Niko Resources Ltd CAPEX dropped on 67.1% in 2015 and Revenue decreased on 6.4%
26.06.2015 • About Niko Resources Ltd (
$NKO) • By InTwits
Niko Resources Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Niko Resources Ltd is a company in decline: FY2015 revenue growth was -6.4%, 5 years revenue CAGR was -16.0%
- The company operates at negative EBITDA Margin: -228.0%
- Niko Resources Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -73.6%0
- Niko Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 65.2%. At the same time it's in pair with industry average of 87.8%.
- CAPEX is quite volatile: 50.6 in FY2015, 154 in FY2014, 204 in FY2013, 188 in FY2012, 18.4 in FY2011
- The company has unprofitable business model: ROIC is at -112.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Niko Resources Ltd ($NKO) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 403.9 | 321.3 | 199.4 | 129.4 | 121.1 | -6.4% |
| Gross Profit | 256.2 | 136.5 | 17.3 | -22.2 | -11.9 | -46.2% |
| SG&A | 10.8 | 8.8 | 6.9 | 9.5 | 9.9 | 3.7% |
| EBITDA | 213.3 | -128.8 | 3.9 | -677.0 | -276.1 | -59.2% |
| Net Income | 69.9 | -322.6 | -216.5 | -657.0 | -672.9 | 2.4% |
Balance Sheet
|
|---|
| Cash | 108.3 | 64.5 | 56.4 | 82.5 | 59.6 | -27.7% |
| Short Term Debt | 4.8 | 310.9 | 6.1 | 27.7 | 390.8 | 1,309.8% |
| Long Term Debt | 357.7 | 43.7 | 206.8 | 347.1 | 22.6 | -93.5% |
Cash flow
|
|---|
| Capex | 18.4 | 188.0 | 203.8 | 153.8 | 50.6 | -67.1% |
Ratios
|
|---|
| Revenue growth | 39.5% | -20.4% | -38.0% | -35.1% | -6.4% | |
| EBITDA growth | -6.2% | -160.4% | -103.0% | -17,601.6% | -59.2% | |
| Gross Margin | 63.4% | 42.5% | 8.7% | -17.1% | -9.9% | 7.3% |
| EBITDA Margin | 52.8% | -40.1% | 1.9% | -523.1% | -228.0% | 295.1% |
| Net Income Margin | 17.3% | -100.4% | -108.6% | -507.7% | -555.7% | -48.0% |
| SG&A, % of revenue | 2.7% | 2.7% | 3.5% | 7.4% | 8.2% | 0.8% |
| CAPEX, % of revenue | 4.6% | 58.5% | 102.2% | 118.9% | 41.8% | -77.1% |
| ROIC | 5.3% | -17.6% | -10.6% | -81.7% | -112.1% | -30.4% |
| ROE | 5.6% | -31.0% | -24.4% | -115.3% | | 115.3% |
| Net Debt/EBITDA | 1.2x | | 40.5x | | | 0.0x |
Revenue and profitability
Niko Resources Ltd's Revenue decreased on 6.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 295 pp from -523% to -228% in FY2015.
Gross Margin increased on 7.3 pp from -17.1% to -9.9% in FY2015. SG&A as a % of Revenue increased slightly on 0.80 pp from 7.4% to 8.2% in FY2015.
Net Income marign dropped on 48.0 pp from -508% to -556% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 41.8% in FY2015. Niko Resources Ltd showed big decline in CAPEX/Revenue of 16.7 pp from 58.5% in FY2012 to 41.8% in FY2015. It's average CAPEX/Revenue for the last three years was 87.6%.
Leverage (Debt)
Debt level is -1.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt jumped on 10.3% in FY2015 while cash dropped on 27.7% in FY2015.
Appendix 1: Peers in Energy
Below you can find Niko Resources Ltd benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.8% | 10.4% | 17.1% | 18.5% | -21.9% |
|---|
| Niko Resources Ltd ($NKO) | | -20.4% | -38.0% | -35.1% | -6.4% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.6% | 30.3% | 64.4% |
|---|
| Niko Resources Ltd ($NKO) | 63.4% | 42.5% | 8.7% | -17.1% | -9.9% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.7% | 31.1% | 29.6% | -23.0% |
|---|
| Niko Resources Ltd ($NKO) | 52.8% | -40.1% | 1.9% | -523.1% | -228.0% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 47.3% | 39.1% | 47.1% | 49.6% |
|---|
| Niko Resources Ltd ($NKO) | 4.6% | 58.5% | 102.2% | 118.9% | 41.8% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.5% | 4.6% | 5.1% | -16.9% |
|---|
| Niko Resources Ltd ($NKO) | 5.3% | -17.6% | -10.6% | -81.7% | -112.1% |
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 (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 16.6x |
|---|
