BNK Petroleum Inc CAPEX dropped on 87.4% in 2015 and Revenue dropped on 24.6%
10.03.2016 • About BNK Petroleum Inc (
$BKX) • By InTwits
BNK Petroleum Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BNK Petroleum Inc doesn't have a profitable business model yet: 2015 ROIC is -6.0%
- The company operates at negative EBITDA Margin: -3.8%
- BNK Petroleum Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -61.3% for the sames years0
- BNK Petroleum Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 298.7%. At the same time it's a lot of higher than industry average of 84.7%.
- CAPEX is quite volatile: 9.5 in 2015, 75.8 in 2014, 81.8 in 2013, 40.5 in 2012, 34.0 in 2011
- The company has unprofitable business model: ROIC is at -6.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BNK Petroleum Inc ($BKX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.400 | 20.701 | 10.363 | 23.936 | 18.055 | -24.6% |
| Gross Profit | 11.879 | 7.625 | 2.936 | 13.774 | 7.364 | -46.5% |
| SG&A | | | | | 7.882 | |
| EBITDA | 2.524 | -3.892 | -8.934 | -48.713 | -0.686 | -98.6% |
| Net Income | 0.705 | -14.948 | -19.710 | -57.478 | -6.569 | -88.6% |
Balance Sheet
|
|---|
| Cash | 40.496 | 2.836 | 17.159 | 12.035 | 1.666 | -86.2% |
| Short Term Debt | 0.000 | 31.797 | 0.000 | 15.401 | 0.000 | -100.0% |
| Long Term Debt | 23.353 | 0.000 | 0.100 | 0.000 | 23.961 | |
Cash flow
|
|---|
| Capex | 33.958 | 40.537 | 81.772 | 75.773 | 9.526 | -87.4% |
Ratios
|
|---|
| Revenue growth | 36.3% | -15.2% | -49.9% | 131.0% | -24.6% | |
| EBITDA growth | 242.9% | -254.2% | 129.5% | 445.3% | -98.6% | |
| Gross Margin | 48.7% | 36.8% | 28.3% | 57.5% | 40.8% | -16.8% |
| EBITDA Margin | 10.3% | -18.8% | -86.2% | -203.5% | -3.8% | 199.7% |
| Net Income Margin | 2.9% | -72.2% | -190.2% | -240.1% | -36.4% | 203.7% |
| SG&A, % of revenue | | | | | 43.7% | 43.7% |
| CAPEX, % of revenue | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% | -263.8% |
| ROIC | -2.0% | -5.4% | -7.8% | -38.1% | -6.0% | 32.1% |
| ROE | 0.4% | -8.5% | -12.3% | -41.1% | -5.2% | 35.9% |
| Net Debt/EBITDA | -6.8x | | | | | 0.0x |
Revenue and profitability
BNK Petroleum Inc's Revenue dropped on 24.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 200 pp from -204% to -3.8% in 2015.
Gross Margin dropped on 16.8 pp from 57.5% to 40.8% in 2015.
Net Income marign jumped on 204 pp from -240% to -36.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 52.8%. CAPEX/Revenue dropped on 143 pp from 196% in 2012 to 52.8% in 2015. It's average CAPEX/Revenue for the last three years was 386%.
Return on investment
The company operates at negative ROIC (-6.05%) and ROE (-5.25%). ROIC surged on 32.1 pp from -38.1% to -6.0% in 2015. ROE surged on 35.9 pp from -41.1% to -5.2% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 55.6% in 2015 while cash dropped on 86.2% in 2015.
Management team
The company's CEO is Wolf E Regener. Wolf E Regener is a founder and has 10 years tenure at the company. Gary Johnson is a The company's CFO. Gary Johnson has spent 5 years at the company.
Appendix 1: Peers in Energy
Below we provide BNK Petroleum 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (160 companies) | 43.4% | 10.4% | 17.1% | 17.6% | -27.3% |
|---|
| BNK Petroleum Inc ($BKX) | | -15.2% | -49.9% | 131.0% | -24.6% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.6% | 29.6% | 33.5% |
|---|
| BNK Petroleum Inc ($BKX) | 48.7% | 36.8% | 28.3% | 57.5% | 40.8% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 11.5% |
|---|
| BNK Petroleum Inc ($BKX) | 10.3% | -18.8% | -86.2% | -203.5% | -3.8% |
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% | 315.2% |
| Etrion Corp ($ETX) | 101.5% | 1.2% | 14.3% | 299.3% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 28.1% |
|---|
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
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 ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -7.1% |
|---|
| BNK Petroleum Inc ($BKX) | -2.0% | -5.4% | -7.8% | -38.1% | -6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($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 |
|---|
