Athabasca Oil Corp reports 51.8% CAPEX decline and 22.9% Revenue decline
10.03.2016 • About Athabasca Oil Corp (
$ATH) • By InTwits
Athabasca Oil Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Athabasca Oil Corp doesn't have a profitable business model yet: 2015 ROIC is -20.8%
- The company operates at negative EBITDA Margin: -786.5%
- Athabasca Oil Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -225.8%0
- Athabasca Oil Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 803.8%. At the same time it's a lot of higher than industry average of 84.7%.
- CAPEX is quite volatile: 279 in 2015, 579 in 2014, 649 in 2013, 596 in 2012, 6.1 in 2011
- The company has unprofitable business model: ROIC is at -20.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Athabasca Oil Corp ($ATH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.5 | 24.6 | 108.7 | 114.7 | 88.5 | -22.9% |
| SG&A | 28.2 | 50.3 | 65.5 | 58.9 | 32.5 | -44.8% |
| EBITDA | -44.9 | -54.9 | 56.5 | -28.4 | -695.7 | 2,353.1% |
| Net Income | 146.9 | 262.4 | -124.6 | -227.6 | -696.8 | 206.2% |
Balance Sheet
|
|---|
| Cash | 424.5 | 426.0 | 299.0 | 531.5 | 559.5 | 5.3% |
| Short Term Debt | 473.9 | 0.0 | 0.0 | 2.6 | 3.1 | 18.1% |
| Long Term Debt | 0.0 | 529.0 | 533.2 | 786.6 | 838.2 | 6.6% |
Cash flow
|
|---|
| Capex | 6.1 | 595.8 | 648.5 | 578.7 | 278.8 | -51.8% |
Ratios
|
|---|
| Revenue growth | 388.7% | 606.6% | 342.7% | 5.5% | -22.9% | |
| EBITDA growth | -101.6% | 22.3% | -202.9% | -150.2% | 2,353.1% | |
| EBITDA Margin | -1,292.0% | -223.7% | 52.0% | -24.7% | -786.5% | -761.8% |
| Net Income Margin | 4,227.8% | 1,068.8% | -114.6% | -198.5% | -787.7% | -589.3% |
| SG&A, % of revenue | 812.5% | 204.9% | 60.2% | 51.4% | 36.8% | -14.6% |
| CAPEX, % of revenue | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% | -189.6% |
| ROIC | -1.3% | -2.0% | -1.9% | -6.7% | -20.8% | -14.1% |
| ROE | 4.8% | 7.9% | -3.6% | -7.0% | -24.7% | -17.7% |
| Net Debt/EBITDA | | | 4.1x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 22.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.0 pp from 55.2% to 57.2% in 2015.
SG&A as a % of Revenue dropped on 14.6 pp from 51.4% to 36.8% in 2015.
Net Income marign dropped on 589 pp from -198% to -788% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Athabasca Oil Corp had CAPEX/Revenue of 315%. Athabasca Oil Corp showed big decline in CAPEX/Revenue of 2,111 pp from 2,426% in 2012 to 315% in 2015. It's average level of CAPEX/Revenue for the last three years was 472%.
Return on investment
The company operates at negative ROIC (-20.81%) and ROE (-24.68%). ROIC dropped on 14.1 pp from -6.7% to -20.8% in 2015. ROE dropped on 17.7 pp from -7.0% to -24.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased on 6.6% in 2015 while cash increased on 5.3% in 2015.
Management team
Robert Broen "Rob" is a Athabasca Oil Corp's CEO. Robert Broen "Rob" is a founder and has spent 3 years at the company. The company's CFO is Kimberly Anderson "Kim". Kimberly Anderson "Kim" has 4 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Athabasca Oil Corp 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (160 companies) | 43.4% | 9.5% | 16.2% | 18.5% | -27.3% |
|---|
| Athabasca Oil Corp ($ATH) | | 606.6% | 342.7% | 5.5% | -22.9% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 33.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | 70.0% |
| 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% | 30.5% | 29.6% | 11.5% |
|---|
| Athabasca Oil Corp ($ATH) | -1,292.0% | -223.7% | 52.0% | -24.7% | -786.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| Etrion Corp ($ETX) | 101.5% | 1.2% | 14.3% | 299.3% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 28.1% |
|---|
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | -6.9% |
|---|
| Athabasca Oil Corp ($ATH) | -1.3% | -2.0% | -1.9% | -6.7% | -20.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| 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 | 2.6x |
|---|
