Serinus Energy Inc reports 74.8% CAPEX decline and 42.3% Revenue decline
17.03.2016 • About Serinus Energy Inc (
$SEN) • By InTwits
Serinus Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Serinus Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -38.9%
- The company operates at negative EBITDA Margin: -150.5%
- Serinus Energy Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -30.5%0
- Serinus Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 45.8%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 13.3 in 2015, 52.6 in 2014, 29.5 in 2013, 27.4 in 2012, 4.7 in 2011
- The company has unprofitable business model: ROIC is at -38.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Serinus Energy Inc ($SEN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 35.2 | 99.6 | 146.7 | 45.0 | 26.0 | -42.3% |
| Gross Profit | 28.3 | 80.1 | 112.2 | 39.1 | 23.0 | -41.2% |
| SG&A | 9.0 | 9.5 | 12.1 | 10.4 | 7.0 | -32.8% |
| EBITDA | -0.3 | -35.7 | -11.2 | -21.1 | -39.1 | 85.4% |
| Net Income | -20.9 | -86.8 | -68.7 | -30.5 | -49.1 | 61.0% |
Balance Sheet
|
|---|
| Cash | 13.0 | 35.6 | 19.9 | 11.1 | 6.6 | -40.6% |
| Short Term Debt | 1.7 | 14.9 | 19.0 | 5.1 | 54.1 | 959.6% |
| Long Term Debt | 20.8 | 17.1 | 8.0 | 32.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 4.7 | 27.4 | 29.5 | 52.6 | 13.3 | -74.8% |
Ratios
|
|---|
| Revenue growth | 293.8% | 182.7% | 47.3% | -69.3% | -42.3% | |
| EBITDA growth | -97.4% | 12,003.7% | -68.6% | 87.8% | 85.4% | |
| Gross Margin | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% | 1.7% |
| EBITDA Margin | -0.8% | -35.9% | -7.6% | -46.8% | -150.5% | -103.7% |
| Net Income Margin | -59.3% | -87.1% | -46.8% | -67.8% | -189.0% | -121.3% |
| SG&A, % of revenue | 25.6% | 9.5% | 8.2% | 23.1% | 26.9% | 3.8% |
| CAPEX, % of revenue | 13.4% | 27.5% | 20.1% | 116.9% | 51.1% | -65.8% |
| ROIC | -4.0% | -33.7% | -19.2% | -24.0% | -38.9% | -14.9% |
| ROE | -13.5% | -71.4% | -59.7% | -27.1% | -84.1% | -57.0% |
Revenue and profitability
Serinus Energy Inc's Revenue dropped on 42.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 104 pp from -46.8% to -151% in 2015.
Gross Margin increased slightly on 1.7 pp from 86.8% to 88.5% in 2015. SG&A as a % of Revenue increased on 3.8 pp from 23.1% to 26.9% in 2015.
Net Income marign dropped on 121 pp from -67.8% to -189% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Serinus Energy Inc had CAPEX/Revenue of 51.1%. Serinus Energy Inc's CAPEX/Revenue jumped on 23.6 pp from 27.5% in 2012 to 51.1% in 2015. For the last three years the average CAPEX/Revenue was 62.7%.
Return on investment
The company operates at negative ROIC (-38.91%) and ROE (-84.13%). ROIC dropped on 14.9 pp from -24.0% to -38.9% in 2015. ROE dropped on 57.0 pp from -27.1% to -84.1% in 2015.
Leverage (Debt)
Debt level is -1.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 44.9% in 2015 while cash dropped on 40.6% in 2015.
Appendix 1: Peers in Energy
Below you can find Serinus Energy Inc 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 59.0% | 9.4% | 17.1% | 18.9% | -27.4% |
|---|
| Serinus Energy Inc ($SEN) | | 182.7% | 47.3% | -69.3% | -42.3% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 34.2% |
|---|
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
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% | -115.8% |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.8% | 25.0% | 31.5% | 29.7% | 8.4% |
|---|
| Serinus Energy Inc ($SEN) | -0.8% | -35.9% | -7.6% | -46.8% | -150.5% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 43.3% | 51.1% | 39.2% | 48.8% | 31.6% |
|---|
| Serinus Energy Inc ($SEN) | 13.4% | 27.5% | 20.1% | 116.9% | 51.1% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.5% | 3.2% | 4.6% | 5.3% | -7.9% |
|---|
| Serinus Energy Inc ($SEN) | -4.0% | -33.7% | -19.2% | -24.0% | -38.9% |
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 (139 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
