RE: Oil and gas revenue17 Aug 2024 09:29
PJM, i think there's something wrong with your numbers. Year 1 (workover) the revenue projection is Gbp 2m, year 2 (1 st new drills) revenue GBP 30m. Year 1 PBIT = negative GBP 3m Year 2 PBIT = GBP 20m. So our year 1 EPS is year 1 negative £0.00028 and year 2 positive £0.0019. So this means in year 2 our P/E ratio is 0.52 and of course negative in year 1. So to JPP's point to achieve an industry standard P/E ratio of 10, the SP has to increase to 2p per share (which I admit is ludicrously high) but that said, my year 2 starts 30 months from now.