Bonterra Energy Corp Net Income dropped on 123% in 2015 and Revenue dropped on 39.0%
17.03.2016 • About Bonterra Energy Corp (
$BNE) • By InTwits
Bonterra Energy Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bonterra Energy Corp doesn't have a profitable business model yet: 2015 ROIC is 1.2%
- Bonterra Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 47.8%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 58.0 in 2015, 155 in 2014, 122 in 2013, 84.6 in 2012, 62.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bonterra Energy Corp ($BNE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 144.7 | 129.0 | 257.8 | 301.6 | 183.9 | -39.0% |
| Gross Profit | 107.9 | 87.6 | 199.8 | 234.7 | 128.7 | -45.2% |
| SG&A | 2.3 | 2.1 | 4.5 | 3.6 | 3.3 | -7.2% |
| EBITDA | 96.0 | 77.3 | 184.0 | 221.3 | 117.0 | -47.1% |
| Net Income | 43.6 | 33.2 | 62.8 | 38.8 | -9.1 | -123.4% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 69.9 | 166.8 | 156.8 | 154.7 | 332.5 | 114.9% |
Cash flow
|
|---|
| Capex | 62.6 | 84.6 | 121.6 | 155.3 | 58.0 | -62.6% |
Ratios
|
|---|
| Revenue growth | 34.7% | -10.8% | 99.8% | 17.0% | -39.0% | |
| EBITDA growth | 35.9% | -19.5% | 138.2% | 20.3% | -47.1% | |
| Gross Margin | 74.6% | 67.9% | 77.5% | 77.8% | 70.0% | -7.9% |
| EBITDA Margin | 66.3% | 59.9% | 71.4% | 73.4% | 63.6% | -9.7% |
| Net Income Margin | 30.1% | 25.7% | 24.3% | 12.9% | -4.9% | -17.8% |
| SG&A, % of revenue | 1.6% | 1.6% | 1.7% | 1.2% | 1.8% | 0.6% |
| CAPEX, % of revenue | 43.3% | 65.6% | 47.2% | 51.5% | 31.6% | -19.9% |
| ROIC | 22.2% | 10.9% | 10.0% | 9.1% | 1.2% | -7.9% |
| ROE | 23.5% | 19.3% | 15.1% | 6.0% | -1.5% | -7.4% |
| Net Debt/EBITDA | 0.7x | 2.2x | 0.9x | 0.7x | 2.8x | 2.1x |
Revenue and profitability
Bonterra Energy Corp's Revenue dropped on 39.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.2 pp from 19.2% to 75.4% in 2015.
Gross Margin decreased on 7.9 pp from 77.8% to 70.0% in 2015. SG&A as a % of Revenue increased slightly on 0.62 pp from 1.2% to 1.8% in 2015.
Net Income marign dropped on 17.8 pp from 12.9% to -4.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 31.6%. Bonterra Energy Corp's CAPEX/Revenue dropped on 34.0 pp from 65.6% in 2012 to 31.6% in 2015. Average CAPEX/Revenue for the last three years was 43.4%.
Return on investment
The company operates at low but positive ROIC (1.20%) and negative ROE (-1.48%). ROIC decreased on 7.9 pp from 9.1% to 1.2% in 2015. ROE decreased on 7.4 pp from 6.0% to -1.5% in 2015.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA surged on 2.1x from 0.7x to 2.8x in 2015. Debt jumped on 115% in 2015 while cash didn't change in 2015.
Management team
George F Fink is a Bonterra Energy Corp's CEO. George F Fink is a founder and has spent 16 years at the company. Bonterra Energy Corp's CFO is Robb D Thompson. Robb D Thompson has 7 years tenure at the company.
Appendix 1: Peers in Energy
Below we provide Bonterra Energy 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 59.0% | 9.5% | 17.1% | 18.9% | -27.4% |
|---|
| Bonterra Energy Corp ($BNE) | | -10.8% | 99.8% | 17.0% | -39.0% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 34.2% |
|---|
| Bonterra Energy Corp ($BNE) | 74.6% | 67.9% | 77.5% | 77.8% | 70.0% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.5% | 24.6% | 31.1% | 29.6% | 7.9% |
|---|
| Bonterra Energy Corp ($BNE) | 66.3% | 59.9% | 71.4% | 73.4% | 63.6% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 42.0% | 50.0% | 39.2% | 48.8% | 32.1% |
|---|
| Bonterra Energy Corp ($BNE) | 43.3% | 65.6% | 47.2% | 51.5% | 31.6% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.4% | 3.0% | 4.5% | 5.1% | -8.2% |
|---|
| Bonterra Energy Corp ($BNE) | 22.2% | 10.9% | 10.0% | 9.1% | 1.2% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
| Bonterra Energy Corp ($BNE) | 0.7x | 2.2x | 0.9x | 0.7x | 2.8x |
