ASX:PSA

Stock Analysis Report

Executive Summary

Petsec Energy Ltd operates as an independent oil and gas exploration and production company.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Petsec Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-16.0%

PSA

15.3%

AU Oil and Gas

13.4%

AU Market


1 Year Return

-67.7%

PSA

-46.7%

AU Oil and Gas

-18.8%

AU Market

Return vs Industry: PSA underperformed the Australian Oil and Gas industry which returned -46.7% over the past year.

Return vs Market: PSA underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

PSAIndustryMarket
7 Day-16.0%15.3%13.4%
30 Day-47.5%-35.4%-20.7%
90 Day-62.5%-46.9%-24.4%
1 Year-67.7%-67.7%-44.6%-46.7%-15.2%-18.8%
3 Year-87.3%-87.3%-38.0%-45.5%-2.8%-15.9%
5 Year-81.3%-81.7%-38.3%-49.3%9.3%-15.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Petsec Energy undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Petsec Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Petsec Energy has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PSA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Petsec Energy regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Petsec Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.5%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Petsec Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Petsec Energy performed over the past 5 years?

-26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSA is currently unprofitable.

Growing Profit Margin: PSA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PSA is unprofitable, and losses have increased over the past 5 years at a rate of -26.4% per year.

Accelerating Growth: Unable to compare PSA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PSA is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

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


Next Steps

Financial Health

How is Petsec Energy's financial position?


Financial Position Analysis

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

Long Term Liabilities: PSA 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: PSA has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

Inventory Level: PSA has a high level of physical assets or inventory.

Debt Coverage by Assets: PSA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PSA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PSA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.1% each year


Next Steps

Dividend

What is Petsec Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PSA'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 PSA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PSA'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 PSA'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?

8.0yrs

Average management tenure


CEO

Syed Bokhari

0.83

Tenure

US$262,340

Compensation

Mr. Syed Wamiq Bokhari serves as Managing Director & Director at Petsec Energy Ltd since May 1, 2019. He served as the Chief Executive Officer, Managing Director and Director at Pakistan Petroleum Ltd. sin ...


CEO Compensation Analysis

Compensation vs Market: Syed's total compensation ($USD262.34K) is about average for companies of similar size in the Australian market ($USD245.57K).

Compensation vs Earnings: Insufficient data to compare Syed's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Terrence Fern
Executive Chairmanno dataUS$389.66k0.030% $2.4k
Syed Bokhari
MD & Director0.83yrUS$262.34kno data
Ross Keogh
Group Chief Financial Officer8yrsUS$296.29k0.40% $32.2k
Paul Gahdmar
Group Financial Controller & Company Secretary11.25yrsUS$156.23k0.10% $8.0k
Manny Anton
Head of Investor Relations & Corporate Development4.25yrsno datano data
Ron Krenzke
Executive Vice President of Exploration for Petsec Energy Inc10.25yrsUS$436.42kno data

8.0yrs

Average Tenure

Experienced Management: PSA's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Terrence Fern
Executive Chairmanno dataUS$389.66k0.030% $2.4k
Syed Bokhari
MD & Director0.83yrUS$262.34kno data
David Mortimer
Independent Non-Executive Director35.17yrsUS$49.59k3.07% $244.8k
Alan Baden
Independent Non-Executive Director6.83yrsUS$50.00kno data

6.8yrs

Average Tenure

Experienced Board: PSA's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18%.


Top Shareholders

Company Information

Petsec Energy Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petsec Energy Ltd
  • Ticker: PSA
  • Exchange: ASX
  • Founded: 1967
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$7.972m
  • Shares outstanding: 398.59m
  • Website: https://www.petsec.com.au

Location

  • Petsec Energy Ltd
  • BMA House
  • Level 7
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
PSACHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
PSJE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1996

Biography

Petsec Energy Ltd operates as an independent oil and gas exploration and production company. It holds working interests in various projects located in the shallow waters of the Gulf of Mexico and onshore Louisiana, the United States, as well as holds a 100% working interest in two blocks located in the Republic of Yemen. The company was founded in 1967 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 10:33
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.