Horizon Oil Ltd

Capital Structure and Liquidity Horizon Oil has a debt-to-equity ratio of 0.4, indicating a relatively conservative capital structure [doc:HA-latest]. The company's liquidity position is characterized as medium, with a current ratio of 2.31, suggesting it can cover its short-term obligations [doc:HA-latest]. However, the company has negative net cash after subtracting total debt, which may pose liquidity challenges [doc:HA-latest]. ### Profitability and Returns The company's return on equity (ROE) is 18.76%, and its return on assets (ROA) is 6.8%, both of which are strong indicators of profitability and efficient use of assets [doc:HA-latest]. These metrics suggest that Horizon Oil is generating solid returns for its shareholders and effectively utilizing its asset base. ### Segments and Geographic Exposure Horizon Oil operates in three key segments: China development, New Zealand development, and Australia development. The China development segment is focused on the Block 22/12 oil field, while the New Zealand development segment is involved in the Maari/Manaia oil field. The Australia development segment operates in the Mereenie OL4 and OL5 oil and gas fields [doc:HA-latest]. The company's revenue is concentrated across these three geographic regions, with no indication of diversification beyond these areas. ### Growth Trajectory The company's revenue for the latest period is $105.31 million, with a gross profit of $28.55 million and an operating income of $16.65 million [doc:HA-latest]. While the company has a positive operating cash flow of $35.89 million, its free cash flow is negative at -$1.52 million, indicating that capital expenditures are outpacing cash generation [doc:HA-latest]. The company's capital expenditure for the period is -$15.03 million, which suggests ongoing investment in its operations [doc:HA-latest]. ### Risk Factors The company faces a medium liquidity risk, as indicated by its current ratio and negative net cash position [doc:HA-latest]. The risk of dilution is assessed as low, with no significant dilution potential identified in the basic shares outstanding [doc:HA-latest]. The company's ESG controversies score is 100.0, which is high, and its governance and social pillars are 19.0 and 16.9, respectively, indicating potential ESG-related risks [doc:HA-latest]. ### Recent Events Recent financial filings and transcripts do not indicate any major events that would significantly impact the company's operations or financial position [doc:HA-latest]. The company's focus remains on its core upstream operations in China, New Zealand, and Australia.