LSE:GKP

Stock Analysis Report

Gulf Keystone Petroleum

Executive Summary

Gulf Keystone Petroleum Limited engages in the exploration, evaluation, and production of oil and gas properties in the Kurdistan Region of Iraq and the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Gulf Keystone Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

GKP

0.4%

GB Oil and Gas

1.7%

GB Market


1 Year Return

-12.3%

GKP

-4.7%

GB Oil and Gas

2.9%

GB Market

Return vs Industry: GKP underperformed the UK Oil and Gas industry which returned -4.7% over the past year.

Return vs Market: GKP underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

GKPIndustryMarket
7 Day-1.9%0.4%1.7%
30 Day-13.4%-2.7%-0.7%
90 Day-6.6%-2.7%-1.8%
1 Year-5.4%-12.3%0.09%-4.7%8.0%2.9%
3 Year70.0%57.6%33.0%15.6%18.2%3.8%
5 Year-95.7%-96.0%31.4%7.1%35.6%6.1%

Price Volatility Vs. Market

How volatile is Gulf Keystone Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gulf Keystone Petroleum undervalued compared to its fair value and its price relative to the market?

7.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GKP (£2.07) is trading above our estimate of fair value (£1.32)

Significantly Undervalued: GKP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GKP is poor value based on its PE Ratio (7.9x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: GKP is good value based on its PE Ratio (7.9x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GKP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: GKP is overvalued based on its PB Ratio (1.2x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Gulf Keystone Petroleum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GKP's forecast earnings growth (30.1% per year) is above the savings rate (1.2%).

Earnings vs Market: GKP's earnings (30.1% per year) are forecast to grow faster than the UK market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GKP's revenue (26.6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: GKP's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GKP's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Gulf Keystone Petroleum performed over the past 5 years?

52.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GKP has become profitable over the past 5 years, growing earnings by 52.4% per year.

Accelerating Growth: GKP's earnings growth over the past year (92.5%) exceeds its 5-year average (52.4% per year).

Earnings vs Industry: GKP earnings growth over the past year (92.5%) exceeded the Oil and Gas industry 29.4%.


Return on Equity

High ROE: GKP's Return on Equity (14.7%) is considered low.


Return on Assets

ROA vs Industry: GKP has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: GKP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gulf Keystone Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: GKP's short term assets ($390.1M) exceeds its short term liabilities ($123.2M)

Long Term Liabilities: GKP's short term assets (390.1M) exceeds its long term liabilities (121.6M)


Debt to Equity History and Analysis

Debt Level: GKP's debt to equity ratio (18.6%) is considered satisfactory

Reducing Debt: GKP's debt to equity ratio has reduced from 93.4% to 18.6% over the past 5 years.

Debt Coverage: GKP's debt is well covered by operating cash flow (155.2%).

Interest Coverage: GKP's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: GKP's debt is covered by short term assets (assets are 3.980650x debt).


Next Steps

Dividend

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

4.58%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage5.4%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if GKP's dividends per share have been stable in the past.

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Jón Ferrier (61yo)

4.3yrs

Tenure

US$973,000

Compensation

Mr. Jón Ferrier has been the Chief Executive Officer of Gulf Keystone Petroleum Limited since June 2015. Mr. Ferrier served as the Head of Business Development & Strategy at Mærsk Olie Og Gas A/S and also  ...


CEO Compensation Analysis

Compensation vs. Market: Jón's total compensation ($USD1.25M) is about average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Jón's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Management: GKP's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: GKP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Nadhim Zahawi (52yo)

    Chief Strategy Officer

    • Tenure: 4.2yrs
  • Alasdair Robinson

    Legal Director & Company Secretary

    • Tenure: 2.3yrs
  • Jane Barker

    HR Director

    • Tenure: 3.3yrs
  • Stuart Catterall

    Chief Operating Officer

    • Tenure: 2.8yrs
  • Jón Ferrier (61yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$973.00k
  • Sami Zouari (46yo)

    CFO & Director

    • Tenure: 4.8yrs
    • Compensation: US$667.00k
  • Nadzeya Kernoha

    Head of Finance

    • Tenure: 0.8yrs

Board Members

  • Martin Angle (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$42.00k
  • Dave Thomas (62yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$90.00k
  • Jaap Huijskes (54yo)

    Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: US$159.00k
  • Kimberley Wood (49yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: US$18.00k
  • Jón Ferrier (61yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$973.00k
  • Sami Zouari (46yo)

    CFO & Director

    • Tenure: 4.8yrs
    • Compensation: US$667.00k

Company Information

Gulf Keystone Petroleum Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gulf Keystone Petroleum Limited
  • Ticker: GKP
  • Exchange: LSE
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£473.359m
  • Shares outstanding: 229.23m
  • Website: https://www.gulfkeystone.com

Number of Employees


Location

  • Gulf Keystone Petroleum Limited
  • Cumberland House
  • 9th Floor
  • Hamilton
  • HM 11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GKPLSE (London Stock Exchange)COM SHS USD1.00 (DI)GBGBPNo data
GUKY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2004
GKPLSE (London Stock Exchange)YesCommon SharesGBGBPSep 2004
GVPDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2004
GKPLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBGBPSep 2004
GFKS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2008

Biography

Gulf Keystone Petroleum Limited engages in the exploration, evaluation, and production of oil and gas properties in the Kurdistan Region of Iraq and the United Kingdom. The company’s principal asset is Sha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:32
End of Day Share Price2019/10/17 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.