Strad Energy Services Ltd Net Income dropped on 232% in 2015 and Revenue dropped on 49.2%
23.02.2016 • About Strad Energy Services Ltd (
$SDY) • By InTwits
Strad Energy Services Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Strad Energy Services Ltd doesn't have a profitable business model yet: 2015 ROIC is -20.7%
- EBITDA Margin is quite volatile: -6.6% in 2015, 26.7% in 2014, 21.4% in 2013, 22.9% in 2012, 29.7% in 2011
- Strad Energy Services Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.0%. At the same time it's a lot of higher than industry average of 71.3%.
- CAPEX is quite volatile: 9.5 in 2015, 42.1 in 2014, 12.7 in 2013, 63.3 in 2012, 74.6 in 2011
- The company has unprofitable business model: ROIC is at -20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Strad Energy Services Ltd ($SDY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 188.3 | 203.2 | 189.6 | 219.8 | 111.5 | -49.2% |
| Gross Profit | 64.1 | 54.4 | 42.7 | 57.8 | 33.3 | -42.4% |
| SG&A | | | 29.4 | 22.5 | 15.6 | -30.6% |
| EBITDA | 55.9 | 46.6 | 40.5 | 58.7 | -7.4 | -112.6% |
| Net Income | -10.0 | 7.8 | 5.4 | 23.0 | -30.4 | -232.0% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 10.0 | 6.7 | 3.8 | 1.7 | 3.7 | 114.1% |
| Long Term Debt | 26.8 | 57.8 | 39.3 | 37.0 | 15.7 | -57.5% |
Cash flow
|
|---|
| Capex | 74.6 | 63.3 | 12.7 | 42.1 | 9.5 | -77.4% |
Ratios
|
|---|
| Revenue growth | 110.4% | 7.9% | -6.7% | 15.9% | -49.2% | |
| EBITDA growth | 100.6% | -16.7% | -13.0% | 44.8% | -112.6% | |
| Gross Margin | 34.0% | 26.8% | 22.5% | 26.3% | 29.9% | 3.5% |
| EBITDA Margin | 29.7% | 22.9% | 21.4% | 26.7% | -6.6% | -33.4% |
| Net Income Margin | -5.3% | 3.8% | 2.8% | 10.5% | -27.2% | -37.7% |
| SG&A, % of revenue | | | 15.5% | 10.2% | 14.0% | 3.8% |
| CAPEX, % of revenue | 39.6% | 31.1% | 6.7% | 19.2% | 8.5% | -10.6% |
| ROIC | 19.5% | 9.5% | 6.1% | 17.6% | -20.7% | -38.2% |
| ROE | -7.4% | 6.0% | 4.2% | 16.2% | -21.0% | -37.2% |
| Net Debt/EBITDA | 0.7x | 1.4x | 1.1x | 0.7x | | -0.7x |
Revenue and profitability
Strad Energy Services Ltd's Revenue dropped on 49.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 33.4 pp from 26.7% to -6.6% in 2015.
Gross Margin increased on 3.5 pp from 26.3% to 29.9% in 2015. SG&A as a % of Revenue increased on 3.8 pp from 10.2% to 14.0% in 2015.
Net Income marign dropped on 37.7 pp from 10.5% to -27.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.5% in 2015. Strad Energy Services Ltd's CAPEX/Revenue dropped on 22.6 pp from 31.1% in 2012 to 8.5% in 2015. Average CAPEX/Revenue for the last three years was 11.5%.
Return on investment
The company operates at negative ROIC (-20.69%) and ROE (-20.99%). ROIC dropped on 38.2 pp from 17.6% to -20.7% in 2015. ROE dropped on 37.2 pp from 16.2% to -21.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.7x from 0.7x to in 2015. Debt dropped on 49.9% in 2015 while cash didn't change in 2015.
Management team
The company's CEO is Andrew R C Pernal "Andy". Andrew R C Pernal "Andy" is a founder and has 6 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Strad Energy Services 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.9% | 10.4% | 17.1% | 18.5% | -24.0% |
|---|
| Strad Energy Services Ltd ($SDY) | | 7.9% | -6.7% | 15.9% | -49.2% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.4% | 29.3% | 31.6% | 30.3% | 44.3% |
|---|
| Strad Energy Services Ltd ($SDY) | 34.0% | 26.8% | 22.5% | 26.3% | 29.9% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.7% | 31.1% | 29.6% | 13.0% |
|---|
| Strad Energy Services Ltd ($SDY) | 29.7% | 22.9% | 21.4% | 26.7% | -6.6% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 22.8% |
|---|
| Strad Energy Services Ltd ($SDY) | 39.6% | 31.1% | 6.7% | 19.2% | 8.5% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -2.5% |
|---|
| Strad Energy Services Ltd ($SDY) | 19.5% | 9.5% | 6.1% | 17.6% | -20.7% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 4.6x |
|---|
| Strad Energy Services Ltd ($SDY) | 0.7x | 1.4x | 1.1x | 0.7x | |
