Bengal Energy Ltd EBITDA dropped on 89.7% in 2015 and Revenue dropped on 16.1%
22.06.2015 • About Bengal Energy Ltd (
$BNG) • By InTwits
Bengal Energy Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bengal Energy Ltd doesn't have a profitable business model yet: FY2015 ROIC is -7.1%
- Bengal Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 244.0%. At the same time it's a lot of higher than industry average of 88.3%.
- CAPEX is quite volatile: 13.5 in FY2015, 16.6 in FY2014, 28.4 in FY2013, 11.1 in FY2012, 3.8 in FY2011
- The company has unprofitable business model: ROIC is at -7.1%
- It operates with high leverage: Net Debt/EBITDA is 16.6x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bengal Energy Ltd ($BNG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1.672 | 3.892 | 5.359 | 18.488 | 15.503 | -16.1% |
| SG&A | | | | | 3.407 | |
| EBITDA | -3.082 | -2.618 | -0.320 | 8.878 | 0.917 | -89.7% |
| Net Income | -3.340 | -7.209 | -1.799 | 0.150 | -3.172 | -2,214.7% |
Balance Sheet
|
|---|
| Cash | 14.600 | 26.934 | 2.614 | 5.984 | 1.749 | -70.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 3.158 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 6.085 | 16.982 | 179.1% |
Cash flow
|
|---|
| Capex | 3.830 | 11.068 | 28.381 | 16.647 | 13.463 | -19.1% |
Ratios
|
|---|
| Revenue growth | 8.5% | 132.8% | 37.7% | 245.0% | -16.1% | |
| EBITDA growth | 40.0% | -15.1% | -87.8% | -2,874.4% | -89.7% | |
| EBITDA Margin | -184.3% | -67.3% | -6.0% | 48.0% | 5.9% | -42.1% |
| Net Income Margin | -199.8% | -185.2% | -33.6% | 0.8% | -20.5% | -21.3% |
| SG&A, % of revenue | | | | | 22.0% | 22.0% |
| CAPEX, % of revenue | 229.1% | 284.4% | 529.6% | 90.0% | 86.8% | -3.2% |
| ROIC | -23.1% | -9.5% | -4.3% | 8.8% | -7.1% | -15.9% |
| ROE | -22.6% | -22.5% | -4.4% | 0.3% | -6.8% | -7.1% |
| Net Debt/EBITDA | | | | 0.4x | 16.6x | 16.2x |
Revenue and profitability
The company's Revenue dropped on 16.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 42.1 pp from 48.0% to 5.9% in FY2015.
Net Income marign dropped on 21.3 pp from 0.81% to -20.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 86.8%. Bengal Energy Ltd's CAPEX/Revenue dropped on 198 pp from 284% in FY2012 to 86.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 235%.The company has spent a lot to CAPEX (1,468% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-7.09%) and ROE (-6.78%). ROIC dropped on 15.9 pp from 8.8% to -7.1% in FY2015. ROE decreased on 7.1 pp from 0.34% to -6.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 16.6x and Debt / EBITDA is 18.5x. Net Debt / EBITDA surged on 16.2x from 0.4x to 16.6x in FY2015. Debt surged on 83.7% in FY2015 while cash dropped on 70.8% in FY2015.
Appendix 1: Peers in Energy
Below we provide Bengal Energy Ltd benchmarking against other companies in Energy industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.8% | 9.5% | 16.2% | 17.6% | -24.8% |
|---|
| Bengal Energy Ltd ($BNG) | | 132.8% | 37.7% | 245.0% | -16.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 64.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 28.9% | -43.6% |
|---|
| Bengal Energy Ltd ($BNG) | -184.3% | -67.3% | -6.0% | 48.0% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 49.5% |
|---|
| Bengal Energy Ltd ($BNG) | 229.1% | 284.4% | 529.6% | 90.0% | 86.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.0% | -17.3% |
|---|
| Bengal Energy Ltd ($BNG) | -23.1% | -9.5% | -4.3% | 8.8% | -7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | |
|---|
| Bengal Energy Ltd ($BNG) | | | | 0.4x | 16.6x |
