• Revenue Growth: -32.11%
• EPS Growth: 66.67%
• Country: CA
• Employees: 5
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 485,304,230
• 10 Day Avg. Volume: 55,217
• 30 Day Avg. Volume: 64,335
• PEG Ratio: <0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 1.50
• P/FCF Ratio: -12.99
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$0.02 ▲(50.00% Upside)

The score is held back primarily by weak financial performance (declining revenue, significant operating losses, and negative free cash flow), partially offset by low leverage and moderate technical momentum signals. Valuation remains challenging due to ongoing losses (negative P/E) and no dividend yield support.

Positive Factors

Low Leverage

Very low debt-to-equity gives Bengal flexibility to fund near-term capital needs, pursue selective drilling or asset deals, and withstand commodity volatility without large interest burdens; this improves solvency prospects over the next 2–6 months.

High Gross Margin

A gross margin around 59% indicates relatively low lifting and direct production costs per barrel of oil equivalent, providing structural operating leverage. If volumes or commodity realizations improve, margins support quicker moves toward positive operating cash flow.

Clear Hydrocarbon Revenue Model

Revenue streams are straightforward and tied to oil and gas production, with optionality from asset transactions, JV arrangements and potential hedging. That clear business model supports predictable revenue drivers tied to production and commodity cycles.

Negative Factors

Deep Operating Losses

Sustained negative EBITDA and near -100% net margin erode equity and limit reinvestment capacity. Continued operating losses make the business reliant on external capital or asset sales to fund operations, weakening long-term self-sufficiency and strategic optionality.

Negative Cash Generation

Negative operating and free cash flows mean the company is not self-funding capital spending or debt servicing. Over the medium term this raises financing risk, constrains drilling and development, and increases the chance of dilutive financing or asset disposals.

Negative Returns on Equity

A materially negative ROE signals the business is destroying shareholder value rather than generating adequate returns from assets. Persistently negative ROE reduces investor confidence and limits ability to raise capital on favorable terms for growth or restructuring.

Bengal Energy Business Overview & Revenue Model

Company Description

Bengal Energy Ltd. engages in the exploration, development, and production of oil and gas reserves in Australia. It principally holds interests in the PL 303 Cuisinier, ATP 934 Barrolka, ATP 732 Tookoonooka, and four petroleum licenses situated within an area of the Cooper Basin. The company was formerly known as Avery Resources Inc. and changed its name to Bengal Energy Ltd. in July 2008. Bengal Energy Ltd. was incorporated in 1999 and is headquartered in Calgary, Canada.

How the Company Makes Money

Bengal Energy makes money through the exploration, development, and production of oil and natural gas. Revenue is primarily generated by selling produced oil and gas at market prices. The company holds interests in various exploration and production licenses, allowing it to extract hydrocarbons and sell them to wholesalers, refiners, and other customers in the energy market. Key revenue streams include the sale of crude oil, natural gas, and condensates. Significant factors contributing to Bengal Energy's earnings include fluctuations in global oil and gas prices, production volumes, and operational efficiency. The company may also engage in strategic partnerships and joint ventures to enhance its exploration and production capabilities, although specific partnerships are not detailed here.

Bengal Energy Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (-6.6%) and profitability is deeply negative (EBIT/EBITDA negative; net margin around -100%). Cash generation is also poor with slightly negative operating cash flow and negative free cash flow. The main offset is a relatively conservative balance sheet with modest leverage (debt-to-equity ~0.07), providing some financial flexibility despite negative ROE (~-17.5%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-6.6%), and profitability remains weak despite a solid gross margin (~59%). The company is deeply loss-making at the operating level (EBIT and EBITDA negative) and is near breakeven only at the gross profit line, with net margin around -100% in TTM. Results have deteriorated versus the profitable FY2023, indicating earnings volatility and limited cost absorption at current scale.

Balance Sheet

Leverage is modest (TTM debt-to-equity ~0.07), providing balance-sheet flexibility for an E&P company. However, returns on equity are meaningfully negative (TTM ROE ~-17.5%), reflecting ongoing losses and pressure on shareholder value. Asset and equity levels appear relatively stable, but the key weakness is the lack of profitable returns on that capital base.

Cash Flow

Cash generation is weak: TTM operating cash flow is slightly negative and free cash flow is also negative, signaling the business is not currently self-funding. While free cash flow is less negative than in some prior periods, the trajectory is volatile (TTM free cash flow growth sharply negative), and cash flows are not yet consistently supporting operations or investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.30M	5.12M	8.15M	6.48M	7.65M	5.23M
Gross Profit	2.52M	1.29M	6.48M	3.38M	6.12M	3.59M
EBITDA	-3.29M	-3.03M	1.96M	-11.29M	745.00K	6.17M
Net Income	-4.30M	-4.18M	703.00K	-12.73M	-374.00K	3.93M
Balance Sheet
Total Assets	30.76M	30.64M	49.70M	34.36M	48.58M	44.25M
Cash, Cash Equivalents and Short-Term Investments	814.00K	708.00K	795.00K	692.00K	5.41M	4.53M
Total Debt	1.70M	1.70M	32.00K	0.00	68.00K	99.00K
Total Liabilities	7.07M	6.60M	8.16M	6.66M	6.66M	5.52M
Stockholders Equity	23.69M	24.04M	41.53M	27.71M	41.92M	38.73M
Cash Flow
Free Cash Flow	-279.00K	-448.00K	-3.38M	-747.00K	-2.26M	-892.00K
Operating Cash Flow	-211.00K	-392.00K	2.11M	-273.00K	835.00K	301.00K
Investing Cash Flow	370.00K	265.00K	-6.71M	228.00K	-4.06M	-680.00K
Financing Cash Flow	137.00K	139.00K	-40.00K	-32.00K	4.12M	3.83M

Bengal Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNG, the sentiment is Positive. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNG.

Bengal Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VUX	66 Neutral	C$14.89M	7.23	12.78%	―	16.71%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BNG	49 Neutral	C$7.28M	-1.69	-16.45%	―	-32.11%	66.67%
BDR	45 Neutral	C$9.05M	-1.46	-575.47%	―	―	-920.00%
PUL	45 Neutral	C$6.23M	-1.70	-20.40%	―	-23.57%	-388.89%
CEC	41 Neutral	C$7.90M	-2.55	-43.43%	―	―	-1150.00%

Bengal Energy Corporate Events

Bengal Energy Reports Decline in Q2 Fiscal 2026 Results Amid Operational Challenges

Bengal Energy reported a decline in its financial performance for the second quarter of fiscal 2026, with crude oil sales revenue falling by 24% compared to the previous year. The company faced operational challenges, including a decrease in production due to downtime at several wells and delays in production improvements caused by flooding in the Cooper Basin. Despite efforts to explore farm-out opportunities and other corporate initiatives, Bengal has been unable to advance these due to market conditions, impacting its ability to increase shareholder value.