AIM:VGAS

Stock Analysis Report

Executive Summary

Volga Gas plc, through its subsidiaries, explores for, develops, and produces oil, gas, condensate, and liquid petroleum gas in the Volgograd and Saratov regions of Russia.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.0%

VGAS

-11.2%

GB Oil and Gas

-8.6%

GB Market


1 Year Return

-46.0%

VGAS

-14.7%

GB Oil and Gas

-1.3%

GB Market

Return vs Industry: VGAS underperformed the UK Oil and Gas industry which returned -14.7% over the past year.

Return vs Market: VGAS underperformed the UK Market which returned -1.3% over the past year.


Shareholder returns

VGASIndustryMarket
7 Day-10.0%-11.2%-8.6%
30 Day-15.6%-15.5%-8.4%
90 Day-14.3%-14.4%-5.3%
1 Year-42.8%-46.0%-10.3%-14.7%4.0%-1.3%
3 Year-37.6%-50.0%10.7%-3.4%7.6%-6.1%
5 Year-53.9%-63.5%26.0%1.5%23.4%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VGAS (£0.27) is trading below our estimate of fair value (£1.09)

Significantly Below Fair Value: VGAS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VGAS is poor value based on its PE Ratio (10.9x) compared to the Oil and Gas industry average (5.4x).

PE vs Market: VGAS is good value based on its PE Ratio (10.9x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VGAS is good value based on its PB Ratio (0.5x) compared to the GB Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Volga Gas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.5%

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 Volga Gas 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 Volga Gas performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VGAS has a large one-off loss of $1.7M impacting its June 30 2019 financial results.

Growing Profit Margin: VGAS's current net profit margins (6.9%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: VGAS's earnings have declined by -24.4% per year over the past 5 years.

Accelerating Growth: VGAS's earnings growth over the past year (454.1%) exceeds its 5-year average (-24.4% per year).

Earnings vs Industry: VGAS earnings growth over the past year (454.1%) exceeded the Oil and Gas industry 26.8%.


Return on Equity

High ROE: VGAS's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Volga Gas's financial position?


Financial Position Analysis

Short Term Liabilities: VGAS's short term assets ($15.5M) exceed its short term liabilities ($5.8M).

Long Term Liabilities: VGAS's short term assets ($15.5M) exceed its long term liabilities ($1.0M).


Debt to Equity History and Analysis

Debt Level: VGAS is debt free.

Reducing Debt: VGAS had no debt 5 years ago.

Debt Coverage: VGAS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VGAS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VGAS's debt is covered by short term assets.


Next Steps

Dividend

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

37.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VGAS's dividend (37.4%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: VGAS's dividend (37.4%) is in the top 25% of dividend payers in the UK market (5.4%)


Stability and Growth of Payments

Stable Dividend: VGAS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VGAS's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (203.7%), VGAS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Andrey Zozulya (47yo)

4.8yrs

Tenure

US$356,000

Compensation

Mr. Andrey Zozulya has been the Chief Executive Officer of Volga Gas plc since June 6, 2015 and has also been Director since May 5, 2015. Mr. Zozulya has over 20 years' experience in the oil sector in Russ ...


CEO Compensation Analysis

Compensation vs Market: Andrey's total compensation ($USD356.00K) is about average for companies of similar size in the UK market ($USD324.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrey Zozulya
CEO & Executive Director4.8yrsUS$356.00k0.65% $140.8k
Vadim Son
Chief Financial Officer3.8yrsno datano data
Konstantin Ruban
Chief Technical Officer1.3yrsno datano data
Mikhail Zenin
Chief Officer GNS & PGK1.3yrsno datano data
Olga Volonsevich
Chief Ecologist3.6yrsno datano data
Antonio Alves
Consultant3.7yrsUS$166.00kno data

3.6yrs

Average Tenure

47yo

Average Age

Experienced Management: VGAS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrey Zozulya
CEO & Executive Director4.8yrsUS$356.00k0.65% $140.8k
Michael Calvey
Non-Executive Director13.4yrsno datano data
Aleksey Kalinin
Non Executive Director13.4yrsno datano data
Stephen Ogden
Non-Executive Director12.9yrsUS$50.00k0.25% $55.3k
Vladimir Koshcheev
Non-Executive Director13.4yrsno data0.33% $72.7k
Mikhail Ivanov
Non-Executive Chairman4.7yrsUS$120.00k1.24% $270.0k

13.2yrs

Average Tenure

52yo

Average Age

Experienced Board: VGAS's board of directors are seasoned and experienced ( 13.2 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Volga Gas plc
  • Ticker: VGAS
  • Exchange: AIM
  • Founded: 2006
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£21.821m
  • Shares outstanding: 80.82m
  • Website: https://www.volgagas.com

Number of Employees


Location

  • Volga Gas plc
  • 65 Gresham Street
  • 6th Floor
  • London
  • Greater London
  • EC2V 7NQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VGASAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2007
KWWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2007

Biography

Volga Gas plc, through its subsidiaries, explores for, develops, and produces oil, gas, condensate, and liquid petroleum gas in the Volgograd and Saratov regions of Russia. It holds interests in the Karpenskiy license covering an area of 4,180 square kilometers located in the Saratov region; Vostochny Makarovskoye (VM) license that covers an area of 17.8 square kilometers in the Volgograd region; Dobrinskoye license located near to its VM license; and Urozhainoye-2 license totaling an area of 354 square kilometers located to the north of its Karpenskiy license area, as well as Muradymosky. The company has proved plus probable reserves of 10.472 million barrels of oil and condensate; and 154 billion cubic feet of natural gas, as well as 198 tons of LPG. Volga Gas plc was incorporated in 2006 and is based 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 Analysis2020/02/27 21:28
End of Day Share Price2020/02/27 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.