NuVista Energy Ltd reports 173% EBITDA growth and 10.5% Revenue growth
08.03.2016 • About NuVista Energy Ltd (
$NVA) • By InTwits
NuVista Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- NuVista Energy Ltd doesn't have a profitable business model yet: 2015 ROIC is -15.6%
- EBITDA Margin is quite volatile: 42.6% in 2015, 17.3% in 2014, 10.7% in 2013, 38.9% in 2012, 51.9% in 2011
- NuVista Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 88.9%. At the same time it's in pair with industry average of 89.0%.
- CAPEX is quite volatile: 264 in 2015, 342 in 2014, 215 in 2013, 98.0 in 2012, 137 in 2011
- The company has unprofitable business model: ROIC is at -15.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NuVista Energy Ltd ($NVA) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 326.0 | 213.9 | 192.5 | 236.9 | 261.7 | 10.5% |
| Gross Profit | 211.9 | 114.3 | 111.6 | 3.0 | -90.2 | -3,122.6% |
| SG&A | 19.8 | 21.3 | 20.5 | 21.3 | 20.1 | -5.8% |
| EBITDA | 169.3 | 83.1 | 20.7 | 40.9 | 111.6 | 173.0% |
| Net Income | -143.8 | -195.2 | -61.1 | -58.9 | -172.9 | 193.7% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 2.5 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 289.4 | 19.9 | 0.0 | 172.0 | 196.7 | 14.4% |
Cash flow
|
|---|
| Capex | 137.0 | 98.0 | 214.9 | 341.8 | 263.7 | -22.9% |
Ratios
|
|---|
| Revenue growth | 3.2% | -34.4% | -10.0% | 23.1% | 10.5% | |
| EBITDA growth | 16.9% | -50.9% | -75.2% | 98.0% | 173.0% | |
| Gross Margin | 65.0% | 53.4% | 58.0% | 1.3% | -34.5% | -35.7% |
| EBITDA Margin | 51.9% | 38.9% | 10.7% | 17.3% | 42.6% | 25.4% |
| Net Income Margin | -44.1% | -91.3% | -31.8% | -24.9% | -66.1% | -41.2% |
| SG&A, % of revenue | 6.1% | 10.0% | 10.6% | 9.0% | 7.7% | -1.3% |
| CAPEX, % of revenue | 42.0% | 45.8% | 111.6% | 144.3% | 100.7% | -43.5% |
| ROIC | -11.2% | -27.7% | -8.0% | -13.8% | -15.6% | -1.8% |
| ROE | -18.6% | -27.7% | -9.0% | -8.4% | -26.3% | -17.8% |
| Net Debt/EBITDA | 1.7x | 0.2x | -0.1x | 4.2x | 1.8x | -2.4x |
Revenue and profitability
The company's Revenue surged on 10.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 42.3% to 39.8% in 2015.
Gross Margin dropped on 35.7 pp from 1.3% to -34.5% in 2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 9.0% to 7.7% in 2015.
Net Income marign dropped on 41.2 pp from -24.9% to -66.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 101%. CAPEX/Revenue jumped on 54.9 pp from 45.8% in 2012 to 101% in 2015. For the last three years the average CAPEX/Revenue was 119%.The company has spent a lot to CAPEX (236% of EBITDA) to fuel its growth.
Return on investment
The company operates at negative ROIC (-15.56%) and ROE (-26.25%). ROIC decreased slightly on 1.8 pp from -13.8% to -15.6% in 2015. ROE dropped on 17.8 pp from -8.4% to -26.3% in 2015.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.4x from 4.2x to 1.8x in 2015. Debt surged on 14.4% in 2015 while cash didn't change in 2015.
Management team
The company's CEO is Jonathan A Wright. Jonathan A Wright is a founder and has 7 years tenure at the company. NuVista Energy Ltd's CFO Ross L Andreachuk has spent 4 years at the company.
Appendix 1: Peers in Energy
Below you can find NuVista Energy Ltd 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.7% | 10.4% | 17.1% | 17.6% | -28.8% |
|---|
| NuVista Energy Ltd ($NVA) | | -34.4% | -10.0% | 23.1% | 10.5% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 30.3% | 30.7% |
|---|
| NuVista Energy Ltd ($NVA) | 65.0% | 53.4% | 58.0% | 1.3% | -34.5% |
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% | 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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 31.1% | 29.6% | 12.4% |
|---|
| NuVista Energy Ltd ($NVA) | 51.9% | 38.9% | 10.7% | 17.3% | 42.6% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.1% | 47.1% | 27.8% |
|---|
| NuVista Energy Ltd ($NVA) | 42.0% | 45.8% | 111.6% | 144.3% | 100.7% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -6.0% |
|---|
| NuVista Energy Ltd ($NVA) | -11.2% | -27.7% | -8.0% | -13.8% | -15.6% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
| NuVista Energy Ltd ($NVA) | 1.7x | 0.2x | -0.1x | 4.2x | 1.8x |
