Pine Cliff Energy Ltd reports 55.3% EBITDA decline while 4.9% Revenue growth
17.03.2016 • About Pine Cliff Energy Ltd (
$PNE) • By InTwits
Pine Cliff Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pine Cliff Energy Ltd doesn't have a profitable business model yet: 2015 ROIC is -10.5%
- EBITDA Margin is quite volatile: 22.2% in 2015, 52.1% in 2014, 34.5% in 2013, 7.4% in 2012, 42.5% in 2011
- Pine Cliff Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.2%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 7.3 in 2015, 11.1 in 2014, 11.8 in 2013, 2.3 in 2012, 0.024 in 2011
- The company has unprofitable business model: ROIC is at -10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pine Cliff Energy Ltd ($PNE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 0.830 | 6.203 | 33.359 | 70.305 | 73.770 | 4.9% |
| Gross Profit | 0.031 | 0.704 | 0.812 | 14.902 | -12.652 | -184.9% |
| SG&A | | | | | 5.839 | |
| EBITDA | 0.353 | 0.461 | 11.516 | 36.625 | 16.371 | -55.3% |
| Net Income | -0.207 | -1.071 | 10.910 | -1.942 | -24.257 | 1,149.1% |
Balance Sheet
|
|---|
| Cash | 0.277 | 0.817 | 1.305 | 0.200 | 0.833 | 316.5% |
| Short Term Debt | 0.000 | 3.037 | 0.200 | 47.755 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 155.938 | |
Cash flow
|
|---|
| Capex | 0.024 | 2.303 | 11.813 | 11.087 | 7.259 | -34.5% |
Ratios
|
|---|
| Revenue growth | -34.7% | 647.3% | 437.8% | 110.8% | 4.9% | |
| EBITDA growth | -44.2% | 30.6% | 2,398.0% | 218.0% | -55.3% | |
| Gross Margin | 3.7% | 11.3% | 2.4% | 21.2% | -17.2% | -38.3% |
| EBITDA Margin | 42.5% | 7.4% | 34.5% | 52.1% | 22.2% | -29.9% |
| Net Income Margin | -24.9% | -17.3% | 32.7% | -2.8% | -32.9% | -30.1% |
| SG&A, % of revenue | | | | | 7.9% | 7.9% |
| CAPEX, % of revenue | 2.9% | 37.1% | 35.4% | 15.8% | 9.8% | -5.9% |
| ROIC | -7.7% | -6.3% | -6.3% | 5.5% | -10.5% | -16.0% |
| ROE | -8.7% | -2.9% | 10.9% | -1.2% | -11.5% | -10.3% |
| Net Debt/EBITDA | -0.8x | 4.8x | -0.1x | 1.3x | 9.5x | 8.2x |
Revenue and profitability
Pine Cliff Energy Ltd's Revenue increased on 4.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 29.9 pp from 52.1% to 22.2% in 2015.
Gross Margin dropped on 38.3 pp from 21.2% to -17.2% in 2015.
Net Income marign dropped on 30.1 pp from -2.8% to -32.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Pine Cliff Energy Ltd had CAPEX/Revenue of 9.8%. Pine Cliff Energy Ltd's CAPEX/Revenue dropped on 27.3 pp from 37.1% in 2012 to 9.8% in 2015. For the last three years the average CAPEX/Revenue was 20.3%.
Return on investment
The company operates at negative ROIC (-10.54%) and ROE (-11.51%). ROIC dropped on 16.0 pp from 5.5% to -10.5% in 2015. ROE dropped on 10.3 pp from -1.2% to -11.5% in 2015.
Leverage (Debt)
Debt level is 9.5x Net Debt / EBITDA and 9.5x Debt / EBITDA. Net Debt / EBITDA jumped on 8.2x from 1.3x to 9.5x in 2015. Debt surged on 227% in 2015 while cash jumped on 317% in 2015.
Appendix 1: Peers in Energy
Below you can find Pine Cliff 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 59.0% | 9.4% | 17.1% | 18.5% | -27.6% |
|---|
| Pine Cliff Energy Ltd ($PNE) | | 647.3% | 437.8% | 110.8% | 4.9% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.3% | 29.7% | 31.6% | 30.3% | 36.2% |
|---|
| Pine Cliff Energy Ltd ($PNE) | 3.7% | 11.3% | 2.4% | 21.2% | -17.2% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.5% | 25.0% | 31.1% | 29.6% | 7.9% |
|---|
| Pine Cliff Energy Ltd ($PNE) | 42.5% | 7.4% | 34.5% | 52.1% | 22.2% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 43.3% | 51.1% | 39.2% | 48.9% | 32.1% |
|---|
| Pine Cliff Energy Ltd ($PNE) | 2.9% | 37.1% | 35.4% | 15.8% | 9.8% |
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% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.5% | 3.2% | 4.6% | 5.1% | -7.9% |
|---|
| Pine Cliff Energy Ltd ($PNE) | -7.7% | -6.3% | -6.3% | 5.5% | -10.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.9x |
|---|
| Pine Cliff Energy Ltd ($PNE) | -0.8x | 4.8x | -0.1x | 1.3x | 9.5x |
