tiprankstipranks
Trending News
More News >
Key Petroleum Limited (AU:KEY)
ASX:KEY
Australian Market

Key Petroleum Limited (KEY) AI Stock Analysis

Compare
2 Followers

Top Page

AU

Key Petroleum Limited

(Sydney:KEY)

Rating:33Underperform
Price Target:
Key Petroleum Limited's overall stock score is low due to significant financial instability, with erratic revenue and severe profitability problems. The technical analysis indicates bearish trends with the stock trading below key moving averages. The valuation metrics are unfavorable, with a negative P/E ratio indicating unprofitability and no dividend yield to attract income-focused investors. These factors collectively reflect a high-risk investment with limited immediate upside potential.

Key Petroleum Limited (KEY) vs. iShares MSCI Australia ETF (EWA)

Key Petroleum Limited Business Overview & Revenue Model

Company DescriptionKey Petroleum Limited engages in the acquisition and exploration of petroleum permits in Australia. It primarily holds interests in the ATP 783, 920, and 924 assets in the Cooper Eromanga Basin, Queensland, as well as L7 and EP437 in the Perth Basin, Western Australia. The company was incorporated in 2006 and is based in West Perth, Australia.
How the Company Makes MoneyKey Petroleum Limited makes money through its exploration and development activities in the oil and gas sector. The company's revenue model is centered around discovering commercially viable oil and gas reserves and either developing these reserves for production or selling them to larger entities in the energy industry. Revenue streams include the sale of crude oil and natural gas extracted from its licensed properties, as well as potential joint ventures or farm-out agreements with other energy companies. These partnerships and agreements can provide upfront payments, milestone payments, or royalties that contribute to the company's earnings. Key Petroleum's financial success is influenced by factors such as global oil and gas prices, exploration success rates, and the ability to manage operational costs efficiently.

Key Petroleum Limited Financial Statement Overview

Summary
Key Petroleum Limited faces significant financial challenges. The income statement reflects erratic revenue and severe profitability issues. The balance sheet is weakened by declining asset and equity levels, although the absence of debt is a positive aspect. Cash flow statements show persistent negative free cash flow, indicating ongoing cash management difficulties. Overall, the company needs to address its revenue generation and cost control strategies to improve financial stability.
Income Statement
25
Negative
Key Petroleum Limited has shown volatility in its revenue streams with a significant drop to zero revenue in 2023 and a marginal recovery to 8,092 in 2024. The gross profit margin is effectively 100% for 2024 due to total revenue equaling gross profit, but the net profit margin is deeply negative at -11876.63%, highlighting severe profitability issues. The EBIT and EBITDA margins also reflect negative trends due to operational losses. These metrics suggest the company is struggling to maintain stable revenue and profitability, posing a significant risk.
Balance Sheet
30
Negative
The company's balance sheet shows a decreasing trend in total assets and stockholders' equity from 2020 to 2024, reflecting a potential issue in sustaining asset and equity levels. The debt-to-equity ratio is favorable at 0, indicating no reliance on debt financing, but the return on equity is negative, suggesting poor returns on shareholders' investments. The equity ratio has been decreasing, suggesting a weaker financial position over time.
Cash Flow
20
Very Negative
Free cash flow has been negative over the years, indicating a consistent outflow of cash. The operating cash flow to net income ratio and the free cash flow to net income ratio are unfavorable, reflecting poor cash generation relative to net income. While there is some investing and financing activity, the negative cash flow from operations is concerning, pointing to sustainability issues.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
4.87K8.09K0.0010.98K549.19K767.53K
Gross Profit
4.87K8.09K-2.00K8.95K508.20K684.73K
EBIT
-593.33K-642.19K383.89K-1.22M-2.07M-135.19K
EBITDA
-425.45K-961.25K387.89K-1.21M-2.18M-52.40K
Net Income Common Stockholders
-929.54K-961.39K350.37K-1.23M-3.31M-923.25K
Balance SheetCash, Cash Equivalents and Short-Term Investments
481.79K172.07K583.30K266.61K1.39M642.19K
Total Assets
2.13M1.51M2.20M2.16M3.54M5.80M
Total Debt
0.000.00102.35K102.35K204.47K30.67K
Net Debt
-480.75K-172.07K-345.16K62.54K158.57K-611.52K
Total Liabilities
285.63K294.73K310.23K627.57K781.77K809.30K
Stockholders Equity
1.84M1.22M1.89M1.54M2.76M4.99M
Cash FlowFree Cash Flow
-531.92K-720.51K-756.02K-821.39K-1.23M-1.05M
Operating Cash Flow
-497.38K-703.46K-643.51K-765.56K-770.83K-1.05M
Investing Cash Flow
-33.67K238.06K1.05M861.59K737.00101.41K
Financing Cash Flow
237.01K292.31K-102.35K-102.13K173.80K1.14M

Key Petroleum Limited 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
$7.06B3.04-3.49%5.80%0.53%-50.39%
AUKEY
33
Underperform
AU$954.12K-62.03%-8.16%
$1.93B31.782.70%3.86%
$120.78M19.743.89%
$13.40B10.177.94%6.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KEY
Key Petroleum Limited
0.04
-0.06
-60.00%
BEPTF
Beach Energy
0.83
-0.26
-23.85%
CVONF
Carnarvon Energy Limited
0.08
-0.06
-42.86%
STOSF
Santos Limited
4.00
-0.83
-17.18%

Key Petroleum Limited Corporate Events

Key Petroleum Advances Strategic Developments in Cooper-Eromanga Basin
Apr 29, 2025

Key Petroleum Limited has submitted eight Potential Commercial Area applications for its assets in the Cooper-Eromanga Basin, which have been accepted and are under assessment. The company is confident in its submissions and is preparing for a successful grant that would allow a 15-year window for further development. Additionally, Key is pursuing international opportunities to diversify its resource base and enhance long-term value creation.

Key Petroleum Extends Entitlement Offer Deadline
Apr 22, 2025

Key Petroleum Limited has announced an extension to the closing date for its pro-rata non-renounceable entitlement offer, moving it from April 28, 2025, to May 6, 2025. This decision, prompted by the Easter and ANZAC Day holidays, aims to provide shareholders with additional time to participate, reflecting the company’s commitment to accommodating its stakeholders’ needs and potentially enhancing shareholder engagement.

Key Petroleum Extends Entitlement Offer Deadline
Apr 22, 2025

Key Petroleum Limited has announced an extension of the closing date for its non-renounceable entitlement offer from 28 April 2025 to 6 May 2025. This decision was made to accommodate shareholders during the Easter and ANZAC Day holidays, providing them additional time to participate in the offer. The entitlement offer aims to raise approximately $312,225 by issuing new shares at $0.062 each, with shareholders also having the option to apply for additional shares beyond their entitlement.

Key Petroleum Announces Entitlement Offer to Raise A$312,225
Apr 8, 2025

Key Petroleum Limited has announced a non-renounceable pro rata entitlement offer to raise approximately A$312,225 by issuing up to 5,035,900 new shares at A$0.062 each. This move is aimed at strengthening the company’s financial position and potentially enhancing its market operations, although it does not provide all the information typically found in a prospectus.

Key Petroleum Launches Entitlement Offer to Raise Capital
Apr 8, 2025

Key Petroleum Limited has announced the opening of a pro-rata non-renounceable entitlement offer, allowing eligible shareholders to purchase one new share for every five existing shares at a price of $0.062 per share. This offer aims to raise approximately $312,225 before expenses and is set to close on 28 April 2025. The offer is non-renounceable, meaning shareholders who do not participate will see their equity diluted. This move is part of Key Petroleum’s strategy to strengthen its financial position and support ongoing operations.

Key Petroleum Limited Announces Entitlement Offer to Raise Capital
Apr 4, 2025

Key Petroleum Limited has announced a non-renounceable pro rata entitlement offer to raise up to $321,225 by issuing 5,035,900 new shares at $0.062 each. This offer is not fully underwritten and aims to provide existing shareholders the opportunity to maintain or increase their proportional interests, although those not participating fully may experience dilution. The offer is structured to avoid any significant changes in the company’s control, ensuring no shareholder exceeds a 20% voting power.

Key Petroleum Updates on Securities Issuance Plan
Apr 4, 2025

Key Petroleum Limited has announced an update regarding its pro-rata non-renounceable entitlement offer initially declared on March 31, 2025. The offer is no longer underwritten due to the underwriter’s inability to deposit the necessary Trust Funds, leading the company to terminate the Underwriting Agreement. This development may impact the company’s financial strategy and stakeholder confidence as they navigate the changes in their securities issuance plan.

Key Petroleum Updates Entitlement Offer Amid Underwriting Changes
Apr 4, 2025

Key Petroleum Limited has announced an updated pro-rata non-renounceable entitlement offer to raise approximately $312,225. The offer, initially underwritten, is now not underwritten due to unforeseen circumstances. Eligible shareholders will receive one new share for every five existing shares, with the offer open to shareholders in Australia, New Zealand, Hong Kong, and the United Kingdom. The funds raised will be used for asset acquisition, regulatory costs, working capital, and offer expenses. The offer includes a shortfall facility allowing shareholders to apply for additional shares, and the new shares will be quoted on the ASX.

Key Petroleum Limited Initiates Trading Halt Ahead of Major Announcement
Apr 2, 2025

Key Petroleum Limited has requested a trading halt on its securities as it prepares to make a significant announcement regarding an entitlement offer. The halt, effective from 2 April 2025, is intended to help the company manage its continuous disclosure obligations and is expected to last until the announcement is made or normal trading resumes on 4 April 2025. This move indicates a potentially impactful development for the company, which could influence its operations and stakeholder interests.

Key Petroleum Limited Announces Entitlement Offer to Raise A$312,225
Mar 31, 2025

Key Petroleum Limited has announced a fully underwritten non-renounceable pro rata entitlement offer to raise approximately A$312,225. This offer allows eligible shareholders to purchase new shares at a price of A$0.062 each, on the basis of one new share for every five existing shares. The offer aims to strengthen the company’s financial position and support its ongoing operations in the petroleum sector.

Key Petroleum Announces Entitlement Offer to Raise Capital
Mar 31, 2025

Key Petroleum Limited has announced a non-renounceable pro rata entitlement offer, allowing shareholders to purchase one new share for every five shares held. This initiative aims to raise up to $321,225, with the offer not expected to significantly affect company control but may result in dilution for non-participating shareholders.

Key Petroleum Announces Pro Rata Securities Issue
Mar 31, 2025

Key Petroleum Limited has announced a proposed non-renounceable pro rata issue of up to 5,035,900 ordinary fully paid securities. This move is part of the company’s strategy to raise capital, potentially impacting its market operations by enhancing its financial resources for ongoing and future projects. The issue is set to close on April 17, 2025, with the securities being issued on April 29, 2025, which could influence stakeholder interests and market positioning.

Key Petroleum Announces $312,225 Entitlement Offer
Mar 31, 2025

Key Petroleum Limited has announced a pro-rata non-renounceable entitlement offer to raise approximately $312,225. The offer allows eligible shareholders to purchase one new share for every five existing shares at a price of $0.062 per share, matching the company’s last closing price. The offer is fully underwritten and includes a shortfall facility for additional share allocation. The raised funds will be used for asset acquisition, regulatory costs, general working capital, and offer expenses. This move could potentially impact shareholder equity and the company’s capital structure.

Key Petroleum Clarifies Director’s Interest Change
Mar 5, 2025

Key Petroleum Limited announced a change in the director’s interest due to an off-market transfer of shares from ASF Oil & Gas Holdings Pty Ltd to ASF Group Limited, with no change in beneficial ownership. The announcement clarified that the previously lodged Appendix 3Y was incorrect as Louis Chien, the Managing Director of Key, no longer has any direct or indirect interest in the shares following his retirement from ASF Group in November 2024.

Key Petroleum Announces Director’s Shareholding Adjustment
Feb 17, 2025

Key Petroleum Limited announced a change in the director’s interest notice, where Louis Chien, a director, has an off-market transfer of 2,253,730 ordinary fully paid shares from ASF Oil & Gas Holdings Pty Ltd to ASF Group Limited, maintaining the same beneficial ownership. This transfer does not affect the total number of shares held by Chien, indicating a structural change within the holding entities without impacting the total shareholding or market operations.

ASF Oil & Gas Ceases Substantial Holding in Key Petroleum
Feb 14, 2025

ASF Oil & Gas Holdings Pty Ltd has ceased to be a substantial holder in Key Petroleum Limited, an oil and gas exploration company. The change occurred through an off-market transfer that affected over two million ordinary shares, potentially impacting Key Petroleum’s shareholder structure and market positioning.

ASF Group Becomes Substantial Holder in Key Petroleum
Feb 14, 2025

Key Petroleum Limited has announced that ASF Group Limited has become a substantial holder of its voting shares, with a beneficial interest in 2,253,730 ordinary shares, representing an 8.95% voting power. This development could potentially influence Key Petroleum’s strategic decisions, as ASF Group’s involvement may impact the company’s operational strategies and market positioning, given the significance of such a substantial holding.

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.