Birchcliff Energy Ltd Net Income dropped on 111% in 2015 and Revenue dropped on 29.9%
10.02.2016 • About Birchcliff Energy Ltd (
$BIR) • By InTwits
Birchcliff Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Birchcliff Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 38.3%. At the same time it's in pair with industry average of 27.2%.
- CAPEX is quite volatile: 258 in 2015, 455 in 2014, 0.61 in 2013, 0.25 in 2012, 6.3 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.3x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Birchcliff Energy Ltd ($BIR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 235.2 | 233.0 | 289.1 | 436.4 | 305.8 | -29.9% |
| Gross Profit | 173.0 | 163.4 | 212.4 | 342.2 | 206.4 | -39.7% |
| SG&A | 34.1 | 28.0 | 24.8 | 27.1 | 26.0 | -4.1% |
| EBITDA | 141.1 | 139.3 | 221.4 | 318.6 | 187.8 | -41.1% |
| Net Income | 34.5 | 13.2 | 65.4 | 114.3 | -12.2 | -110.6% |
Balance Sheet
|
|---|
| Cash | 0.1 | 0.0 | 0.1 | 0.1 | 0.1 | 5.6% |
| Short Term Debt | 0.0 | 0.7 | 1.4 | 0.0 | 0.0 | |
| Long Term Debt | 388.4 | 501.5 | 467.4 | 469.0 | 622.1 | 32.6% |
Cash flow
|
|---|
| Capex | 6.3 | 0.2 | 0.6 | 454.8 | 258.2 | -43.2% |
Ratios
|
|---|
| Revenue growth | 35.9% | -0.9% | 24.1% | 51.0% | -29.9% | |
| EBITDA growth | 21.1% | -1.2% | 58.9% | 43.9% | -41.1% | |
| Gross Margin | 73.6% | 70.1% | 73.5% | 78.4% | 67.5% | -10.9% |
| EBITDA Margin | 60.0% | 59.8% | 76.6% | 73.0% | 61.4% | -11.6% |
| Net Income Margin | 14.6% | 5.7% | 22.6% | 26.2% | -4.0% | -30.2% |
| SG&A, % of revenue | 14.5% | 12.0% | 8.6% | 6.2% | 8.5% | 2.3% |
| CAPEX, % of revenue | 2.7% | 0.1% | 0.2% | 104.2% | 84.4% | -19.8% |
| ROIC | 6.9% | 3.6% | 8.0% | 11.7% | 2.3% | -9.4% |
| ROE | 5.5% | 1.8% | 7.9% | 11.0% | -1.9% | -12.9% |
| Net Debt/EBITDA | 2.8x | 3.6x | 2.1x | 1.5x | 3.3x | 1.8x |
Revenue and profitability
Birchcliff Energy Ltd's Revenue dropped on 29.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.6 pp from 73.0% to 61.4% in 2015.
Gross Margin dropped on 10.9 pp from 78.4% to 67.5% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 6.2% to 8.5% in 2015.
Net Income marign dropped on 30.2 pp from 26.2% to -4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Birchcliff Energy Ltd's CAPEX/Revenue was 84.4% in 2015. Birchcliff Energy Ltd's CAPEX/Revenue jumped on 84.3 pp from 0.11% in 2012 to 84.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 63.0%.Birchcliff Energy Ltd has spent a lot to CAPEX (137% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (2.31%) and negative ROE (-1.85%). ROIC decreased on 9.4 pp from 11.7% to 2.3% in 2015. ROE dropped on 12.9 pp from 11.0% to -1.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is 3.3x. Net Debt / EBITDA jumped on 1.8x from 1.5x to 3.3x in 2015. Debt surged on 32.6% in 2015 while cash increased on 5.6% in 2015.
Appendix 1: Peers in Energy
Below you can find Birchcliff 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.8% | 10.4% | 16.2% | 17.6% | -23.2% |
|---|
| Birchcliff Energy Ltd ($BIR) | | -0.9% | 24.1% | 51.0% | -29.9% |
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% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 44.3% |
|---|
| Birchcliff Energy Ltd ($BIR) | 73.6% | 70.1% | 73.5% | 78.4% | 67.5% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 4.4% |
|---|
| Birchcliff Energy Ltd ($BIR) | 60.0% | 59.8% | 76.6% | 73.0% | 61.4% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 47.1% | 41.8% |
|---|
| Birchcliff Energy Ltd ($BIR) | 2.7% | 0.1% | 0.2% | 104.2% | 84.4% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -7.1% |
|---|
| Birchcliff Energy Ltd ($BIR) | 6.9% | 3.6% | 8.0% | 11.7% | 2.3% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.5x |
|---|
| Birchcliff Energy Ltd ($BIR) | 2.8x | 3.6x | 2.1x | 1.5x | 3.3x |
