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Zenith Energy Ltd (GB:ZEN)
LSE:ZEN
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Zenith Energy (ZEN) AI Stock Analysis

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GB:ZEN

Zenith Energy

(LSE:ZEN)

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Neutral 49 (OpenAI - Gpt-5.6Sol)
Rating:49Neutral
Price Target:
5.00 p
▲(8.70% Upside)
Action:Reiterated
Date:08/27/26
The score is held down primarily by weak financial performance—persistent negative operating/free cash flow and sharply volatile profitability (including large losses in 2026) alongside rising debt. Technical indicators provide some support with improving near-term momentum, but valuation remains unattractive due to loss-making earnings (negative P/E) and no indicated dividend yield.
Positive Factors
Contracted power model
Long-term PPAs can provide recurring contracted revenue and visibility, while bundled O&M supports customer retention. Hybrid thermal, renewable and storage systems may deepen the value proposition for remote industrial clients over the medium term.
Negative Factors
Persistent cash burn
Persistent negative operating and free cash flow means the business has not demonstrated self-funding capability. Continued investment and operations may therefore require external financing or asset actions, increasing execution and funding risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted power model
Long-term PPAs can provide recurring contracted revenue and visibility, while bundled O&M supports customer retention. Hybrid thermal, renewable and storage systems may deepen the value proposition for remote industrial clients over the medium term.
Read all positive factors

Zenith Energy (ZEN) vs. iShares MSCI United Kingdom ETF (EWC)

Zenith Energy Business Overview & Revenue Model

Company Description
Zenith Energy Ltd., along with its affiliated companies, is involved in the exploration and development of crude oil and natural gas reserves in various international regions, notably Italy and the Republic of the Congo. Beyond its core activities...
How the Company Makes Money
Zenith Energy primarily makes money by supplying electricity under long-term power purchase agreements (PPAs) and similar contracted arrangements to remote-site customers—most notably mining companies—where Zenith develops and operates the on-site...

Zenith Energy Financial Statement Overview

Summary
Overall fundamentals are weak. Despite revenue growth, profitability is highly volatile with a swing from a profitable 2025 back to very large losses in 2026. Cash generation is the biggest concern: operating cash flow and free cash flow are negative every year (2021–2026), implying reliance on external funding. The balance sheet is supported by equity and not clearly distressed, but total debt has risen steadily, adding risk alongside unstable earnings.
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.32M2.15M1.79M13.16M8.24M
Gross Profit74.46K80.00K-3.23M2.66M3.78M
EBITDA-5.74M9.41M-33.42M-4.94M-2.00M
Net Income-19.78M1.09M-42.37M-12.83M64.44M
Balance Sheet
Total Assets197.46M164.72M140.02M262.91M259.30M
Cash, Cash Equivalents and Short-Term Investments2.07M3.20M207.00K1.44M1.15M
Total Debt53.82M48.50M41.68M33.94M18.34M
Total Liabilities107.84M99.09M90.04M171.26M156.21M
Stockholders Equity89.62M65.63M49.98M91.65M103.09M
Cash Flow
Free Cash Flow-20.12M-11.38M-4.24M-16.27M-13.19M
Operating Cash Flow-18.72M-10.97M-4.19M-15.84M-13.13M
Investing Cash Flow-1.40M1.24M-593.00K-430.00K-2.17M
Financing Cash Flow19.00M12.71M3.55M16.56M14.82M

Zenith Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.60
Price Trends
50DMA
4.48
Positive
100DMA
5.33
Negative
200DMA
4.86
Negative
Market Momentum
MACD
0.15
Negative
RSI
56.82
Neutral
STOCH
61.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZEN, the sentiment is Positive. The current price of 4.6 is above the 20-day moving average (MA) of 4.54, above the 50-day MA of 4.48, and below the 200-day MA of 4.86, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZEN.

Zenith Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
52
Neutral
£28.49M-11.25-8.49%2.38%
51
Neutral
£78.85M123.900.55%
49
Neutral
£37.09M-2.13-30.10%4.05%-513.85%
46
Neutral
£22.19M-8.43-78.82%
45
Neutral
£19.52M-5.91-23.44%356.85%70.77%
41
Neutral
£3.89M-0.14-683.46%85.90%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ZEN
Zenith Energy
4.85
1.05
27.63%
GB:EOG
Europa Oil & Gas (Holdings)
1.69
0.94
124.67%
GB:SOU
Sound Energy
1.70
-5.30
-75.71%
GB:CHAR
Chariot Oil & Gas
2.75
1.16
73.06%
GB:MATD
Petro Matad
1.05
0.21
25.00%
GB:PRD
Predator Oil & Gas Holdings Plc
3.15
0.10
3.28%

Zenith Energy Corporate Events

Business Operations and StrategyM&A Transactions
Zenith Energy lifts Italian solar pipeline above 200 MWp and raises 2026 target
Positive
Aug 12, 2026
Zenith Energy Ltd., a diversified independent energy producer with assets across North Africa, the U.S. and Europe, is deepening its push into Italian solar power. The company, listed on the London, Oslo and Spotlight exchanges, is pursuing a stra...
Private Placements and FinancingRegulatory Filings and Compliance
Zenith Energy Confirms New Share Capital and Voting Rights After Equity Issuance
Neutral
Jul 31, 2026
Zenith Energy has updated investors on its total voting rights following the completion of a recent equity issuance in Norway, confirming an issued share capital of 764,756,457 common shares. Each share carries one voting right, bringing the total...
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Zenith Energy Secures £2.1m Norwegian Placement to Fund Renewables and Legal Claims
Positive
Jul 21, 2026
Zenith Energy has raised approximately £2.1 million through a private placement of 50 million new common shares with institutional investors in Norway at a marginal discount to its Oslo closing price. The transaction lifts the company’s...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Zenith Energy Moves into Italian Biogas with Acquisition of Permitted Biomethane Plant
Positive
Jul 20, 2026
Zenith Energy has agreed a binding letter of intent to acquire 100% of an Italian biogas development company that holds a fully permitted, engineered and construction‑ready biomethane plant project. The facility is designed to produce around...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Zenith Energy Strikes EUR 12m MoU to Monetise Italian Solar Portfolio
Positive
Jul 15, 2026
Zenith Energy’s Italian subsidiary WESOLAR has signed a Memorandum of Understanding to sell a portfolio of solar development projects in the Piedmont region with an expected installed capacity of about 50 MWp. The agreed consideration of EUR...
Business Operations and StrategyPrivate Placements and Financing
Zenith Energy Adds Flexible £2m At-the-Market Equity Facility
Positive
Jul 10, 2026
Zenith Energy has set up an at‑the‑market equity offering programme enabling it to raise up to £2 million in new shares over the next 12 months, with sales made at its discretion to investors on the London Stock Exchange. The faci...
Business Operations and StrategyLegal Proceedings
Zenith Energy escalates legal battle over Tunisia SLK concession with new evidence in ICC annulment bid
Negative
Jul 9, 2026
Zenith Energy’s subsidiary Canadian North Africa Oil and Gas has submitted what it describes as new “smoking gun” evidence to the Swiss Federal Supreme Court in support of its bid to annul an ICC arbitration ruling related to Tun...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Zenith Energy Becomes Largest Shareholder in Uranium-Focused Reveille Resources
Positive
Jul 6, 2026
Zenith Energy has deepened its exposure to uranium by investing an additional £259,000 in Reveille Resources, a uranium-focused natural resources investor set to list on the Aquis Growth Market on July 7, 2026. The transaction, priced at 5 pe...
Business Operations and Strategy
Zenith Energy Targets Italian Solar Windfall From €23bn Renewables Scheme
Positive
Jun 12, 2026
Zenith Energy is positioning its Italian solar business to capitalise on a newly approved €23 billion state aid scheme designed to boost renewable electricity generation. The company holds a 188.5 MWp solar development portfolio through subs...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 27, 2026