Dundee Energy Ltd Net Debt / EBITDA surged on 14.1x from 3.5x to 17.7x in 2015 while Debt decreased on 4.6%
19.02.2016 • About Dundee Energy Ltd (
$DEN) • By InTwits
Dundee Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dundee Energy Ltd doesn't have a profitable business model yet: 2015 ROIC is -8.0%
- EBITDA Margin is quite volatile: 13.2% in 2015, 43.7% in 2014, 24.9% in 2013, -10.0% in 2012, 48.1% in 2011
- Dundee Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.5%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 0.57 in 2015, 7.4 in 2014, 12.9 in 2013, 13.7 in 2012, 9.9 in 2011
- The company has unprofitable business model: ROIC is at -8.0%
- It operates with high leverage: Net Debt/EBITDA is 17.7x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dundee Energy Ltd ($DEN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 35.818 | 30.483 | 33.208 | 39.280 | 25.086 | -36.1% |
| Gross Profit | 7.426 | 1.997 | 5.656 | 12.450 | 9.333 | -25.0% |
| SG&A | | | | | 5.112 | |
| EBITDA | 17.211 | -3.055 | 8.261 | 17.165 | 3.321 | -80.7% |
| Net Income | -1.246 | -16.623 | -6.184 | 1.348 | -8.281 | -714.3% |
Balance Sheet
|
|---|
| Cash | 2.556 | 0.125 | 0.111 | 0.829 | 0.086 | -89.6% |
| Short Term Debt | 59.191 | 62.633 | 65.709 | 61.617 | 58.802 | -4.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 9.864 | 13.710 | 12.948 | 7.362 | 0.574 | -92.2% |
Ratios
|
|---|
| Revenue growth | 117.3% | -14.9% | 8.9% | 18.3% | -36.1% | |
| EBITDA growth | 562.5% | -117.8% | -370.4% | 107.8% | -80.7% | |
| Gross Margin | 20.7% | 6.6% | 17.0% | 31.7% | 37.2% | 5.5% |
| EBITDA Margin | 48.1% | -10.0% | 24.9% | 43.7% | 13.2% | -30.5% |
| Net Income Margin | -3.5% | -54.5% | -18.6% | 3.4% | -33.0% | -36.4% |
| SG&A, % of revenue | | | | | 20.4% | 20.4% |
| CAPEX, % of revenue | 27.5% | 45.0% | 39.0% | 18.7% | 2.3% | -16.5% |
| ROIC | 1.4% | -15.1% | -3.8% | 5.5% | -8.0% | -13.5% |
| ROE | -1.8% | -25.7% | -10.7% | 2.3% | -14.8% | -17.1% |
| Net Debt/EBITDA | 3.3x | | 7.9x | 3.5x | 17.7x | 14.1x |
Revenue and profitability
The company's Revenue dropped on 36.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 30.5 pp from 43.7% to 13.2% in 2015.
Gross Margin increased on 5.5 pp from 31.7% to 37.2% in 2015.
Net Income marign dropped on 36.4 pp from 3.4% to -33.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dundee Energy Ltd's CAPEX/Revenue was 2.3% in 2015. The company showed big decline in CAPEX/Revenue of 42.7 pp from 45.0% in 2012 to 2.3% in 2015. It's average CAPEX/Revenue for the last three years was 20.0%.
Return on investment
The company operates at negative ROIC (-7.97%) and ROE (-14.85%). ROIC dropped on 13.5 pp from 5.5% to -8.0% in 2015. ROE dropped on 17.1 pp from 2.3% to -14.8% in 2015.
Leverage (Debt)
Debt level is 17.7x Net Debt / EBITDA and 17.7x Debt / EBITDA. Net Debt / EBITDA jumped on 14.1x from 3.5x to 17.7x in 2015. Debt decreased on 4.6% in 2015 while cash dropped on 89.6% in 2015.
Appendix 1: Peers in Energy
Below you can find Dundee 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.1% | 10.4% | 17.1% | 17.9% | -24.0% |
|---|
| Dundee Energy Ltd ($DEN) | | -14.9% | 8.9% | 18.3% | -36.1% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 48.6% |
|---|
| Dundee Energy Ltd ($DEN) | 20.7% | 6.6% | 17.0% | 31.7% | 37.2% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.7% | 31.1% | 28.9% | 11.5% |
|---|
| Dundee Energy Ltd ($DEN) | 48.1% | -10.0% | 24.9% | 43.7% | 13.2% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 29.5% |
|---|
| Dundee Energy Ltd ($DEN) | 27.5% | 45.0% | 39.0% | 18.7% | 2.3% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.0% | -2.5% |
|---|
| Dundee Energy Ltd ($DEN) | 1.4% | -15.1% | -3.8% | 5.5% | -8.0% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.3x |
|---|
| Dundee Energy Ltd ($DEN) | 3.3x | | 7.9x | 3.5x | 17.7x |
