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Premier Oil

LSE:PMO
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PMO
LSE
£693M
Market Cap
  1. Home
  2. GB
  3. Energy
Company description

Premier Oil plc, an oil and gas company, engages in the exploration, production, and development of oil and gas properties primarily in the Falkland Islands, Indonesia, Pakistan, the United Kingdom, Vietnam, and internationally. The last earnings update was 49 days ago. More info.


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  • Premier Oil has significant price volatility in the past 3 months.
PMO Share Price and Events
7 Day Returns
-15.2%
LSE:PMO
0.8%
GB Oil and Gas
-1.3%
GB Market
1 Year Returns
-21.1%
LSE:PMO
6%
GB Oil and Gas
-5.9%
GB Market
PMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Premier Oil (PMO) -15.2% -19.7% 13.5% -21.1% 15.9% -76%
GB Oil and Gas 0.8% -4.2% 4.1% 6% 46% -9.5%
GB Market -1.3% -3.3% 0.8% -5.9% 12.6% 0.4%
1 Year Return vs Industry and Market
  • PMO underperformed the Oil and Gas industry which returned 6% over the past year.
  • PMO underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.9% over the past year.
Price Volatility
PMO
Industry
5yr Volatility vs Market

PMO Value

 Is Premier Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Premier Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Premier Oil.

LSE:PMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.903 (1 + (1- 19%) (290.08%))
2.357
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 6.65%)
14.53%

Discounted Cash Flow Calculation for LSE:PMO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Premier Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PMO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.53%)
2019 323.00 Analyst x6 282.03
2020 235.73 Analyst x7 179.72
2021 480.93 Analyst x3 320.16
2022 435.00 Analyst x1 252.85
2023 59.00 Analyst x1 29.94
2024 51.35 Est @ -12.97% 22.76
2025 46.88 Est @ -8.71% 18.14
2026 44.19 Est @ -5.73% 14.93
2027 42.59 Est @ -3.64% 12.56
2028 41.66 Est @ -2.18% 10.73
Present value of next 10 years cash flows $1,143.82
LSE:PMO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $41.66 × (1 + 1.23%) ÷ (14.53% – 1.23%)
$317.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $317.05 ÷ (1 + 14.53%)10
$81.67
LSE:PMO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,143.82 + $81.67
$1,225.48
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,225.48 / 822.42
$1.49
LSE:PMO Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:PMO)
0.788
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $1.49 x 0.788
£1.17
Value per share (GBP) From above. £1.17
Current discount Discount to share price of £0.84
= -1 x (£0.84 - £1.17) / £1.17
28.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Premier Oil is available for.
Intrinsic value
28%
Share price is £0.84 vs Future cash flow value of £1.17
Current Discount Checks
For Premier Oil to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Premier Oil's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Premier Oil's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Premier Oil's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Premier Oil's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.14
LSE:PMO Share Price ** LSE (2019-05-24) in GBP £0.84
LSE:PMO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.269 $1.07
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PE Ratio Median Figure of 31 Publicly-Listed Oil and Gas Companies 8.89x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Premier Oil.

LSE:PMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PMO Share Price ÷ EPS (both in USD)

= 1.07 ÷ 0.14

7.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Premier Oil is good value based on earnings compared to the GB Oil and Gas industry average.
  • Premier Oil is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Premier Oil's expected growth come at a high price?
Raw Data
LSE:PMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
6.2%per year
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PEG Ratio Median Figure of 19 Publicly-Listed Oil and Gas Companies 0.44x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:PMO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.88x ÷ 6.2%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Premier Oil is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Premier Oil's assets?
Raw Data
LSE:PMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $1.26
LSE:PMO Share Price * LSE (2019-05-24) in GBP £0.84
LSE:PMO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.269 $1.07
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PB Ratio Median Figure of 102 Publicly-Listed Oil and Gas Companies 0.81x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.48x
LSE:PMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PMO Share Price ÷ Book Value per Share (both in USD)

= 1.07 ÷ 1.26

0.85x

* Primary Listing of Premier Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Premier Oil is overvalued based on assets compared to the GB Oil and Gas industry average.
X
Value checks
We assess Premier Oil's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Premier Oil has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PMO Future Performance

 How is Premier Oil expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Premier Oil expected to grow at an attractive rate?
  • Premier Oil's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Premier Oil's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Premier Oil's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PMO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 6.2%
LSE:PMO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -1.9%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PMO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,332 667 124 2
2022-12-31 1,224 633 61 2
2021-12-31 1,420 824 142 9
2020-12-31 1,427 763 199 11
2019-12-31 1,564 942 106 10
LSE:PMO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,398 723 105
2018-09-30 1,258 576 -56
2018-06-30 1,119 429 -217
2018-03-31 1,081 462 -243
2017-12-31 1,043 496 -270
2017-09-30 1,081 555 -144
2017-06-30 1,119 615 -17
2017-03-31 1,028 523 46
2016-12-31 937 431 109
2016-09-30 897 418 -212
2016-06-30 857 405 -533
2016-03-31 962 607 -802

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Premier Oil's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • Premier Oil's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Premier Oil Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PMO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.10 0.10 0.10 1.00
2022-12-31 0.10 0.10 0.10 1.00
2021-12-31 0.18 0.27 0.15 6.00
2020-12-31 0.21 0.30 0.12 8.00
2019-12-31 0.16 0.24 0.09 7.00
LSE:PMO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.14
2018-09-30 -0.08
2018-06-30 -0.34
2018-03-31 -0.43
2017-12-31 -0.53
2017-09-30 -0.28
2017-06-30 -0.03
2017-03-31 0.09
2016-12-31 0.21
2016-09-30 -0.42
2016-06-30 -1.04
2016-03-31 -1.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Premier Oil is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Premier Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Premier Oil has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PMO Past Performance

  How has Premier Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Premier Oil's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Premier Oil's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Premier Oil has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Premier Oil has become profitable in the last year making it difficult to compare the GB Oil and Gas industry average.
Earnings and Revenue History
Premier Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Premier Oil Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PMO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,397.50 105.10 19.60
2018-09-30 1,258.45 -55.80 20.30
2018-06-30 1,119.40 -216.70 21.00
2018-03-31 1,081.25 -243.45 21.85
2017-12-31 1,043.10 -270.20 22.70
2017-09-30 1,080.85 -143.55 22.75
2017-06-30 1,118.60 -16.90 22.80
2017-03-31 1,027.80 45.90 28.70
2016-12-31 937.00 108.70 34.60
2016-09-30 897.15 -212.35 33.35
2016-06-30 857.30 -533.40 32.10
2016-03-31 962.25 -802.05 30.05
2015-12-31 1,067.20 -1,070.70 28.00
2015-06-30 1,321.70 -773.80 35.20
2015-03-31 1,475.55 -499.90 40.45
2014-12-31 1,629.40 -226.00 45.70
2014-09-30 1,628.65 17.65 51.65
2014-06-30 1,627.90 245.60 52.60
2014-03-31 1,564.45 239.80 51.45
2013-12-31 1,501.00 234.00 50.30
2013-09-30 1,461.60 250.65 49.60
2013-06-30 1,422.20 267.30 48.90
2013-03-31 1,415.45 259.65 51.15
2012-12-31 1,408.70 252.00 53.40
2012-09-30 1,318.80 240.25 14.95
2012-06-30 1,228.90 228.50 -23.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Premier Oil has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Premier Oil used its assets less efficiently than the GB Oil and Gas industry average last year based on Return on Assets.
  • Premier Oil has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Premier Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Premier Oil has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PMO Health

 How is Premier Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Premier Oil's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Premier Oil is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Premier Oil's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Premier Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Premier Oil Company Filings, last reported 4 months ago.

LSE:PMO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,026.00 2,552.00 246.60
2018-09-30 1,026.00 2,552.00 246.60
2018-06-30 764.00 2,802.30 185.60
2018-03-31 764.00 2,802.30 185.60
2017-12-31 616.90 2,972.60 370.00
2017-09-30 616.90 2,972.60 370.00
2017-06-30 869.10 3,033.70 311.20
2017-03-31 869.10 3,033.70 311.20
2016-12-31 809.10 3,003.50 260.80
2016-09-30 809.10 3,003.50 260.80
2016-06-30 855.40 2,825.50 207.70
2016-03-31 855.40 2,825.50 207.70
2015-12-31 734.80 2,615.10 405.40
2015-06-30 1,433.10 2,441.60 372.40
2015-03-31 1,433.10 2,441.60 372.40
2014-12-31 1,872.20 2,389.80 291.80
2014-09-30 1,872.20 2,389.80 291.80
2014-06-30 2,237.50 1,940.20 255.00
2014-03-31 2,237.50 1,940.20 255.00
2013-12-31 2,124.40 1,899.60 448.90
2013-09-30 2,124.40 1,899.60 448.90
2013-06-30 2,071.30 1,500.40 182.30
2013-03-31 2,071.30 1,500.40 182.30
2012-12-31 1,953.50 1,300.70 187.40
2012-09-30 1,953.50 1,300.70 187.40
2012-06-30 1,828.90 1,103.60 290.20
  • Premier Oil's level of debt (248.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (89.4% vs 248.7% today).
  • Debt is well covered by operating cash flow (28.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Premier Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Premier Oil has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PMO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Premier Oil dividends. Estimated to be 0% next year.
If you bought £2,000 of Premier Oil shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Premier Oil's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Premier Oil's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PMO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00
LSE:PMO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2015-08-20 0.000 0.000
2015-04-07 0.000 0.000
2015-02-26 0.000 0.000
2014-04-08 0.075 2.019
2014-02-27 0.082 1.649
2013-03-21 0.074 1.486

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Premier Oil has not reported any payouts.
  • Unable to verify if Premier Oil's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Premier Oil's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Premier Oil has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Premier Oil's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Premier Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Premier Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Premier Oil has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PMO Management

 What is the CEO of Premier Oil's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tony Durrant
COMPENSATION $1,577,400
AGE 59
TENURE AS CEO 4.9 years
CEO Bio

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 Director of Premier Oil Plc from July 1, 2005 to June 2014. Mr. Durrant joined Lehman Brothers in London in 1986, initially as an oil sector analyst. He joined the investment banking division of Lehman in 1987. From 1997 to 2005, he served as the Managing Director and Head of their European Natural Resources Group. He has been Non-Executive Director of Clipper Windpower, LLC since 2005. He serves as Advisory Member of FlowStream Commodities Ltd. He served as a Non-Executive Director of Greenergy Fuels Holdings Limited. He served as Non-Executive Director of Clipper Windpower Ltd. (Clipper Windpower Plc). He served as a Director of First Africa Group Holdings Ltd. Mr. Durrant qualified as a Chartered Accountant with Arthur Andersen. Mr. Durrant holds degree in Philosophy, Politics and Economics from Oxford University and is a Chartered Accountant.

CEO Compensation
  • Tony's compensation has increased in line with Premier Oil recently becoming profitable.
  • Tony's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Premier Oil management team in years:

4.3
Average Tenure
58
Average Age
  • The tenure for the Premier Oil management team is about average.
Management Team

Tony Durrant

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
59
TENURE
4.9 yrs

Richard Rose

TITLE
Finance Director & Executive Director
COMPENSATION
$935K
AGE
45
TENURE
4.7 yrs

Robin Allan

TITLE
Director of North Sea & Exploration and Executive Director
COMPENSATION
$948K
AGE
58
TENURE
3.8 yrs

Paul Williams

TITLE
Group Development & Operations Manager

Stuart Wheaton

TITLE
Chief Technical Officer

Andy Gibb

TITLE
Group General Counsel & Interim Company Secretary

Mike Fleming

TITLE
Group Human Resources Director

Dean Griffin

TITLE
Head of Exploration

Tim Lane

TITLE
Group Treasurer

Rachel Benjamin

TITLE
Company Secretary (Leave of Absence)
TENURE
4 yrs
Board of Directors Tenure

Average tenure and age of the Premier Oil board of directors in years:

3.8
Average Tenure
61
Average Age
  • The tenure for the Premier Oil board of directors is about average.
Board of Directors

Roy Franklin

TITLE
Non-Executive Chairman
COMPENSATION
$176K
AGE
65
TENURE
1.7 yrs

Tony Durrant

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
59
TENURE
13.8 yrs

Richard Rose

TITLE
Finance Director & Executive Director
COMPENSATION
$935K
AGE
45
TENURE
4.7 yrs

Robin Allan

TITLE
Director of North Sea & Exploration and Executive Director
COMPENSATION
$948K
AGE
58
TENURE
15.4 yrs

Ida Hinkley

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$74K
AGE
67

Iain MacDonald

TITLE
Independent Non-Executive Director
COMPENSATION
$64K
AGE
60
TENURE
3 yrs

Anne Cannon

TITLE
Independent Non Executive Director
COMPENSATION
$53K
AGE
61
TENURE
5.3 yrs

Dave Blackwood

TITLE
Non-Executive Director
COMPENSATION
$53K
TENURE
1.8 yrs

Mike Wheeler

TITLE
Non-Executive Director
COMPENSATION
$53K
AGE
67
TENURE
1.8 yrs

Barbara Jeremiah

TITLE
Director
AGE
66
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Nov 18 Buy Richard Rose Individual 16. Nov 18 16. Nov 18 20,000 £0.84 £16,798
X
Management checks
We assess Premier Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Premier Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PMO News

Simply Wall St News

Imagine Owning Premier Oil (LON:PMO) And Trying To Stomach The 75% Share Price Drop

While it may not be enough for some shareholders, we think it is good to see the Premier Oil plc (LON:PMO) share price up 28% in a single quarter. … Check out our latest analysis for Premier Oil To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

What Should We Expect From Premier Oil plc's (LON:PMO) Earnings In The Year Ahead?

Based on Premier Oil plc's (LON:PMO) earnings update on 31 December 2018, … with earnings expected to grow by 50% in the upcoming year … the past 5-year average growth rate of -2.1%.

Simply Wall St -

Premier Oil plc (LON:PMO) Has A ROE Of 10%

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Premier Oil has a return on equity of 10% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Premier Oil plc (LON:PMO) Is Employing Capital Very Effectively

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Premier Oil plc's (LON:PMO) CEO Paid Enough Relative To Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60) … How Does Tony Durrant's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Who Are The Top Investors In Premier Oil plc (LON:PMO)?

Companies that used to be publicly owned tend to have lower insider ownership. … With a market capitalization of UK£1.0b, Premier Oil is a decent size, so it is probably on the radar of institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Who Really Owns Premier Oil plc (LON:PMO)?

In this article, I'm going to take a look at Premier Oil plc’s (LON:PMO) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The same amount of capital coming from an activist institution and a passive mutual fund has different implications on corporate governance, which is a decisive factor for a long-term investor.

Simply Wall St -

Is Premier Oil plc (LON:PMO) A Financially Sound Company?

While small-cap stocks, such as Premier Oil plc (LON:PMO) with its market cap of UK£896.49m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Can Premier Oil plc (LON:PMO) Improve Your Portfolio Returns?

The other type of risk, which cannot be diversified away, is market risk. … Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few. … This level of volatility indicates bigger risk for investors who passively invest in the stock market index.

Simply Wall St -

Who Owns Premier Oil plc (LON:PMO)?

This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: PMO's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

PMO Company Info

Description

Premier Oil plc, an oil and gas company, engages in the exploration, production, and development of oil and gas properties primarily in the Falkland Islands, Indonesia, Pakistan, the United Kingdom, Vietnam, and internationally. As of December 31, 2017, it had proven and probable reserves (2P) of 302 million barrels of oil equivalent (mmboe); and 2P reserves and 2C resources of 902 mmboe. Premier Oil plc was founded in 1934 and is headquartered in London, the United Kingdom.

Details
Name: Premier Oil plc
PMO
Exchange: LSE
Founded: 1934
£693,460,561
822,415,277
Website: http://www.premier-oil.com
Address: Premier Oil plc
23 Lower Belgrave Street,
London,
Greater London, SW1W 0NR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PMO Ordinary Shares London Stock Exchange GB GBP 06. Jan 1975
OTCPK PMOI.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB PQQB Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
BATS-CHIXE PMOL Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Jan 1975
OTCPK PMOI.Y SPONSORED ADR Pink Sheets LLC US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
767
Premier Oil employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 20:42
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/04/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.