OB:OKEA

Stock Analysis Report

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Executive Summary

OKEA ASA, an oil and gas company, engages in the development and production of oil and gas in the Norwegian continental shelf. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OKEA is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: OKEA's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Norwegian stocks.


Market Performance


7 Day Return

4.2%

OKEA

1.3%

NO Oil and Gas

-0.1%

NO Market


1 Year Return

-24.2%

OKEA

-10.4%

NO Oil and Gas

1.1%

NO Market

Return vs Industry: OKEA underperformed the Norwegian Oil and Gas industry which returned -10.4% over the past year.

Return vs Market: OKEA underperformed the Norwegian Market which returned 1.1% over the past year.


Shareholder returns

OKEAIndustryMarket
7 Day4.2%1.3%-0.1%
30 Day36.6%13.7%6.5%
90 Day84.0%30.8%17.7%
1 Year-24.2%-24.2%-5.7%-10.4%4.8%1.1%
3 Yearn/a4.3%-8.8%10.8%-1.7%
5 Yearn/a100.9%60.1%84.3%48.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OKEA 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: OKEA (NOK13.8) is trading below our estimate of fair value (NOK162.06)

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


Price To Earnings Ratio

PE vs Industry: OKEA is unprofitable, so we can't compare its PE Ratio to the NO Oil and Gas industry average.

PE vs Market: OKEA is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OKEA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OKEA is overvalued based on its PB Ratio (1.6x) compared to the NO Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is OKEA forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

110.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKEA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

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

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

Revenue vs Market: OKEA's revenue (15.3% per year) is forecast to grow faster than the Norwegian market (6.7% per year).

High Growth Revenue: OKEA's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OKEA's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has OKEA performed over the past 5 years?

-85.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OKEA is currently unprofitable.

Growing Profit Margin: OKEA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OKEA is unprofitable, and losses have increased over the past 5 years at a rate of 85% per year.

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

Earnings vs Industry: OKEA is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (263.2%).


Return on Equity

High ROE: OKEA has a negative Return on Equity (-87.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is OKEA's financial position?


Financial Position Analysis

Short Term Liabilities: OKEA's short term assets (NOK2.1B) exceed its short term liabilities (NOK1.2B).

Long Term Liabilities: OKEA's short term assets (NOK2.1B) do not cover its long term liabilities (NOK7.6B).


Debt to Equity History and Analysis

Debt Level: OKEA's debt to equity ratio (298.7%) is considered high.

Reducing Debt: Insufficient data to determine if OKEA's debt to equity ratio has reduced 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: OKEA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OKEA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is OKEA current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OKEA'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 OKEA's dividends per share have been stable in the past.

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Erik Haugane (67 yo)

no data

Tenure

kr3,445,000

Compensation

Mr. Erik Haugane serves as Chief Executive Officer and Founder at OKEA AS. He served as the Chief Executive Officer and President of Det Norske Oljeselskap ASA until May 1, 2013. Mr. Haugane served as an A...


CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD400.99K) is about average for companies of similar size in the Norwegian market ($USD470.01K).

Compensation vs Earnings: Erik's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Erik Haugane
Founder & CEOno datakr3.45m0.16%
NOK 2.2m
Tor Bjerkestrand
Senior Vice President Operationsno datakr283.00k0.090%
NOK 1.3m
Kjersti Hovdal
Senior Vice President Accounting & Controllingno datakr167.00k0.15%
NOK 2.1m
Dag Eggan
Senior Vice President of Business Performanceno datakr2.94m0.092%
NOK 1.3m
Birte Norheim
Chief Financial Officerno datano data0.057%
NOK 808.7k
Knut Gjertsen
SVP of Project & Technology0.75yrno data0.071%
NOK 1.0m
Ståle Myhre
Vice President of Investor Relationsno datano datano data
Trond Omdal
Vice Presidentno datano data0.078%
NOK 1.1m
Marit Vik-Langlie
Vice President of Legalno datano data0.055%
NOK 771.2k
Andrew McCann
Senior Vice President of Subsurface1.92yrsno data0.092%
NOK 1.3m
Espen Myhra
SVP Business Development1.25yrsno data0.12%
NOK 1.7m

1.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: OKEA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Finn Haugan
Director1.75yrskr722.00k0.020%
NOK 276.0k
Liv Monica Stubholt
Director1.75yrskr685.00k0.020%
NOK 276.0k
Rune Pedersen
Director1.75yrskr610.00k0.020%
NOK 276.0k
Prisana Praharnkhasuk
Director2yrskr875.00k0.020%
NOK 276.0k
Chaiwat Kovavisarach
Chairman of the Boardno datakr1.12m0.029%
NOK 414.0k
Nicola Gordon
Director1.75yrskr796.00k0.020%
NOK 276.0k
Michael Fischer
Director2.17yrskr843.00k0.020%
NOK 276.0k
Anne Rømuld
Director1.75yrskr671.00k0.044%
NOK 625.5k
Jan Johansen
Director1.75yrskr671.00k0.035%
NOK 499.9k
Paul Murray
Director0.75yrkr50.00kno data
Frank Stensland
Deputy Board Memberno datano data0.028%
NOK 400.2k
Ragnhild Aas
Directorno datakr21.00k0.079%
NOK 1.1m

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: OKEA's board of directors are not considered experienced ( 1.8 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: OKEA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OKEA ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OKEA ASA
  • Ticker: OKEA
  • Exchange: OB
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr1.415b
  • Shares outstanding: 102.50m
  • Website: https://okea.no

Number of Employees


Location

  • OKEA ASA
  • Ferjemannsveien 10
  • Trondheim
  • Sør-Trøndelag
  • 7042
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OKEAOB (Oslo Bors)YesOrdinary SharesNONOKJun 2019
3SXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2019

Biography

OKEA ASA, an oil and gas company, engages in the development and production of oil and gas in the Norwegian continental shelf. It holds interests 44.56% in Draugen, 12% in Gjøa, and 0.55% in Ivar Aasen lic...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 02:15
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
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.