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): -1.73
• 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: 47 Neutral
• Price Target: C$0.02 ▲(50.00% Upside)

The score is primarily held back by weak financial performance—declining revenue, ongoing operating losses, and negative operating/free cash flow—partly offset by low leverage and some near-term technical stability (RSI/Stoch moderate, price above the 20-day average). Valuation provides limited support due to negative earnings (negative P/E).

Positive Factors

Modest leverage provides financial flexibility

Very low debt-to-equity (~0.07) reduces fixed financing costs and preserves borrowing capacity. For an E&P operator, modest leverage improves resilience to commodity swings, allowing management to fund maintenance or selective development without immediate distress or forced asset sales.

High gross margin on produced hydrocarbons

A gross margin near 59% indicates relatively low lifting and direct production costs per unit. Structurally, that margin can support recovery to operating profitability if SG&A, royalties, or production scale are improved, and it underpins long-term cash conversion when volumes and commodity realizations permit.

Revenue mix and lean operating footprint

Having both crude oil and natural gas sales diversifies commodity exposure across market segments, reducing single-commodity risk. Combined with a very small employee base, the firm has a lean cost structure and operational agility that can limit fixed overhead and permit quicker responses to capital allocation decisions.

Negative Factors

Declining revenue trend

A falling top line reduces economies of scale and weakens the per-barrel economics needed to fund exploration and maintenance. Persistent revenue shrinkage constrains reinvestment, increases unit costs, and makes it harder to reach profitable scale absent material production or price improvements over the medium term.

Persistent operating losses and negative margins

Ongoing negative EBIT/EBITDA and a near -100% net margin erode shareholder equity and limit internal capital for development. Structurally, sustained operating losses force reliance on external financing or asset sales, increasing dilution or strategic constraints and signaling material issues in cost structure or revenue capture.

Weak operating and free cash flow

Negative operating and free cash flow mean the business cannot self-fund capex or working capital needs. Over time this increases dependence on external financing, joint-venture funding, or asset disposals, reducing strategic optionality and making sustained investment in exploration or production growth harder.

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

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

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

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

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.

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: Negative

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 0.01, 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 59.38 is Neutral, 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 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$14.06M	6.83	12.78%	―	16.71%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BNG	47 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	-1.14	-20.40%	―	-23.57%	-388.89%
CEC	41 Neutral	C$8.46M	-2.91	-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.