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Africa Oil

TSX:AOI
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AOI
TSX
CA$401M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya and Ethiopia. The last earnings update was 32 days ago. More info.


Add to Portfolio Compare Print
  • Africa Oil has significant price volatility in the past 3 months.
AOI Share Price and Events
7 Day Returns
2.4%
TSX:AOI
7%
CA Oil and Gas
7.1%
CA Market
1 Year Returns
-24.3%
TSX:AOI
-46%
CA Oil and Gas
-25.3%
CA Market
AOI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Africa Oil (AOI) 2.4% -32.8% -29.4% -24.3% -62.3% -54.3%
CA Oil and Gas 7% -40.8% -46.8% -46% -53.7% -57.4%
CA Market 7.1% -24.1% -26.7% -25.3% -23.4% -17.5%
1 Year Return vs Industry and Market
  • AOI outperformed the Oil and Gas industry which returned -46% over the past year.
  • AOI outperformed the Market in Canada which returned -25.3% over the past year.
Price Volatility
AOI
Industry
5yr Volatility vs Market

Value

 Is Africa Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Africa Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Africa Oil.

TSX:AOI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:AOI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.816 (1 + (1- 26.5%) (1.15%))
0.881
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.881 * 5.44%)
6.23%

Discounted Cash Flow Calculation for TSX:AOI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Africa Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:AOI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.23%)
2020 468.08 Analyst x2 440.62
2021 355.13 Analyst x3 314.68
2022 250.00 Analyst x1 208.53
2023 195.11 Est @ -21.96% 153.19
2024 165.96 Est @ -14.94% 122.66
2025 149.32 Est @ -10.02% 103.89
2026 139.49 Est @ -6.59% 91.36
2027 133.66 Est @ -4.18% 82.40
2028 130.33 Est @ -2.49% 75.63
2029 128.62 Est @ -1.31% 70.26
Present value of next 10 years cash flows $1,663.00
TSX:AOI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $128.62 × (1 + 1.44%) ÷ (6.23% – 1.44%)
$2,722.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,722.34 ÷ (1 + 6.23%)10
$1,487.18
TSX:AOI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,663.00 + $1,487.18
$3,150.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,150.18 / 471.21
$6.69
TSX:AOI Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:AOI)
1.407
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $6.69 x 1.407
CA$9.41
Value per share (CAD) From above. CA$9.41
Current discount Discount to share price of CA$0.84
= -1 x (CA$0.84 - CA$9.41) / CA$9.41
91.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Africa Oil is available for.
Intrinsic value
>50%
Share price is CA$0.84 vs Future cash flow value of CA$9.41
Current Discount Checks
For Africa Oil to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Africa Oil's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Africa Oil's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Africa Oil's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Africa Oil's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:AOI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-0.33
TSX:AOI Share Price ** TSX (2020-03-27) in CAD CA$0.84
TSX:AOI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $0.6
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Africa Oil.

TSX:AOI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:AOI Share Price ÷ EPS (both in USD)

= 0.6 ÷ -0.33

-1.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Africa Oil is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • Africa Oil is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Africa Oil's expected growth come at a high price?
Raw Data
TSX:AOI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
41.6%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Africa Oil, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Africa Oil's assets?
Raw Data
TSX:AOI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $1.63
TSX:AOI Share Price * TSX (2020-03-27) in CAD CA$0.84
TSX:AOI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $0.6
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.39x
Canada Market PB Ratio Median Figure of 2,351 Publicly-Listed Companies 1x
TSX:AOI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:AOI Share Price ÷ Book Value per Share (both in USD)

= 0.6 ÷ 1.63

0.37x

* Primary Listing of Africa Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Africa Oil is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Africa Oil's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Africa Oil has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Africa Oil expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
41.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Africa Oil expected to grow at an attractive rate?
  • Africa Oil's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Africa Oil's earnings growth is expected to exceed the Canada market average.
  • Unable to compare Africa Oil's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:AOI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:AOI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 41.6%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.7%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:AOI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:AOI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0 258 1
2021-12-31 354 469 187 3
2020-12-31 578 578 571 2
2020-03-28
TSX:AOI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 -4 -157
2019-09-30 -2 -29
2019-06-30 0 -29
2019-03-31 -1 -66
2018-12-31 -2 -67
2018-09-30 0 -49
2018-06-30 -1 -50
2018-03-31 0 -4
2017-12-31 -1 -5
2017-09-30 -2 -15
2017-06-30 -2 -16
2017-03-31 -3 -16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Africa Oil's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Africa Oil is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:AOI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Africa Oil Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:AOI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.55 0.55 0.55 1.00
2021-12-31 0.29 0.82 -0.09 5.00
2020-12-31 1.21 1.30 1.12 2.00
2020-03-28
TSX:AOI Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -0.33
2019-09-30 -0.06
2019-06-30 -0.06
2019-03-31 -0.14
2018-12-31 -0.14
2018-09-30 -0.11
2018-06-30 -0.11
2018-03-31 -0.01
2017-12-31 -0.01
2017-09-30 -0.03
2017-06-30 -0.03
2017-03-31 -0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Africa Oil is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Africa Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Africa Oil has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Africa Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Africa Oil's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Africa Oil does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Africa Oil's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Africa Oil's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Africa Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Africa Oil Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:AOI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 -156.77 10.12
2019-09-30 -28.79 7.70
2019-06-30 -28.52 7.50
2019-03-31 -65.90 6.87
2018-12-31 -66.71 6.88
2018-09-30 -49.29 6.58
2018-06-30 -49.91 6.56
2018-03-31 -4.22 6.42
2017-12-31 -4.53 6.07
2017-09-30 -15.06 7.30
2017-06-30 -15.71 7.06
2017-03-31 -16.04 7.21
2016-12-31 -17.76 8.78
2016-09-30 -85.76 11.93
2016-06-30 -87.85 12.82
2016-03-31 -89.74 13.38
2015-12-31 -87.19 15.71
2015-09-30 -62.12 14.96
2015-06-30 -64.13 17.11
2015-03-31 -96.61 19.09
2014-12-31 -106.94 24.81
2014-09-30 -90.95 26.31
2014-06-30 -88.52 25.91
2014-03-31 -61.92 30.17
2013-12-31 -52.66 21.32
2013-09-30 -23.94 19.80
2013-06-30 -19.32 19.48
2013-03-31 -11.03 15.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Africa Oil has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Africa Oil has efficiently used its assets last year compared to the CA Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Africa Oil improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Africa Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Africa Oil has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Africa Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Africa Oil's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Africa Oil is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Africa Oil's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Africa Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Africa Oil has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Africa Oil Company Filings, last reported 2 months ago.

TSX:AOI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 766.70 0.00 329.46
2019-09-30 912.50 0.00 330.31
2019-06-30 912.80 0.00 341.33
2019-03-31 921.89 0.00 355.23
2018-12-31 922.08 0.00 370.34
2018-09-30 940.05 0.00 380.14
2018-06-30 940.10 0.00 369.58
2018-03-31 986.66 0.00 378.91
2017-12-31 973.45 0.00 392.29
2017-09-30 975.33 0.00 423.91
2017-06-30 975.53 0.00 436.86
2017-03-31 976.01 0.00 450.08
2016-12-31 977.44 0.00 463.06
2016-09-30 987.69 0.00 490.12
2016-06-30 988.51 0.00 505.27
2016-03-31 989.21 0.00 523.65
2015-12-31 991.88 0.00 104.21
2015-09-30 1,069.46 0.00 154.57
2015-06-30 1,022.02 0.00 157.50
2015-03-31 924.38 0.00 187.39
2014-12-31 797.05 0.00 161.16
2014-09-30 897.04 0.00 273.62
2014-06-30 898.13 0.00 350.05
2014-03-31 929.81 0.00 434.33
2013-12-31 929.85 0.00 493.21
2013-09-30 518.93 0.00 133.32
2013-06-30 519.41 0.00 179.49
2013-03-31 520.74 0.00 237.14
  • Africa Oil has no debt.
  • Africa Oil has not taken on any debt in the past 5 years.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Africa Oil has sufficient cash runway for more than 3 years based on current free cash flow.
  • Unable to confirm if Africa Oil has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Africa Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Africa Oil has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Africa Oil's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Africa Oil dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Africa Oil shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Africa Oil's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Africa Oil's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:AOI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:AOI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 5.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Africa Oil has not reported any payouts.
  • Unable to verify if Africa Oil's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Africa Oil's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Africa Oil has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Africa Oil's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Africa Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Africa Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Africa Oil has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Africa Oil's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Hill
COMPENSATION $1,796,688
AGE 60
TENURE AS CEO 11 years
CEO Bio

Mr. Keith C. Hill, B.Sc., M.Sc., MBA, serves as Chairman of the Board at TAG Oil Ltd., since January 30, 2018. He has been the Chief Executive Officer of Africa Oil Corp. since March 30, 2009 and has been its President since October 20, 2009. Mr. Hill serves as the President of Lundin Russia. He served as the Chief Executive Officer and President of ShaMaran Petroleum Corp., from December 2008 to December 2009. He served as an Acting President of ShaMaran Petroleum Corp., since December 2008. He served as the Chief Executive Officer and President of BlackPearl Resources Inc. (also known as Pearl Exploration and Production, Ltd.) from February 1, 2007 to January 8, 2009. He served as an Acting Chief Executive Officer of ShaMaran Petroleum Corp., since December 2008 and as its Acting President since December 2008. He founded Valkyries Petroleum Corp., and served as its Chief Executive Officer since July 2002 and President since July 2002. Mr. Hill served as a General Manager and New Ventures Manager of Lundin Oil AB (Lundin Malaysia), a subsidiary of Lundin Malaysia Limited, prior to being acquired by Talisman Energy. He served as General Manager of Lundin Sudan 5A project during the period in which the giant Thar Jath field was discovered. He has experience in the oil industry including international new venture management and exploration positions of Occidental Petroleum Corporation and Shell Oil Company. He served as Geologist of Talisman Energy Inc. Mr. Hill serves as Director at ShaMaran Petroleum Corp (Former Name: Bayou Bend Petroleum Ltd and Kit Resources Ltd) since February 19, 2007 and served as Chairman since February 19, 2007 until May 15, 2019. He served as the Chairman of Africa Energy Corp. since June 30, 2011 until July 07, 2017 and has been its Director September 20, 2011. He served as the Chairman of Petro Vista Energy Corp. until January 31, 2017. He served as Chairman of Africa Oil Corp from March 30, 2009 to April 19, 2016. He served as Chairman of the Board at BlackPearl Resources Inc. from February 24, 2006 to February 1, 2007. He served as a Non-Executive Chairman of BlackPearl Resources Inc. since January 8, 2009 and has been its Independent Director since January 5, 2005. He served as Chairman of Texada Capital Corp., since January 2008 and TAG Oil Ltd. since July 6, 2011 and serves as its Independent Lead Director. He has been a Director of ShaMaran Petroleum Corp (formerly known as Kit Resources Ltd)., since February 19, 2007. He served as a Director of Tyner Resources, Ltd. from September 9, 2008 to February 14, 2017. He served as an Independent Director of Petro Vista Energy Corp. from January 4, 2008 to January 31, 2017. He has been a Non-Independent Director of Africa Oil Corp., since October 16, 2006 and Denovo Capital Corp. since June 30, 2011. He has been an Independent Director of Eco (Atlantic) Oil & Gas Ltd. since December 31, 2017. He has been and Independent Director of BlackPearl Resources Inc since January 5, 2006. He has been a Director of TAG Oil Ltd. since July 5, 2011. He serves as a Director of TAG Oil and Gas Ltd. He served as a Director of Tanganyika Oil Company Ltd., since December 18, 2002. He served as a Director of Serrano Energy Ltd., from March 11, 2008 to February 2, 2009. He served as a Director of Ausam Energy Corp. from November 10, 2004 to 2007. He served as a Director of Valkyries Petroleum Corp., since May 3, 2002. Mr. Hill holds a B. Sc. in Geophysics and M. Sc. in Geology from Michigan State University and a M. B .A. in International Business and Finance from the University of St. Thomas in Houston, Texas.

CEO Compensation
  • Keith's compensation has increased whilst company is loss making.
  • Keith's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Africa Oil management team in years:

9
Average Tenure
61
Average Age
  • The average tenure for the Africa Oil management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Keith Hill

TITLE
CEO, President & Non-Independent Director
COMPENSATION
$2M
AGE
60
TENURE
11 yrs

Tim Thomas

TITLE
Chief Operating Officer
COMPENSATION
$948K
AGE
61
TENURE
4.9 yrs

Bryan Benitz

TITLE
Consultant
COMPENSATION
$143K
AGE
85

Paul Martinez

TITLE
Vice President of Exploration
COMPENSATION
$866K
TENURE
9 yrs

Pascal Nicodeme

TITLE
Chief Financial Officer
TENURE
1.2 yrs

Kevin Hisko

TITLE
Corporate Secretary
AGE
61
TENURE
10.5 yrs
Board of Directors Tenure

Average tenure and age of the Africa Oil board of directors in years:

3.9
Average Tenure
60.5
Average Age
  • The tenure for the Africa Oil board of directors is about average.
Board of Directors

John Craig

TITLE
Independent Chairman of the Board
COMPENSATION
$165K
AGE
72
TENURE
3.9 yrs

Keith Hill

TITLE
CEO, President & Non-Independent Director
COMPENSATION
$2M
AGE
60
TENURE
13.4 yrs

Greg Guidry

TITLE
Independent Director
COMPENSATION
$176K
AGE
63
TENURE
11.8 yrs

Andy Bartlett

TITLE
Independent Director
COMPENSATION
$165K
AGE
61
TENURE
4.8 yrs

Ian Gibbs

TITLE
Director
COMPENSATION
$1M
AGE
50
TENURE
1.2 yrs

Kimberley Wood

TITLE
Independent Director
COMPENSATION
$129K
AGE
49
TENURE
2.2 yrs

Erin Johnston

TITLE
Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
20. Nov 19 Sell Tjerk Bosje Individual 19. Nov 19 19. Nov 19 -350 CA$1.23 CA$-430
19. Nov 19 Buy Tjerk Bosje Individual 18. Nov 19 18. Nov 19 800 CA$1.22 CA$976
X
Management checks
We assess Africa Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Africa Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Africa Oil Corp's (TSE:AOI) Ownership Structure Is Important

In this article, I'm going to take a look at Africa Oil Corp’s (TSE:AOI) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … View our latest analysis for Africa Oil

Simply Wall St -

Breakeven On The Horizon For Africa Oil Corp (TSE:AOI)

The CA$550.56m market-cap posted a loss in its most recent financial year of -CA$4.53m and a latest trailing-twelve-month loss of -CA$4.22m shrinking the gap between loss and breakeven. … In this article, I will touch on the expectations for AOI’s growth and when analysts expect the company to become profitable … View out our latest analysis for Africa Oil

Simply Wall St -

TSX Energy Industry: A Deep Dive Into Africa Oil Corp (TSX:AOI)

TSX:AOI Past Future Earnings Nov 29th 17 The oil price collapse drove a negative 40% growth in the energy sector in the past five years. … In the previous year, the industry endured negative growth of -0.30%, underperforming the Canadian market growth of 8.26%. … TSX:AOI PE PEG Gauge Nov 29th 17 The oil and gas industry is trading at a PE ratio of 23x, higher than the rest of the Canadian stock market PE of 17x.

Simply Wall St -

How Does Investing In Africa Oil Corp (TSX:AOI) Impact Your Portfolio?

Africa Oil has a beta of 2.98, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements. … How AOI's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Should You Wait Before Investing In Africa Oil Corp (TSX:AOI)?

A crucial question to bear in mind when you’re an investor of an unprofitable business, is whether the company will have to raise more capital in the near future. … The most significant threat facing AOI’s investor is the company going out of business when it runs out of money and cannot raise any more capital. … If the company does not increase its opex next year and remains at the current level of $7.1M, then it should not need to raise further capital for the next few years.

Simply Wall St -

Company Info

Description

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya and Ethiopia. It holds interests primarily in the East African Rift Basin. The company also holds an interest in a producing asset in deep-water Nigeria. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is based in Vancouver, Canada.

Details
Name: Africa Oil Corp.
AOI
Exchange: TSX
Founded: 1983
CA$400,532,256
471,214,419
Website: http://www.africaoilcorp.com
Address: Africa Oil Corp.
885 West Georgia Street,
Suite 2000,
Vancouver,
British Columbia, V6C 3E8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX AOI Common Shares The Toronto Stock Exchange CA CAD 03. Jan 1996
OTCPK AOIF.F Common Shares Pink Sheets LLC US USD 03. Jan 1996
DB AFZ Common Shares Deutsche Boerse AG DE EUR 03. Jan 1996
LSE 0QVL Common Shares London Stock Exchange GB SEK 03. Jan 1996
OM AOI Common Shares OMX Nordic Exchange Stockholm SE SEK 03. Jan 1996
BATS-CHIXE AOIS Common Shares BATS 'Chi-X Europe' GB SEK 03. Jan 1996
Number of employees
Current staff
Staff numbers
37
Africa Oil employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 04:09
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.