Petro Rio SA reports 111% Net Income growth while 48.0% Revenue decline
23.03.2016 • About Petro Rio SA (
$PRJ) • By InTwits
Petro Rio SA reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Petro Rio SA motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -98.6% for the sames years0
- Petro Rio SA has high CAPEX intensity: 5 year average CAPEX/Revenue was 873.1%. At the same time it's a lot of higher than industry average of 73.4%.
- CAPEX is quite volatile: 0.49 in 2015, 48.9 in 2014, 0 in 2013, 89.5 in 2012, 301 in 2011
- The company has highly profitable business model: ROIC is at 19.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Petro Rio SA ($PRJ) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9.9 | 6.7 | 4.4 | 486.8 | 253.1 | -48.0% |
| Gross Profit | 0.5 | 3.6 | 2.1 | 18.8 | -41.4 | -320.6% |
| EBITDA | -489.4 | -324.5 | -303.2 | 137.1 | 229.5 | 67.4% |
| Net Income | -304.0 | -277.6 | -2,237.9 | -1,003.1 | 110.4 | -111.0% |
Balance Sheet
|
|---|
| Cash | 57.0 | 37.6 | 33.6 | 350.6 | 284.0 | -19.0% |
| Short Term Debt | 0.0 | 2.0 | 70.4 | 0.0 | 0.7 | |
| Long Term Debt | 0.0 | 1.3 | 0.0 | 87.6 | 31.5 | -64.1% |
Cash flow
|
|---|
| Capex | 300.9 | 89.5 | 0.0 | 48.9 | 0.5 | -99.0% |
Ratios
|
|---|
| Revenue growth | -36.3% | -32.1% | -34.9% | 10,977.1% | -48.0% | |
| EBITDA growth | 162.3% | -33.7% | -6.5% | -145.2% | 67.4% | |
| Gross Margin | 5.1% | 53.7% | 48.4% | 3.9% | -16.4% | -20.2% |
| EBITDA Margin | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% | 62.5% |
| Net Income Margin | -3,059.6% | -4,114.5% | -50,918.5% | -206.0% | 43.6% | 249.7% |
| CAPEX, % of revenue | 3,028.0% | 1,327.2% | 0.0% | 10.1% | 0.2% | -9.9% |
| ROIC | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% | 22.8% |
| ROE | -9.3% | -7.4% | -87.5% | -96.6% | 14.4% | 111.0% |
| Net Debt/EBITDA | | | | -1.9x | -1.1x | 0.8x |
Revenue and profitability
The company's Revenue dropped on 48.0% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 62.5 pp from 28.2% to 90.7% in 2015.
Gross Margin dropped on 20.2 pp from 3.9% to -16.4% in 2015.
Net Income marign surged on 250 pp from -206% to 43.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Petro Rio SA's CAPEX/Revenue was 0.19% in 2015. The company showed big decline in CAPEX/Revenue of 1,327 pp from 1,327% in 2012 to 0.19% in 2015.
Return on investment
The company operates at good ROIC (19.37%) and ROE (14.38%). ROIC jumped on 22.8 pp from -3.5% to 19.4% in 2015. ROE jumped on 111 pp from -96.6% to 14.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 0.1x. Net Debt / EBITDA jumped on 0.8x from -1.9x to -1.1x in 2015. Debt dropped on 63.3% in 2015 while cash dropped on 19.0% in 2015.
Appendix 1: Peers in Energy
Below we provide Petro Rio SA 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 |
|---|
| 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% |
| Quattro Exploration & Production Ltd ($QXP) | | | 507.8% | 505.0% | |
| |
|---|
| Median (162 companies) | 51.2% | 9.5% | 17.3% | 18.5% | -27.5% |
|---|
| Petro Rio SA ($PRJ) | | -32.1% | -34.9% | 10,977.1% | -48.0% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.3% | 29.3% | 31.5% | 30.3% | 37.2% |
|---|
| Petro Rio SA ($PRJ) | 5.1% | 53.7% | 48.4% | 3.9% | -16.4% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.8% | 25.0% | 31.5% | 29.7% | 7.2% |
|---|
| Petro Rio SA ($PRJ) | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 42.0% | 50.0% | 39.2% | 48.9% | 31.9% |
|---|
| Petro Rio SA ($PRJ) | 3,028.0% | 1,327.2% | 0.0% | 10.1% | 0.2% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.5% | 3.2% | 4.6% | 5.3% | -8.4% |
|---|
| Petro Rio SA ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.9x |
|---|
| Petro Rio SA ($PRJ) | | | | -1.9x | -1.1x |
