AWE Limited (AWE)



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General Information
Company Name: AWE Limited
Stock Code: AWE
Website: www.awexplore.com
GICS Sub-Industry: Oil & Gas Exploration & Production
Market Cap ($M): 810
Equiv. Shares (M): 526

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.595 $ 1.555 $ 1.600 $ 1.555 $ 1.540 1,885,993 $ 0.055  3.571 %

Current Broker Consensus Recommendation more
Recommendation: Strong Buy (1)
Recommendation Date: 12th Nov 2014
Brokers Surveyed: 2

Company Overview

Business Description:
AWE Limited (AWE) is an Australian energy company focused on upstream oil and gas exploration and production. AWE has interests in exploration assets in Australia, New Zealand, USA and Indonesia.

Strategy Analysis:
AWE's focus is on oil and gas exploration and appraisal-type assets, in regions of proven prospectivity and where there is a high chance of commercial success. This focus includes currently marginal fields, whose worth may be improved by alternative and innovative appraisal and development approaches. Develop discoveries adjacent to installed infrastructure is a key component of value creation process. AWE reported NPAT down 56% to $13.22m for the half-year ended 31 December 2012, due to higher sales revenue from the BassGas project and additional profit of $12.7m (pre-tax) arising on the sale of shares in Buru Energy during that period. Revenues from ordinary activities were $146.03m, down 8% from the same period last year, mainly due to the BassGas shut-in. This was partly offset by sustained high oil prices and strong performances at Sugarloaf and Casino which achieved higher production than the corresponding prior period. Diluted EPS was 2.49 cents compared to 5.60 cents last year. Net operating cash flow was $39.38m compared to $75.35m last year. No interim dividend was declared, compared with 5.0 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 26.9 5.0 2.4 31.8 0.0 0.0 100.0
2015  F 26.2 4.9 146.8 32.6 0.0 0.0 100.0
2014  A 10.6 2.0 -38.1 68.5 0.0 0.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
AWE (AWE) $786 M -0.5956 1.3740 0.0868 114.1221 48.0707 44.2308 0.00 0.00 0.00
Beach Energy (BPT) $1,317 M 0.8455 -0.3936 0.0515 5.1159 8.4372 8.0237 1.97 3.94 4.66
Oil Search (OSH) $12,456 M 0.5489 1.2503 0.5998 47.8363 21.2578 13.2878 0.55 1.54 2.92
Santos (STO) $11,483 M 0.1518 0.1245 0.3917 22.5371 20.0411 14.4001 2.57 3.46 4.54
Woodside Petroleum (WPL) $31,679 M -0.0512 0.4517 -0.1688 16.6364 11.4602 13.7868 7.24 6.93 5.80

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AWE 1.42 76.5 0.86 1.27 2.50
Market 0.92 15.1 1.19 1.73 1.50
Sector 1.03 11.5 0.75 0.83 3.69

Directors
Name Position Start Date
Mr Bruce Frederick William Clement Managing Director 01 February 2011
Dr Vijoleta Braach-Maksvytis Non-Executive Director 07 October 2010
Mr David Ian McEvoy Non-Executive Director 22 June 2006
Mr Kenneth Graham Williams Non-Executive Director 26 August 2009
Ms Karen Lee Collett Penrose Non-Executive Director 27 August 2013
Mr Raymond Betros Non-Executive Director 22 November 2012
Mr Bruce John Phillips Non-Executive Director,Non-Executive Chairman 19 November 2009

Management
Name Position
Ayten Saridas Chief Financial Officer
Dennis Washer Chief Operating Officer, General Manager,
Neil Tupper General Manager
Neville Francis Kelly General Manager - Corporate,Company Secretary

Substantial Shareholders
Holding Name
31,415,596 (6.01%) DFA Group
28,042,584 (5.36%) AMP Limited
56,296,179 (10.77%) Ellerston Capital Limited and its associates
33,361,515 (6.38%) Norges Bank
26,286,707 (5.03%) Commonwealth Bank of Australia
31,388,293 (6.01%) Vinva Investment Management

Calendar of Events
Date Event
29 October 2015 Report (Quarterly)
19 October 2015 Report (Annual)
25 August 2015 Report (Prelim)
29 July 2015 Report (Quarterly)
28 April 2015 Report (Quarterly)
24 February 2015 Report (Interim)
29 January 2015 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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