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Europa Oil & Gas (Holdings) PLC (GB:EOG)
LSE:EOG

Europa Oil & Gas (Holdings) (EOG) AI Stock Analysis

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Europa Oil & Gas (Holdings)

(LSE:EOG)

37Underperform
The overall stock score for Europa Oil & Gas is low, primarily due to significant financial difficulties and negative technical momentum. While insider buying and strategic developments suggest some optimism, they are insufficient to outweigh the current challenges.

Europa Oil & Gas (Holdings) (EOG) vs. S&P 500 (SPY)

Europa Oil & Gas (Holdings) Business Overview & Revenue Model

Company DescriptionEuropa Oil & Gas (Holdings) plc is an independent oil and gas exploration and production company based in the United Kingdom. The company is focused on maximizing the value of its portfolio of exploration, development, and production assets primarily in the UK and Ireland. Europa Oil & Gas operates across the oil and gas sector with an emphasis on identifying, acquiring, and developing low-risk, high-potential energy projects.
How the Company Makes MoneyEuropa Oil & Gas generates revenue primarily through the exploration, development, and production of oil and gas resources. The company's key revenue streams include the sale of crude oil and natural gas extracted from its assets. Europa Oil & Gas holds interests in various onshore and offshore licenses and works towards commercializing these resources. The company's earnings are influenced by factors such as production volumes, commodity prices, and operational efficiency. Europa also engages in strategic partnerships and farm-out agreements to share exploration risks and costs, which can also contribute to its financial performance.

Europa Oil & Gas (Holdings) Financial Statement Overview

Summary
Europa Oil & Gas faces significant financial challenges, with declining revenue, profitability, and cash flow. Operational inefficiencies and decreased profitability are evident, but the company maintains liquidity strength due to a healthy cash position.
Income Statement
35
Negative
The income statement indicates a significant decline in revenue from the previous year, dropping from 6.65 million to 3.57 million. Gross profit margin is extremely low, at just 0.34%, and the company is experiencing negative EBIT and EBITDA margins, with a net loss significantly increasing to 6.78 million. This suggests operational challenges and decreased profitability.
Balance Sheet
48
Neutral
The balance sheet shows a moderate debt-to-equity ratio, supported by low total debt levels. However, the equity ratio has decreased due to reduced stockholders' equity, reflecting potential financial instability. Despite this, the company maintains a healthy cash position with negative net debt, indicating liquidity strength.
Cash Flow
42
Neutral
Cash flow analysis reveals a declining operating cash flow and negative free cash flow, indicating deteriorating cash generation capacity. The company has a negative free cash flow to net income ratio, highlighting challenges in converting income into cash. This could impact future investments and operational sustainability.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
3.57M6.65M6.58M1.37M1.24M
Gross Profit
12.00K3.38M2.21M123.00K-354.00K
EBIT
-2.05M1.22M1.62M-591.00K-1.17M
EBITDA
-5.56M702.00K3.24M-496.00K-4.99M
Net Income Common Stockholders
-6.78M-852.00K1.36M-718.00K-9.71M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.46M5.17M1.42M683.00K812.00K
Total Assets
9.78M15.64M17.01M8.27M6.74M
Total Debt
12.00K22.00K57.00K50.00K50.00K
Net Debt
-1.45M-5.14M-1.34M-591.00K-718.00K
Total Liabilities
6.00M5.16M5.78M5.02M4.26M
Stockholders Equity
3.78M10.48M11.23M3.25M2.49M
Cash FlowFree Cash Flow
-1.29M-2.83M814.00K-1.52M-2.10M
Operating Cash Flow
-614.00K2.78M2.46M-535.00K-844.00K
Investing Cash Flow
-3.30M1.27M-8.27M-986.00K-1.25M
Financing Cash Flow
-8.00K-19.00K6.59M1.40M-27.00K

Europa Oil & Gas (Holdings) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.62
Price Trends
50DMA
0.71
Negative
100DMA
0.80
Negative
200DMA
0.87
Negative
Market Momentum
MACD
-0.03
Positive
RSI
43.81
Neutral
STOCH
76.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EOG, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.71, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EOG.

Europa Oil & Gas (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.57B4.34-4.83%6.50%-0.19%-64.60%
GBEOG
37
Underperform
£5.99M-95.12%-46.40%-688.89%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EOG
Europa Oil & Gas (Holdings)
0.62
-0.38
-38.00%
GB:RBD
Reabold Resources
0.04
-0.02
-33.33%
GB:UJO
Union Jack Oil
9.75
-12.88
-56.92%
GB:BLOE
Block Energy Plc
0.95
-0.20
-17.39%

Europa Oil & Gas (Holdings) Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Europa Oil & Gas Grants Options to CEO Under EMI Scheme
Neutral
Apr 9, 2025

Europa Oil & Gas (Holdings) plc announced the granting of 5,599,840 options over Ordinary Shares under its 2024 EMI scheme. These options, awarded to CEO William Holland, will vest in three years and are contingent upon performance conditions related to the company’s share price. This move increases the total outstanding options to 56,439,840, potentially impacting the company’s future financial strategies and stakeholder interests.

Spark’s Take on GB:EOG Stock

According to Spark, TipRanks’ AI Analyst, GB:EOG is a Underperform.

The overall stock score for Europa Oil & Gas is low, primarily due to significant financial difficulties and negative technical momentum. While insider buying and strategic developments suggest some optimism, they are insufficient to outweigh the current challenges.

To see Spark’s full report on GB:EOG stock, click here.

Other
Europa Oil & Gas Chairman Increases Stake with Major Share Purchase
Positive
Apr 8, 2025

Europa Oil & Gas (Holdings) plc announced that its Chairman, Bo Kroll, has acquired 5,000,000 ordinary shares of the company at an average price of 0.648 pence per share. This purchase increases Mr. Kroll’s total shareholding to approximately 6.563% of the company’s issued share capital, potentially signaling confidence in the company’s future prospects and impacting stakeholder perceptions.

Spark’s Take on GB:EOG Stock

According to Spark, TipRanks’ AI Analyst, GB:EOG is a Underperform.

Europa Oil & Gas’s stock score is low due to substantial financial challenges, negative technical momentum, and lack of attractive valuation metrics. While the CEO’s increased stake and strategic plans show some optimism, these factors are not enough to offset the current financial and operational difficulties.

To see Spark’s full report on GB:EOG stock, click here.

Other
Europa Oil & Gas CEO Increases Stake in Company
Positive
Apr 8, 2025

Europa Oil & Gas (Holdings) plc announced that its CEO, William Holland, has acquired 299,951 ordinary shares in the company at an average price of 0.575 pence per share. This transaction increases his total shareholding to 7,409,667 shares, representing approximately 0.772% of the company’s issued share capital, indicating a significant personal investment in the company’s future.

Spark’s Take on GB:EOG Stock

According to Spark, TipRanks’ AI Analyst, GB:EOG is a Neutral.

Europa Oil & Gas faces financial headwinds with declining revenue and profitability, compounded by negative cash flows. Technical analysis indicates bearish momentum, while valuation metrics show limited appeal without positive earnings. Although corporate events hint at strategic progress, the financial and technical challenges weigh heavily on the stock’s current outlook.

To see Spark’s full report on GB:EOG stock, click here.

Regulatory Filings and Compliance
Europa Oil & Gas Announces Change in Major Shareholder Holdings
Neutral
Apr 8, 2025

Europa Oil & Gas (Holdings) PLC has announced a change in its major holdings, with Christian William Ahlefeldt-Laurvig reducing his voting rights from 6.00% to 5.67% as of the notification date. This adjustment in holdings reflects recent transactions and indicates a slight shift in shareholder dynamics, which could influence the company’s governance and decision-making processes.

Spark’s Take on GB:EOG Stock

According to Spark, TipRanks’ AI Analyst, GB:EOG is a Neutral.

Europa Oil & Gas faces financial headwinds with declining revenue and profitability, compounded by negative cash flows. Technical analysis indicates bearish momentum, while valuation metrics show limited appeal without positive earnings. Although corporate events hint at strategic progress, the financial and technical challenges weigh heavily on the stock’s current outlook.

To see Spark’s full report on GB:EOG stock, click here.

Other
Europa Oil & Gas CEO Increases Stake with Share Purchase
Positive
Mar 20, 2025

Europa Oil & Gas (Holdings) plc announced that its CEO, William Holland, has acquired 765,763 ordinary shares in the company at an average price of 0.71 pence per share. This acquisition increases Mr. Holland’s total shareholding to 7,109,716 shares, representing approximately 0.741% of the company’s issued share capital, potentially signaling confidence in the company’s future prospects.

Business Operations and StrategyFinancial Disclosures
Europa Oil & Gas Reports Improved Financials and Project Progress
Positive
Mar 20, 2025

Europa Oil & Gas (Holdings) plc reported improved financial performance for the five-month period ending December 2024, with revenue increasing to £1.2 million and a reduced pre-tax loss of £0.3 million. The company is progressing with key projects, including the Cloughton gas field appraisal in the UK and the Barracuda prospect in Equatorial Guinea, both of which have attracted significant interest from potential partners. The company is also advancing its offshore Ireland exploration efforts, supported by favorable government policies. Despite challenges such as a weaker oil price and planning application setbacks, Europa remains optimistic about its future cash flow and project developments.

Executive/Board Changes
Europa Oil & Gas Announces Board Change with New Chairman
Neutral
Feb 11, 2025

Europa Oil & Gas has announced a change in its board, with Bo Krøll replacing Brian O’Cathain as the Non-Executive Chairman. This transition is a part of the company’s succession plan and comes at a pivotal time for the business, as Europa aims to continue its growth and deliver value to shareholders.

Other
Europa Oil & Gas CEO Increases Stake with Share Purchase
Positive
Jan 31, 2025

Europa Oil & Gas announced that CEO William Holland purchased 623,153 ordinary shares in the company, increasing his stake to approximately 0.661% of the issued share capital. This purchase demonstrates confidence in the company’s prospects and may positively influence investor perception of Europa’s strategic direction.

Private Placements and FinancingBusiness Operations and Strategy
Europa Oil & Gas Poised for Active Year with Strategic Developments in 2025
Positive
Jan 31, 2025

Europa Oil & Gas has initiated a farmout process for its EG-08 asset in Equatorial Guinea, aiming to fund an exploration well. In Ireland, Europa seeks a partner for its Inishkea West gas prospect, which could significantly contribute to Ireland’s gas supply. In the UK, Europa plans to submit a planning application for the Cloughton appraisal well and has ongoing production from the Wressle oilfield. The company’s 2025 budget reflects a prudent approach to exploration and development, with a focus on increasing production and cashflows through strategic projects such as the Wressle development programme.

Business Operations and Strategy
Europa Oil & Gas Announces Change in Major Shareholdings
Neutral
Jan 27, 2025

Europa Oil & Gas has announced a change in its major holdings as Polus Capital Management Limited reduced its voting rights from 5.8026% to 4.9791%. This adjustment reflects a strategic shift in shareholder positions, potentially impacting the company’s governance and stakeholder dynamics, as voting rights influence decision-making processes.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.