UK Oil & Gas (UKOG.L) Shares Are Declining: Should We Worry About The Company’s Debt?

Today, UK Oil & Gas shares are trading at 0.1400 GBP, 1.75% lower than yesterday’s value. The company’s shares have not been stable for a month and continue to fall. At the beginning of July, the shares were trading at a price of 0.1861 GBP. By the end of the month, the cost decreased by 0.1530 GBP. The sharp drop in the stock was on August 3 and cost 0.1371 GBP.

In March 2021, the debt of UK Oil & Gas was 3.09 million pounds, which is higher than in one year. However, since it has a cash reserve of 1.94 million pounds, its net debt is smaller and is about 1.14 million pounds. Since the publicly traded shares of the UK oil and gas company are worth a total of 31.7 million pounds, it seems unlikely that such a level of liabilities will pose a serious threat.

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We can estimate the revenue growth of UK Oil & Gas, its earnings before interest and taxes (EBIT) is not ideal. Its EBIT loss was a whopping 18 million pounds in the UK. We believe that the balance is far from matching, although it can be improved over time. Therefore, suffice it to say that we consider the shares very risky.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.