Tethys Petroleum Limited reports 68.2% CAPEX decline and 19.2% Revenue decline
29.03.2016 • About Tethys Petroleum Limited (
$TPL) • By InTwits
Tethys Petroleum Limited reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tethys Petroleum Limited doesn't have a profitable business model yet: 2015 ROIC is -31.3%
- The company operates at negative EBITDA Margin: -146.5%
- Tethys Petroleum Limited motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -36.2% for the sames years0
- Tethys Petroleum Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 86.4%. At the same time it's a lot of higher than industry average of 67.7%.
- CAPEX is quite volatile: 8.3 in 2015, 26.1 in 2014, 23.8 in 2013, 17.5 in 2012, 41.9 in 2011
- The company has unprofitable business model: ROIC is at -31.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tethys Petroleum Limited ($TPL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22.922 | 33.629 | 36.945 | 27.389 | 22.135 | -19.2% |
| Gross Profit | -0.974 | 4.953 | 10.686 | 12.643 | -16.828 | -233.1% |
| SG&A | | | 21.739 | 19.934 | 13.702 | -31.3% |
| EBITDA | -9.627 | -0.448 | -1.076 | -8.126 | -32.426 | 299.0% |
| Net Income | -26.939 | -20.423 | -17.148 | -16.027 | -74.629 | 365.6% |
Balance Sheet
|
|---|
| Cash | 10.746 | 1.750 | 25.109 | 3.112 | 3.272 | 5.1% |
| Short Term Debt | 8.396 | 13.625 | 4.965 | 5.139 | 9.159 | 78.2% |
| Long Term Debt | 1.632 | 3.688 | 0.000 | 5.489 | 22.873 | 316.7% |
Cash flow
|
|---|
| Capex | 41.902 | 17.501 | 23.809 | 26.069 | 8.293 | -68.2% |
Ratios
|
|---|
| Revenue growth | 55.9% | 46.7% | 9.9% | -25.9% | -19.2% | |
| EBITDA growth | -49.8% | -95.3% | 140.2% | 655.2% | 299.0% | |
| Gross Margin | -4.2% | 14.7% | 28.9% | 46.2% | -76.0% | -122.2% |
| EBITDA Margin | -42.0% | -1.3% | -2.9% | -29.7% | -146.5% | -116.8% |
| Net Income Margin | -117.5% | -60.7% | -46.4% | -58.5% | -337.2% | -278.6% |
| SG&A, % of revenue | | | 58.8% | 72.8% | 61.9% | -10.9% |
| CAPEX, % of revenue | 182.8% | 52.0% | 64.4% | 95.2% | 37.5% | -57.7% |
| ROIC | -9.1% | -7.7% | -6.5% | -4.4% | -31.3% | -26.9% |
| ROE | -11.5% | -9.3% | -8.4% | -8.1% | -45.9% | -37.8% |
Revenue and profitability
The company's Revenue dropped on 19.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.1 pp from -34.3% to -24.1% in 2015.
Gross Margin dropped on 122 pp from 46.2% to -76.0% in 2015. SG&A as a % of Revenue dropped on 10.9 pp from 72.8% to 61.9% in 2015.
Net Income marign dropped on 279 pp from -58.5% to -337% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tethys Petroleum Limited's CAPEX/Revenue was 37.5% in 2015. The company showed big decline in CAPEX/Revenue of 14.6 pp from 52.0% in 2012 to 37.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 65.7%.
Return on investment
The company operates at negative ROIC (-31.34%) and ROE (-45.91%). ROIC dropped on 26.9 pp from -4.4% to -31.3% in 2015. ROE dropped on 37.8 pp from -8.1% to -45.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 201% in 2015 while cash increased on 5.1% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Tethys Petroleum Limited benchmarking against other companies in Oil & Gas Producers 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Edge Resources Inc ($EDE) | | 472.1% | 45.4% | 10.0% | 0.5% |
| Ithaca Energy Inc ($IAE) | | 35.0% | 144.8% | -8.0% | -2.0% |
| Bankers Petroleum Ltd ($BNK) | | 25.8% | 34.9% | 5.9% | -38.6% |
| |
|---|
| Median (3 companies) | 83.1% | 30.4% | 56.2% | 8.0% | -2.0% |
|---|
| Tethys Petroleum Limited ($TPL) | | 46.7% | 9.9% | -25.9% | -19.2% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | 72.2% |
| Caza Oil & Gas Inc ($CAZ) | 3.0% | 0.1% | 30.5% | 40.8% | |
| Ithaca Energy Inc ($IAE) | 26.3% | 22.5% | 23.4% | -2.9% | 39.5% |
| |
|---|
| Median (3 companies) | 48.9% | 22.5% | 30.5% | 40.8% | 55.9% |
|---|
| Tethys Petroleum Limited ($TPL) | -4.2% | 14.7% | 28.9% | 46.2% | -76.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 51.4% | 53.3% | 59.4% | 68.3% | 38.5% |
| Edge Resources Inc ($EDE) | -141.4% | -0.9% | -9.9% | 24.7% | 27.1% |
| Ithaca Energy Inc ($IAE) | 45.4% | 49.3% | 38.8% | -78.0% | -43.7% |
| |
|---|
| Median (3 companies) | -17.0% | 24.2% | 17.9% | 36.2% | 27.1% |
|---|
| Tethys Petroleum Limited ($TPL) | -42.0% | -1.3% | -2.9% | -29.7% | -146.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 88.0% | 64.1% | 50.0% | 58.7% | 47.3% |
| Ithaca Energy Inc ($IAE) | 160.2% | 95.1% | 83.4% | 103.5% | 42.8% |
| Edge Resources Inc ($EDE) | 1,491.8% | 303.0% | 75.0% | 44.6% | 33.7% |
| |
|---|
| Median (3 companies) | 295.2% | 172.5% | 79.2% | 81.1% | 42.8% |
|---|
| Tethys Petroleum Limited ($TPL) | 182.8% | 52.0% | 64.4% | 95.2% | 37.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 19.7% | 17.4% | 20.8% | 20.8% | -0.2% |
| Ithaca Energy Inc ($IAE) | 5.0% | 4.6% | 0.7% | -34.0% | -22.0% |
| Edge Resources Inc ($EDE) | -20.1% | -8.7% | -18.7% | 0.2% | -42.2% |
| |
|---|
| Median (3 companies) | -3.3% | -2.1% | -3.6% | 2.7% | -22.0% |
|---|
| Tethys Petroleum Limited ($TPL) | -9.1% | -7.7% | -6.5% | -4.4% | -31.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Edge Resources Inc ($EDE) | | | | 8.0x | 7.6x |
| Caza Oil & Gas Inc ($CAZ) | | | | 3.4x | |
| Bankers Petroleum Ltd ($BNK) | 0.1x | 0.4x | 0.3x | 0.1x | 0.6x |
| |
|---|
| Median (3 companies) | -0.8x | -0.0x | 1.2x | 3.4x | 4.1x |
|---|
