Premier Oil
Market Cap
UK£870.7m
Last Updated
2020/02/16 20:48 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -39.3% per year for the next 3 years
Snowflake Analysis
Fair value with acceptable track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.5%
PMO
-1.9%
GB Oil and Gas
-0.2%
GB Market
1 Year Return
34.8%
PMO
-6.9%
GB Oil and Gas
6.1%
GB Market
Return vs Industry: PMO exceeded the UK Oil and Gas industry which returned -6.9% over the past year.
Return vs Market: PMO exceeded the UK Market which returned 6.1% over the past year.
Shareholder returns
| PMO | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | -1.9% | -0.2% |
| 30 Day | -10.8% | -10.5% | -2.7% |
| 90 Day | 22.0% | -9.0% | 3.9% |
| 1 Year | 34.8%34.8% | -2.0%-6.9% | 11.8%6.1% |
| 3 Year | 32.3%32.3% | 21.3%6.2% | 17.5%2.6% |
| 5 Year | -41.2%-41.2% | 41.7%13.3% | 34.8%3.7% |
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
1 week ago | Simply Wall St
Is Premier Oil plc's (LON:PMO) ROE Of 11% Impressive?3 weeks ago | Simply Wall St
Is There More To Premier Oil plc (LON:PMO) Than Its 10.0% Returns On Capital?1 month ago | Simply Wall St
Should You Use Premier Oil's (LON:PMO) Statutory Earnings To Analyse It?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 (£1.04) is trading below our estimate of fair value (£7.4)
Significantly Below Fair Value: PMO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PMO is poor value based on its PE Ratio (8.7x) compared to the Oil and Gas industry average (6.8x).
PE vs Market: PMO is good value based on its PE Ratio (8.7x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: PMO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PMO is overvalued based on its PB Ratio (1x) 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 10 analysts?
-39.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PMO's earnings are forecast to decline over the next 3 years (-39.3% per year).
Earnings vs Market: PMO's earnings are forecast to decline over the next 3 years (-39.3% per year).
High Growth Earnings: PMO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PMO's revenue is expected to decline over the next 3 years (-2% per year).
High Growth Revenue: PMO's revenue is forecast to decline over the next 3 years (-2% 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 (2%).
Next Steps
Past Performance
How has Premier Oil performed over the past 5 years?
27.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PMO has high quality earnings.
Growing Profit Margin: PMO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: PMO has become profitable over the past 5 years, growing earnings by 27.9% per year.
Accelerating Growth: PMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: PMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.4%).
Return on Equity
High ROE: PMO's Return on Equity (11.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Premier Oil's financial position?
Financial Position Analysis
Short Term Liabilities: PMO's short term assets ($701.9M) exceed its short term liabilities ($577.7M).
Long Term Liabilities: PMO's short term assets ($701.9M) do not cover its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: PMO's debt to equity ratio (215%) is considered high.
Reducing Debt: PMO's debt to equity ratio has increased from 87.1% to 215% over the past 5 years.
Balance Sheet
Inventory Level: PMO has a high level of physical assets or inventory.
Debt Coverage by Assets: PMO's debt is not covered by short term assets (assets are 0.3x debt).
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: PMO is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: PMO is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Premier Oil's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PMO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PMO's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
5.1yrs
Average management tenure
CEO
Tony Durrant (60yo)
5.7yrs
Tenure
US$1,577,400
Compensation
Mr. Anthony R. C. Durrant, also known as Tony, has been the Chief Executive Officer of Premier Oil plc since June 2014 and its Executive Director since July 1, 2005. Mr. Durrant served as the Finance Direc ...
CEO Compensation Analysis
Compensation vs Market: Tony's total compensation ($USD2.05M) is above average for companies of similar size in the UK market ($USD1.18M).
Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.7yrs | US$1.58m | 0.18% $1.6m | |
| Finance Director & Executive Director | 5.4yrs | US$935.40k | 0.019% $163.0k | |
| Director of North Sea & Exploration and Executive Director | 16.2yrs | US$947.70k | 0.069% $598.4k | |
| Group Development & Operations Manager | 0yrs | no data | no data | |
| Chief Technical Officer | 0yrs | no data | no data | |
| Group General Counsel & Interim Company Secretary | 0yrs | no data | no data | |
| Group Human Resources Director | 0yrs | no data | no data | |
| Head of Exploration | 0yrs | no data | no data | |
| Group Treasurer | 0yrs | no data | no data | |
| Company Secretary (Leave of Absence) | 4.8yrs | no data | no data |
5.1yrs
Average Tenure
59yo
Average Age
Experienced Management: PMO's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.7yrs | US$1.58m | 0.18% $1.6m | |
| Finance Director & Executive Director | 5.4yrs | US$935.40k | 0.019% $163.0k | |
| Director of North Sea & Exploration and Executive Director | 16.2yrs | US$947.70k | 0.069% $598.4k | |
| Independent Non-Executive Director | 0.8yrs | no data | no data | |
| Non-Executive Chairman | 2.4yrs | US$175.50k | 0.0072% $62.5k | |
| Non-Executive Director | 2.5yrs | US$53.00k | 0.0036% $31.3k | |
| Senior Independent Non Executive Director | 0.08yrs | US$53.00k | 0.0012% $10.4k | |
| Independent Non-Executive Director | 3.8yrs | US$63.60k | 0.0028% $24.0k | |
| Non-Executive Director | 2.5yrs | US$53.00k | 0.0012% $10.4k |
2.5yrs
Average Tenure
61.5yo
Average Age
Experienced Board: PMO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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 been diluted in the past year, with total shares outstanding growing by 28.8%.
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£870.682m
- Shares outstanding: 835.59m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PMOI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1975 |
| PMOI.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jan 1975 | |
| PMO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1975 |
| PQQB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1975 |
| PMOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1975 |
Biography
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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 20:48 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.