North American Energy Partners Inc revenue dropped on 40.4% in 2015 while EBITDA Margin increased on 3.0 pp from 12.9% to 16.0%
16.02.2016 • About North American Energy Partners Inc (
$NOA) • By InTwits
North American Energy Partners Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North American Energy Partners Inc is a company in decline: 2015 revenue growth was -40.4%, 5 years revenue CAGR was -18.0%
- EBITDA Margin is quite volatile: 16.0% in 2015, 12.9% in 2014, 5.1% in 2013, 5.3% in 2012, 4.4% in 2011
- North American Energy Partners Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 49.6 in 2015, 120 in 2014, 95.6 in 2013, 164 in 2012, 94.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North American Energy Partners Inc ($NOA) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 858.0 | 670.7 | 544.6 | 471.8 | 281.3 | -40.4% |
| Gross Profit | 127.6 | 139.5 | 106.3 | 51.4 | 31.9 | -38.0% |
| SG&A | | | | | 26.3 | |
| EBITDA | 37.7 | 35.3 | 27.5 | 60.9 | 44.9 | -26.3% |
| Net Income | -34.7 | -21.2 | -1.5 | -1.2 | -7.5 | 539.0% |
Balance Sheet
|
|---|
| Cash | 0.7 | 1.4 | 0.6 | 1.0 | 32.4 | 3,284.0% |
| Short Term Debt | 14.9 | 14.4 | 21.4 | 22.2 | 30.1 | 35.5% |
| Long Term Debt | 290.8 | 300.1 | 290.7 | 106.1 | 80.9 | -23.8% |
Cash flow
|
|---|
| Capex | 36.4 | 49.5 | 32.6 | 35.1 | 32.5 | -7.6% |
Ratios
|
|---|
| Revenue growth | 13.1% | -21.8% | -18.8% | -13.4% | -40.4% | |
| EBITDA growth | -68.4% | -6.4% | -22.1% | 121.1% | -26.3% | |
| Gross Margin | 14.9% | 20.8% | 19.5% | 10.9% | 11.3% | 0.4% |
| EBITDA Margin | 4.4% | 5.3% | 5.1% | 12.9% | 16.0% | 3.0% |
| Net Income Margin | -4.0% | -3.2% | -0.3% | -0.2% | -2.7% | -2.4% |
| SG&A, % of revenue | | | | | 9.3% | 9.3% |
| CAPEX, % of revenue | 4.2% | 7.4% | 6.0% | 7.4% | 11.6% | 4.1% |
| ROIC | -1.1% | -2.9% | -3.0% | 3.5% | 0.9% | -2.6% |
| ROE | -21.1% | -15.4% | -1.1% | -0.7% | -4.1% | -3.4% |
| Net Debt/EBITDA | 8.1x | 8.9x | 11.3x | 2.1x | 1.8x | -0.3x |
Revenue and profitability
North American Energy Partners Inc's Revenue dropped on 40.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 12.9% to 16.0% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign decreased on 2.4 pp from -0.25% to -2.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
North American Energy Partners Inc's CAPEX/Revenue was 11.6% in 2015. The company showed CAPEX/Revenue growth of 4.2 pp from 7.4% in 2012 to 11.6% in 2015. It's average CAPEX/Revenue for the last three years was 8.3%.Battling declining revenue North American Energy Partners Inc invested a large share of EBITDA (72.4%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (0.87%) and negative ROE (-4.14%). ROIC decreased on 2.6 pp from 3.5% to 0.87% in 2015. ROE decreased on 3.4 pp from -0.74% to -4.1% in 2015.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 2.1x to 1.8x in 2015. Debt dropped on 13.5% in 2015 while cash surged on 3,284% in 2015.
Appendix 1: Peers in Energy
Below you can find North American Energy Partners 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.4% | 10.4% | 17.1% | 18.5% | -24.5% |
|---|
| North American Energy Partners Inc ($NOA) | | -21.8% | -18.8% | -13.4% | -40.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 46.5% |
|---|
| North American Energy Partners Inc ($NOA) | 14.9% | 20.8% | 19.5% | 10.9% | 11.3% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 9.5% |
|---|
| North American Energy Partners Inc ($NOA) | 4.4% | 5.3% | 5.1% | 12.9% | 16.0% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 40.3% |
|---|
| North American Energy Partners Inc ($NOA) | 4.2% | 7.4% | 6.0% | 7.4% | 11.6% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -4.2% |
|---|
| North American Energy Partners Inc ($NOA) | -1.1% | -2.9% | -3.0% | 3.5% | 0.9% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.0x |
|---|
| North American Energy Partners Inc ($NOA) | 8.1x | 8.9x | 11.3x | 2.1x | 1.8x |
