Shell's (LON:SHEL) Soft Earnings Don't Show The Whole Picture
Nov 07
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U.K. (FTSE) Oil and Gas Industry Analysis
UpdatedNov 12, 2024
DataAggregated Company Financials
Companies68
- 7D-1.9%
- 3M-9.8%
- 1Y-9.9%
- YTD-7.7%
Over the last 7 days, the Oil and Gas industry has dropped 1.9%, driven by a pullback from Shell of 1.7%. Meanwhile, Pantheon Resources actually outperformed within the industry, gaining 23% in the last week. However, the industry is down 9.9% over the past year. Earnings are forecast to grow by 11% annually.
Industry Valuation and Performance
Has the U.K. Oil and Gas Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 12 Nov 2024 | UK£230.6b | UK£392.8b | UK£15.1b | 8.4x | 15.2x | 0.6x |
| Thu, 10 Oct 2024 | UK£238.6b | UK£395.4b | UK£20.6b | 10.1x | 11.6x | 0.6x |
| Sat, 07 Sep 2024 | UK£236.6b | UK£393.3b | UK£20.4b | 11.4x | 11.6x | 0.6x |
| Mon, 05 Aug 2024 | UK£258.7b | UK£403.7b | UK£21.3b | 12.2x | 12.2x | 0.6x |
| Wed, 03 Jul 2024 | UK£270.8b | UK£408.3b | UK£22.0b | 10.8x | 12.3x | 0.7x |
| Fri, 31 May 2024 | UK£270.0b | UK£406.8b | UK£22.1b | 12.6x | 12.2x | 0.7x |
| Sun, 28 Apr 2024 | UK£283.7b | UK£432.4b | UK£28.5b | 9.1x | 9.9x | 0.7x |
| Tue, 26 Mar 2024 | UK£265.3b | UK£428.3b | UK£27.7b | 7.5x | 9.6x | 0.6x |
| Thu, 22 Feb 2024 | UK£251.4b | UK£429.5b | UK£26.9b | 5.7x | 9.4x | 0.6x |
| Sat, 20 Jan 2024 | UK£261.5b | UK£614.7b | UK£63.0b | 3.8x | 4.1x | 0.4x |
| Mon, 18 Dec 2023 | UK£273.1b | UK£615.8b | UK£63.1b | 4x | 4.3x | 0.4x |
| Wed, 15 Nov 2023 | UK£286.1b | UK£622.9b | UK£63.6b | 4x | 4.5x | 0.5x |
| Fri, 13 Oct 2023 | UK£301.2b | UK£651.7b | UK£58.7b | 4.5x | 5.1x | 0.5x |
| Sun, 10 Sep 2023 | UK£288.2b | UK£640.9b | UK£58.0b | 4.1x | 5x | 0.4x |
| Tue, 08 Aug 2023 | UK£274.5b | UK£628.6b | UK£58.2b | 4.8x | 4.7x | 0.4x |
| Thu, 06 Jul 2023 | UK£268.3b | UK£666.2b | UK£76.2b | 4.3x | 3.5x | 0.4x |
| Sat, 03 Jun 2023 | UK£269.4b | UK£675.1b | UK£77.2b | 4.7x | 3.5x | 0.4x |
| Mon, 01 May 2023 | UK£295.9b | UK£663.7b | UK£54.0b | 5x | 5.5x | 0.4x |
| Wed, 29 Mar 2023 | UK£280.2b | UK£672.5b | UK£55.7b | 4.5x | 5x | 0.4x |
| Fri, 24 Feb 2023 | UK£318.1b | UK£681.4b | UK£56.7b | 4x | 5.6x | 0.5x |
| Sun, 22 Jan 2023 | UK£305.2b | UK£638.9b | UK£50.1b | 4.7x | 6.1x | 0.5x |
| Tue, 20 Dec 2022 | UK£298.3b | UK£647.4b | UK£50.5b | 4.5x | 5.9x | 0.5x |
| Thu, 17 Nov 2022 | UK£308.3b | UK£662.1b | UK£52.4b | 4.4x | 5.9x | 0.5x |
| Sat, 15 Oct 2022 | UK£360.0b | UK£637.6b | UK£45.3b | 4.6x | 7.9x | 0.6x |
| Mon, 12 Sep 2022 | UK£304.9b | UK£626.3b | UK£44.8b | 6.5x | 6.8x | 0.5x |
| Wed, 10 Aug 2022 | UK£260.5b | UK£606.5b | UK£43.1b | 7.3x | 6x | 0.4x |
| Fri, 08 Jul 2022 | UK£242.2b | UK£544.8b | UK£24.7b | 8.4x | 9.8x | 0.4x |
| Sun, 05 Jun 2022 | UK£280.1b | UK£529.8b | UK£24.6b | 9.3x | 11.4x | 0.5x |
| Tue, 03 May 2022 | UK£262.2b | UK£479.9b | UK£41.3b | 12x | 6.3x | 0.5x |
| Thu, 31 Mar 2022 | UK£257.2b | UK£440.4b | UK£36.9b | 12.9x | 7x | 0.6x |
| Sat, 26 Feb 2022 | UK£142.1b | UK£234.2b | UK£19.8b | 11.3x | 7.2x | 0.6x |
| Mon, 24 Jan 2022 | UK£220.2b | UK£268.0b | UK£21.2b | 14.1x | 10.4x | 0.8x |
| Wed, 22 Dec 2021 | UK£218.8b | UK£276.2b | UK£22.1b | 12.3x | 9.9x | 0.8x |
| Fri, 19 Nov 2021 | UK£228.7b | UK£274.7b | UK£22.2b | 12.5x | 10.3x | 0.8x |
Price to Earnings Ratio
10.3x
Current Industry PE
- Investors are optimistic on the British Oil and Gas industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 15.2x which is higher than its 3-year average PE of 7.8x.
- The industry is trading close to its 3-year average PS ratio of 0.54x.
Past Earnings Growth
- The earnings for companies in the Oil and Gas industry have declined 12% per year over the last three years.
- Meanwhile revenues for these companies have grown 13% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.K. Energy industry?
| GB Market | -0.77% | |
| Energy | -2.04% | |
| Oil and Gas | -1.88% | |
| Oil and Gas Storage and Transportation | 0% | |
| Coal and Fuels | -0.41% | |
| Oil and Gas Refining and Marketing | -0.69% | |
| Integrated Oil and Gas | -1.88% | |
| Oil and Gas Exploration and Production | -2.06% | |
Industry PE
- Investors are most optimistic about the Oil and Gas Exploration and Production industry which is trading above its 3-year average PE ratio of 8.8x.
- Analysts are expecting annual earnings growth of 11.1%, which is higher than its past year's earnings decline of 39.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Integrated Oil and Gas industry, expecting annual earnings growth of 11% over the next 5 years.
- This is better than its past earnings decline of 68% per year.
- In contrast, the Coal and Fuels industry is expected to see its earnings decline by 63% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| G3E G3 Exploration | UK£0.28 | n/a UK£43.9m | n/a | n/a | |
| PANR Pantheon Resources | UK£0.25 | 8.1% +UK£21.2m | 6.8% | PS998.4x | |
| GENL Genel Energy | UK£0.85 | 7.4% +UK£16.4m | -4.2% | PS4.1x | |
| DEC Diversified Energy | UK£9.80 | 2.9% +UK£14.4m | -30.7% | PE4.5x | |
| RKH Rockhopper Exploration | UK£0.14 | 3.7% +UK£3.2m | 18.4% | PE7.8x |