Crew Energy Inc EBITDA dropped on 75.4% in 2015 and EBITDA Margin dropped on 42.3 pp from 74.8% to 32.4%
03.03.2016 • About Crew Energy Inc (
$CR) • By InTwits
Crew Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crew Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -3.2%
- Crew Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 113.2%. At the same time it's a lot of higher than industry average of 90.1%.
- CAPEX is quite volatile: 35.7 in 2015, 41.7 in 2014, 88.5 in 2013, 66.2 in 2012, 46.9 in 2011
- The company has unprofitable business model: ROIC is at -3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crew Energy Inc ($CR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 298.5 | 350.7 | 329.7 | 319.5 | 181.3 | -43.3% |
| SG&A | 14.1 | 18.4 | 18.6 | 19.0 | 13.2 | -30.8% |
| EBITDA | 161.8 | 203.3 | 174.3 | 238.9 | 58.8 | -75.4% |
| Net Income | -130.2 | 21.5 | -79.3 | -349.7 | -55.4 | -84.2% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 230.7 | 242.8 | 343.3 | 196.0 | 227.7 | 16.1% |
Cash flow
|
|---|
| Capex | 375.9 | 281.0 | 275.9 | 445.6 | 248.0 | -44.3% |
Ratios
|
|---|
| Revenue growth | 68.0% | 17.5% | -6.0% | -3.1% | -43.3% | |
| EBITDA growth | 77.0% | 25.6% | -14.2% | 37.0% | -75.4% | |
| EBITDA Margin | 54.2% | 58.0% | 52.9% | 74.8% | 32.4% | -42.3% |
| Net Income Margin | -43.6% | 6.1% | -24.1% | -109.4% | -30.5% | 78.9% |
| SG&A, % of revenue | 4.7% | 5.2% | 5.6% | 6.0% | 7.3% | 1.3% |
| CAPEX, % of revenue | 125.9% | 80.1% | 83.7% | 139.5% | 136.8% | -2.6% |
| ROIC | 0.5% | 0.0% | -1.0% | 6.0% | -3.2% | -9.2% |
| ROE | -14.7% | 1.9% | -6.9% | -36.7% | -6.8% | 30.0% |
| Net Debt/EBITDA | 1.4x | 1.2x | 2.0x | 0.8x | 3.9x | 3.1x |
Revenue and profitability
Crew Energy Inc's Revenue dropped on 43.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 42.3 pp from 74.8% to 32.4% in 2015.
SG&A as a % of Revenue increased slightly on 1.3 pp from 6.0% to 7.3% in 2015.
Net Income marign jumped on 78.9 pp from -109% to -30.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 137% in 2015. CAPEX/Revenue jumped on 56.7 pp from 80.1% in 2012 to 137% in 2015. For the last three years the average CAPEX/Revenue was 120%.Crew Energy Inc has spent a lot to CAPEX (422% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-3.17%) and ROE (-6.77%). ROIC decreased on 9.2 pp from 6.0% to -3.2% in 2015. ROE jumped on 30.0 pp from -36.7% to -6.8% in 2015.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA surged on 3.1x from 0.8x to 3.9x in 2015. Debt jumped on 16.1% in 2015 while cash didn't change in 2015.
Management team
Crew Energy Inc's CEO Dale O Shwed is a founder and has spent 15 years at the company. The company's CFO John G Leach has spent 15 years at the company.
Appendix 1: Peers in Energy
Below you can find Crew 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.5% | 17.1% | 18.5% | -27.7% |
|---|
| Crew Energy Inc ($CR) | | 17.5% | -6.0% | -3.1% | -43.3% |
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% | 88.5% |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | 86.3% |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($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% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 12.2% |
|---|
| Crew Energy Inc ($CR) | 54.2% | 58.0% | 52.9% | 74.8% | 32.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 22.8% |
|---|
| Crew Energy Inc ($CR) | 125.9% | 80.1% | 83.7% | 139.5% | 136.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | 5.0% | -6.3% |
|---|
| Crew Energy Inc ($CR) | 0.5% | 0.0% | -1.0% | 6.0% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 3.0x |
|---|
| Crew Energy Inc ($CR) | 1.4x | 1.2x | 2.0x | 0.8x | 3.9x |
