New West Energy Services Inc EBITDA dropped on 103% in 2015 and Revenue decreased slightly on 0.63%
28.08.2015 • About New West Energy Services Inc (
$NWE) • By InTwits
New West Energy Services Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New West Energy Services Inc doesn't have a profitable business model yet: FY2015 ROIC is -10.2%
- EBITDA Margin is declining: -0.1% in FY2015 vs. 4.3% in FY2014 vs. 7.9% in FY2011
- EBITDA Margin is quite volatile: -0.1% in FY2015, 4.3% in FY2014, 8.1% in FY2013, 9.7% in FY2012, 7.9% in FY2011
- New West Energy Services Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's a lot of higher than industry average of 67.7%.
- CAPEX is quite volatile: 0.53 in FY2015, 1.4 in FY2014, 2.1 in FY2013, 0.63 in FY2012, 0.090 in FY2011
- The company has unprofitable business model: ROIC is at -10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New West Energy Services Inc ($NWE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10.367 | 15.348 | 19.347 | 21.975 | 21.836 | -0.6% |
| Gross Profit | 3.078 | 4.704 | 5.608 | 5.466 | 4.616 | -15.5% |
| SG&A | | | | | 4.647 | |
| EBITDA | 0.816 | 1.494 | 1.561 | 0.939 | -0.031 | -103.3% |
| Net Income | 0.976 | 4.269 | 1.628 | -0.015 | -3.772 | 25,003.5% |
Balance Sheet
|
|---|
| Cash | 0.110 | 4.525 | 2.366 | 0.289 | 0.354 | 22.2% |
| Short Term Debt | 0.395 | 0.119 | 0.063 | 4.673 | 2.823 | -39.6% |
| Long Term Debt | 0.135 | 0.079 | 0.116 | 1.587 | 3.093 | 94.9% |
Cash flow
|
|---|
| Capex | 0.090 | 0.632 | 2.150 | 1.398 | 0.527 | -62.3% |
Ratios
|
|---|
| Revenue growth | 114.6% | 48.1% | 26.1% | 13.6% | -0.6% | |
| EBITDA growth | 26.4% | 83.0% | 4.5% | -39.8% | -103.3% | |
| Gross Margin | 29.7% | 30.7% | 29.0% | 24.9% | 21.1% | -3.7% |
| EBITDA Margin | 7.9% | 9.7% | 8.1% | 4.3% | -0.1% | -4.4% |
| Net Income Margin | 9.4% | 27.8% | 8.4% | -0.1% | -17.3% | -17.2% |
| SG&A, % of revenue | | | | | 21.3% | 21.3% |
| CAPEX, % of revenue | 0.9% | 4.1% | 11.1% | 6.4% | 2.4% | -3.9% |
| ROIC | 28.7% | 21.6% | 12.8% | 1.4% | -10.2% | -11.6% |
| ROE | 51.6% | 77.2% | 18.7% | -0.2% | -46.8% | -46.7% |
| Net Debt/EBITDA | 0.5x | -2.9x | -1.4x | 6.4x | | -6.4x |
Revenue and profitability
New West Energy Services Inc's Revenue decreased slightly on 0.63% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.1 pp from -34.3% to -24.1% in 2015.
Gross Margin decreased on 3.7 pp from 24.9% to 21.1% in FY2015.
Net Income marign dropped on 17.2 pp from -0.068% to -17.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.4% in FY2015. CAPEX/Revenue decreased slightly on 1.7 pp from 4.1% in FY2012 to 2.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.6%.
Return on investment
The company operates at negative ROIC (-10.24%) and ROE (-46.84%). ROIC dropped on 11.6 pp from 1.4% to -10.2% in FY2015. ROE dropped on 46.7 pp from -0.15% to -46.8% in FY2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 6.4x from 6.4x to in FY2015. Debt decreased on 5.5% in FY2015 while cash surged on 22.2% in FY2015.
Appendix 1: Peers in Energy
Below you can find New West Energy Services Inc 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.7% | 9.5% | 16.2% | 18.5% | -16.1% |
|---|
| New West Energy Services Inc ($NWE) | | 48.1% | 26.1% | 13.6% | -0.6% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 57.9% |
|---|
| New West Energy Services Inc ($NWE) | 29.7% | 30.7% | 29.0% | 24.9% | 21.1% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | -43.6% |
|---|
| New West Energy Services Inc ($NWE) | 7.9% | 9.7% | 8.1% | 4.3% | -0.1% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 68.2% |
|---|
| New West Energy Services Inc ($NWE) | 0.9% | 4.1% | 11.1% | 6.4% | 2.4% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.1% | -17.3% |
|---|
| New West Energy Services Inc ($NWE) | 28.7% | 21.6% | 12.8% | 1.4% | -10.2% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 16.1x |
|---|
| New West Energy Services Inc ($NWE) | 0.5x | -2.9x | -1.4x | 6.4x | |
