ASX:SPB

Stock Analysis Report

South Pacific Resources

Executive Summary

South Pacific Resources Limited operates as an oil and gas exploration company.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has South Pacific Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SPB

13.1%

AU Oil and Gas

5.1%

AU Market


1 Year Return

-20.0%

SPB

-41.3%

AU Oil and Gas

-19.0%

AU Market

Return vs Industry: SPB underperformed the Australian Oil and Gas industry which returned 11.1% over the past year.

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


Shareholder returns

SPBIndustryMarket
7 Day0%13.1%5.1%
30 Day0%-29.3%-20.9%
90 Day60.0%-43.5%-25.6%
1 Year-20.0%-20.0%-38.9%-41.3%-15.4%-19.0%
3 Year-82.2%-82.2%-33.6%-41.5%-3.3%-16.6%
5 Year-91.1%-91.1%-35.6%-47.0%6.9%-17.3%

Price Volatility Vs. Market

How volatile is South Pacific Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is South Pacific Resources undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether South Pacific Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as South Pacific Resources 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 SPB’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 South Pacific Resources regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is South Pacific Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

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 South Pacific Resources 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 South Pacific Resources performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPB is currently unprofitable.

Growing Profit Margin: SPB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPB is unprofitable, but has reduced losses over the past 5 years at a rate of 26% per year.

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

Earnings vs Industry: SPB is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (68.1%).


Return on Equity

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


Next Steps

Financial Health

How is South Pacific Resources's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

Inventory Level: SPB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPB 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: SPB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SPB has less than a year of cash runway if free cash flow continues to grow at historical rates of 40% each year.


Next Steps

Dividend

What is South Pacific Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

AU$131k

CEO Compensation


CEO

Domenic Martino (61yo)

7.17s

Tenure

AU$131,400

Compensation

Mr. Domenic Vincent Martino, BBus, FCA, FCPA, FAICD, has been Interim Chief Executive Officer and Chairman of Skyland Petroleum Group Limited since December 24, 2016. Mr. Martino has been the Managing Dire ...


CEO Compensation Analysis

Compensation vs Market: Domenic's total compensation ($USD89.82K) is below average for companies of similar size in the Australian market ($USD262.68K).

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


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

South Pacific Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South Pacific Resources Limited
  • Ticker: SPB
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$2.926m
  • Shares outstanding: 365.69m
  • Website: https://www.southpacificresourceslimited.com

Location

  • South Pacific Resources Limited
  • 56 Pitt Street
  • Level 5
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2012
AJ4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2012
SPBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2012

Biography

South Pacific Resources Limited operates as an oil and gas exploration company. It holds 100% working interest in five petroleum prospecting licenses in Papua New Guinea, including PPL 366 and 367 are located onshore; PPL 356 and 357 offshore in the Papuan Basin close to discovered oil and gas fields; and PPL 358 in the frontier Cape Vogel Basin. The company was formerly known as Coral Sea Petroleum Limited and changed its name to South Pacific Resources Limited in February 2015. South Pacific Resources Limited is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/27 10:36
End of Day Share Price2019/07/30 00:00
Earnings2019/06/30
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.