RMP Energy Inc reports 277% Net Income decline and 82.7 pp EBITDA Margin decline from 78.0% to -4.7%
16.03.2016 • About RMP Energy Inc (
$RMP) • By InTwits
RMP Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- RMP Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -24.0%
- The company operates at negative EBITDA Margin: -4.7%
- EBITDA Margin is quite volatile: -4.7% in 2015, 78.0% in 2014, 66.9% in 2013, 53.7% in 2012, -139.3% in 2011
- RMP Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 140.1%. At the same time it's a lot of higher than industry average of 73.9%.
- CAPEX is quite volatile: 2.1 in 2015, 8.8 in 2014, 4.6 in 2013, 13.4 in 2012, 40.6 in 2011
- The company has unprofitable business model: ROIC is at -24.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
RMP Energy Inc ($RMP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 43.4 | 78.6 | 111.9 | 209.7 | 140.7 | -32.9% |
| Gross Profit | 30.0 | 59.6 | 88.1 | 175.9 | 103.8 | -41.0% |
| SG&A | 9.9 | 8.4 | 8.6 | 7.9 | 7.1 | -9.8% |
| EBITDA | -60.4 | 42.2 | 74.9 | 163.5 | -6.6 | -104.0% |
| Net Income | -75.0 | -7.8 | 10.4 | 47.8 | -84.8 | -277.2% |
Balance Sheet
|
|---|
| Cash | 0.3 | 0.2 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 36.2 | 69.0 | 89.1 | 105.0 | 121.4 | 15.6% |
Cash flow
|
|---|
| Capex | 106.6 | 110.9 | 174.4 | 187.1 | 97.0 | -48.2% |
Ratios
|
|---|
| Revenue growth | -1.8% | 81.2% | 42.4% | 87.4% | -32.9% | |
| EBITDA growth | -206.2% | -169.8% | 77.5% | 118.3% | -104.0% | |
| Gross Margin | 69.1% | 75.8% | 78.7% | 83.9% | 73.8% | -10.1% |
| EBITDA Margin | -139.3% | 53.7% | 66.9% | 78.0% | -4.7% | -82.7% |
| Net Income Margin | -172.8% | -9.9% | 9.3% | 22.8% | -60.3% | -83.1% |
| SG&A, % of revenue | 22.8% | 10.7% | 7.7% | 3.8% | 5.1% | 1.3% |
| CAPEX, % of revenue | 245.7% | 141.1% | 155.8% | 89.2% | 68.9% | -20.3% |
| ROIC | -42.7% | -1.5% | 6.0% | 16.0% | -24.0% | -40.0% |
| ROE | -36.1% | -3.6% | 4.0% | 14.3% | -25.5% | -39.8% |
| Net Debt/EBITDA | | 1.6x | 1.2x | 0.6x | | -0.6x |
Revenue and profitability
The company's Revenue dropped on 32.9% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 82.7 pp from 78.0% to -4.7% in 2015.
Gross Margin dropped on 10.1 pp from 83.9% to 73.8% in 2015. SG&A as a % of Revenue increased slightly on 1.3 pp from 3.8% to 5.1% in 2015.
Net Income marign dropped on 83.1 pp from 22.8% to -60.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
RMP Energy Inc's CAPEX/Revenue was 68.9% in 2015. RMP Energy Inc's CAPEX/Revenue dropped on 72.2 pp from 141% in 2012 to 68.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 105%.
Return on investment
The company operates at negative ROIC (-24.01%) and ROE (-25.53%). ROIC dropped on 40.0 pp from 16.0% to -24.0% in 2015. ROE dropped on 39.8 pp from 14.3% to -25.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.7x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.6x from 0.6x to in 2015. Debt jumped on 15.6% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below we provide RMP 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (161 companies) | 41.6% | 9.4% | 17.0% | 18.3% | -27.4% |
|---|
| RMP Energy Inc ($RMP) | | 81.2% | 42.4% | 87.4% | -32.9% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.6% |
|---|
| RMP Energy Inc ($RMP) | 69.1% | 75.8% | 78.7% | 83.9% | 73.8% |
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% | -115.8% |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (160 companies) | 25.7% | 24.8% | 30.7% | 29.3% | 9.2% |
|---|
| RMP Energy Inc ($RMP) | -139.3% | 53.7% | 66.9% | 78.0% | -4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| Petroshale Inc ($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% |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (163 companies) | 40.9% | 48.7% | 39.2% | 48.6% | 31.3% |
|---|
| RMP Energy Inc ($RMP) | 245.7% | 141.1% | 155.8% | 89.2% | 68.9% |
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% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (166 companies) | 4.5% | 3.3% | 4.6% | 5.0% | -7.2% |
|---|
| RMP Energy Inc ($RMP) | -42.7% | -1.5% | 6.0% | 16.0% | -24.0% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.7x |
|---|
| RMP Energy Inc ($RMP) | | 1.6x | 1.2x | 0.6x | |
