Innergex Renewable Energy Inc reports 41.2% CAPEX growth and 2.1% Revenue growth
24.02.2016 • About Innergex Renewable Energy Inc (
$INE) • By InTwits
Innergex Renewable Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Innergex Renewable Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 108.8%. At the same time it's in pair with industry average of 92.7%.
- CAPEX is quite volatile: 8.5 in FY2015, 6.3 in FY2014, 9.2 in FY2013, 23.8 in FY2012, 42.0 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 11.0x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Innergex Renewable Energy Inc ($INE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 148.3 | 176.7 | 198.3 | 241.8 | 246.9 | 2.1% |
| SG&A | 10.4 | 9.6 | 11.2 | 15.1 | 14.2 | -5.8% |
| EBITDA | 162.2 | 197.6 | 218.1 | 200.5 | 206.0 | 2.7% |
| Net Income | -40.5 | 1.4 | 48.2 | -54.9 | -30.3 | -44.8% |
Balance Sheet
|
|---|
| Cash | 35.3 | 49.5 | 34.3 | 54.6 | 40.7 | -25.5% |
| Short Term Debt | 19.5 | 63.9 | 26.6 | 33.8 | 55.0 | 62.7% |
| Long Term Debt | 1,109.5 | 1,246.4 | 1,393.5 | 1,690.8 | 2,253.9 | 33.3% |
Cash flow
|
|---|
| Capex | 210.6 | 192.3 | 131.5 | 230.4 | 325.3 | 41.2% |
Ratios
|
|---|
| Revenue growth | 62.2% | 19.2% | 12.2% | 22.0% | 2.1% | |
| EBITDA growth | 60.4% | 21.8% | 10.4% | -8.1% | 2.7% | |
| EBITDA Margin | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% | 0.5% |
| Net Income Margin | -27.3% | 0.8% | 24.3% | -22.7% | -12.3% | 10.4% |
| SG&A, % of revenue | 7.0% | 5.4% | 5.6% | 6.2% | 5.7% | -0.5% |
| CAPEX, % of revenue | 142.1% | 108.8% | 66.3% | 95.3% | 131.8% | 36.5% |
| ROIC | 8.3% | 6.8% | 6.8% | 5.4% | 4.9% | -0.5% |
| ROE | -13.7% | -0.7% | 9.0% | -14.8% | -10.7% | 4.1% |
| Net Debt/EBITDA | 6.7x | 6.4x | 6.4x | 8.3x | 11.0x | 2.7x |
Revenue and profitability
The company's Revenue increased on 2.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.8 pp from -0.10% to -7.9% in FY2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign jumped on 10.4 pp from -22.7% to -12.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 132%. Innergex Renewable Energy Inc's CAPEX/Revenue surged on 22.9 pp from 109% in 2012 to 132% in 2015. It's average level of CAPEX/Revenue for the last three years was 97.8%.The company investments to CAPEX were large: 158% of EBITDA.
Return on investment
The company operates at low but positive ROIC (4.88%) and negative ROE (-10.66%). ROIC decreased slightly on 0.52 pp from 5.4% to 4.9% in 2015. ROE increased on 4.1 pp from -14.8% to -10.7% in 2015.
Leverage (Debt)
Debt level is 11.0x Net Debt / EBITDA and 11.2x Debt / EBITDA. Net Debt / EBITDA surged on 2.7x from 8.3x to 11.0x in 2015. Debt surged on 33.9% in 2015 while cash dropped on 25.5% in 2015.
Management team
Michel Letellier is a Innergex Renewable Energy Inc's CEO. Michel Letellier is a founder and has spent 11 years at the company.
Appendix 1: Peers in Energy
Below you can find Innergex Renewable Energy 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.0% | 9.5% | 17.1% | 17.6% | -26.7% |
|---|
| Innergex Renewable Energy Inc ($INE) | | 19.2% | 12.2% | 22.0% | 2.1% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 34.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($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% | 3.5% |
|---|
| Innergex Renewable Energy Inc ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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) | 42.0% | 47.3% | 39.1% | 47.1% | 20.8% |
|---|
| Innergex Renewable Energy Inc ($INE) | 142.1% | 108.8% | 66.3% | 95.3% | 131.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | -7.5% |
|---|
| Innergex Renewable Energy Inc ($INE) | 8.3% | 6.8% | 6.8% | 5.4% | 4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 4.8x |
|---|
| Innergex Renewable Energy Inc ($INE) | 6.7x | 6.4x | 6.4x | 8.3x | 11.0x |
