Canacol Energy Ltd reports 123% EBITDA decline and 27.7% Revenue decline
23.09.2015 • About Canacol Energy Ltd (
$CNE) • By InTwits
Canacol Energy Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canacol Energy Ltd doesn't have a profitable business model yet: FY2015 ROIC is -13.6%
- The company operates at negative EBITDA Margin: -15.9%
- EBITDA Margin is quite volatile: -15.9% in FY2015, 50.0% in FY2014, -12.2% in FY2013, 43.5% in FY2012, 29.8% in FY2011
- Canacol Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 78.5%. At the same time it's in pair with industry average of 93.9%.
- CAPEX is quite volatile: 191 in FY2015, 133 in FY2014, 56.8 in FY2013, 175 in FY2012, 73.4 in FY2011
- The company has unprofitable business model: ROIC is at -13.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canacol Energy Ltd ($CNE) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 112.8 | 184.9 | 139.7 | 206.1 | 149.0 | -27.7% |
| Gross Profit | 73.6 | 105.4 | 13.3 | 98.6 | 86.3 | -12.5% |
| SG&A | 14.0 | | | | 24.1 | |
| EBITDA | 33.6 | 80.4 | -17.0 | 103.0 | -23.7 | -123.0% |
| Net Income | -27.4 | 18.6 | -127.8 | 9.9 | -106.0 | -1,166.9% |
Balance Sheet
|
|---|
| Cash | 101.6 | 30.8 | 52.3 | 163.7 | 45.8 | -72.0% |
| Short Term Debt | 0.0 | 12.0 | 0.0 | 44.0 | 0.0 | -100.0% |
| Long Term Debt | 31.5 | 41.4 | 156.4 | 166.7 | 267.0 | 60.2% |
Cash flow
|
|---|
| Capex | 73.4 | 174.7 | 56.8 | 132.9 | 190.5 | 43.4% |
Ratios
|
|---|
| Revenue growth | 394.0% | 63.9% | -24.4% | 47.5% | -27.7% | |
| EBITDA growth | -676.3% | 139.4% | -121.1% | -706.8% | -123.0% | |
| Gross Margin | 65.2% | 57.0% | 9.5% | 47.9% | 57.9% | 10.1% |
| EBITDA Margin | 29.8% | 43.5% | -12.2% | 50.0% | -15.9% | -65.9% |
| Net Income Margin | -24.3% | 10.0% | -91.5% | 4.8% | -71.1% | -76.0% |
| SG&A, % of revenue | 12.4% | | | | 16.1% | 16.1% |
| CAPEX, % of revenue | 65.0% | 94.5% | 40.7% | 64.5% | 127.8% | 63.4% |
| ROIC | 4.8% | 5.7% | -17.0% | 12.4% | -13.6% | -26.0% |
| ROE | -18.0% | 7.7% | -48.2% | 3.1% | -28.6% | -31.7% |
| Net Debt/EBITDA | -2.1x | 0.3x | | 0.5x | | -0.5x |
Revenue and profitability
Canacol Energy Ltd's Revenue dropped on 27.7% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 65.9 pp from 50.0% to -15.9% in FY2015.
Gross Margin jumped on 10.1 pp from 47.9% to 57.9% in FY2015.
Net Income marign dropped on 76.0 pp from 4.8% to -71.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 128%. Canacol Energy Ltd's CAPEX/Revenue surged on 33.4 pp from 94.5% in FY2012 to 128% in FY2015. It's average level of CAPEX/Revenue for the last three years was 77.7%.
Return on investment
The company operates at negative ROIC (-13.58%) and ROE (-28.58%). ROIC dropped on 26.0 pp from 12.4% to -13.6% in FY2015. ROE dropped on 31.7 pp from 3.1% to -28.6% in FY2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.5x to in FY2015. Debt surged on 26.7% in FY2015 while cash dropped on 72.0% in FY2015.
Management team
The company's CEO is Charle A Gamba. Charle A Gamba is a founder and has 10 years tenure at the company. The company's CFO Jason Bednar has spent 3 years at the company.
Appendix 1: Peers in Energy
Below you can find Canacol Energy 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.7% | 9.6% | 17.1% | 17.6% | -13.1% |
|---|
| Canacol Energy Ltd ($CNE) | | | -24.4% | 47.5% | -27.7% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 44.3% |
|---|
| Canacol Energy Ltd ($CNE) | | 57.0% | 9.5% | 47.9% | 57.9% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.3% | 25.0% | 31.1% | 28.9% | -43.6% |
|---|
| Canacol Energy Ltd ($CNE) | | 43.5% | -12.2% | 50.0% | -15.9% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.6% | 47.3% | 39.1% | 47.1% | 49.5% |
|---|
| Canacol Energy Ltd ($CNE) | | 94.5% | 40.7% | 64.5% | 127.8% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.6% | 5.0% | -17.3% |
|---|
| Canacol Energy Ltd ($CNE) | | 5.7% | -17.0% | 12.4% | -13.6% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 16.1x |
|---|
| Canacol Energy Ltd ($CNE) | | 0.3x | | 0.5x | |
