Lynden Energy Corp reports 104% Net Income decline and 27.3 pp EBITDA Margin decline from 77.5% to 50.3%
28.09.2015 • About Lynden Energy Corp (
$LVL) • By InTwits
Lynden Energy Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lynden Energy Corp doesn't have a profitable business model yet: FY2015 ROIC is 0.8%
- Lynden Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 212.5%. At the same time it's a lot of higher than industry average of 94.0%.
- CAPEX is quite volatile: 29.4 in FY2015, 34.2 in FY2014, 55.9 in FY2013, 24.4 in FY2012, 11.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lynden Energy Corp ($LVL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.652 | 11.711 | 18.726 | 29.367 | 22.159 | -24.5% |
| SG&A | | | | | 2.384 | |
| EBITDA | 1.809 | 7.553 | 14.058 | 22.773 | 11.137 | -51.1% |
| Net Income | -0.859 | 4.264 | 11.284 | 15.404 | -0.565 | -103.7% |
Balance Sheet
|
|---|
| Cash | 2.601 | 9.479 | 1.874 | 13.956 | 8.748 | -37.3% |
| Short Term Debt | 0.000 | 14.533 | 26.602 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 17.853 | 29.908 | 67.5% |
Cash flow
|
|---|
| Capex | 11.202 | 24.371 | 55.913 | 34.235 | 29.379 | -14.2% |
Ratios
|
|---|
| Revenue growth | 270.5% | 220.7% | 59.9% | 56.8% | -24.5% | |
| EBITDA growth | -1,008.6% | 317.6% | 86.1% | 62.0% | -51.1% | |
| EBITDA Margin | 49.5% | 64.5% | 75.1% | 77.5% | 50.3% | -27.3% |
| Net Income Margin | -23.5% | 36.4% | 60.3% | 52.5% | -2.6% | -55.0% |
| SG&A, % of revenue | | | | | 10.8% | 10.8% |
| CAPEX, % of revenue | 306.8% | 208.1% | 298.6% | 116.6% | 132.6% | 16.0% |
| ROIC | 2.2% | 8.8% | 7.8% | 16.6% | 0.8% | -15.8% |
| ROE | -3.2% | 17.3% | 30.7% | 26.6% | -0.8% | -27.4% |
| Net Debt/EBITDA | -1.4x | 0.7x | 1.8x | 0.2x | 1.9x | 1.7x |
Revenue and profitability
Lynden Energy Corp's Revenue dropped on 24.5% 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.
Net Income marign dropped on 55.0 pp from 52.5% to -2.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 133%. Lynden Energy Corp's CAPEX/Revenue dropped on 75.5 pp from 208% in FY2012 to 133% in FY2015. Average CAPEX/Revenue for the last three years was 183%.Battling declining revenue Lynden Energy Corp made large investments to CAPEX (264% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (0.81%) and negative ROE (-0.80%). ROIC dropped on 15.8 pp from 16.6% to 0.81% in FY2015. ROE dropped on 27.4 pp from 26.6% to -0.80% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.7x. Net Debt / EBITDA jumped on 1.7x from 0.2x to 1.9x in FY2015. Debt surged on 67.5% in FY2015 while cash dropped on 37.3% in FY2015.
Appendix 1: Peers in Energy
Below we provide Lynden Energy Corp 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.6% | 9.5% | 16.2% | 17.6% | -14.6% |
|---|
| Lynden Energy Corp ($LVL) | | 220.7% | 59.9% | 56.8% | -24.5% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 51.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($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) | 24.7% | 25.0% | 30.5% | 28.9% | -23.0% |
|---|
| Lynden Energy Corp ($LVL) | 49.5% | 64.5% | 75.1% | 77.5% | 50.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 49.6% |
|---|
| Lynden Energy Corp ($LVL) | 306.8% | 208.1% | 298.6% | 116.6% | 132.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | 3.2% | 4.5% | 5.0% | -16.9% |
|---|
| Lynden Energy Corp ($LVL) | 2.2% | 8.8% | 7.8% | 16.6% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 |
|---|
| Lynden Energy Corp ($LVL) | -1.4x | 0.7x | 1.8x | 0.2x | 1.9x |
