Cordy Oilfield Services Inc reports 72.4% revenue decline in 2015 and 6.9 pp EBITDA Margin decline from -8.0% to -14.9%
14.04.2016 • About Cordy Oilfield Services Inc (
$CKK) • By InTwits
Cordy Oilfield Services Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cordy Oilfield Services Inc is a company in decline: 2015 revenue growth was -72.4%, 5 years revenue CAGR was -18.9%
- The company operates at negative EBITDA Margin: -14.9%
- Cordy Oilfield Services Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 0.012 in 2015, 7.2 in 2014, 1.00 in 2013, 20.8 in 2012, 0 in 2011
- The company has unprofitable business model: ROIC is at -23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cordy Oilfield Services Inc ($CKK) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 94.2 | 115.4 | 118.0 | 75.2 | 20.8 | -72.4% |
| Gross Profit | 14.4 | 12.8 | 14.0 | -2.6 | -0.4 | -84.8% |
| SG&A | | | | | 3.8 | |
| EBITDA | 10.9 | 2.5 | 4.3 | -6.0 | -3.1 | -48.4% |
| Net Income | -1.7 | -3.2 | -1.7 | -31.6 | -8.1 | -74.3% |
Balance Sheet
|
|---|
| Cash | 0.2 | 2.8 | 5.6 | 3.0 | 0.9 | -70.5% |
| Short Term Debt | 8.3 | 19.6 | 9.8 | 13.2 | 3.8 | -71.5% |
| Long Term Debt | 4.7 | 4.4 | 4.6 | 1.3 | 13.7 | 968.2% |
Cash flow
|
|---|
| Capex | 0.0 | 20.8 | 1.0 | 7.2 | 0.0 | -99.8% |
Ratios
|
|---|
| Revenue growth | 59.3% | 22.5% | 2.3% | -36.3% | -72.4% | |
| EBITDA growth | 232.4% | -77.5% | 75.8% | -239.4% | -48.4% | |
| Gross Margin | 15.3% | 11.1% | 11.8% | -3.5% | -1.9% | 1.6% |
| EBITDA Margin | 11.6% | 2.1% | 3.7% | -8.0% | -14.9% | -6.9% |
| Net Income Margin | -1.8% | -2.8% | -1.5% | -42.1% | -39.1% | 3.0% |
| SG&A, % of revenue | | | | | 18.4% | 18.4% |
| CAPEX, % of revenue | 0.0% | 18.0% | 0.8% | 9.6% | 0.1% | -9.6% |
| ROIC | 9.3% | -6.1% | -3.1% | -26.2% | -23.7% | 2.5% |
| ROE | -3.7% | -7.4% | -4.2% | -125.9% | -153.9% | -28.0% |
| Net Debt/EBITDA | 1.2x | 8.6x | 2.0x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 72.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from -8.0% to -14.9% in 2015.
Gross Margin increased slightly on 1.6 pp from -3.5% to -1.9% in 2015.
Net Income marign increased on 3.0 pp from -42.1% to -39.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Cordy Oilfield Services Inc's CAPEX/Revenue was 0.058% in 2015. The company showed big decline in CAPEX/Revenue of 18.0 pp from 18.0% in 2012 to 0.058% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at negative ROIC (-23.71%) and ROE (-153.90%). ROIC increased on 2.5 pp from -26.2% to -23.7% in 2015. ROE dropped on 28.0 pp from -126% to -154% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 20.5% in 2015 while cash dropped on 70.5% in 2015.
Appendix 1: Peers in Energy
Below you can find Cordy Oilfield 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| Ikkuma Resources Corp ($IKM) | | 17.0% | -4.5% | 1,231.1% | 100.3% |
| Seven Generations Energy Ltd ($VII) | | | 115.7% | 340.2% | 39.0% |
| Crown Point Energy Inc ($CWV) | | 177.6% | 110.5% | -34.4% | 38.3% |
| |
|---|
| Median (144 companies) | 59.0% | 9.4% | 17.4% | 19.0% | -27.6% |
|---|
| Cordy Oilfield Services Inc ($CKK) | | 22.5% | 2.3% | -36.3% | -72.4% |
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% |
| Orca Exploration Group Inc ($ORC.B) | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (130 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 33.6% |
|---|
| Cordy Oilfield Services Inc ($CKK) | 15.3% | 11.1% | 11.8% | -3.5% | -1.9% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (146 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 6.0% |
|---|
| Cordy Oilfield Services Inc ($CKK) | 11.6% | 2.1% | 3.7% | -8.0% | -14.9% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (147 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 31.1% |
|---|
| Cordy Oilfield Services Inc ($CKK) | 0.0% | 18.0% | 0.8% | 9.6% | 0.1% |
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 ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
| Orca Exploration Group Inc ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (147 companies) | 4.4% | 3.1% | 4.7% | 5.3% | -8.7% |
|---|
| Cordy Oilfield Services Inc ($CKK) | 9.3% | -6.1% | -3.1% | -26.2% | -23.7% |
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 | 2.5x |
|---|
