Hyduke Energy Services Inc revenue dropped on 49.1% in 2015 and EBITDA Margin dropped on 13.8 pp from -0.97% to -14.8%
28.03.2016 • About Hyduke Energy Services Inc (
$HYD) • By InTwits
Hyduke Energy Services Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hyduke Energy Services Inc is a company in decline: 2015 revenue growth was -49.1%, 5 years revenue CAGR was -18.9%
- The company operates at negative EBITDA Margin: -14.8%
- Hyduke Energy Services Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -16.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hyduke Energy Services Inc ($HYD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 84.5 | 103.6 | 57.4 | 45.5 | 23.2 | -49.1% |
| Gross Profit | 11.5 | 13.9 | 11.3 | 8.2 | 2.1 | -74.2% |
| SG&A | | 1.0 | 0.7 | 9.6 | 7.2 | -24.5% |
| EBITDA | 4.1 | 4.9 | 3.4 | -0.4 | -3.4 | 676.9% |
| Net Income | 1.7 | 0.8 | -5.1 | -8.8 | -6.4 | -27.6% |
Balance Sheet
|
|---|
| Cash | 4.8 | 1.8 | 2.2 | 3.8 | 2.1 | -45.7% |
| Short Term Debt | 0.6 | 1.5 | 8.4 | 0.2 | 7.7 | 3,120.7% |
| Long Term Debt | 0.0 | 8.4 | 0.0 | 7.7 | 0.2 | -97.4% |
Cash flow
|
|---|
| Capex | 0.4 | 1.1 | 0.4 | 0.6 | 0.3 | -47.1% |
Ratios
|
|---|
| Revenue growth | 28.1% | 22.6% | -44.6% | -20.6% | -49.1% | |
| EBITDA growth | -300.8% | 21.8% | -31.6% | -113.1% | 676.9% | |
| Gross Margin | 13.6% | 13.4% | 19.6% | 18.0% | 9.1% | -8.9% |
| EBITDA Margin | 4.8% | 4.8% | 5.9% | -1.0% | -14.8% | -13.8% |
| Net Income Margin | 2.0% | 0.8% | -8.8% | -19.4% | -27.6% | -8.2% |
| SG&A, % of revenue | | 1.0% | 1.2% | 21.0% | 31.1% | 10.1% |
| CAPEX, % of revenue | 0.5% | 1.1% | 0.7% | 1.3% | 1.3% | 0.0% |
| ROIC | 8.0% | 8.8% | 5.8% | -4.2% | -16.8% | -12.6% |
| ROE | 5.7% | 2.5% | -17.2% | -36.3% | -34.0% | 2.3% |
| Net Debt/EBITDA | -1.1x | 1.6x | 1.8x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 49.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 13.8 pp from -0.97% to -14.8% in 2015.
Gross Margin decreased on 8.9 pp from 18.0% to 9.1% in 2015. SG&A as a % of Revenue jumped on 10.1 pp from 21.0% to 31.1% in 2015.
Net Income marign decreased on 8.2 pp from -19.4% to -27.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.3%. Hyduke Energy Services Inc showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-16.78%) and ROE (-34.01%). ROIC dropped on 12.6 pp from -4.2% to -16.8% in 2015. ROE increased on 2.3 pp from -36.3% to -34.0% in 2015.
Leverage (Debt)
Debt level is -4.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt showed almost no change in 2015 while cash dropped on 45.7% in 2015.
Appendix 1: Peers in Energy
Below you can find Hyduke Energy Services 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 ($PRJ) | | -32.1% | -34.9% | 10,977.1% | -48.0% |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 59.0% | 9.4% | 17.3% | 18.9% | -27.4% |
|---|
| Hyduke Energy Services Inc ($HYD) | | 22.6% | -44.6% | -20.6% | -49.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Americas Petrogas Inc ($BOE) | | 77.1% | 43.3% | -34.3% | 121.1% |
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| Polaris Infrastructure Inc ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (114 companies) | 34.3% | 29.7% | 31.6% | 30.3% | 35.2% |
|---|
| Hyduke Energy Services Inc ($HYD) | 13.6% | 13.4% | 19.6% | 18.0% | 9.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% |
| Perpetual Energy Inc ($PMT) | 26.1% | 35.5% | 70.7% | 58.0% | 110.3% |
| Petro Rio SA ($PRJ) | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | 84.6% |
| Innergex Renewable Energy Inc ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (129 companies) | 25.8% | 25.0% | 31.5% | 29.7% | 7.9% |
|---|
| Hyduke Energy Services Inc ($HYD) | 4.8% | 4.8% | 5.9% | -1.0% | -14.8% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 43.3% | 51.1% | 39.2% | 48.9% | 31.6% |
|---|
| Hyduke Energy Services Inc ($HYD) | 0.5% | 1.1% | 0.7% | 1.3% | 1.3% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.4% | 3.0% | 4.5% | 5.3% | -8.2% |
|---|
| Hyduke Energy Services Inc ($HYD) | 8.0% | 8.8% | 5.8% | -4.2% | -16.8% |
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 | 2.8x |
|---|
