Granite Oil Corp EBITDA Margin jumped on 131 pp from 70.8% to 202% in 2015 while Revenue dropped on 54.0%
21.03.2016 • About Granite Oil Corp (
$GXO) • By InTwits
Granite Oil Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 201.9% in 2015 vs. 70.8% in 2014 vs. 9.2% in 2011
- EBITDA Margin is quite volatile: 201.9% in 2015, 70.8% in 2014, 64.5% in 2013, 59.4% in 2012, 9.2% in 2011
- Granite Oil Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 150.1%. At the same time it's a lot of higher than industry average of 73.8%.
- CAPEX is quite volatile: 64.9 in 2015, 274 in 2014, 200 in 2013, 137 in 2012, 61.6 in 2011
- The company has highly profitable business model: ROIC is at 37.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Granite Oil Corp ($GXO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26.7 | 69.4 | 137.6 | 234.7 | 107.9 | -54.0% |
| Gross Profit | 11.8 | 38.2 | 54.9 | 105.9 | 40.2 | -62.0% |
| SG&A | | | | | 4.8 | |
| EBITDA | 2.5 | 41.2 | 88.8 | 166.2 | 217.8 | 31.1% |
| Net Income | -12.6 | 7.2 | 18.0 | 76.2 | 150.2 | 97.0% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 8.5 | 63.1 | 88.4 | 0.0 | 37.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 139.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 61.6 | 137.3 | 200.2 | 274.0 | 64.9 | -76.3% |
Ratios
|
|---|
| Revenue growth | 341.2% | 160.2% | 98.2% | 70.5% | -54.0% | |
| EBITDA growth | 101.2% | 1,571.5% | 115.3% | 87.2% | 31.1% | |
| Gross Margin | 44.2% | 55.0% | 39.9% | 45.1% | 37.3% | -7.8% |
| EBITDA Margin | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% | 131.1% |
| Net Income Margin | -47.1% | 10.3% | 13.1% | 32.5% | 139.3% | 106.8% |
| SG&A, % of revenue | | | | | 4.5% | 4.5% |
| CAPEX, % of revenue | 230.7% | 197.7% | 145.4% | 116.7% | 60.2% | -56.6% |
| ROIC | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% | 21.6% |
| ROE | -11.3% | 3.8% | 6.9% | 19.7% | 44.5% | 24.8% |
| Net Debt/EBITDA | 3.5x | 1.5x | 1.0x | 0.8x | 0.2x | -0.7x |
Revenue and profitability
Granite Oil Corp's Revenue dropped on 54.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 131 pp from 70.8% to 202% in 2015.
Gross Margin decreased on 7.8 pp from 45.1% to 37.3% in 2015.
Net Income marign surged on 107 pp from 32.5% to 139% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Granite Oil Corp had CAPEX/Revenue of 60.2%. The company's CAPEX/Revenue dropped on 138 pp from 198% in 2012 to 60.2% in 2015. Average CAPEX/Revenue for the last three years was 107%.
Return on investment
The company operates at high and attractive ROIC (37.70%) and ROE (44.52%). ROIC jumped on 21.6 pp from 16.1% to 37.7% in 2015. ROE surged on 24.8 pp from 19.7% to 44.5% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 0.8x to 0.2x in 2015. Debt dropped on 73.4% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below you can find Granite Oil Corp 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 43.4% | 9.4% | 17.1% | 18.5% | -27.6% |
|---|
| Granite Oil Corp ($GXO) | | 160.2% | 98.2% | 70.5% | -54.0% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 36.2% |
|---|
| Granite Oil Corp ($GXO) | 44.2% | 55.0% | 39.9% | 45.1% | 37.3% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.8% | 24.6% | 31.1% | 29.6% | 7.9% |
|---|
| Granite Oil Corp ($GXO) | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 42.0% | 50.0% | 39.2% | 48.8% | 31.6% |
|---|
| Granite Oil Corp ($GXO) | 230.7% | 197.7% | 145.4% | 116.7% | 60.2% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.5% | 3.0% | 4.5% | 5.1% | -8.2% |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
| Granite Oil Corp ($GXO) | 3.5x | 1.5x | 1.0x | 0.8x | 0.2x |
