Oryx Petroleum Corporation Limited’s (TSE:OXC): Oryx Petroleum Corporation Limited acquires, explores, develops, and produces oil from oil and gas assets in West Africa and the Middle East. With the latest financial year loss of -CA$39.03m and a trailing-twelve month of -CA$47.44m, the CA$103.15m market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which OXC will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for OXC’s growth and when analysts expect the company to become profitable.Check out our latest analysis for Oryx Petroleum
OXC is bordering on breakeven, according to Oil and Gas analysts. They expect the company to post a final loss in 2017, before turning a profit of CA$25.42m in 2018. OXC is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which OXC must grow year-on-year. It turns out an average annual growth rate of 133.69% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of OXC’s upcoming projects, though, take into account that typically an oil and gas business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing I’d like to point out is that OXC has managed its capital prudently, with debt making up 14.19% of equity. This means that OXC has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of OXC to cover in one brief article, but the key fundamentals for the company can all be found in one place – OXC’s company page on Simply Wall St. I’ve also put together a list of essential factors you should further research:
- Historical Track Record: What has OXC’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Oryx Petroleum’s board and the CEO’s back ground.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.