Harbour Energy PLC

Harbour Energy PLC (LON: HBR) is an FTSE All-Share listed London, United Kingdom-based multinational Oil & Gas Exploration and Production Company. The Company was earlier named Premier Oil PLC.

On 25 June 2021, 20 for one share consolidation became effective.

Investment Rationale – AVOID at GBX 327.90

• The first gas production from Tolmount got delayed from the end of July 2021 to the end of 2021.
• HBR had reduced the FY21 production guidance amid uncertainty around the Tolmount start-up. Now, it expects FY21 production to remain around 170 to 180 kboepd on a reported basis.
• The return on equity and return on assets remained in the negative territory during FY20.
• From a technical standpoint, the 20-days exponential moving average (GBX 341.83) is indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the delay in the Tolmount production facility and reduction in FY21 production guidance, we have given an “AVOID” recommendation on Harbour Energy PLC at the current market price of GBX 327.90 (as on 30 July 2021 at 09:49 AM GMT).  

Esken Limited

Esken Limited (LON: ESKN) is an FTSE All-Share listed aviation and energy infrastructure entity.

Investment Rationale – AVOID at GBX 17.59

• On the liquidity front, the quick ratio and current ratio remained substantially lower than the respective industry median during FY21.
• The Company remained highly leveraged when compared with the industry as the debt-equity ratio of 5.45x remained significantly higher than the industry median of 1.88x during FY21.
• The top-line revenue plunged by around 22.1% during FY21.
• The stock price had underperformed against the benchmark index, and it got declined by 28.28% in the last one year.
• From a technical standpoint, the 20-days exponential moving average (GBX 20.71) is indicating a correction in the stock price.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak liquidity profile and significant decline in FY21 revenue, we have given an “AVOID” recommendation on Esken Limited at the current market price of GBX 17.59 (as on 30 July 2021 at 09:52 AM GMT).

*The reference data in this report has been partly sourced from REFINITIV.

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