Executive Summary
RAK Petroleum plc operates as an oil and gas investment company.
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record and undervalued.
Share Price & News
How has RAK Petroleum's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RAKP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.7%
RAKP
0.05%
NO Oil and Gas
0.7%
NO Market
1 Year Return
-35.5%
RAKP
-18.5%
NO Oil and Gas
-1.4%
NO Market
Return vs Industry: RAKP underperformed the Norwegian Oil and Gas industry which returned -18.5% over the past year.
Return vs Market: RAKP underperformed the Norwegian Market which returned -1.4% over the past year.
Shareholder returns
| RAKP | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.7% | 0.05% | 0.7% |
| 30 Day | -13.6% | -11.5% | -2.0% |
| 90 Day | -14.4% | -9.0% | 2.1% |
| 1 Year | -35.5%-35.5% | -14.1%-18.5% | 3.8%-1.4% |
| 3 Year | 22.5%22.5% | 28.8%13.1% | 31.9%15.6% |
| 5 Year | -41.9%-41.9% | 43.3%16.3% | 55.6%20.8% |
Price Volatility Vs. Market
How volatile is RAK Petroleum's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
RAK Petroleum (OB:RAKP) Seems To Be Using An Awful Lot Of Debt3 weeks ago | Simply Wall St
Here's What RAK Petroleum plc's (OB:RAKP) ROCE Can Tell Us1 month ago | Simply Wall St
Should You Use RAK Petroleum's (OB:RAKP) Statutory Earnings To Analyse It?Valuation
Is RAK Petroleum 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: RAKP (NOK9.42) is trading below our estimate of fair value (NOK27.58)
Significantly Below Fair Value: RAKP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RAKP is good value based on its PE Ratio (1.7x) compared to the Oil and Gas industry average (18.1x).
PE vs Market: RAKP is good value based on its PE Ratio (1.7x) compared to the Norwegian market (14.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RAKP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RAKP is good value based on its PB Ratio (0.3x) compared to the NO Oil and Gas industry average (0.9x).
Next Steps
Future Growth
How is RAK Petroleum forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
19.4%
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 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 SimplyWall St do have past financial data.
Next Steps
- Examine whether RAK Petroleum is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- RAK Petroleum competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has RAK Petroleum performed over the past 5 years?
70.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RAKP has high quality earnings.
Growing Profit Margin: RAKP's current net profit margins (18.3%) are higher than last year (17.3%).
Past Earnings Growth Analysis
Earnings Trend: RAKP's earnings have grown significantly by 70% per year over the past 5 years.
Accelerating Growth: RAKP's earnings growth over the past year (122.6%) exceeds its 5-year average (70% per year).
Earnings vs Industry: RAKP earnings growth over the past year (122.6%) exceeded the Oil and Gas industry -18%.
Return on Equity
High ROE: RAKP's Return on Equity (25.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is RAK Petroleum's financial position?
Financial Position Analysis
Short Term Liabilities: RAKP's short term assets ($1.1B) exceed its short term liabilities ($317.4M).
Long Term Liabilities: RAKP's short term assets ($1.1B) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: RAKP's debt to equity ratio (67%) is considered high.
Reducing Debt: RAKP's debt to equity ratio has increased from 0.01% to 67% over the past 5 years.
Debt Coverage: RAKP's debt is well covered by operating cash flow (35.5%).
Interest Coverage: RAKP's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Inventory Level: RAKP has a high level of physical assets or inventory.
Debt Coverage by Assets: RAKP's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is RAK Petroleum's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate RAKP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate RAKP'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 RAKP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RAKP'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 RAKP'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?
2.8yrs
Average management tenure
CEO
Bijan Mossavar-Rahmani (67yo)
9.9yrs
Tenure
US$1,745,500
Compensation
Mr. Bijan Mossavar-Rahmani serves as the Chief Executive Officer of RAK Petroleum plc since and has been its Executive Chairman May 2010. Mr. Mossavar-Rahmani serves as the Chief Executive Officer of Mond ...
CEO Compensation Analysis
Compensation vs Market: Bijan's total compensation ($USD1.75M) is above average for companies of similar size in the Norwegian market ($USD518.97K).
Compensation vs Earnings: Bijan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 9.9yrs | US$1.75m | 25.59% $714.3m | |
| CFO & COO | 2.8yrs | US$605.25k | 0.12% $3.4m | |
| MD & General Counsel | 6.5yrs | US$650.00k | 0.10% $2.8m | |
| Chief of Staff & Deputy General Counsel | 1.3yrs | US$239.62k | no data | |
| 2.8yrs | US$180.00k | no data |
2.8yrs
Average Tenure
Experienced Management: RAKP's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 9.9yrs | US$1.75m | 25.59% $714.3m | |
| Non-Executive Director | 11.1yrs | US$50.00k | no data | |
| Non-Executive Director | 10.1yrs | US$50.00k | no data | |
| Non-Executive Director | 4.7yrs | US$50.00k | no data | |
| Non-Executive Director | 3.7yrs | US$50.00k | no data |
9.9yrs
Average Tenure
Experienced Board: RAKP's board of directors are considered experienced (9.9 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
RAK Petroleum plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: RAK Petroleum plc
- Ticker: RAKP
- Exchange: OB
- Founded: 2005
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: kr2.791b
- Shares outstanding: 296.28m
- Website: https://www.rakpetroleum.uk
Number of Employees
Location
- RAK Petroleum plc
- Elder House
- St Georges Business Park
- Weybridge
- Surrey
- KT13 0TS
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RAKP | OB (Oslo Bors) | Yes | Class A Shares | NO | NOK | Nov 2014 |
| 0R47 | LSE (London Stock Exchange) | Yes | Class A Shares | GB | NOK | Nov 2014 |
| RAKPO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class A Shares | GB | NOK | Nov 2014 |
| R8P | DB (Deutsche Boerse AG) | Yes | Class A Shares | DE | EUR | Nov 2014 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 22:28 |
| 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.