TransAtlantic Petroleum Ltd Net Income dropped on 470% in 2015 while Revenue increased on 2.4%
30.03.2016 • About TransAtlantic Petroleum Ltd (
$TNP) • By InTwits
TransAtlantic Petroleum Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 56.8% in 2015 vs. 47.1% in 2014 vs. -6.3% in 2011
- EBITDA Margin is quite volatile: 56.8% in 2015, 47.1% in 2014, 33.7% in 2013, 26.9% in 2012, -6.3% in 2011
- TransAtlantic Petroleum Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 54.6%. At the same time it's in pair with industry average of 69.0%.
- CAPEX is quite volatile: 26.4 in 2015, 114 in 2014, 105 in 2013, 53.5 in 2012, 71.4 in 2011
- The company has highly profitable business model: ROIC is at 15.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TransAtlantic Petroleum Ltd ($TNP) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 128.9 | 143.9 | 130.8 | 138.8 | 142.1 | 2.4% |
| Gross Profit | 107.8 | 118.4 | 112.2 | 70.0 | 89.5 | 27.8% |
| SG&A | 36.3 | 33.9 | 29.0 | 31.1 | 24.1 | -22.3% |
| EBITDA | -8.2 | 38.7 | 44.1 | 65.5 | 80.8 | 23.4% |
| Net Income | -120.9 | 16.2 | -13.7 | 29.1 | -107.5 | -469.9% |
Balance Sheet
|
|---|
| Cash | 15.1 | 14.8 | 12.9 | 34.7 | 7.5 | -78.5% |
| Short Term Debt | 80.7 | 0.0 | 43.3 | 34.8 | 41.9 | 20.2% |
| Long Term Debt | 78.0 | 32.8 | 26.5 | 100.9 | 55.0 | -45.5% |
Cash flow
|
|---|
| Capex | 71.4 | 53.5 | 104.9 | 113.7 | 26.4 | -76.8% |
Ratios
|
|---|
| Revenue growth | 81.9% | 11.6% | -9.1% | 6.1% | 2.4% | |
| EBITDA growth | 47.6% | -574.7% | 13.9% | 48.4% | 23.4% | |
| Gross Margin | 83.6% | 82.3% | 85.8% | 50.4% | 63.0% | 12.5% |
| EBITDA Margin | -6.3% | 26.9% | 33.7% | 47.1% | 56.8% | 9.7% |
| Net Income Margin | -93.8% | 11.3% | -10.5% | 20.9% | -75.7% | -96.6% |
| SG&A, % of revenue | 28.2% | 23.6% | 22.2% | 22.4% | 17.0% | -5.4% |
| CAPEX, % of revenue | 55.4% | 37.2% | 80.2% | 81.9% | 18.6% | -63.3% |
| ROIC | -12.1% | 3.5% | 1.1% | 5.4% | 15.5% | 10.1% |
| ROE | -54.1% | 8.4% | -7.2% | 15.4% | -79.5% | -94.9% |
| Net Debt/EBITDA | | 0.5x | 1.3x | 1.5x | 1.1x | -0.4x |
Revenue and profitability
The company's Revenue increased on 2.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 65.9 pp from 50.0% to -15.9% in FY2015.
Gross Margin surged on 12.5 pp from 50.4% to 63.0% in 2015. SG&A as a % of Revenue decreased on 5.4 pp from 22.4% to 17.0% in 2015.
Net Income marign dropped on 96.6 pp from 20.9% to -75.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 18.6%. The company showed big decline in CAPEX/Revenue of 18.6 pp from 37.2% in 2012 to 18.6% in 2015. It's average CAPEX/Revenue for the last three years was 60.2%.
Return on investment
The company operates at low but positive ROIC (15.55%) and negative ROE (-79.54%). ROIC jumped on 10.1 pp from 5.4% to 15.5% in 2015. ROE dropped on 94.9 pp from 15.4% to -79.5% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.5x to 1.1x in 2015. Debt dropped on 28.6% in 2015 while cash dropped on 78.5% in 2015.
Management team
N Malone Mitchell III is a the company's CEO. N Malone Mitchell III is a founder and has spent 7 years at the company.
Appendix 1: Peers in Energy
Below you can find TransAtlantic Petroleum Ltd 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Seven Generations Energy Ltd ($VII) | | | 115.7% | 340.2% | 39.0% |
| Crown Point Energy Inc ($CWV) | | 177.6% | 110.5% | -34.4% | 38.3% |
| Oando Energy Resources Inc ($OER) | | | -5.9% | 200.1% | 34.7% |
| High Arctic Energy Services Inc ($HWO) | | 14.9% | 4.4% | 12.5% | 22.2% |
| |
|---|
| Median (136 companies) | 59.3% | 9.4% | 17.4% | 19.0% | -29.5% |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | | 11.6% | -9.1% | 6.1% | 2.4% |
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 ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (123 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.6% |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | 83.6% | 82.3% | 85.8% | 50.4% | 63.0% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (138 companies) | 25.7% | 24.2% | 31.1% | 29.6% | 6.3% |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | -6.3% | 26.9% | 33.7% | 47.1% | 56.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($PEH) | | | | | 1,091.8% |
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| WesternZagros Resources Ltd ($WZR) | | | | | 385.6% |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| TORC Oil & Gas Ltd ($TOG) | 6,833.4% | 453.8% | 466.9% | 104.5% | 229.4% |
| |
|---|
| Median (139 companies) | 42.6% | 50.5% | 39.2% | 48.6% | 29.5% |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | 55.4% | 37.2% | 80.2% | 81.9% | 18.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | 24.2% |
| Petro Rio SA ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| Macro Enterprises Inc ($MCR) | 33.6% | 52.7% | 47.6% | 10.8% | 12.4% |
| |
|---|
| Median (139 companies) | 4.5% | 3.0% | 4.7% | 5.0% | -8.5% |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | -12.1% | 3.5% | 1.1% | 5.4% | 15.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.7x |
|---|
| TransAtlantic Petroleum Ltd ($TNP) | | 0.5x | 1.3x | 1.5x | 1.1x |
