Orca Exploration Group Inc reports 2,828% CAPEX growth while 4.4% Revenue decline
14.04.2016 • About Orca Exploration Group Inc (
$ORC.B) • By InTwits
Orca Exploration Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orca Exploration Group Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 37.2%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 38.4 in 2015, 1.3 in 2014, 1.3 in 2013, 54.7 in 2012, 18.1 in 2011
- The company has highly profitable business model: ROIC is at 19.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orca Exploration Group Inc ($ORC.B) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45.893 | 77.259 | 53.482 | 56.607 | 54.088 | -4.4% |
| Gross Profit | 31.713 | 71.306 | 36.890 | 37.547 | 50.337 | 34.1% |
| SG&A | | | | | 13.608 | |
| EBITDA | 24.662 | 53.630 | 33.225 | 33.830 | 37.429 | 10.6% |
| Net Income | 7.986 | 18.329 | -7.640 | -38.301 | 1.533 | -104.0% |
Balance Sheet
|
|---|
| Cash | 34.680 | 16.047 | 32.588 | 57.659 | 53.797 | -6.7% |
| Short Term Debt | 0.000 | 5.842 | 1.659 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 18.599 | |
Cash flow
|
|---|
| Capex | 18.135 | 54.695 | 1.288 | 1.312 | 38.411 | 2,827.7% |
Ratios
|
|---|
| Revenue growth | 18.3% | 68.3% | -30.8% | 5.8% | -4.4% | |
| EBITDA growth | 10.0% | 117.5% | -38.0% | 1.8% | 10.6% | |
| Gross Margin | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% | 26.7% |
| EBITDA Margin | 53.7% | 69.4% | 62.1% | 59.8% | 69.2% | 9.4% |
| Net Income Margin | 17.4% | 23.7% | -14.3% | -67.7% | 2.8% | 70.5% |
| SG&A, % of revenue | | | | | 25.2% | 25.2% |
| CAPEX, % of revenue | 39.5% | 70.8% | 2.4% | 2.3% | 71.0% | 68.7% |
| ROIC | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% | 4.7% |
| ROE | 7.8% | 15.8% | -6.3% | -40.0% | 2.0% | 42.0% |
| Net Debt/EBITDA | -1.4x | -0.2x | -0.9x | -1.7x | -0.9x | 0.8x |
Revenue and profitability
The company's Revenue decreased on 4.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.4 pp from 59.8% to 69.2% in 2015.
Gross Margin surged on 26.7 pp from 66.3% to 93.1% in 2015.
Net Income marign jumped on 70.5 pp from -67.7% to 2.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Orca Exploration Group Inc's CAPEX/Revenue was 71.0% in 2015. Orca Exploration Group Inc's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 25.2%.Orca Exploration Group Inc has spent a lot to CAPEX (103% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at good ROIC (19.00%) while ROE is low (1.98%). ROIC increased on 4.7 pp from 14.3% to 19.0% in 2015. ROE surged on 42.0 pp from -40.0% to 2.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.5x. Net Debt / EBITDA surged on 0.8x from -1.7x to -0.9x in 2015. Debt jumped while cash decreased on 6.7% in 2015.
Appendix 1: Peers in Energy
Below we provide Orca Exploration Group Inc 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% |
| 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 ($CWV) | | 177.6% | 110.5% | -34.4% | 38.3% |
| |
|---|
| Median (144 companies) | 59.0% | 9.4% | 17.4% | 19.0% | -28.6% |
|---|
| Orca Exploration Group Inc ($ORC.B) | | 68.3% | -30.8% | 5.8% | -4.4% |
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 ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (130 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
| Orca Exploration Group Inc ($ORC.B) | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (146 companies) | 25.3% | 24.2% | 31.1% | 29.6% | 5.7% |
|---|
| Orca Exploration Group Inc ($ORC.B) | 53.7% | 69.4% | 62.1% | 59.8% | 69.2% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (147 companies) | 44.3% | 48.7% | 39.2% | 48.9% | 31.0% |
|---|
| Orca Exploration Group Inc ($ORC.B) | 39.5% | 70.8% | 2.4% | 2.3% | 71.0% |
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 ($TNP) | -12.1% | 3.5% | 1.1% | 5.4% | 15.5% |
| |
|---|
| Median (147 companies) | 4.4% | 3.0% | 4.6% | 5.0% | -9.3% |
|---|
| Orca Exploration Group Inc ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.6x |
|---|
| Orca Exploration Group Inc ($ORC.B) | -1.4x | -0.2x | -0.9x | -1.7x | -0.9x |
