NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£219.5m

Last Updated

2021/03/31 18:14 UTC

Data Sources

Company Financials +

Executive Summary

As of March 31, 2021, Premier Oil plc was acquired by Chrysaor Holdings Limited, in a reverse merger transaction. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


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 is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PMO's weekly volatility has decreased from 14% to 8% over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-12.0%

PMO

-2.4%

GB Oil and Gas

2.4%

GB Market


1 Year Return

42.4%

PMO

11.6%

GB Oil and Gas

23.6%

GB Market

Return vs Industry: PMO exceeded the UK Oil and Gas industry which returned 27.6% over the past year.

Return vs Market: PMO exceeded the UK Market which returned 26.6% over the past year.


Shareholder returns

PMOIndustryMarket
7 Day-12.0%-2.4%2.4%
30 Day-22.8%-10.0%3.0%
90 Day14.1%0.09%4.0%
1 Year42.4%42.4%17.6%11.6%29.4%23.6%
3 Year-66.4%-66.4%3.7%-10.8%14.8%1.3%
5 Year-48.8%-48.8%46.6%15.5%40.4%14.0%

Long-Term 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 (£0.22) is trading below our estimate of fair value (£3.93)

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 has negative assets, so we can't compare its PB Ratio to the GB Oil and Gas industry average.


Future Growth

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

88.9%

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%).

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 (27.2% per year) is forecast to grow faster than the UK market (6.4% per year).

High Growth Revenue: PMO's revenue (27.2% per year) 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 PMO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Premier Oil performed over the past 5 years?

-2.5%

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, and losses have increased over the past 5 years at a rate of 2.5% 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 (-38.7%).


Return on Equity

High ROE: PMO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Premier Oil's financial position?


Financial Position Analysis

Short Term Liabilities: PMO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PMO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PMO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PMO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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 52.4% per year.


Dividend

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

1.66%

Forecast Dividend Yield


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?

3.6yrs

Average board tenure


CEO

Richard Rose (47 yo)

0.17

Tenure

US$1,341,103

Compensation

Mr. Richard Rose has been Finance Director of Premier Oil plc since September 8, 2014 and is its Executive Director since September 8, 2014. He is Interim Chief Executive Officer of Premier Oil plc since J...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.34M) is above average for companies of similar size in the UK market ($USD727.28K).

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


Board Members

Experienced Board: PMO's board of directors are considered experienced (3.6 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 10.1%.


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£219.488m
  • 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


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 Analysis2021/03/31 18:14
End of Day Share Price2021/03/31 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.