Savanna Energy Services Corp reports 76.6% CAPEX decline and 43.7% Revenue decline
07.03.2016 • About Savanna Energy Services Corp (
$SVY) • By InTwits
Savanna Energy Services Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Savanna Energy Services Corp doesn't have a profitable business model yet: 2015 ROIC is -15.9%
- The company operates at negative EBITDA Margin: -7.4%
- EBITDA Margin is quite volatile: -7.4% in 2015, -29.7% in 2014, 20.7% in 2013, 20.5% in 2012, 21.3% in 2011
- Savanna Energy Services Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.3%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 57.8 in 2015, 247 in 2014, 125 in 2013, 167 in 2012, 180 in 2011
- The company has unprofitable business model: ROIC is at -15.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Savanna Energy Services Corp ($SVY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 610.7 | 669.3 | 696.6 | 791.9 | 446.1 | -43.7% |
| Gross Profit | 114.5 | 115.0 | 116.2 | 110.6 | 31.5 | -71.5% |
| SG&A | 46.0 | 51.0 | 59.0 | 58.2 | 43.3 | -25.7% |
| EBITDA | 130.3 | 137.5 | 143.9 | -235.2 | -32.9 | -86.0% |
| Net Income | 45.7 | 37.5 | 30.2 | -249.3 | -171.8 | -31.1% |
Balance Sheet
|
|---|
| Cash | 13.2 | 13.5 | 20.8 | 6.3 | 5.8 | -8.5% |
| Short Term Debt | 1.0 | 1.8 | 12.6 | 4.5 | 6.4 | 42.2% |
| Long Term Debt | 204.1 | 241.1 | 241.0 | 343.4 | 272.0 | -20.8% |
Cash flow
|
|---|
| Capex | 179.7 | 167.3 | 124.9 | 246.9 | 57.8 | -76.6% |
Ratios
|
|---|
| Revenue growth | 39.3% | 9.6% | 4.1% | 13.7% | -43.7% | |
| EBITDA growth | 77.0% | 5.5% | 4.6% | -263.5% | -86.0% | |
| Gross Margin | 18.7% | 17.2% | 16.7% | 14.0% | 7.1% | -6.9% |
| EBITDA Margin | 21.3% | 20.5% | 20.7% | -29.7% | -7.4% | 22.3% |
| Net Income Margin | 7.5% | 5.6% | 4.3% | -31.5% | -38.5% | -7.0% |
| SG&A, % of revenue | 7.5% | 7.6% | 8.5% | 7.4% | 9.7% | 2.3% |
| CAPEX, % of revenue | 29.4% | 25.0% | 17.9% | 31.2% | 12.9% | -18.2% |
| ROIC | 6.5% | 5.4% | 4.5% | -29.3% | -15.9% | 13.4% |
| ROE | 5.8% | 4.4% | 3.4% | -32.6% | -30.4% | 2.2% |
| Net Debt/EBITDA | 1.5x | 1.7x | 1.6x | | | 0.0x |
Revenue and profitability
Savanna Energy Services Corp's Revenue dropped on 43.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 22.3 pp from -29.7% to -7.4% in 2015.
Gross Margin decreased on 6.9 pp from 14.0% to 7.1% in 2015. SG&A as a % of Revenue increased on 2.3 pp from 7.4% to 9.7% in 2015.
Net Income marign decreased on 7.0 pp from -31.5% to -38.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.9%. The company's CAPEX/Revenue dropped on 12.0 pp from 25.0% in 2012 to 12.9% in 2015. For the last three years the average CAPEX/Revenue was 20.7%.
Return on investment
The company operates at negative ROIC (-15.91%) and ROE (-30.39%). ROIC surged on 13.4 pp from -29.3% to -15.9% in 2015. ROE increased on 2.2 pp from -32.6% to -30.4% in 2015.
Leverage (Debt)
Debt level is 14.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 20.0% in 2015 while cash decreased on 8.5% in 2015.
Management team
Christopher D Strong "Chris" is a the company's CEO. Christopher D Strong "Chris" is a founder and has spent 3 years at the company. Dwayne Lamontagne is a The company's CFO. Dwayne Lamontagne has spent 3 years at the company.
Appendix 1: Peers in Energy
Below we provide Savanna Energy Services 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 10.4% | 17.1% | 18.5% | -28.8% |
|---|
| Savanna Energy Services Corp ($SVY) | | 9.6% | 4.1% | 13.7% | -43.7% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 30.7% |
|---|
| Savanna Energy Services Corp ($SVY) | 18.7% | 17.2% | 16.7% | 14.0% | 7.1% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 12.4% |
|---|
| Savanna Energy Services Corp ($SVY) | 21.3% | 20.5% | 20.7% | -29.7% | -7.4% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 27.8% |
|---|
| Savanna Energy Services Corp ($SVY) | 29.4% | 25.0% | 17.9% | 31.2% | 12.9% |
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 ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.6% | 5.1% | -6.0% |
|---|
| Savanna Energy Services Corp ($SVY) | 6.5% | 5.4% | 4.5% | -29.3% | -15.9% |
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 | 3.0x |
|---|
