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Bengal Energy Ltd. J (TSE:BNG)
TSX:BNG

Bengal Energy (BNG) AI Stock Analysis

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Bengal Energy

(TSX:BNG)

Rating:44Neutral
Price Target:
Bengal Energy's overall stock score is affected primarily by its financial struggles, with persistent losses and negative cash flows posing significant risks. While the recent refinancing is a positive move, it is overshadowed by declining revenues and production challenges. Technical indicators are mixed, and the lack of valuation attractiveness further weighs down the score.

Bengal Energy (BNG) vs. iShares MSCI Canada ETF (EWC)

Bengal Energy Business Overview & Revenue Model

Company DescriptionBengal Energy (BNG) is a Canadian-based oil and gas exploration and production company. The company primarily operates in the energy sector, focusing on the exploration, development, and production of oil and natural gas resources. Bengal Energy's core operations are concentrated in Australia, where it holds interests in several exploration permits and production licenses. The company's strategic approach involves leveraging its technical expertise and regional knowledge to identify and develop high-potential energy assets.
How the Company Makes MoneyBengal 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
Bengal Energy faces significant financial challenges with negative profit margins and cash flow issues. While the balance sheet shows low leverage and high equity, the overall financial health is compromised by persistent losses and declining revenue, posing a risk to long-term sustainability.
Income Statement
35
Negative
The company's gross profit margin in TTM is approximately 50.9%, indicating efficiency in production. However, the net profit margin is negative due to significant net losses, and the revenue has experienced a decline of about 5.5% from the previous year. EBIT and EBITDA margins are also negative, highlighting challenges in operational profitability.
Balance Sheet
47
Neutral
The debt-to-equity ratio is low, suggesting lower financial leverage, which is positive. However, return on equity is negative due to net losses, impacting shareholder returns. The equity ratio is healthy at 80%, indicating financial stability.
Cash Flow
30
Negative
The company's free cash flow is negative, and there is a declining trend in operating cash flow. The operating cash flow to net income ratio is also negative, indicating cash inefficiencies relative to profitability.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue6.12M6.48M8.15M7.65M5.23M8.10M
Gross Profit3.12M3.38M6.48M6.12M3.59M6.39M
EBITDA-11.33M-11.29M1.96M745.00K6.17M-219.00K
Net Income-12.84M-12.73M703.00K-374.00K3.93M-2.90M
Balance Sheet
Total Assets33.56M34.36M49.70M48.58M44.25M39.57M
Cash, Cash Equivalents and Short-Term Investments702.00K692.00K795.00K5.41M4.53M998.00K
Total Debt1.67M0.0032.00K68.00K99.00K17.90M
Total Liabilities6.71M6.66M8.16M6.66M5.52M22.63M
Stockholders Equity26.85M27.71M41.53M41.92M38.73M16.94M
Cash Flow
Free Cash Flow-556.00K-747.00K-3.38M-2.26M-892.00K-886.00K
Operating Cash Flow-409.00K-273.00K2.11M835.00K301.00K1.13M
Investing Cash Flow-1.59M228.00K-6.71M-4.06M-680.00K-2.76M
Financing Cash Flow1.71M-32.00K-40.00K4.12M3.83M-160.00K

Bengal Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
<0.01
Positive
RSI
27.37
Positive
STOCH
133.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNG, the sentiment is Negative. 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 bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 27.37 is Positive, neither overbought nor oversold. The STOCH value of 133.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BNG.

Bengal Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSVUX
71
Outperform
C$14.06M2.7934.63%73.28%
TSCWV
55
Neutral
C$10.21M2.0019.73%120.75%
52
Neutral
C$2.91B-0.97-3.26%6.23%2.20%-43.43%
TSPUL
51
Neutral
C$12.47M-17.07%27.55%-500.00%
TSBNG
44
Neutral
C$4.85M-16.16%-10.31%-576.92%
TSCEC
44
Neutral
C$8.46M8.1516.23%
TSTCF
43
Neutral
C$7.75M-45.21%-54.25%-257.57%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BNG
Bengal Energy
0.01
-0.03
-75.00%
TSE:CWV
Crown Point Energy
0.14
0.08
133.33%
TSE:VUX
Vital Energy
0.17
-0.13
-43.33%
TSE:CEC
Pan Orient Energy
0.08
-0.06
-42.86%
TSE:TCF
Trillion Energy International
0.04
-0.08
-65.22%
TSE:PUL
Pulse Oil Corp.
0.02
0.00
0.00%

Bengal Energy Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Bengal Energy Secures Refinancing to Strengthen Financial Position
Positive
Mar 4, 2025

Bengal Energy Ltd. has announced a refinancing agreement for its joint venture payables loan with Texada Capital Management Ltd., controlled by Bengal’s director W. B. (Bill) Wheeler. The new Texada Loan, amounting to Cdn$1.7 million, will replace the existing loan and is expected to enhance Bengal’s financial position by reducing interest costs and maintaining financial flexibility for future growth. This strategic move reflects Bengal’s proactive approach to capital management and aims to deliver value to shareholders.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Bengal Energy Reports Lower Q3 Fiscal 2025 Revenues Amid Production Challenges
Negative
Feb 11, 2025

Bengal Energy reported its financial and operational results for the third quarter of fiscal 2025, noting a decrease in crude oil sales revenue by 11% compared to the previous year, largely due to a reduction in oil lifted volumes. Despite lower sales, the company managed to reduce its net loss from the previous year, aided by decreased royalties, operating expenses, and general and administrative costs. Production volumes also saw a significant drop, leading to Bengal investigating changes in production allocation by the Cuisinier operator. The company has delayed capital expenditures, contingent on securing financing.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 30, 2025