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Faroe Petroleum

AIM:FPM
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FPM
AIM
£634M
Market Cap
  1. Home
  2. GB
  3. Energy
Company description

Faroe Petroleum plc, an independent oil and gas company, engages in the exploration, appraisal, and development of oil and gas fields in Northwest Europe. The last earnings update was 142 days ago. More info.


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FPM Share Price and Events
7 Day Returns
0.3%
AIM:FPM
4.2%
GB Oil and Gas
2%
GB Market
1 Year Returns
66.7%
AIM:FPM
14.3%
GB Oil and Gas
-2.9%
GB Market
FPM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Faroe Petroleum (FPM) 0.3% 4.2% 13.8% 66.7% 184.4% 45.8%
GB Oil and Gas 4.2% 4.6% -0.3% 14.3% 73.7% -3.6%
GB Market 2% 5.2% -0.1% -2.9% 25.5% -2.5%
1 Year Return vs Industry and Market
  • FPM outperformed the Oil and Gas industry which returned 14.3% over the past year.
  • FPM outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.9% over the past year.
Price Volatility
FPM
Industry
5yr Volatility vs Market

Value

 Is Faroe Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Faroe Petroleum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Faroe Petroleum.

AIM:FPM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:FPM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 19%) (20.34%))
0.69
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 8.77%)
8.25%

Discounted Cash Flow Calculation for AIM:FPM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Faroe Petroleum is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:FPM DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) -23.85 -42.10 -66.00 52.00 86.00
Source Analyst x4 Analyst x2 Analyst x1 Analyst x1 Analyst x1
Present Value
Discounted (@ 8.25%)
-22.03 -35.93 -52.04 37.88 57.87
Present value of next 5 years cash flows £-14.26
AIM:FPM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £86.00 × (1 + 1.23%) ÷ (8.25% – 1.23%)
£1,240.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £1,240.39 ÷ (1 + 8.25%)5
£834.66
AIM:FPM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £-14.26 + £834.66
£820.40
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £820.40 / 395.94
£2.07
AIM:FPM Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.07
Current discount Discount to share price of £1.60
= -1 x (£1.60 - £2.07) / £2.07
22.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Faroe Petroleum is available for.
Intrinsic value
23%
Share price is £1.6 vs Future cash flow value of £2.07
Current Discount Checks
For Faroe Petroleum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Faroe Petroleum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Faroe Petroleum's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Faroe Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Faroe Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:FPM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £0.09
AIM:FPM Share Price ** AIM (2019-02-07) in GBP £1.6
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PE Ratio Median Figure of 31 Publicly-Listed Oil and Gas Companies 14.93x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 815 Publicly-Listed Companies 15.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Faroe Petroleum.

AIM:FPM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:FPM Share Price ÷ EPS (both in GBP)

= 1.6 ÷ 0.09

17.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Faroe Petroleum is overvalued based on earnings compared to the GB Oil and Gas industry average.
  • Faroe Petroleum is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Faroe Petroleum's expected growth come at a high price?
Raw Data
AIM:FPM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.29x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
21.5%per year
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.72x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

AIM:FPM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.29x ÷ 21.5%

0.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Faroe Petroleum is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Faroe Petroleum's assets?
Raw Data
AIM:FPM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £0.73
AIM:FPM Share Price * AIM (2019-02-07) in GBP £1.6
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PB Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,362 Publicly-Listed Companies 1.55x
AIM:FPM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:FPM Share Price ÷ Book Value per Share (both in GBP)

= 1.6 ÷ 0.73

2.19x

* Primary Listing of Faroe Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Faroe Petroleum is overvalued based on assets compared to the GB Oil and Gas industry average.
X
Value checks
We assess Faroe Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Faroe Petroleum has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Faroe Petroleum expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Faroe Petroleum expected to grow at an attractive rate?
  • Faroe Petroleum's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Faroe Petroleum's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Faroe Petroleum's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:FPM Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:FPM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 21.5%
AIM:FPM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 18%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 0.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:FPM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:FPM Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 542 116 1
2022-12-31 503 92 1
2021-12-31 400 190 41 3
2020-12-31 353 179 48 6
2019-12-31 303 175 37 8
2018-12-31 229 146 32 7
AIM:FPM Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 141 119 34
2018-03-31 147 127 11
2017-12-31 153 134 -11
2017-09-30 152 131 -17
2017-06-30 152 129 -23
2017-03-31 125 97 -27
2016-12-31 95 55 -33
2016-09-30 90 52 -46
2016-06-30 85 49 -59
2016-03-31 94 63 -55
2015-12-31 113 93 -53
2015-09-30 120 87 -55

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Faroe Petroleum's earnings are expected to grow significantly at over 20% yearly.
  • Faroe Petroleum's revenue is expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:FPM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Faroe Petroleum Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FPM Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.29 0.29 0.29 1.00
2022-12-31 0.23 0.23 0.23 1.00
2021-12-31 0.10 0.12 0.09 3.00
2020-12-31 0.14 0.22 0.09 6.00
2019-12-31 0.10 0.15 0.07 8.00
2018-12-31 0.08 0.12 0.04 6.00
AIM:FPM Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 0.09
2018-03-31 0.03
2017-12-31 -0.03
2017-09-30 -0.05
2017-06-30 -0.06
2017-03-31 -0.08
2016-12-31 -0.11
2016-09-30 -0.16
2016-06-30 -0.22
2016-03-31 -0.21
2015-12-31 -0.20
2015-09-30 -0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Faroe Petroleum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Faroe Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Faroe Petroleum has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Faroe Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Faroe Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Faroe Petroleum's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Faroe Petroleum has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Faroe Petroleum has become profitable in the last year making it difficult to compare the GB Oil and Gas industry average.
Earnings and Revenue History
Faroe Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Faroe Petroleum Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FPM Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 140.63 33.98 15.57
2018-03-31 146.77 11.28 13.76
2017-12-31 152.92 -11.43 11.96
2017-09-30 152.38 -17.12 -0.95
2017-06-30 151.84 -22.81 -13.08
2017-03-31 124.58 -26.69 11.98
2016-12-31 94.78 -32.91 13.42
2016-09-30 89.85 -46.09 23.59
2016-06-30 84.91 -59.28 33.76
2016-03-31 94.21 -55.26 10.49
2015-12-31 112.98 -52.92 9.69
2015-09-30 119.70 -55.42 11.35
2015-06-30 126.43 -57.93 13.02
2015-03-31 131.06 -58.47 13.03
2014-12-31 128.76 -54.98 14.21
2014-09-30 111.30 -28.44 14.32
2014-06-30 93.84 -1.90 14.42
2014-03-31 111.61 6.09 14.52
2013-12-31 129.39 14.07 14.61
2013-09-30 143.30 8.69 16.30
2013-06-30 157.21 3.31 17.99
2013-03-31 158.00 -0.93 17.97
2012-12-31 158.79 -5.18 17.94
2012-09-30 144.77 32.09 16.15
2012-06-30 130.75 69.37 14.36
2012-03-31 105.49 58.39 13.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Faroe Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Faroe Petroleum used its assets less efficiently than the GB Oil and Gas industry average last year based on Return on Assets.
  • Faroe Petroleum has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Faroe Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Faroe Petroleum has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Faroe Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Faroe Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Faroe Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Faroe Petroleum's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Faroe Petroleum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Faroe Petroleum Company Filings, last reported 7 months ago.

AIM:FPM Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 272.42 128.84 158.60
2018-03-31 272.42 128.84 158.60
2017-12-31 226.00 105.69 149.08
2017-09-30 226.00 105.69 149.08
2017-06-30 238.41 44.97 119.65
2017-03-31 238.41 44.97 119.65
2016-12-31 246.54 35.85 96.77
2016-09-30 246.54 35.85 96.77
2016-06-30 195.01 81.84 83.90
2016-03-31 193.50 70.46 75.52
2015-12-31 192.36 55.78 91.52
2015-09-30 192.36 55.78 91.52
2015-06-30 233.71 74.99 104.68
2015-03-31 245.46 65.68 92.57
2014-12-31 245.46 65.68 92.57
2014-09-30 245.46 65.68 92.57
2014-06-30 293.28 64.96 96.93
2014-03-31 293.28 64.96 96.93
2013-12-31 235.61 20.99 40.59
2013-09-30 235.61 20.99 40.59
2013-06-30 242.39 55.71 66.46
2013-03-31 242.39 55.71 66.46
2012-12-31 231.70 51.25 72.89
2012-09-30 231.70 51.25 72.89
2012-06-30 235.72 16.01 103.19
2012-03-31 235.72 16.01 103.19
  • Faroe Petroleum's level of debt (47.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.8% vs 47.3% today).
  • Debt is well covered by operating cash flow (92.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.8x coverage).
X
Financial health checks
We assess Faroe Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Faroe Petroleum has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Faroe Petroleum dividends. Estimated to be 0% next year.
If you bought £2,000 of Faroe Petroleum shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Faroe Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Faroe Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:FPM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:FPM Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 2.00
2019-12-31 0.00 5.00
2018-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Faroe Petroleum has not reported any payouts.
  • Unable to verify if Faroe Petroleum's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Faroe Petroleum's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Faroe Petroleum has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Faroe Petroleum's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Faroe Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Faroe Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Faroe Petroleum has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Faroe Petroleum's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Faroe Petroleum has no CEO, or we have no data on them.
Management Team Tenure

Average tenure of the Faroe Petroleum management team in years:

5.2
Average Tenure
  • The average tenure for the Faroe Petroleum management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Arnton

TITLE
Group Legal Manager
TENURE
8.1 yrs

Nick Ingrassia

TITLE
Group Head of Business Development
TENURE
1.8 yrs

Julian G. Riddick

TITLE
Commercial Director & Company Secretary

Bogi Vang

TITLE
Group Financial Controller
TENURE
16.1 yrs

Chris Craft

TITLE
Asset Manager of Sothern North Sea - Norway
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Faroe Petroleum board of directors in years:

0.6
Average Tenure
48
Average Age
  • The average tenure for the Faroe Petroleum board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bjørn Dale

TITLE
Chairman
AGE
43
TENURE
0.1 yrs

Jorunn Sætre

TITLE
Independent Non-Executive Director
COMPENSATION
£44K
AGE
62
TENURE
4.4 yrs

Brent Cheshire

TITLE
Independent Non-Executive Director
COMPENSATION
£9K
AGE
62
TENURE
1.3 yrs

Roe Ward

TITLE
Independent Non-Executive Director
AGE
40
TENURE
0.6 yrs

Ørjan Gjerde

TITLE
Non-Executive Director
AGE
48
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Faroe Petroleum insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Jan 19 Buy BlackRock, Inc. Company 11. Jan 19 11. Jan 19 5,033 £1.60 £8,053
11. Jan 19 Sell BlackRock, Inc. Company 10. Jan 19 10. Jan 19 -488 £1.60 £-781
11. Jan 19 Sell Roger Witts Individual 11. Jan 19 11. Jan 19 -109,180 £1.60 £-174,688
11. Jan 19 Sell Jorunn Sætre Individual 11. Jan 19 11. Jan 19 -28,571 £1.60 £-45,714
11. Jan 19 Sell John William Bentley Individual 11. Jan 19 11. Jan 19 -172,270 £1.60 £-275,632
11. Jan 19 Sell Brent Cheshire Individual 11. Jan 19 11. Jan 19 -15,000 £1.60 £-24,000
11. Jan 19 Sell Aviva Investors Global Services Limited Company 10. Jan 19 10. Jan 19 -12,384,302 £1.60 £-19,814,883
11. Jan 19 Buy DNO ASA Company 10. Jan 19 10. Jan 19 13,656,751 £1.60 £21,850,801
10. Jan 19 Sell FMR LLC Company 09. Jan 19 09. Jan 19 -4,008,388 £1.60 £-6,413,421
10. Jan 19 Sell BlackRock, Inc. Company 09. Jan 19 09. Jan 19 -15,900,270 £1.60 £-25,440,434
10. Jan 19 Sell Legal & General Investment Management Limited Company 09. Jan 19 09. Jan 19 -5,472 £1.60 £-8,759
10. Jan 19 Sell Aviva Investors Global Services Limited Company 09. Jan 19 09. Jan 19 -9,255,497 £1.60 £-14,808,796
10. Jan 19 Sell Cavendish Asset Management Ltd Company 09. Jan 19 09. Jan 19 -5,135,643 £1.60 £-8,217,030
10. Jan 19 Sell BMO Global Asset Management Company 09. Jan 19 09. Jan 19 -247,134 £1.60 £-395,414
10. Jan 19 Buy DNO ASA Company 09. Jan 19 09. Jan 19 91,897,482 £1.60 £147,035,652
10. Jan 19 Sell BMO Global Asset Management Company 09. Jan 19 09. Jan 19 -200,000 £1.60 £-320,000
10. Jan 19 Buy BMO Global Asset Management Company 09. Jan 19 09. Jan 19 200,000 £1.60 £320,000
10. Jan 19 Sell J.P. Morgan Asset Management, Inc. Company 09. Jan 19 09. Jan 19 -1,561,073 £1.60 £-2,497,717
09. Jan 19 Sell BlackRock, Inc. Company 08. Jan 19 08. Jan 19 -333,845 £1.54 £-513,353
09. Jan 19 Buy DNO ASA Company 08. Jan 19 08. Jan 19 16,278,500 £1.60 £26,045,601
09. Jan 19 Sell Janus Henderson Group plc Company 08. Jan 19 08. Jan 19 -6,655,518 £1.60 £-10,648,829
09. Jan 19 Sell FMR LLC Company 03. Jan 19 03. Jan 19 -2,000,000 £1.53 £-3,060,000
07. Jan 19 Sell BlackRock, Inc. Company 04. Jan 19 04. Jan 19 -2,205,103 £1.55 £-3,404,686
07. Jan 19 Sell BMO Global Asset Management Company 04. Jan 19 04. Jan 19 -822,439 £1.53 £-1,259,976
04. Jan 19 Sell BlackRock, Inc. Company 03. Jan 19 03. Jan 19 -2,431,123 £1.53 £-3,700,288
04. Jan 19 Buy BlackRock, Inc. Company 03. Jan 19 03. Jan 19 2,625 £1.53 £4,022
04. Jan 19 Buy DNO ASA Company 03. Jan 19 03. Jan 19 2,794,110 £1.52 £4,229,938
04. Jan 19 Sell BMO Global Asset Management Company 03. Jan 19 03. Jan 19 -10,000 £1.48 £-14,780
03. Jan 19 Sell BMO Global Asset Management Company 02. Jan 19 02. Jan 19 -10,253 £1.49 £0
03. Jan 19 Buy BMO Global Asset Management Company 02. Jan 19 02. Jan 19 253 £1.44 £364
02. Jan 19 Sell BMO Global Asset Management Company 31. Dec 18 31. Dec 18 -13,104 £1.48 £-19,368
31. Dec 18 Buy BMO Global Asset Management Company 28. Dec 18 28. Dec 18 3,589 £1.48 £5,305
28. Dec 18 Sell BlackRock, Inc. Company 27. Dec 18 27. Dec 18 -220,000 £1.51 £-332,200
28. Dec 18 Buy BMO Global Asset Management Company 27. Dec 18 27. Dec 18 29,515 £1.51 £44,662
27. Dec 18 Buy BlackRock, Inc. Company 21. Dec 18 21. Dec 18 7,699 £1.52 £11,702
24. Dec 18 Sell J.P. Morgan Asset Management, Inc. Company 21. Dec 18 21. Dec 18 -11,777 £1.52 £-17,901
24. Dec 18 Sell BMO Global Asset Management Company 21. Dec 18 21. Dec 18 -39,023 £1.52 £0
24. Dec 18 Buy BMO Global Asset Management Company 21. Dec 18 21. Dec 18 4,023 £1.51 £6,083
21. Dec 18 Sell FMR LLC Company 20. Dec 18 20. Dec 18 -30,910 £1.51 £-46,674
21. Dec 18 Sell BMO Global Asset Management Company 20. Dec 18 20. Dec 18 -34,000 £1.51 £0
21. Dec 18 Buy BMO Global Asset Management Company 20. Dec 18 20. Dec 18 4,000 £1.52 £6,075
21. Dec 18 Sell BMO Global Asset Management Company 20. Dec 18 20. Dec 18 -772,163 £1.52 £-1,173,688
21. Dec 18 Sell Highclere International Investors LLP Company 20. Dec 18 20. Dec 18 -2,296,691 £1.52 £-3,490,970
20. Dec 18 Sell BMO Global Asset Management Company 19. Dec 18 19. Dec 18 -40,757 £1.52 £-62,032
20. Dec 18 Buy BMO Global Asset Management Company 19. Dec 18 19. Dec 18 40,757 £1.52 £61,910
20. Dec 18 Buy DNO ASA Company 19. Dec 18 19. Dec 18 504,805 £1.52 £767,288
20. Dec 18 Buy DNO ASA Company 20. Dec 18 20. Dec 18 4,802,489 £1.52 £7,299,783
19. Dec 18 Buy DNO ASA Company 17. Dec 18 17. Dec 18 911,307 £1.52 £1,385,187
19. Dec 18 Sell BlackRock, Inc. Company 18. Dec 18 18. Dec 18 -421 £1.52 £-640
19. Dec 18 Buy BlackRock, Inc. Company 18. Dec 18 18. Dec 18 525 £1.52 £798
19. Dec 18 Sell FMR LLC Company 18. Dec 18 18. Dec 18 -2,000,000 £1.52 £-3,042,001
19. Dec 18 Buy DNO ASA Company 18. Dec 18 18. Dec 18 24,125 £0.02 £366
18. Dec 18 Sell BMO Global Asset Management Company 17. Dec 18 17. Dec 18 -11,970 £1.52 £-18,242
18. Dec 18 Buy BMO Global Asset Management Company 17. Dec 18 17. Dec 18 16,425 £1.52 £24,933
18. Dec 18 Sell FMR LLC Company 17. Dec 18 17. Dec 18 -31,680 £1.52 £-48,154
17. Dec 18 Sell Highclere International Investors LLP Company 14. Dec 18 14. Dec 18 -588,714 £1.53 £-899,555
14. Dec 18 Buy BlackRock, Inc. Company 13. Dec 18 13. Dec 18 1,050 £1.53 £1,607
13. Dec 18 Sell FMR LLC Company 12. Dec 18 12. Dec 18 -108,570 £1.54 £-167,198
13. Dec 18 Buy BlackRock, Inc. Company 12. Dec 18 12. Dec 18 525 £1.53 £805
12. Dec 18 Buy BMO Global Asset Management Company 11. Dec 18 11. Dec 18 26 £1.52 £39
11. Dec 18 Buy BlackRock, Inc. Company 10. Dec 18 10. Dec 18 525 £1.52 £800
10. Dec 18 Sell Highclere International Investors LLP Company 07. Dec 18 07. Dec 18 -711,139 £1.53 £-1,086,336
10. Dec 18 Sell J.P. Morgan Asset Management, Inc. Company 07. Dec 18 07. Dec 18 -521,599 £1.53 £-798,046
07. Dec 18 Sell BlackRock, Inc. Company 06. Dec 18 06. Dec 18 -14,922 £1.53 £-22,890
07. Dec 18 Sell Highclere International Investors LLP Company 06. Dec 18 06. Dec 18 -450,000 £1.53 £-690,480
07. Dec 18 Sell J.P. Morgan Asset Management, Inc. Company 06. Dec 18 06. Dec 18 -2,997,609 £1.54 £-4,613,262
07. Dec 18 Buy BMO Global Asset Management Company 06. Dec 18 06. Dec 18 15,000 £1.54 £23,100
06. Dec 18 Sell BlackRock, Inc. Company 05. Dec 18 05. Dec 18 -295,724 £1.58 £-466,669
06. Dec 18 Sell Janus Henderson Group plc Company 05. Dec 18 05. Dec 18 -100,000 £1.56 £-155,970
06. Dec 18 Buy BMO Global Asset Management Company 05. Dec 18 05. Dec 18 7,939 £1.56 £12,417
05. Dec 18 Sell BlackRock, Inc. Company 04. Dec 18 04. Dec 18 -631,339 £1.57 £-991,693
05. Dec 18 Buy BMO Global Asset Management Company 04. Dec 18 04. Dec 18 7,061 £1.57 £11,093
04. Dec 18 Sell BMO Global Asset Management Company 03. Dec 18 03. Dec 18 -741 £1.61 £-1,191
04. Dec 18 Buy BMO Global Asset Management Company 03. Dec 18 03. Dec 18 21,260 £1.60 £0
03. Dec 18 Sell Legal & General Investment Management Limited Company 30. Nov 18 30. Nov 18 -18,132 £1.61 £-29,156
03. Dec 18 Sell BlackRock, Inc. Company 30. Nov 18 30. Nov 18 -374 £1.61 £-601
03. Dec 18 Sell BMO Global Asset Management Company 30. Nov 18 30. Nov 18 -16,187 £1.61 £-26,029
03. Dec 18 Buy BMO Global Asset Management Company 30. Nov 18 30. Nov 18 6,187 £1.57 £9,719
30. Nov 18 Sell BrightSphere Investment Group plc Company 29. Nov 18 29. Nov 18 -40,862 £1.57 £-64,247
30. Nov 18 Buy BMO Global Asset Management Company 29. Nov 18 29. Nov 18 5,000 £1.57 £7,830
29. Nov 18 Sell Legal & General Investment Management Limited Company 28. Nov 18 28. Nov 18 -181,498 £1.57 £-285,569
29. Nov 18 Sell BMO Global Asset Management Company 28. Nov 18 28. Nov 18 -16,800 £1.58 £0
29. Nov 18 Buy BMO Global Asset Management Company 28. Nov 18 28. Nov 18 21,000 £1.57 £32,987
27. Nov 18 Sell FMR LLC Company 26. Nov 18 26. Nov 18 -18,774 £1.58 £-29,663
28. Nov 18 Sell FMR LLC Company 27. Nov 18 27. Nov 18 -350,000 £1.57 £-550,900
28. Nov 18 Sell Vr Advisory Services Ltd. Company 26. Nov 18 26. Nov 18 -4,182,108 £1.58 £-6,604,804
28. Nov 18 Sell Legal & General Investment Management Limited Company 27. Nov 18 27. Nov 18 -643,826 £1.57 £-1,011,560
28. Nov 18 Buy Legal & General Investment Management Limited Company 27. Nov 18 27. Nov 18 651,700 £1.58 £1,024,538
28. Nov 18 Buy BMO Global Asset Management Company 27. Nov 18 27. Nov 18 800 £1.57 £1,256
27. Nov 18 Sell BMO Global Asset Management Company 26. Nov 18 26. Nov 18 -54,000 £1.59 £-85,666
27. Nov 18 Sell FMR LLC Company 26. Nov 18 26. Nov 18 -3,160,000 £1.58 £-4,995,961
01. May 18 Buy Brent Cheshire Individual 27. Apr 18 27. Apr 18 15,000 £1.31 £19,575
X
Management checks
We assess Faroe Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Faroe Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Faroe Petroleum plc's (LON:FPM) ROE Can Tell Us

Faroe Petroleum has a ROE of 12%, based on the last twelve months. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Faroe Petroleum plc (LON:FPM) A Financially Sound Company?

Faroe Petroleum plc (LON:FPM) is a small-cap stock with a market capitalization of UK£515.26m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Faroe Petroleum plc (LON:FPM): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Faroe Petroleum plc (LON:FPM), with a market cap of UK£510.79m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Who Are The Major Shareholders In Faroe Petroleum plc (AIM:FPM)?

For FPM shareholders, the potential of this type of share price volatility shouldn't be as concerning as hedge fund ownership is is not significant,indicating few chances of such sudden price moves. … Insider ownership has been linked to better alignment between management and shareholders. … The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Should You Buy Faroe Petroleum plc (AIM:FPM)?

Faroe Petroleum plc (AIM:FPM), an energy company based in United Kingdom, saw a decent share price growth in the teens level on the AIM over the last few months. … And if you believe FPM should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … It seems like the market has already priced in FPM’s positive outlook, with shares trading around its fair value.

Simply Wall St -

Company Info

Map
Description

Faroe Petroleum plc, an independent oil and gas company, engages in the exploration, appraisal, and development of oil and gas fields in Northwest Europe. The company has interests in the Trym, Tambar, Ula, and Ringhorne East fields in Norway; and Blane oil field in the United Kingdom. As of January 1, 2018, it had proven and probable reserves of 114.1 million barrels of oil equivalent. The company was founded in 1997 and is headquartered in Aberdeen, the United Kingdom.

Details
Name: Faroe Petroleum plc
FPM
Exchange: AIM
Founded: 1997
£633,507,948
395,942,468
Website: http://www.faroe-petroleum.com
Address: Faroe Petroleum plc
24 Carden Place,
Aberdeen,
Aberdeenshire, AB10 1UQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM FPM Ordinary Shares London Stock Exchange AIM Market GB GBP 27. Jun 2003
OTCPK FFRR.F Ordinary Shares Pink Sheets LLC US USD 27. Jun 2003
DB GYJ Ordinary Shares Deutsche Boerse AG DE EUR 27. Jun 2003
Number of employees
Current staff
Staff numbers
80
Faroe Petroleum employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/07 20:37
End of day share price update: 2019/02/07 00:00
Last estimates confirmation: 2019/02/06
Last earnings filing: 2018/09/18
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.