Two FTSE Stocks Under Spotlight: Anglo African Oil & Gas Plc and Smiths Group Plc

Two FTSE Stocks Under Spotlight: Anglo African Oil & Gas Plc and Smiths Group Plc

Anglo African Oil & Gas Plc

Anglo African Oil & Gas PLC (AAOG) is a London-headquartered oil and gas and mining company. The company offers a wide range of services, including extraction, exploration, operations, production, management, and development of oil and gas natural resources. It owns and operates Petro Kouilou and holds interest in the Tilapia Field that is located to the offshore of the Republic of the Congo and located in the Lower Republic of the Congo Basin and produces oil and gas. The group also holds, owns, and operates onshore production and storage facilities, producing oil and natural gas assets and resources. The company has its operations in the UK and the Republic of the Congo.

AAOG-Recent Development

On 12th November 2019, the company exercised a rig option (agreement) to carry out drilling options for Tilapia 103C-ST. The Company owns a fifty-six per cent interest in Tilapia. The drilling operations are expected to commence either in Q1 or Q2/2020 at TLP-103C-ST. However, the risk factor cannot be ignored in drilling-related activities.

Earlier in October, the company announced that it might obtain up to $25 million in offtake and advance financing for the advancement of the Tilapia field in the Republic of the Congo as it had entered into a non-binding indicative term sheet with an international oil marketing and trading company. However, the agreement is dependent on its completion and on bringing well TLP-103C-ST into production and would help the company in avoiding the need for further equity financing and subsequent dilution for shareholders.

AAOG-Financial Highlights for H1 FY19

In the first half of the financial year 2019, the company’s revenue was at £173,524 versus £106,378 in H1 2018. Due to an increase in the administrative expenses for the period, the company reported operating loss of £2,451,710 in H1 2019 versus an operating loss of £2,170,805 in H1 2018. The reported loss before tax and loss after tax both were at £2,452,741 against £2,171,606 in H1 2018, which reflected the significant costs that the group has incurred in building the team to capitalise on the opportunity presented by TLP-103C. The basic and diluted loss per share was 1.03 pence in H1 2019 versus a basic and diluted loss per share of 2.71 pence in H1 2018.

Although the top-line performance has improved the bottom-line performance has declined for the period. The group expects the 2nd half of the year to witness a considerable reduction in non-standard operational expenses. The company is looking forward to increasing its production through development in Tilapia and expand its surface facilities through a field-development plan which include ten additional wells.

AAOG-Share price performance

Daily Chart as at 13-November-19, before the market closed (Source: Thomson Reuters)

On 13th November 2019, while writing at 10:35 AM GMT, Anglo African Oil & Gas PLC shares were clocking a current market price of GBX 2.90 per share; which remained flat in comparison to the last traded price of the previous day. The company’s market capitalisation was at £11.51 million at the time of writing.

On 7th January 2019, the shares of AAOG have touched a new peak of GBX 19.00 and reached the lowest price level of GBX 2.40 on 16th October 2019 in the last 52 weeks. The company’s shares were trading at 84.73 per cent lower from the 52-week high price mark and 20.83 per cent higher than the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 164,211 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 3,297,529.00; 30 days daily average traded volume- 2,770,975.57- and 90-days daily average traded volume – 2,127,320.77. The volatility of the company’s stock was 30 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.70.

The shares of the company have delivered a negative return of 40.21 per cent in the last quarter. The company’s stock plunged by 74.22 per cent from the start of the year to till date. The company’s stock has given investors 63.98 per cent of a negative return in the last year. 

Smiths Group Plc

Smiths Group Plc (SMIN) is a London, the United Kingdom based technology company that uses its various technological capabilities to cater to various industries such as Medical Technology, Security and Defence, General Industry, Energy as well as Space and Aerospace. In the year 2000, the name of the business was changed to Smiths Group Plc. The group develops, manufactures and sells control systems and instrumentation for industrial applications to customers based in over 200 countries and territories around the world that enable industry, improving healthcare, enhancing security, advancing connectivity and supporting new homes.

SMIN Trading Statement

On 13th November 2019, the company made a press release to announce a trading statement for the first quarter of the year ending 2020. The company reported that the underlying revenue from the group’s continuing operations for the quarter was at an increase of 11 per cent. The company reported that there was organic growth in Flex-Tek from both aerospace and industrial products. It was also highlighted that the company anticipates a year on year growth to move in the direction of the first half and to also result in a evener balance in overall performance between the first and second halves of the year.

SMIN Stock Price Performance

Source: Thomson Reuters

On 13th November 2019, at 02:47 P.M GMT, at the time of writing, Smiths Group Plc’s stock price has been reported to be trading at GBX 1681.5, an increase of 3.92 per cent or GBX 63.50 per stock as compared to the previous day’s closing price, which has been reported  at GBX 1618.00. At the time of writing, the Smiths Group Plc stock price has been reported to be trading 28.60 per cent above the 52-week low stock price, which was at GBX 1307.50 per stock, set on November 13, 2018. This was also 1.15 per cent below the 52-week high price at GBX 1701.00 per stock, which the company’s stock had set on September 05, 2019. The reported Market Capitalization of Smiths Group Plc has been at GBP 6.41 billion.

By the time of writing, 627,940 of the company’s stocks had been traded in the market. The average volume of trading per day, for the last one year in the market, was 625,900 stocks. The stock has reportedly shown an upward change of 27.87 per cent in value in the last one year, from the price of GBX 1315.00 per stock. There also has been an upward change in the last six months in the value of Smiths Group Plc’s stock of around 14.58 per cent from the stock price of GBX 1467.5 per stock. Smiths Group Plc’s stock has also reportedly lost 5.95 per cent in value in the last one month from the price of GBX 1587.00 per stock.

The beta of the Smiths Group Plc’s stock has been reported to be at 0.70. This means that the company’s stock price movement is less volatile in its trend, as compared to the benchmark market index’s movement.



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