Questerre Energy Corp CAPEX dropped on 67.7% in 2015 and Revenue dropped on 21.0%
29.02.2016 • About Questerre Energy Corp (
$QEC) • By InTwits
Questerre Energy Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Questerre Energy Corp doesn't have a profitable business model yet: 2015 ROIC is -46.3%
- The company operates at negative EBITDA Margin: -291.4%
- Questerre Energy Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -111.5%0
- Questerre Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 211.7%. At the same time it's a lot of higher than industry average of 91.1%.
- CAPEX is quite volatile: 20.5 in 2015, 63.6 in 2014, 52.2 in 2013, 42.5 in 2012, 40.8 in 2011
- The company has unprofitable business model: ROIC is at -46.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Questerre Energy Corp ($QEC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16.716 | 17.568 | 22.491 | 26.298 | 20.769 | -21.0% |
| Gross Profit | 6.635 | 3.274 | 8.238 | 12.181 | 2.972 | -75.6% |
| SG&A | 4.908 | 4.218 | 4.415 | 4.756 | 3.546 | -25.4% |
| EBITDA | 8.352 | -18.422 | -12.477 | -32.733 | -60.525 | 84.9% |
| Net Income | 3.901 | -19.472 | -19.354 | -36.738 | -73.534 | 100.2% |
Balance Sheet
|
|---|
| Cash | 107.566 | 42.541 | 47.459 | 11.005 | 0.343 | -96.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 14.542 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 40.766 | 42.525 | 52.186 | 63.575 | 20.524 | -67.7% |
Ratios
|
|---|
| Revenue growth | 60.2% | 5.1% | 28.0% | 16.9% | -21.0% | |
| EBITDA growth | -194.9% | -320.6% | -32.3% | 162.3% | 84.9% | |
| Gross Margin | 39.7% | 18.6% | 36.6% | 46.3% | 14.3% | -32.0% |
| EBITDA Margin | 50.0% | -104.9% | -55.5% | -124.5% | -291.4% | -167.0% |
| Net Income Margin | 23.3% | -110.8% | -86.1% | -139.7% | -354.1% | -214.4% |
| SG&A, % of revenue | 29.4% | 24.0% | 19.6% | 18.1% | 17.1% | -1.0% |
| CAPEX, % of revenue | 243.9% | 242.1% | 232.0% | 241.7% | 98.8% | -142.9% |
| ROIC | 0.5% | -13.1% | -10.2% | -20.5% | -46.3% | -25.9% |
| ROE | 1.7% | -8.6% | -8.4% | -16.6% | -44.8% | -28.2% |
| Net Debt/EBITDA | -12.9x | | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 21.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 167 pp from -124% to -291% in 2015.
Gross Margin dropped on 32.0 pp from 46.3% to 14.3% in 2015. SG&A as a % of Revenue decreased slightly on 1.0 pp from 18.1% to 17.1% in 2015.
Net Income marign dropped on 214 pp from -140% to -354% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 98.8%. Questerre Energy Corp showed big decline in CAPEX/Revenue of 143 pp from 242% in 2012 to 98.8% in 2015. For the last three years the average CAPEX/Revenue was 191%.
Return on investment
The company operates at negative ROIC (-46.34%) and ROE (-44.82%). ROIC dropped on 25.9 pp from -20.5% to -46.3% in 2015. ROE dropped on 28.2 pp from -16.6% to -44.8% in 2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped while cash dropped on 96.9% in 2015.
Appendix 1: Peers in Energy
Below we provide Questerre Energy Corp benchmarking against other companies in Energy industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.9% | 10.4% | 16.2% | 18.5% | -25.6% |
|---|
| Questerre Energy Corp ($QEC) | | 5.1% | 28.0% | 16.9% | -21.0% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 30.8% |
|---|
| Questerre Energy Corp ($QEC) | 39.7% | 18.6% | 36.6% | 46.3% | 14.3% |
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 ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.7% | 31.1% | 29.6% | 12.8% |
|---|
| Questerre Energy Corp ($QEC) | 50.0% | -104.9% | -55.5% | -124.5% | -291.4% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 22.2% |
|---|
| Questerre Energy Corp ($QEC) | 243.9% | 242.1% | 232.0% | 241.7% | 98.8% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -6.8% |
|---|
| Questerre Energy Corp ($QEC) | 0.5% | -13.1% | -10.2% | -20.5% | -46.3% |
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 (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 4.1x |
|---|
