ASX:CTP

Stock Analysis Report

Central Petroleum

Executive Summary

Central Petroleum Limited engages in the development, production, processing, and marketing of hydrocarbons in Australia.


Snowflake Analysis

Acceptable track record and slightly overvalued.


Similar Companies

Share Price & News

How has Central Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

CTP

15.5%

AU Oil and Gas

2.8%

AU Market


1 Year Return

-45.5%

CTP

-39.0%

AU Oil and Gas

-16.2%

AU Market

Return vs Industry: CTP exceeded the Australian Oil and Gas industry which returned -46.9% over the past year.

Return vs Market: CTP underperformed the Australian Market which returned -19.4% over the past year.


Shareholder returns

CTPIndustryMarket
7 Day8.2%15.5%2.8%
30 Day-24.8%-23.3%-15.2%
90 Day-41.5%-41.6%-23.4%
1 Year-45.5%-45.5%-36.5%-39.0%-12.4%-16.2%
3 Year-57.2%-60.5%-31.7%-40.1%-0.2%-13.9%
5 Year-36.7%-41.5%-33.1%-45.0%11.5%-13.6%

Price Volatility Vs. Market

How volatile is Central Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Petroleum undervalued compared to its fair value and its price relative to the market?

7.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CTP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CTP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CTP is good value based on its PE Ratio (7x) compared to the Oil and Gas industry average (7.6x).

PE vs Market: CTP is good value based on its PE Ratio (7x) compared to the Australian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CTP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CTP has negative assets, so we can't compare its PB Ratio to the AU Oil and Gas industry average.


Next Steps

Future Growth

How is Central Petroleum forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-82.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTP's earnings are forecast to decline over the next 3 years (-82.3% per year).

Earnings vs Market: CTP's earnings are forecast to decline over the next 3 years (-82.3% per year).

High Growth Earnings: CTP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CTP's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: CTP's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Central Petroleum performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTP has high quality earnings.

Growing Profit Margin: CTP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CTP has become profitable over the past 5 years, growing earnings by 14.4% per year.

Accelerating Growth: CTP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

High ROE: CTP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Central Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: CTP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CTP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CTP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CTP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: CTP's debt is well covered by operating cash flow (34.7%).

Interest Coverage: CTP's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Central Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CTP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CTP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CTP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CTP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Leon Devaney (50yo)

1.75s

Tenure

AU$767,376

Compensation

Mr. Leon Goss Devaney, BSc. MBA, is Chief Executive Officer and Managing Director at Central Petroleum Limited since February 21, 2019 and was its Acting Chief Executive Officer from 31 July 2018 to Februa ...


CEO Compensation Analysis

Compensation vs Market: Leon's total compensation ($USD470.75K) is above average for companies of similar size in the Australian market ($USD246.06K).

Compensation vs Earnings: Leon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leon Devaney
CEO, MD & Director1.75yrsAU$767.38k0.36% A$192.9k
Ross Evans
Chief Operations Officer1.83yrsAU$535.86kno data
Daniel Christopher White
Group General Counsel & Joint Company Secretary10.33yrsAU$597.51k0.16% A$83.6k
Robin Polson
Chief Commercial Officer1.92yrsAU$410.75kno data
Duncan Lockhart
General Manager of Exploration1yrAU$474.34kno data
Damian Galvin
Chief Financial Officer0.67yrno datano data
Joseph Morfea
Joint Company Secretary & Commercial Manager5.67yrsno datano data
Gregory Ambrose
Manager of Geologyno dataAU$275.98kno data

1.8yrs

Average Tenure

Experienced Management: CTP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Leon Devaney
CEO, MD & Director1.75yrsAU$767.38k0.36% A$192.9k
Katherine Hirschfeld
Non-Executive Director1.33yrsAU$51.62k0.11% A$56.3k
Stuart Baker
Non-Executive director1.33yrsAU$51.62kno data
Wrixon Gasteen
Non-Executive Chairman0.58yrAU$124.56k0.11% A$58.7k
Julian Fowles
Non-Executive Director0.83yrno data0.014% A$7.4k

1.3yrs

Average Tenure

58yo

Average Age

Experienced Board: CTP's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CTP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Central Petroleum Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Petroleum Limited
  • Ticker: CTP
  • Exchange: ASX
  • Founded: 1998
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$53.506m
  • Shares outstanding: 723.06m
  • Website: https://www.centralpetroleum.com.au

Number of Employees


Location

  • Central Petroleum Limited
  • 369 Ann Street
  • Level 7
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2006
CNPT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006
C9JDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2006
CTPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2006

Biography

Central Petroleum Limited engages in the development, production, processing, and marketing of hydrocarbons in Australia. It holds interests in various oil and gas properties comprising 188,767 square kilometers of exploration area located in the Amadeus, Southern Georgina, Wiso, and Surat Basins. The company was founded in 1998 and is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 10:39
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.