AIM:IOG

Stock Analysis Report

Independent Oil and Gas

Executive Summary

Independent Oil and Gas plc explores for and develops oil and gas properties in the North Sea, the United Kingdom.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Independent Oil and Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IOG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

IOG

-5.6%

GB Oil and Gas

-4.4%

GB Market


1 Year Return

33.0%

IOG

-11.2%

GB Oil and Gas

1.4%

GB Market

Return vs Industry: IOG exceeded the UK Oil and Gas industry which returned -11.2% over the past year.

Return vs Market: IOG exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

IOGIndustryMarket
7 Day-2.8%-5.6%-4.4%
30 Day-6.0%-12.7%-6.3%
90 Day-2.1%-11.5%-2.7%
1 Year33.0%33.0%-6.6%-11.2%6.7%1.4%
3 Year-4.1%-4.1%16.8%2.1%12.6%-1.5%
5 Year187.8%187.8%31.2%5.2%28.8%-0.7%

Price Volatility Vs. Market

How volatile is Independent Oil and Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Independent Oil and Gas undervalued compared to its fair value and its price relative to the market?

3.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: IOG is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: IOG is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IOG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IOG is overvalued based on its PB Ratio (3.9x) compared to the GB Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Independent Oil and Gas forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IOG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IOG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IOG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if IOG's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if IOG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Independent Oil and Gas performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IOG is currently unprofitable.

Growing Profit Margin: IOG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IOG is unprofitable, and losses have increased over the past 5 years at a rate of -3.6% per year.

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

Earnings vs Industry: IOG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (26.8%).


Return on Equity

High ROE: IOG has a negative Return on Equity (-83.8%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Independent Oil and Gas's financial position?


Financial Position Analysis

Short Term Liabilities: IOG's short term assets (£15.3M) exceed its short term liabilities (£14.4M).

Long Term Liabilities: IOG's short term assets (£15.3M) do not cover its long term liabilities (£37.7M).


Debt to Equity History and Analysis

Debt Level: IOG's debt to equity ratio (380.8%) is considered high.

Reducing Debt: IOG's debt to equity ratio has increased from 3.7% to 380.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IOG's debt is not covered by short term assets (assets are 0.4x debt).


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: IOG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IOG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -48.3% each year


Next Steps

Dividend

What is Independent Oil and Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage6.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IOG'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 IOG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Andy Hockey (59yo)

2yrs

Tenure

UK£297,000

Compensation

Mr. Andrew Raymond Hockey, also known as Andy, has been Independent Non-Executive Director of Chariot Oil & Gas Limited since JUne 3, 2019. Mr. Hockey has been Chief Executive Officer of Independent Oil an ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD386.39K) is about average for companies of similar size in the UK market ($USD325.25K).

Compensation vs Earnings: Andy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Hockey
CEO & Director2yrsUK£297.00k0.15% £125.3k
Mark Hughes
COO & Director1.8yrsUK£180.61k0.12% £104.7k
Rupert Newall
Chief Financial Officer0.3yrsno data0.76% £646.3k
James Chance
Head of Corporate Finance & Investor Relations0.3yrsno data0.021% £17.6k
Douglas Fenwick
Technical Director3.4yrsno datano data
Robin Storey
General Counsel & Company Secretary1.1yrsno datano data
Peter Young
Head of Business Origination2.9yrsUK£38.00kno data
Colin Jones
Chief Petroleum Engineer2.9yrsno datano data
Gavin Milne
Group Financial Controller2.9yrsno data0.021% £17.6k

2.0yrs

Average Tenure

59yo

Average Age

Experienced Management: IOG's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Hockey
CEO & Director2yrsUK£297.00k0.15% £125.3k
Mark Hughes
COO & Director1.8yrsUK£180.61k0.12% £104.7k
Neil Hawkings
Independent Non Executive Director0.8yrsno datano data
Esa Ikaheimonen
Senior Independent Non-Executive Director0.9yrsno data0.10% £88.1k
Fiona MacAulay
Independent Non-Executive Chair1.1yrsUK£17.00k0.042% £35.2k

1.1yrs

Average Tenure

57yo

Average Age

Experienced Board: IOG's board of directors are not considered experienced ( 1.1 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: 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 been diluted in the past year, with total shares outstanding growing by 43.2%.


Top Shareholders

Company Information

Independent Oil and Gas plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Independent Oil and Gas plc
  • Ticker: IOG
  • Exchange: AIM
  • Founded: 2010
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: UK£84.631m
  • Shares outstanding: 480.17m
  • Website: https://www.independentoilandgas.com

Number of Employees


Location

  • Independent Oil and Gas plc
  • 10 Arthur Street
  • London
  • Greater London
  • EC4R 9AY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2013
IO7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2013

Biography

Independent Oil and Gas plc explores for and develops oil and gas properties in the North Sea, the United Kingdom. It primarily focuses on the development of hydrocarbon reserves, as well as the acquisition, trading, and monetization of its license interests. The company 100% working interests in the Blythe gas field in the southern North Sea; the Skipper license located to the south east of the Shetlands in the northern North Sea; and the Nailsworth, Elland, and Southwark fields in the southern North Sea. It also holds 100% working interests in the Harvey and Truman promote license; and the Elgood, Tetley, and Rebellion promote license located in the North Sea. Independent Oil and Gas plc was incorporated in 2010 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:40
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.