Strategic Oil & Gas Ltd EBITDA dropped on 652% in 2015 and EBITDA Margin dropped on 232 pp from 24.2% to -208%
01.04.2016 • About Strategic Oil & Gas Ltd (
$SOG) • By InTwits
Strategic Oil & Gas Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Strategic Oil & Gas Ltd doesn't have a profitable business model yet: 2015 ROIC is -89.5%
- The company operates at negative EBITDA Margin: -208.0%
- Strategic Oil & Gas Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -13.9%0
- Strategic Oil & Gas Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 156.8%. At the same time it's a lot of higher than industry average of 65.1%.
- CAPEX is quite volatile: 11.7 in 2015, 101 in 2014, 119 in 2013, 62.6 in 2012, 46.0 in 2011
- The company has unprofitable business model: ROIC is at -89.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Strategic Oil & Gas Ltd ($SOG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.777 | 47.205 | 58.894 | 58.709 | 37.732 | -35.7% |
| Gross Profit | 9.395 | 12.787 | 2.191 | -15.815 | 17.972 | -213.6% |
| SG&A | | | | | 6.655 | |
| EBITDA | -2.926 | 18.452 | 18.058 | 14.220 | -78.468 | -651.8% |
| Net Income | -24.647 | -4.788 | -22.316 | -129.490 | -110.115 | -15.0% |
Balance Sheet
|
|---|
| Cash | 31.808 | 2.510 | 0.226 | 0.360 | 0.003 | -99.2% |
| Short Term Debt | 0.000 | 34.125 | 63.775 | 29.016 | 52.560 | 81.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 46.030 | 62.612 | 119.151 | 101.319 | 11.742 | -88.4% |
Ratios
|
|---|
| Revenue growth | 230.2% | 151.4% | 24.8% | -0.3% | -35.7% | |
| EBITDA growth | -12.8% | -730.5% | -2.1% | -21.3% | -651.8% | |
| Gross Margin | 50.0% | 27.1% | 3.7% | -26.9% | 47.6% | 74.6% |
| EBITDA Margin | -15.6% | 39.1% | 30.7% | 24.2% | -208.0% | -232.2% |
| Net Income Margin | -131.3% | -10.1% | -37.9% | -220.6% | -291.8% | -71.3% |
| SG&A, % of revenue | | | | | 17.6% | 17.6% |
| CAPEX, % of revenue | 245.1% | 132.6% | 202.3% | 172.6% | 31.1% | -141.5% |
| ROIC | -15.8% | -2.4% | -6.3% | -15.6% | -89.5% | -74.0% |
| ROE | -32.3% | -5.7% | -20.5% | -97.9% | -148.8% | -50.9% |
| Net Debt/EBITDA | | 1.7x | 3.5x | 2.0x | | -2.0x |
Revenue and profitability
The company's Revenue dropped on 35.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 232 pp from 24.2% to -208% in 2015.
Gross Margin jumped on 74.6 pp from -26.9% to 47.6% in 2015.
Net Income marign dropped on 71.3 pp from -221% to -292% in 2015.
Capital expenditures (CAPEX) and working capital investments
Strategic Oil & Gas Ltd's CAPEX/Revenue was 31.1% in 2015. Strategic Oil & Gas Ltd showed big decline in CAPEX/Revenue of 102 pp from 133% in 2012 to 31.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 135%.
Return on investment
The company operates at negative ROIC (-89.55%) and ROE (-148.83%). ROIC dropped on 74.0 pp from -15.6% to -89.5% in 2015. ROE dropped on 50.9 pp from -97.9% to -149% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.0x from 2.0x to in 2015. Debt jumped on 81.1% in 2015 while cash dropped on 99.2% in 2015.
Appendix 1: Peers in Energy
Below we provide Strategic Oil & Gas Ltd 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 ($OEG) | | | | 6,002.6% | 231.5% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| 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 ($OER) | | | -5.9% | 200.1% | 34.7% |
| |
|---|
| Median (138 companies) | 59.3% | 9.4% | 17.3% | 19.0% | -28.6% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | | 151.4% | 24.8% | -0.3% | -35.7% |
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 ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (125 companies) | 33.3% | 29.3% | 31.6% | 29.6% | 33.6% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | 50.0% | 27.1% | 3.7% | -26.9% | 47.6% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (140 companies) | 25.7% | 24.2% | 31.5% | 29.7% | 6.3% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | -15.6% | 39.1% | 30.7% | 24.2% | -208.0% |
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% |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (141 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 29.5% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | 245.1% | 132.6% | 202.3% | 172.6% | 31.1% |
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% |
| TransAtlantic Petroleum Ltd ($TNP) | -12.1% | 3.5% | 1.1% | 5.4% | 15.5% |
| |
|---|
| Median (141 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -8.5% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | -15.8% | -2.4% | -6.3% | -15.6% | -89.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.6x |
|---|
| Strategic Oil & Gas Ltd ($SOG) | | 1.7x | 3.5x | 2.0x | |
