LSE:PMO

Stock Analysis Report

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Executive Summary

Premier Oil plc, an oil and gas company, engages in the exploration, production, and development of oil and gas properties in the Falkland Islands, Indonesia, Vietnam, the United Kingdom, and internationally. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.9%

PMO

-0.09%

GB Oil and Gas

-0.3%

GB Market


1 Year Return

-84.9%

PMO

-46.0%

GB Oil and Gas

-16.6%

GB Market

Return vs Industry: PMO underperformed the UK Oil and Gas industry which returned -45.8% over the past year.

Return vs Market: PMO underperformed the UK Market which returned -16.2% over the past year.


Shareholder returns

PMOIndustryMarket
7 Day-8.9%-0.09%-0.3%
30 Day-23.1%-7.3%0.7%
90 Day-66.8%-17.3%-3.4%
1 Year-84.9%-84.9%-43.2%-46.0%-13.4%-16.6%
3 Year-80.0%-80.0%-26.1%-36.2%-9.6%-20.8%
5 Year-81.0%-81.0%-2.6%-22.9%14.5%-11.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Premier Oil 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: PMO (£0.13) is trading below our estimate of fair value (£2.68)

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


Price To Earnings Ratio

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

PE vs Market: PMO 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 PMO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PMO is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Premier Oil forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: PMO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PMO's is expected to become profitable in the next 3 years.

Revenue vs Market: PMO's revenue (9.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: PMO's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PMO's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Premier Oil performed over the past 5 years?

43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMO is currently unprofitable.

Growing Profit Margin: PMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PMO is unprofitable, but has reduced losses over the past 5 years at a rate of 43.8% per year.

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

Earnings vs Industry: PMO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-30.4%).


Return on Equity

High ROE: PMO has a negative Return on Equity (-128.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Premier Oil's financial position?


Financial Position Analysis

Short Term Liabilities: PMO's short term assets ($561.3M) do not cover its short term liabilities ($2.8B).

Long Term Liabilities: PMO's short term assets ($561.3M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: PMO's debt to equity ratio (428.8%) is considered high.

Reducing Debt: PMO's debt to equity ratio has increased from 171.4% to 428.8% over the past 5 years.


Balance Sheet


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: Whilst unprofitable PMO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PMO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 55.5% per year.


Next Steps

Dividend

What is Premier Oil current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PMO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PMO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PMO'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?

6.1yrs

Average management tenure


CEO

Tony Durrant (61 yo)

6.33yrs

Tenure

US$1,631,100

Compensation

Mr. Anthony R. C. Durrant, also known as Tony, has been the Chief Executive Officer of Premier Oil plc since June 2014 and its Executive Director since July 1, 2005. Mr. Durrant served as the Finance Direc ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD2.83M) is above average for companies of similar size in the UK market ($USD692.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony R. Durrant
CEO & Executive Director6.33yrsUS$1.63m0.21%
$ 256.6k
Richard Rose
Finance Director & Executive Director6.08yrsUS$1.01m0.045%
$ 53.6k
Stuart Wheaton
Chief Operating Officerno datano datano data
Nicholas Braley
Chief Commercial & Technical Officerno datano datano data
Andy Gibb
Group General Counsel & Interim Company Secretaryno datano datano data
Mike Fleming
Group Human Resources Directorno datano datano data
Dean Griffin
Head of Explorationno datano datano data
Tim Lane
Group Treasurerno datano datano data
Rachel Benjamin
Company Secretary (Leave of Absence)5.42yrsno datano data
Timothy Davies
Group Exploration Managerno datano datano data

6.1yrs

Average Tenure

50yo

Average Age

Experienced Management: PMO's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony R. Durrant
CEO & Executive Director6.33yrsUS$1.63m0.21%
$ 256.6k
Richard Rose
Finance Director & Executive Director6.08yrsUS$1.01m0.045%
$ 53.6k
Barbara Jeremiah
Independent Non-Executive Director1.42yrsUS$37.80k0.0011%
$ 1.3k
Roy Franklin
Independent Non-Executive Chairman3.08yrsUS$174.80k0.0065%
$ 7.8k
Mike Wheeler
Independent Non-Executive Director3.17yrsUS$53.00k0.0032%
$ 3.9k
Anne Cannon
Senior Independent Non Executive Director0.75yrUS$53.00k0.0011%
$ 1.3k
Iain MacDonald
Independent Non-Executive Director4.42yrsUS$63.60k0.0025%
$ 3.0k
David Blackwood
Independent Non-Executive Director3.17yrsUS$53.00k0.0011%
$ 1.3k
Elisabeth Proust
Independent Non-Executive Director0.50yrno data0.0011%
$ 1.3k

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: PMO's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Premier Oil plc
  • Ticker: PMO
  • Exchange: LSE
  • Founded: 1934
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£120.216m
  • Shares outstanding: 922.61m
  • Website: https://www.premier-oil.com

Number of Employees


Location

  • Premier Oil plc
  • 23 Lower Belgrave Street
  • London
  • Greater London
  • SW1W 0NR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMOI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
PMOI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1975
PMOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1975
PQQBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
PMOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1975

Biography

Premier Oil plc, an oil and gas company, engages in the exploration, production, and development of oil and gas properties in the Falkland Islands, Indonesia, Vietnam, the United Kingdom, and international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 21:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.