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RAK Petroleum

OB:RAKP
Snowflake Description

Outstanding track record and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAKP
OB
NOK4B
Market Cap
  1. Home
  2. NO
  3. Energy
Company description

RAK Petroleum plc operates as an oil and gas investment company. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • RAK Petroleum has significant price volatility in the past 3 months.
RAKP Share Price and Events
7 Day Returns
-6.2%
OB:RAKP
0.3%
NO Oil and Gas
1.9%
NO Market
1 Year Returns
22.3%
OB:RAKP
-13.4%
NO Oil and Gas
-4.4%
NO Market
RAKP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RAK Petroleum (RAKP) -6.2% -22.8% -5.8% 22.3% 52.2% -
NO Oil and Gas 0.3% -8.9% -6.8% -13.4% 42.6% 6.1%
NO Market 1.9% -3% -1.3% -4.4% 29.5% 17.2%
1 Year Return vs Industry and Market
  • RAKP outperformed the Oil and Gas industry which returned -13.4% over the past year.
  • RAKP outperformed the Market in Norway which returned -4.4% over the past year.
Price Volatility
RAKP
Industry
5yr Volatility vs Market

RAKP Value

 Is RAK Petroleum 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 RAK Petroleum 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 RAK Petroleum.

OB:RAKP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year NO Government Bond Rate 1.8%

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 OB:RAKP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6.7%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.917 (1 + (1- 19%) (130.08%))
1.592
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.59
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (1.592 * 6.65%)
12.35%

Discounted Cash Flow Calculation for OB:RAKP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RAK Petroleum 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.

OB:RAKP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.35%)
2019 303.18 Est @ 8.19% 269.86
2020 322.17 Est @ 6.26% 255.24
2021 338.00 Est @ 4.91% 238.35
2022 351.41 Est @ 3.97% 220.56
2023 363.03 Est @ 3.31% 202.81
2024 373.34 Est @ 2.84% 185.64
2025 382.74 Est @ 2.52% 169.40
2026 391.50 Est @ 2.29% 154.23
2027 399.85 Est @ 2.13% 140.20
2028 407.92 Est @ 2.02% 127.31
Present value of next 10 years cash flows $1,963.59
OB:RAKP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $407.92 × (1 + 1.76%) ÷ (12.35% – 1.76%)
$3,919.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,919.95 ÷ (1 + 12.35%)10
$1,223.41
OB:RAKP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,963.59 + $1,223.41
$3,187.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,187.00 / 296.28
$10.76
OB:RAKP Discount to Share Price
Calculation Result
Exchange Rate USD/NOK
(Reporting currency to currency of OB:RAKP)
8.75
Value per Share
(NOK)
= Value per Share in USD x Exchange Rate (USD/NOK)
= $10.76 x 8.75
NOK94.12
Value per share (NOK) From above. NOK94.12
Current discount Discount to share price of NOK13.70
= -1 x (NOK13.70 - NOK94.12) / NOK94.12
85.4%

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

Current Discount
Amount off the current price RAK Petroleum is available for.
Intrinsic value
>50%
Share price is NOK13.7 vs Future cash flow value of NOK94.12
Current Discount Checks
For RAK Petroleum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RAK Petroleum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • RAK Petroleum's share price is below the future cash flow value, and 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 RAK Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RAK Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:RAKP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.52
OB:RAKP Share Price ** OB (2019-05-23) in NOK NOK13.7
OB:RAKP Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.114 $1.57
Norway Oil and Gas Industry PE Ratio Median Figure of 7 Publicly-Listed Oil and Gas Companies 8.73x
Norway Market PE Ratio Median Figure of 133 Publicly-Listed Companies 13.48x

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

** Primary Listing of RAK Petroleum.

OB:RAKP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:RAKP Share Price ÷ EPS (both in USD)

= 1.57 ÷ 0.52

3.03x

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

  • RAK Petroleum is good value based on earnings compared to the NO Oil and Gas industry average.
  • RAK Petroleum is good value based on earnings compared to the Norway market.
Price based on expected Growth
Does RAK Petroleum's expected growth come at a high price?
Raw Data
OB:RAKP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Norway Oil and Gas Industry PEG Ratio Median Figure of 5 Publicly-Listed Oil and Gas Companies 0.98x
Norway Market PEG Ratio Median Figure of 103 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for RAK Petroleum, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RAK Petroleum's assets?
Raw Data
OB:RAKP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.68
OB:RAKP Share Price * OB (2019-05-23) in NOK NOK13.7
OB:RAKP Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.114 $1.57
Norway Oil and Gas Industry PB Ratio Median Figure of 15 Publicly-Listed Oil and Gas Companies 0.7x
Norway Market PB Ratio Median Figure of 212 Publicly-Listed Companies 1.15x
OB:RAKP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:RAKP Share Price ÷ Book Value per Share (both in USD)

= 1.57 ÷ 2.68

0.58x

* Primary Listing of RAK Petroleum.

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

  • RAK Petroleum is good value based on assets compared to the NO Oil and Gas industry average.
X
Value checks
We assess RAK Petroleum'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. RAK Petroleum has a total score of 5/6, 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.

RAKP Future Performance

 How is RAK Petroleum expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 RAK Petroleum 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
11.6%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RAK Petroleum expected to grow at an attractive rate?
  • Unable to compare RAK Petroleum's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare RAK Petroleum's earnings growth to the Norway market average as no estimate data is available.
  • Unable to compare RAK Petroleum's revenue growth to the Norway market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OB:RAKP Future Growth Rates Data Sources
Data Point Source Value (per year)
Norway Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
Norway Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
Norway Market Earnings Growth Rate Market Cap Weighted Average 13.8%
Norway Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*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
OB:RAKP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:RAKP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 829 464 161
2018-09-30 654 379 122
2018-06-30 478 295 83
2018-03-31 413 311 69
2017-12-31 347 328 55
2017-09-30 354 294 24
2017-06-30 360 261 -8
2017-03-31 281 156 -7
2016-12-31 202 51 -7
2016-09-30 -9 -26
2016-06-30 -7 -44
2016-03-31 -9 -60

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if RAK Petroleum is high growth as no earnings estimate data is available.
  • Unable to determine if RAK Petroleum is high growth as no revenue estimate data is available.
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
OB:RAKP 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 0 Analyst Estimates (S&P Global) See Below

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

OB:RAKP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.52
2018-09-30 0.39
2018-06-30
2018-03-31
2017-12-31 0.18
2017-09-30 0.08
2017-06-30
2017-03-31
2016-12-31 -0.02
2016-09-30 -0.08
2016-06-30
2016-03-31

*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.
  • Unable to establish if RAK Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether RAK Petroleum is trading at RAK Petroleum'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. RAK Petroleum's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. RAK Petroleum's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess RAK Petroleum'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 Norway market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Norway 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.
RAK Petroleum has a total score of 0/6, 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.

RAKP Past Performance

  How has RAK Petroleum 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 RAK Petroleum'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.
  • RAK Petroleum has delivered over 20% year on year earnings growth in the past 5 years.
  • RAK Petroleum's 1-year earnings growth exceeds its 5-year average (193.8% vs 41.8%)
  • RAK Petroleum's earnings growth has exceeded the NO Oil and Gas industry average in the past year (193.8% vs 65.4%).
Earnings and Revenue History
RAK Petroleum'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 RAK Petroleum Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:RAKP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 829.30 161.00 107.20
2018-09-30 653.80 121.95 112.55
2018-06-30 478.30 82.90 117.90
2018-03-31 412.85 68.85 98.00
2017-12-31 347.40 54.80 78.10
2017-09-30 353.80 23.55 80.07
2017-06-30 360.20 -7.70 82.03
2017-03-31 281.00 -7.50 72.27
2016-12-31 201.80 -7.30 62.50
2016-09-30 -25.52 8.82
2016-06-30 -44.12 9.21
2016-03-31 -59.79 10.65
2015-12-31 -75.46 12.10
2015-09-30 -124.20 12.74
2015-06-30 -172.94 13.38
2015-03-31 -141.92 11.62
2014-12-31 -110.91 9.86
2014-06-30 52.33 13.54
2014-03-31 53.58 14.65
2013-12-31 54.83 15.77
2012-12-31 73.94 6.28

*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.
  • RAK Petroleum has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • RAK Petroleum used its assets more efficiently than the NO Oil and Gas industry average last year based on Return on Assets.
  • RAK Petroleum has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess RAK Petroleum'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.
RAK Petroleum has a total score of 6/6, 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.

RAKP Health

 How is RAK Petroleum'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 RAK Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RAK Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RAK Petroleum's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RAK Petroleum'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 covered by short term assets, assets are 1.6x 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 RAK Petroleum Company Filings, last reported 4 months ago.

OB:RAKP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,533.80 616.60 768.00
2018-09-30 1,533.80 616.60 768.00
2018-06-30 1,252.00 638.50 609.90
2018-03-31 1,252.00 638.50 609.90
2017-12-31 1,168.90 421.10 454.00
2017-09-30 1,168.90 421.10 454.00
2017-06-30 599.43 32.68 15.93
2017-03-31 599.43 32.68 15.93
2016-12-31 850.50 399.40 275.70
2016-09-30 596.63 37.75 14.61
2016-06-30 608.90 30.11 8.29
2016-03-31 608.90 30.11 8.29
2015-12-31 605.43 27.32 6.82
2015-09-30 605.43 27.32 6.82
2015-06-30 649.39 24.17 3.97
2015-03-31 649.39 24.17 3.97
2014-12-31 676.42 15.00 8.40
2014-06-30 867.90 0.00 5.03
2014-03-31 805.95 0.00 7.44
2013-12-31 805.95 0.00 7.44
2012-12-31 709.70 22.55 65.94
  • RAK Petroleum's level of debt (40.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 40.2% today).
  • Debt is well covered by operating cash flow (75.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.9x coverage).
X
Financial health checks
We assess RAK Petroleum'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. RAK Petroleum has a total score of 4/6, 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.

RAKP Dividends

 What is RAK Petroleum'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 RAK Petroleum dividends.
If you bought NOK2,000 of RAK Petroleum shares you are expected to receive NOK0 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 RAK Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate RAK Petroleum'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
OB:RAKP 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 0 Analyst Estimates (S&P Global) See Below
Norway Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Norway Market Average Dividend Yield Market Cap Weighted Average of 109 Stocks 4.4%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.8%
Norway Bottom 25% Dividend Yield 25th Percentile 2.6%
Norway Top 25% Dividend Yield 75th Percentile 6.5%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as RAK Petroleum has not reported any payouts.
  • Unable to verify if RAK Petroleum's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of RAK Petroleum's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as RAK Petroleum has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RAK Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.8%) - 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 RAK Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RAK Petroleum 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.

RAKP Management

 What is the CEO of RAK Petroleum'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
Bijan Mossavar-Rahmani
COMPENSATION $5,126,500
AGE 66
TENURE AS CEO 9.2 years
CEO Bio

Mr. Bijan Mossavar-Rahmani serves as the Chief Executive Officer of RAK Petroleum plc since and has been its Executive Chairman May 2010. Mr. Mossavar-Rahmani serves as the Chief Executive Officer of Mondoil Enterprises, LLC. He served as a Managing Director of RAK Petroleum plc since April 2008. He was Founder of Apache International, Inc. and served as its First Chief Executive. He served as Chairman of the Board of Mondoil Corporation, RAK Petroleum and Chairman of Foxtrot International LDC. He has been an Executive Chairman of DNO ASA since June 2011. He has been a Director of RAK Petroleum since April 2008 and Executive Director of DNO ASA since March 10, 2011. Mr. Mossavar-Rahmani also served as a Member of the Advisory Board of Eurasia Group, Ltd. In addition to his industry positions, he is active in public and international affairs. He serves as a Director of the Persepolis Foundation and serves as a member of the Harvard Kennedy School's Visiting Committee and of the New York Metropolitan Museum of Art Visiting Committee on Islamic Art. He has published more than ten books and dozens of articles on global energy markets and was decorated a Commandeur de l'Ordre National de la Cote d'Ivoire for services to the energy sector of that country. Mr. Mossavar-Rahmani is a graduate of Princeton (AB) and Harvard Universities (MPA).

CEO Compensation
  • Bijan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bijan's remuneration is higher than average for companies of similar size in Norway.
Management Team Tenure

Average tenure of the RAK Petroleum management team in years:

2.1
Average Tenure
  • The tenure for the RAK Petroleum management team is about average.
Management Team

Bijan Mossavar-Rahmani

TITLE
Executive Chairman & CEO
COMPENSATION
$5M
AGE
66
TENURE
9.2 yrs

Kevin Toner

TITLE
MD & General Counsel
COMPENSATION
$650K
TENURE
5.8 yrs

Shelley Watson

TITLE
CFO & COO
COMPENSATION
$605K
TENURE
2 yrs

Lisa McPhillips

TITLE
Chief of Staff & Deputy General Counsel
COMPENSATION
$240K
TENURE
0.5 yrs

Arya Bolurfrushan

TITLE
COMPENSATION
$180K
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure of the RAK Petroleum board of directors in years:

9.2
Average Tenure
  • The tenure for the RAK Petroleum board of directors is about average.
Board of Directors

Bijan Mossavar-Rahmani

TITLE
Executive Chairman & CEO
COMPENSATION
$5M
AGE
66
TENURE
9.2 yrs

Ahmed Bin Bin Hassan Jawa

TITLE
Non-Executive Director
COMPENSATION
$50K
AGE
62
TENURE
10.3 yrs

Amir Handjani

TITLE
Non-Executive Director
COMPENSATION
$50K
TENURE
9.3 yrs

Bjørn Dale

TITLE
Non-Executive Director
COMPENSATION
$50K
TENURE
3.9 yrs

Sultan Abdulla Majid Al Ghurair

TITLE
Non-Executive Director
COMPENSATION
$50K
TENURE
2.9 yrs
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 (NOK) Value (NOK)
X
Management checks
We assess RAK Petroleum'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. RAK Petroleum 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.

RAKP News

Simply Wall St News

Does RAK Petroleum plc's (OB:RAKP) CEO Salary Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for RAK Petroleum How Does Bijan Mossavar-Rahmani's Compensation Compare With Similar Sized Companies? … We compared the total CEO remuneration paid by RAK Petroleum plc, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

One Thing To Remember About The RAK Petroleum plc (OB:RAKP) Share Price

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … See our latest analysis for RAK Petroleum What we can learn from RAKP's beta value Given that it has a beta of 0.80, we can surmise that the RAK Petroleum share price has not been strongly impacted by broader market volatility (over the last 5 years). … If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility.

Simply Wall St -

Why RAK Petroleum plc (OB:RAKP) Could Be Your Next Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Is RAK Petroleum plc's (OB:RAKP) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as RAK Petroleum plc (OB:RAKP) with its market cap of øre4.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

If You Had Bought RAK Petroleum Stock Three Years Ago, You Could Pocket A 106% Gain Today

For instance the RAK Petroleum plc (OB:RAKP) share price is 106% higher than it was three years ago. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Given the importance of this milestone, it's not overly surprising that the share price has increased strongly

Simply Wall St -

RAK Petroleum plc (OB:RAKP) Earns Among The Best Returns In Its Industry

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

Simply Wall St -

Are RAK Petroleum plc's (OB:RAKP) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like RAK Petroleum plc (OB:RAKP), with a market cap of øre3.7b. … However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes

Simply Wall St -

Does RAK Petroleum plc's (OB:RAKP) P/E Ratio Signal A Buying Opportunity?

We'll show how you can use RAK Petroleum plc's (OB:RAKP) P/E ratio to inform your assessment of the investment opportunity. … RAK Petroleum has a price to earnings ratio of 9.35, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is RAK Petroleum plc (OB:RAKP) A Financially Sound Company?

While small-cap stocks, such as RAK Petroleum plc (OB:RAKP) with its market cap of US$4.29b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Can RAK Petroleum plc (OB:RAKP) Continue To Outperform Its Industry?

and looking to gauge the potential return on investment in RAK Petroleum plc (OB:RAKP). … If RAKP borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

RAKP Company Info

Description

RAK Petroleum plc operates as an oil and gas investment company. The company primarily holds 40.45 % interests in DNO ASA that holds stakes in onshore and offshore licenses at various stages of exploration, development, and production in the Kurdistan Region of Iraq, Norway, Oman, Yemen, and the United Kingdom. It also holds 33.33 % interests in Foxtrot International LDC, which operates offshore Block CI-27 comprising two producing gas fields in Foxtrot and Mahi; and Block CI-502 and Block CI-12 offshore exploration licenses. The company was founded in 2005 and is based in Weybridge, the United Kingdom.

Details
Name: RAK Petroleum plc
RAKP
Exchange: OB
Founded: 2005
NOK4,147,942,890
296,281,635
Website: http://www.rakpetroleum.uk
Address: RAK Petroleum plc
Elder House,
St Georges Business Park,
Weybridge,
Surrey, KT13 0TS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB RAKP Class A Shares Oslo Bors NO NOK 07. Nov 2014
DB R8P Class A Shares Deutsche Boerse AG DE EUR 07. Nov 2014
LSE 0R47 Class A Shares London Stock Exchange GB NOK 07. Nov 2014
BATS-CHIXE RAKPO Class A Shares BATS 'Chi-X Europe' GB NOK 07. Nov 2014
Number of employees
Current staff
Staff numbers
1,079
RAK Petroleum employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:16
End of day share price update: 2019/05/23 00:00
Last earnings filing: 2019/04/15
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.