EnQuest PLC shares (LSE: ENQ) are now in the green, following successive projects that have seen the value of the company increase in recent months. The company refinanced itself with a new loan facility valued at $ 750 million, which enabled it to acquire a 27% stake in the Golden Eagle project. These recent developments have caught the attention of investors.
EnQuest PLC – Technical analysis
According to financial statement EnQuest PLC, the company’s current market capitalization is £ 366.684 million, with total assets worth £ 2.712 billion and total debts worth £ 1.569 billion. Revenue for 2020 was £ 672.93million with a profit margin of -72.52%. EnQuest PLC revenue for 2019 was £ 1.32 billion. At the time of writing, ENQ shares are at £ 22.15 with an uptrend of 3.69%.
Oscillators for EnQuest PLC such as Relative Strength Index (14) (59.02), Stochastic% K (14, 3, 3) (54.31), Commodity Channel Index (20) ( 102.55) and the mean directional index (14) (29.98) are pointing towards neutral. Majority of moving averages such as volume weighted moving average (20) (21.43), hull moving average (9) (21.51), exponential moving average (200) (17.08) and simple moving average (200) (15.54) heading towards buy.
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EnQuest PLC recently secured a $ 600 million basic loan facility and an additional $ 150 million for letters of credit up to 7 years. As mentioned earlier, the company will use it to acquire a 26.69% stake in the assets of Golden Eagle. Last week, the company purchased the P1078 license containing the proven Bentley oil discovery from Whalsay Energy Holdings Ltd. EnQuest will pay a total of $ 2 million to over $ 40 million in deferred payments for the entire interest in the Bentley Discovery. ENQ shares saw an unexpected drop from £ 29.30 to £ 7.57 in 2 months at the start of 2020. Until the end of 2020 ENQ shares failed to recover and remained weak. Stock prices started to recover in early 2021.
Should you buy ENQ shares?
Investors should look forward to a 45% growth in share prices from the previous quarter. However, they have underperformed the market in general as it has lost 46% of its value in the past three years. What’s good for investors is that EnQuest’s revenue has grown at a compound rate of 29% each year for the past three years.
Since the business is not profitable at the moment, investors can look at sales growth to see how quickly the primary business is growing. The company also rewarded its shareholders with a TSR of 51% last year, beating the loss of around 3% per year over the past 5 years. Overall, investors may consider adding ENQ to their wishlist for now.