ASX:IOG Income Statement Dec 16th 17
We can further evaluate Incremental Oil and Gas’s loss by looking at what has been happening in the industry on top of within the company. Firstly, I want to briefly look into the line items. Revenue growth over the last couple of years has been negative at -13.85%. The key to profitability here is to make sure the company’s cost growth is well-managed. Scanning growth from a sector-level, the Australian oil and gas industry has been enduring some headwinds in the previous year, leading to an average earnings drop of -25.18%. This is a significant change, given that the industry has constantly been delivering a a strong growth of 28.17% in the past couple of years. This shows that whatever near-term headwind the industry is experiencing, the impact on Incremental Oil and Gas has been softer relative to its peers.
What does this mean?
Incremental Oil and Gas’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will happen in the future and when. The most useful step is to assess company-specific issues Incremental Oil and Gas may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Incremental Oil and Gas to get a more holistic view of the stock by looking at:
1. Financial Health: Is IOG’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.