Toro Oil & Gas Ltd revenue returned to growth in 2015: increased 113% vs. 35.6% decline a year earliner
01.04.2016 • About Toro Oil & Gas Ltd (
$TOO) • By InTwits
Toro Oil & Gas Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Toro Oil & Gas Ltd doesn't have a profitable business model yet: 2015 ROIC is -43.8%
- The company operates at negative EBITDA Margin: -87.7%
- Toro Oil & Gas Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -17.6%0
- Toro Oil & Gas Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 297.3%. At the same time it's a lot of higher than industry average of 65.1%.
- CAPEX is quite volatile: 24.5 in 2015, 30.1 in 2014, 2.3 in 2013, 8.4 in 2012, 9.3 in 2011
- The company has unprofitable business model: ROIC is at -43.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Toro Oil & Gas Ltd ($TOO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4.847 | 6.070 | 5.792 | 3.728 | 7.956 | 113.4% |
| Gross Profit | -16.224 | -3.778 | -0.238 | -18.892 | 1.218 | -106.4% |
| SG&A | | | | | 3.826 | |
| EBITDA | 0.424 | 1.908 | 1.628 | -1.968 | -6.980 | 254.7% |
| Net Income | -19.509 | -4.886 | -2.694 | -23.467 | -11.589 | -50.6% |
Balance Sheet
|
|---|
| Cash | 2.112 | 0.132 | 0.076 | 2.901 | 0.050 | -98.3% |
| Short Term Debt | 0.000 | 3.839 | 4.748 | 4.275 | 0.936 | -78.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 9.326 | 8.437 | 2.269 | 30.146 | 24.457 | -18.9% |
Ratios
|
|---|
| Revenue growth | -14.3% | 25.2% | -4.6% | -35.6% | 113.4% | |
| EBITDA growth | 507.1% | 349.9% | -14.7% | -220.9% | 254.7% | |
| Gross Margin | -334.7% | -62.2% | -4.1% | -506.8% | 15.3% | 522.1% |
| EBITDA Margin | 8.7% | 31.4% | 28.1% | -52.8% | -87.7% | -34.9% |
| Net Income Margin | -402.5% | -80.5% | -46.5% | -629.6% | -145.7% | 483.9% |
| SG&A, % of revenue | | | | | 48.1% | 48.1% |
| CAPEX, % of revenue | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% | -501.3% |
| ROIC | -82.5% | -40.1% | -16.6% | -111.2% | -43.8% | 67.4% |
| ROE | -80.4% | -32.1% | -21.4% | -147.4% | -47.9% | 99.5% |
| Net Debt/EBITDA | -5.0x | 1.9x | 2.9x | | | 0.0x |
Revenue and profitability
Toro Oil & Gas Ltd's Revenue surged on 113% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 34.9 pp from -52.8% to -87.7% in 2015.
Gross Margin jumped on 522 pp from -507% to 15.3% in 2015.
Net Income marign surged on 484 pp from -630% to -146% in 2015.
Capital expenditures (CAPEX) and working capital investments
Toro Oil & Gas Ltd's CAPEX/Revenue was 307% in 2015. Toro Oil & Gas Ltd's CAPEX/Revenue surged on 168 pp from 139% in 2012 to 307% in 2015. It's average CAPEX/Revenue for the last three years was 385%.
Return on investment
The company operates at negative ROIC (-43.75%) and ROE (-47.87%). ROIC surged on 67.4 pp from -111% to -43.8% in 2015. ROE jumped on 99.5 pp from -147% to -47.9% in 2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt dropped on 78.1% in 2015 while cash dropped on 98.3% in 2015.
Appendix 1: Peers in Energy
Below we provide Toro 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 ($OEG) | | | | 6,002.6% | 231.5% |
| Seven Generations Energy Ltd ($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 ($HWO) | | 14.9% | 4.4% | 12.5% | 22.2% |
| |
|---|
| Median (138 companies) | 59.3% | 9.4% | 17.4% | 19.0% | -29.5% |
|---|
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
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 ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (125 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 33.6% |
|---|
| Toro Oil & Gas Ltd ($TOO) | -334.7% | -62.2% | -4.1% | -506.8% | 15.3% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (140 companies) | 25.7% | 24.2% | 31.5% | 29.7% | 6.3% |
|---|
| Toro Oil & Gas Ltd ($TOO) | 8.7% | 31.4% | 28.1% | -52.8% | -87.7% |
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 ($TOG) | 6,833.4% | 453.8% | 466.9% | 104.5% | 229.4% |
| |
|---|
| Median (141 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 29.5% |
|---|
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
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 ($TNP) | -12.1% | 3.5% | 1.1% | 5.4% | 15.5% |
| |
|---|
| Median (141 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -8.5% |
|---|
| Toro Oil & Gas Ltd ($TOO) | -82.5% | -40.1% | -16.6% | -111.2% | -43.8% |
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 | 2.6x |
|---|
