Chinook Energy Inc EBITDA dropped on 195% in 2015 and EBITDA Margin dropped on 128 pp from 40.7% to -87.1%
07.03.2016 • About Chinook Energy Inc (
$CKE) • By InTwits
Chinook Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chinook Energy Inc is a company in decline: 2015 revenue growth was -55.5%, 5 years revenue CAGR was -14.4%
- EBITDA Margin is quite volatile: -87.1% in 2015, 40.7% in 2014, 36.8% in 2013, 41.2% in 2012, 38.0% in 2011
- Chinook Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 56.7%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 44.3 in 2015, 80.7 in 2014, 42.6 in 2013, 79.7 in 2012, 120 in 2011
- The company has unprofitable business model: ROIC is at -33.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinook Energy Inc ($CKE) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 211.2 | 189.7 | 108.6 | 124.0 | 55.2 | -55.5% |
| Gross Profit | 1.3 | 5.6 | 4.1 | 18.8 | 18.5 | -1.6% |
| SG&A | | | | | 9.8 | |
| EBITDA | 80.3 | 78.2 | 40.0 | 50.4 | -48.0 | -195.2% |
| Net Income | -63.8 | -91.0 | -26.7 | -38.4 | -83.6 | 117.7% |
Balance Sheet
|
|---|
| Cash | 11.5 | 30.6 | 26.0 | 46.0 | 37.9 | -17.5% |
| Short Term Debt | 5.8 | 3.9 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 137.5 | 89.1 | 75.9 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 119.7 | 79.7 | 42.6 | 80.7 | 44.3 | -45.1% |
Ratios
|
|---|
| Revenue growth | 76.1% | -10.2% | -42.7% | 14.1% | -55.5% | |
| EBITDA growth | 96.8% | -2.6% | -48.8% | 26.1% | -195.2% | |
| Gross Margin | 0.6% | 3.0% | 3.7% | 15.2% | 33.6% | 18.4% |
| EBITDA Margin | 38.0% | 41.2% | 36.8% | 40.7% | -87.1% | -127.7% |
| Net Income Margin | -30.2% | -48.0% | -24.6% | -31.0% | -151.6% | -120.6% |
| SG&A, % of revenue | | | | | 17.8% | 17.8% |
| CAPEX, % of revenue | 56.7% | 42.0% | 39.2% | 65.1% | 80.4% | 15.2% |
| ROIC | -4.8% | -3.9% | -2.4% | 0.5% | -33.0% | -33.5% |
| ROE | -13.8% | -23.4% | -8.0% | -12.6% | -34.6% | -22.0% |
| Net Debt/EBITDA | 1.6x | 0.8x | 1.2x | -0.9x | | 0.9x |
Revenue and profitability
The company's Revenue dropped on 55.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 128 pp from 40.7% to -87.1% in 2015.
Gross Margin surged on 18.4 pp from 15.2% to 33.6% in 2015.
Net Income marign dropped on 121 pp from -31.0% to -152% in 2015.
Capital expenditures (CAPEX) and working capital investments
Chinook Energy Inc's CAPEX/Revenue was 80.4% in 2015. CAPEX/Revenue jumped on 38.3 pp from 42.0% in 2012 to 80.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 61.6%.
Return on investment
The company operates at negative ROIC (-33.03%) and ROE (-34.57%). ROIC dropped on 33.5 pp from 0.46% to -33.0% in 2015. ROE dropped on 22.0 pp from -12.6% to -34.6% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 17.5% in 2015.
Appendix 1: Peers in Energy
Below we provide Chinook 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 10.4% | 17.1% | 18.5% | -28.8% |
|---|
| Chinook Energy Inc ($CKE) | | -10.2% | -42.7% | 14.1% | -55.5% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 30.2% |
|---|
| Chinook Energy Inc ($CKE) | 0.6% | 3.0% | 3.7% | 15.2% | 33.6% |
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% | 70.1% |
| 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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 12.4% |
|---|
| Chinook Energy Inc ($CKE) | 38.0% | 41.2% | 36.8% | 40.7% | -87.1% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 50.0% | 39.1% | 47.1% | 26.5% |
|---|
| Chinook Energy Inc ($CKE) | 56.7% | 42.0% | 39.2% | 65.1% | 80.4% |
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 ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -6.0% |
|---|
| Chinook Energy Inc ($CKE) | -4.8% | -3.9% | -2.4% | 0.5% | -33.0% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
| Chinook Energy Inc ($CKE) | 1.6x | 0.8x | 1.2x | -0.9x | |
