Valeura Energy (VLE) AI Stock Analysis

• Market Cap: C$755.63M
• Dividend Yield: N/A
• Average Volume (3M): 311.12K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 1.09
• Revenue Growth: 17.88%
• EPS Growth: 248.15%
• Country: CA
• Employees: 189
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.18
• Shares Outstanding: 106,276,810
• 10 Day Avg. Volume: 225,596
• 30 Day Avg. Volume: 311,124
• PEG Ratio: -0.91
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.01
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: 0.25
• 1Y Price Target: C$11.00
• Price Target Upside: 54.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$8.00 ▲(12.52%Upside)

Valeura Energy's strong financial performance and recent corporate events highlight robust operational capabilities and strategic growth initiatives. While technical analysis suggests caution due to mixed signals, the low P/E ratio indicates attractive valuation. The stock's overall score reflects its strong fundamentals and positive outlook despite technical headwinds.

Positive Factors

Cash Position

Valeura reported a net cash position of $238 million at end-March.

Operational Success

Operations remain on-track with the Nong Yao maintenance programme now complete.

Production Targets

This is an important catalyst for the group as it underpins management's target to maintain production between 20-25 kbopd out past 2030.

Project Economics

Taking FID at Wassana demonstrates the strength of economics from the project and also the strength of Valeura's balance sheet, such that it is in a position to reinvest, despite the current market volatility.

Negative Factors

Net Asset Value

The development concept at Wassana closely matches what was already assumed, so the NAV increases, which can narrow the discount the shares trade at versus the NAV.

Share Valuation

Our NAV stands at C$11.09/sh, and we are unlikely to make any significant changes to it on the back of these results.

Valeura Energy Business Overview & Revenue Model

Company Description

Valeura Energy Inc. (VLE) is a Canada-based oil and gas company engaged in the exploration, development, and production of petroleum and natural gas. The company primarily operates in the Southeast Asia region, focusing on offshore production assets. Valeura aims to leverage its technical expertise and strategic partnerships to optimize resource extraction and maximize shareholder value.

How the Company Makes Money

Valeura Energy generates revenue primarily through the exploration, development, and production of oil and natural gas. Its key revenue streams involve the sale of crude oil and natural gas derived from its production activities. The company benefits from strategic partnerships and joint ventures which provide access to capital, technology, and additional market opportunities. Additionally, Valeura may engage in the acquisition of assets that complement its existing portfolio, further enhancing its revenue-generating capabilities. The company's earnings are influenced by factors such as global oil prices, operational efficiency, production volumes, and market demand for energy resources.

Valeura Energy Financial Statement Overview

Summary

Valeura Energy exhibits strong financial health with robust profitability metrics and effective cash flow management. The company's low leverage and solid capital structure enhance financial stability despite minor equity reductions. While revenue growth has faced headwinds, operational efficiency and cash generation capabilities remain solid.

Income Statement

Valeura Energy shows strong profitability with a solid gross profit margin of 53.15% and a robust net profit margin of 34.75% in the TTM (Trailing-Twelve-Months). Despite a slight revenue decline compared to the previous year, EBIT and EBITDA margins remain healthy at 22.63% and 52.47% respectively, indicating efficient cost management and operational efficiency.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.13, indicating low leverage. A strong equity ratio of 65.36% highlights a solid capital structure. However, a decrease in stockholders' equity over the past year suggests potential challenges in asset growth or profitability.

Cash Flow

Valeura Energy has demonstrated a strong cash flow performance with a high operating cash flow to net income ratio of 1.07, indicating effective cash generation relative to profits. Although the free cash flow has decreased from the previous year, the overall cash flow management remains robust, supporting liquidity and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	677.47M	678.79M	493.46M	352.03K	3.13M	8.55M
Gross Profit	360.16M	399.47M	298.07M	-5.42M	1.18M	403.00K
EBITDA	355.62M	337.67M	421.08M	-15.71M	-82.05M	-1.39M
Net Income	235.45M	240.80M	245.03M	-12.21M	-64.55M	-19.53M
Balance Sheet
Total Assets	823.06M	857.31M	704.31M	64.01M	45.22M	54.86M
Cash, Cash Equivalents and Short-Term Investments	215.47M	236.54M	133.87M	17.52M	40.83M	30.14M
Total Debt	68.75M	74.47M	73.64M	11.09M	0.00	0.00
Total Liabilities	284.93M	329.03M	420.14M	35.55M	2.09M	12.91M
Stockholders Equity	538.14M	528.28M	284.18M	26.04M	43.13M	41.95M
Cash Flow
Free Cash Flow	93.62M	149.95M	-83.30M	-17.91M	-3.20M	-3.27M
Operating Cash Flow	251.66M	305.62M	27.48M	-17.87M	-3.16M	-145.00K
Investing Cash Flow	-168.16M	-161.57M	130.35M	-16.42M	14.05M	-5.03M
Financing Cash Flow	-45.00M	-41.14M	-41.80M	11.13M	-28.00K	-68.00K

Valeura Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VLE, the sentiment is Negative. The current price of 7.11 is below the 20-day moving average (MA) of 7.60, below the 50-day MA of 7.49, and above the 200-day MA of 6.68, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.38 is Neutral, neither overbought nor oversold. The STOCH value of 8.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VLE.

Valeura Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJ	78 Outperform	C$1.08B	9.48	12.42%	10.70%	3.79%	3.87%
VLE	76 Outperform	C$755.63M	2.31	55.56%	―	17.88%	248.15%
SNM	76 Outperform	C$644.45M	5.73	43.82%	―	104.07%	―
TAL	74 Outperform	C$631.38M	4.77	18.60%	12.12%	11.68%	-30.95%
SDE	65 Neutral	$764.23M	35.97	3.68%	―	-27.80%	-96.88%
KEC	61 Neutral	C$932.62M	20.73	6.02%	―	6.01%	-99.01%
Sector *	44 Neutral	AU$1.38B	-6.76	-23.02%	6.69%	5.33%	-26.92%

Valeura Energy Corporate Events

Valeura Energy Completes Successful Drilling Campaign in Gulf of Thailand

Valeura Energy Inc. has successfully completed an eight-well drilling campaign at its Licence B5/27 in the Gulf of Thailand, achieving results that exceeded expectations in several wells. The campaign included development and appraisal wells across multiple platforms, contributing to stable oil production rates and setting the stage for future drilling initiatives. This operation underscores the company’s ability to manage and extend the economic life of its assets, maintaining consistent cash flow and production levels.

The most recent analyst rating on (TSE:VLE) stock is a Buy with a C$9.70 price target. To see the full list of analyst forecasts on Valeura Energy stock, see the TSE:VLE Stock Forecast page.

Valeura Energy Announces AGM Voting Results and Board Elections

Valeura Energy Inc. announced the results of its annual general meeting, where shareholders approved the appointment of Deloitte & Touche LLP as auditors and elected the company’s board of directors. The voting results reflect strong shareholder support for most nominees, with Dr. W. Sean Guest and Timothy N. Chapman receiving unanimous approval, while James D. McFarland and Chalermchai Mahagitsiri received lower approval rates. This outcome reinforces the company’s governance structure as it continues its strategic growth initiatives in the oil and gas sector.

The most recent analyst rating on (TSE:VLE) stock is a Buy with a C$9.70 price target. To see the full list of analyst forecasts on Valeura Energy stock, see the TSE:VLE Stock Forecast page.

Valeura Energy Reports Strong Q1 2025 Results with Increased Production and Cash Flow

Valeura Energy Inc. reported a strong financial performance for the first quarter of 2025, with a notable 9% increase in oil production compared to the same period last year, reaching 23,853 barrels per day. The company’s strategic corporate restructuring has led to a 55% increase in adjusted cash flow from operations, amounting to US$74 million, despite stable revenue levels. This financial resilience is further supported by a robust balance sheet, boasting US$239 million in cash and no debt, positioning Valeura to pursue growth opportunities and withstand market volatility.

The most recent analyst rating on (TSE:VLE) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Valeura Energy stock, see the TSE:VLE Stock Forecast page.

Valeura Energy Commits to Major Redevelopment of Wassana Field

Valeura Energy Inc. has made a final investment decision to redevelop the Wassana field in the Gulf of Thailand, aiming to significantly increase production and extend the field’s life. The project will involve constructing a new central processing platform, with first oil expected in 2027, and is projected to increase reserves and production capacity, providing substantial economic returns and shareholder value.

The most recent analyst rating on (TSE:VLE) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Valeura Energy stock, see the TSE:VLE Stock Forecast page.

Valeura Energy Reports Strong Q1 2025 Performance Amid Market Volatility

Valeura Energy reported a strong operational and financial performance in Q1 2025, with oil production averaging 23.9 mbbls/d and a robust cash position of US$238.3 million. Despite a decrease in production due to planned maintenance, the company remains resilient with no debt and is well-positioned for potential growth opportunities amid market volatility. The company completed its corporate restructuring, enhancing its tax efficiency, and reaffirmed its production guidance for 2025.