Nostra Terra Oil and Gas Company plc (LON:NTOG): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at Nostra Terra Oil and Gas Company plc's (LON:NTOG) future prospects. Nostra Terra Oil and Gas Company plc, together with its subsidiaries, engages in the exploitation of hydrocarbon resources in the United States. On 31 December 2024, the UK£860k market-cap company posted a loss of US$1.5m for its most recent financial year. Many investors are wondering about the rate at which Nostra Terra Oil and Gas will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

According to some industry analysts covering Nostra Terra Oil and Gas, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$300k in 2026. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Nostra Terra Oil and Gas' growth isn’t the focus of this broad overview, however, keep in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

See our latest analysis for Nostra Terra Oil and Gas

One thing we would like to bring into light with Nostra Terra Oil and Gas is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Nostra Terra Oil and Gas, so if you are interested in understanding the company at a deeper level, take a look at Nostra Terra Oil and Gas' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is Nostra Terra Oil and Gas worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nostra Terra Oil and Gas is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nostra Terra Oil and Gas’s board and the CEO’s background.
3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.