Bonavista Energy Corp EBITDA dropped on 54.3% in 2015 and EBITDA Margin dropped on 37.0 pp from 91.6% to 54.5%
25.02.2016 • About Bonavista Energy Corp (
$BNP) • By InTwits
Bonavista Energy Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bonavista Energy Corp is a company in decline: 2015 revenue growth was -23.3%, 5 years revenue CAGR was -3.0%
- Bonavista Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 59.6%. At the same time it's a lot of higher than industry average of 90.0%.
- CAPEX is quite volatile: 475 in 2015, 1,270 in 2014, 598 in 2013, 250 in 2012, 182 in 2011
- The company has unprofitable business model: ROIC is at -24.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bonavista Energy Corp ($BNP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 890.4 | 716.8 | 826.2 | 905.5 | 695.0 | -23.3% |
| Gross Profit | 620.8 | 448.6 | 550.4 | 637.0 | 467.6 | -26.6% |
| SG&A | 24.1 | 27.0 | 30.8 | 32.0 | 32.5 | 1.5% |
| EBITDA | 568.2 | 463.1 | 517.5 | 829.3 | 379.0 | -54.3% |
| Net Income | 137.2 | 64.2 | 49.5 | 4.8 | -751.5 | -15,605.4% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 50.0 | 34.6 | -30.8% |
| Long Term Debt | 1,080.6 | 889.1 | 1,046.2 | 989.7 | 1,231.0 | 24.4% |
Cash flow
|
|---|
| Capex | 473.4 | 416.7 | 460.1 | 685.1 | 383.5 | -44.0% |
Ratios
|
|---|
| Revenue growth | 9.8% | -19.5% | 15.3% | 9.6% | -23.3% | |
| EBITDA growth | 2.3% | -18.5% | 11.7% | 60.2% | -54.3% | |
| Gross Margin | 69.7% | 62.6% | 66.6% | 70.4% | 67.3% | -3.1% |
| EBITDA Margin | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% | -37.0% |
| Net Income Margin | 15.4% | 9.0% | 6.0% | 0.5% | -108.1% | -108.7% |
| SG&A, % of revenue | 2.7% | 3.8% | 3.7% | 3.5% | 4.7% | 1.1% |
| CAPEX, % of revenue | 53.2% | 58.1% | 55.7% | 75.7% | 55.2% | -20.5% |
| ROIC | 8.3% | 4.0% | 4.8% | 4.4% | -24.1% | -28.5% |
| ROE | 7.1% | 3.0% | 2.2% | 0.2% | -38.5% | -38.7% |
| Net Debt/EBITDA | 1.9x | 1.9x | 2.0x | 1.3x | 3.3x | 2.1x |
Revenue and profitability
Bonavista Energy Corp's Revenue dropped on 23.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 50.4 pp from -17.2% to 33.2% in 2015.
Gross Margin decreased on 3.1 pp from 70.4% to 67.3% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 3.5% to 4.7% in 2015.
Net Income marign dropped on 109 pp from 0.54% to -108% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Bonavista Energy Corp had CAPEX/Revenue of 55.2%. Bonavista Energy Corp's CAPEX/Revenue decreased on 3.0 pp from 58.1% in 2012 to 55.2% in 2015. For the last three years the average CAPEX/Revenue was 62.2%.Battling declining revenue the company made large investments to CAPEX (101% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-24.11%) and ROE (-38.48%). ROIC dropped on 28.5 pp from 4.4% to -24.1% in 2015. ROE dropped on 38.7 pp from 0.21% to -38.5% in 2015.
Leverage (Debt)
Debt level is 3.3x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA jumped on 2.1x from 1.3x to 3.3x in 2015. Debt surged on 21.7% in 2015 while cash didn't change in 2015.
Management team
Bonavista Energy Corp's CEO Jason E Skehar is a founder and has spent 5 years at the company. Dean Mark Kobelka is a The company's CFO. Dean Mark Kobelka has spent 3 years at the company.
Appendix 1: Peers in Energy
Below you can find Bonavista Energy Corp 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.6% | 10.4% | 17.1% | 18.5% | -25.6% |
|---|
| Bonavista Energy Corp ($BNP) | | -19.5% | 15.3% | 9.6% | -23.3% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 30.7% |
|---|
| Bonavista Energy Corp ($BNP) | 69.7% | 62.6% | 66.6% | 70.4% | 67.3% |
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% | |
| 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% | |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 5.9% |
|---|
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 21.2% |
|---|
| Bonavista Energy Corp ($BNP) | 53.2% | 58.1% | 55.7% | 75.7% | 55.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.1% | -6.0% |
|---|
| Bonavista Energy Corp ($BNP) | 8.3% | 4.0% | 4.8% | 4.4% | -24.1% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 4.8x |
|---|
| Bonavista Energy Corp ($BNP) | 1.9x | 1.9x | 2.0x | 1.3x | 3.3x |
