OB:PSE

Stock Analysis Report

Executive Summary

Petrolia SE, together with its subsidiaries, operates as a rental equipment company for the oil industry in Europe, Asia, Australia, and internationally.

Rewards

Trading at 73.7% below its fair value

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Does not have a meaningful market cap (NOK166M)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PSE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

PSE

-2.4%

NO Energy Services

-0.3%

NO Market


1 Year Return

-13.6%

PSE

-26.8%

NO Energy Services

-1.2%

NO Market

Return vs Industry: PSE exceeded the Norwegian Energy Services industry which returned -26.8% over the past year.

Return vs Market: PSE underperformed the Norwegian Market which returned -1.2% over the past year.


Shareholder returns

PSEIndustryMarket
7 Day-5.4%-2.4%-0.3%
30 Day0%-16.0%-3.6%
90 Day-10.3%-11.1%2.2%
1 Year-13.6%-13.6%-25.1%-26.8%4.2%-1.2%
3 Year-28.4%-28.4%-21.6%-26.8%29.6%13.1%
5 Year-65.9%-65.9%-23.2%-48.6%55.9%20.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Petrolia 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: PSE (NOK2.8) is trading below our estimate of fair value (NOK10.65)

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


Price To Earnings Ratio

PE vs Industry: PSE is good value based on its PE Ratio (3.3x) compared to the Energy Services industry average (10.8x).

PE vs Market: PSE is good value based on its PE Ratio (3.3x) compared to the Norwegian market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PSE is good value based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Petrolia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

39.6%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Petrolia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Petrolia performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSE has a large one-off gain of $3.7M impacting its June 30 2019 financial results.

Growing Profit Margin: PSE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PSE has become profitable over the past 5 years, growing earnings by 25% per year.

Accelerating Growth: PSE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PSE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-44.4%).


Return on Equity

High ROE: PSE's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Petrolia's financial position?


Financial Position Analysis

Short Term Liabilities: PSE's short term assets ($27.7M) exceed its short term liabilities ($17.1M).

Long Term Liabilities: PSE's short term assets ($27.7M) exceed its long term liabilities ($11.6M).


Debt to Equity History and Analysis

Debt Level: PSE's debt to equity ratio (10.5%) is considered satisfactory.

Reducing Debt: PSE's debt to equity ratio has reduced from 25.1% to 10.5% over the past 5 years.


Balance Sheet

Inventory Level: PSE has a high level of physical assets or inventory.

Debt Coverage by Assets: PSE's debt is covered by short term assets (assets are 6x 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: PSE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PSE is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.9%markettop25%6.1%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if PSE'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 PSE'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?

4.1yrs

Average management tenure


CEO

Erwin Joseph Godec 0

7.4yrs

Tenure

0

Mr. Erwin Joseph Pierre Godec has been Chief Executive Officer at Petrolia SE September 14, 2012. Mr. Godec has been a Director of Petrolia SE since July 1, 2013 and served as a its Director. 


Leadership Team

NamePositionTenureCompensationOwnership
Erwin Joseph Godec
CEO, MD & Director7.4yrsno data0.080% $132.4k
Demos Demou
Chief Financial Officer3.5yrsno datano data
Sølve Nilsen
General Manager of Norwegian Branch4.1yrsno data0.34% $568.3k
Sandra Eileng
Legal Secretary0yrsno datano data
Geir Bjørlo
Manager of Communications0yrsno datano data

4.1yrs

Average Tenure

Experienced Management: PSE's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Erwin Joseph Godec
CEO, MD & Director7.4yrsno data0.080% $132.4k
Berge Larsen
Chairman0yrsno data12.82% $21.2m
Sjur Storaas
Independent Director9.7yrsno datano data
Judith Parry
Independent Director6.7yrsno datano data

6.7yrs

Average Tenure

Experienced Board: PSE's board of directors are considered experienced (6.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Petrolia SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petrolia SE
  • Ticker: PSE
  • Exchange: OB
  • Founded: 1997
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr165.575m
  • Shares outstanding: 59.13m
  • Website: https://www.petrolia.no

Number of Employees


Location

  • Petrolia SE
  • Office 401
  • 4th Floor
  • Limassol
  • 3036
  • Cyprus

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSEOB (Oslo Bors)YesNew Common SharesNONOKOct 2012
0QABLSE (London Stock Exchange)YesNew Common SharesGBNOKOct 2012
0PEDB (Deutsche Boerse AG)YesNew Common SharesDEEUROct 2012
PSEOBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBNOKOct 2012

Biography

Petrolia SE, together with its subsidiaries, operates as a rental equipment company for the oil industry in Europe, Asia, Australia, and internationally. The company operates through two segments, Exploration & Production, and Oil Service. It rents drilling equipment, such as drill pipes, and test strings and tubings, as well as casing, handling, and auxiliary tools and other equipment. The company also provides inspection and maintenance services; and various services for equipment. It serves oil companies, drilling contractors, and oil service companies. The company was formerly known as Petrolia E&P Holdings SE and changed its name to Petrolia SE in January 2013. Petrolia SE was founded in 1997 and is based in Limassol, Cyprus. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:19
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.