Gibson Energy Inc EBITDA dropped on 66.7% in 2015 and Revenue dropped on 37.0%
01.03.2016 • About Gibson Energy Inc (
$GEI) • By InTwits
Gibson Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gibson Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -4.3%
- EBITDA Margin is declining: 2.7% in 2015 vs. 5.1% in 2014 vs. 4.7% in 2011
- Gibson Energy Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 28.2%.
- CAPEX is quite volatile: 319 in 2015, 355 in 2014, 227 in 2013, 169 in 2012, 135 in 2011
- The company has unprofitable business model: ROIC is at -4.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gibson Energy Inc ($GEI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,072 | 4,913 | 6,941 | 8,574 | 5,405 | -37.0% |
| Gross Profit | 154 | 205 | 274 | 274 | 109 | -60.1% |
| SG&A | 39 | 40 | 47 | 56 | 72 | 27.5% |
| EBITDA | 240 | 300 | 418 | 440 | 146 | -66.7% |
| Net Income | -63 | 116 | 104 | 92 | -281 | -405.3% |
Balance Sheet
|
|---|
| Cash | 65 | 61 | 97 | 132 | 83 | -37.2% |
| Short Term Debt | 7 | 38 | 0 | 0 | 35 | |
| Long Term Debt | 621 | 600 | 758 | 1,165 | 1,291 | 10.8% |
Cash flow
|
|---|
| Capex | 135 | 169 | 227 | 355 | 319 | -10.1% |
Ratios
|
|---|
| Revenue growth | 37.4% | -3.1% | 41.3% | 23.5% | -37.0% | |
| EBITDA growth | 66.7% | 24.9% | 39.3% | 5.3% | -66.7% | |
| Gross Margin | 3.0% | 4.2% | 4.0% | 3.2% | 2.0% | -1.2% |
| EBITDA Margin | 4.7% | 6.1% | 6.0% | 5.1% | 2.7% | -2.4% |
| Net Income Margin | -1.2% | 2.4% | 1.5% | 1.1% | -5.2% | -6.3% |
| SG&A, % of revenue | 0.8% | 0.8% | 0.7% | 0.7% | 1.3% | 0.7% |
| CAPEX, % of revenue | 2.7% | 3.4% | 3.3% | 4.1% | 5.9% | 1.8% |
| ROIC | 9.0% | 9.2% | 10.4% | 9.0% | -4.3% | -13.2% |
| ROE | -10.0% | 10.8% | 7.8% | 6.6% | -21.6% | -28.2% |
| Net Debt/EBITDA | 2.3x | 1.9x | 1.6x | 2.4x | 8.5x | 6.1x |
Revenue and profitability
The company's Revenue dropped on 37.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.76 pp from 2.2% to 2.9% in 2015.
Gross Margin decreased slightly on 1.2 pp from 3.2% to 2.0% in 2015. SG&A as a % of Revenue increased slightly on 0.67 pp from 0.66% to 1.3% in 2015.
Net Income marign decreased on 6.3 pp from 1.1% to -5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Gibson Energy Inc had CAPEX/Revenue of 5.9%. CAPEX/Revenue increased on 2.5 pp from 3.4% in 2012 to 5.9% in 2015. It's average CAPEX/Revenue for the last three years was 4.4%.Gibson Energy Inc has spent a lot to CAPEX (218% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.28%) and ROE (-21.64%). ROIC dropped on 13.2 pp from 9.0% to -4.3% in 2015. ROE dropped on 28.2 pp from 6.6% to -21.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.5x and Debt / EBITDA is 9.1x. Net Debt / EBITDA surged on 6.1x from 2.4x to 8.5x in 2015. Debt jumped on 13.8% in 2015 while cash dropped on 37.2% in 2015.
Management team
The company's CEO is A Stewart Hanlon. A Stewart Hanlon is a founder and has 9 years tenure at the company.
Appendix 1: Peers in Energy
Below we provide Gibson Energy Inc 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 37.9% | 10.4% | 16.2% | 17.6% | -25.6% |
|---|
| Gibson Energy Inc ($GEI) | | -3.1% | 41.3% | 23.5% | -37.0% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 30.5% |
|---|
| Gibson Energy Inc ($GEI) | 3.0% | 4.2% | 4.0% | 3.2% | 2.0% |
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 ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 12.0% |
|---|
| Gibson Energy Inc ($GEI) | 4.7% | 6.1% | 6.0% | 5.1% | 2.7% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 22.2% |
|---|
| Gibson Energy Inc ($GEI) | 2.7% | 3.4% | 3.3% | 4.1% | 5.9% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -6.8% |
|---|
| Gibson Energy Inc ($GEI) | 9.0% | 9.2% | 10.4% | 9.0% | -4.3% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.5x |
|---|
| Gibson Energy Inc ($GEI) | 2.3x | 1.9x | 1.6x | 2.4x | 8.5x |
