Hawk Exploration Ltd EBITDA dropped on 123% in 2015 and Revenue dropped on 37.2%
19.04.2016 • About Hawk Exploration Ltd (
$HWK.A) • By InTwits
Hawk Exploration Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hawk Exploration Ltd doesn't have a profitable business model yet: 2015 ROIC is -19.1%
- EBITDA Margin is declining: -12.9% in 2015 vs. 35.5% in 2014 vs. 47.7% in 2011
- EBITDA Margin is quite volatile: -12.9% in 2015, 35.5% in 2014, 43.2% in 2013, 48.1% in 2012, 47.7% in 2011
- Hawk Exploration Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 80.7%. At the same time it's a lot of higher than industry average of 59.8%.
- CAPEX is quite volatile: 2.1 in 2015, 10.7 in 2014, 9.2 in 2013, 9.5 in 2012, 11.0 in 2011
- The company has unprofitable business model: ROIC is at -19.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hawk Exploration Ltd ($HWK.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8.379 | 9.519 | 12.178 | 14.493 | 9.107 | -37.2% |
| Gross Profit | 2.275 | 3.041 | 4.002 | 4.613 | 4.483 | -2.8% |
| SG&A | | | | | 1.016 | |
| EBITDA | 3.993 | 4.582 | 5.255 | 5.141 | -1.171 | -122.8% |
| Net Income | -7.272 | 0.097 | -1.292 | 0.212 | -7.134 | -3,462.8% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Short Term Debt | 0.200 | 1.700 | 4.900 | 7.700 | 9.100 | 18.2% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 11.025 | 9.521 | 9.204 | 10.669 | 2.085 | -80.5% |
Ratios
|
|---|
| Revenue growth | 43.4% | 13.6% | 27.9% | 19.0% | -37.2% | |
| EBITDA growth | -881.9% | 14.7% | 14.7% | -2.2% | -122.8% | |
| Gross Margin | 27.2% | 32.0% | 32.9% | 31.8% | 49.2% | 17.4% |
| EBITDA Margin | 47.7% | 48.1% | 43.2% | 35.5% | -12.9% | -48.3% |
| Net Income Margin | -86.8% | 1.0% | -10.6% | 1.5% | -78.3% | -79.8% |
| SG&A, % of revenue | | | | | 11.2% | 11.2% |
| CAPEX, % of revenue | 131.6% | 100.0% | 75.6% | 73.6% | 22.9% | -50.7% |
| ROIC | 6.1% | 8.7% | 7.7% | 2.8% | -19.1% | -21.9% |
| ROE | -60.9% | 0.7% | -10.0% | 1.2% | -35.2% | -36.4% |
| Net Debt/EBITDA | 0.1x | 0.4x | 0.9x | 1.5x | | -1.5x |
Revenue and profitability
The company's Revenue dropped on 37.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 48.3 pp from 35.5% to -12.9% in 2015.
Gross Margin surged on 17.4 pp from 31.8% to 49.2% in 2015.
Net Income marign dropped on 79.8 pp from 1.5% to -78.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Hawk Exploration Ltd's CAPEX/Revenue was 22.9% in 2015. Hawk Exploration Ltd showed big decline in CAPEX/Revenue of 77.1 pp from 100% in 2012 to 22.9% in 2015. It's average CAPEX/Revenue for the last three years was 57.4%.
Return on investment
The company operates at negative ROIC (-19.15%) and ROE (-35.20%). ROIC dropped on 21.9 pp from 2.8% to -19.1% in 2015. ROE dropped on 36.4 pp from 1.2% to -35.2% in 2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 1.5x to in 2015. Debt jumped on 18.2% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below you can find Hawk Exploration 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 ($OEG) | | | | 6,002.6% | 231.5% |
| Petroshale Inc ($PSH) | | | | 159.9% | 147.8% |
| 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 ($VII) | | | 115.7% | 340.2% | 39.0% |
| |
|---|
| Median (149 companies) | 61.3% | 9.4% | 17.3% | 18.7% | -27.3% |
|---|
| Hawk Exploration Ltd ($HWK.A) | | 13.6% | 27.9% | 19.0% | -37.2% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (134 companies) | 34.2% | 29.3% | 31.5% | 29.6% | 32.4% |
|---|
| Hawk Exploration Ltd ($HWK.A) | 27.2% | 32.0% | 32.9% | 31.8% | 49.2% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (151 companies) | 25.3% | 24.2% | 31.1% | 29.6% | 5.9% |
|---|
| Hawk Exploration Ltd ($HWK.A) | 47.7% | 48.1% | 43.2% | 35.5% | -12.9% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (152 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 30.3% |
|---|
| Hawk Exploration Ltd ($HWK.A) | 131.6% | 100.0% | 75.6% | 73.6% | 22.9% |
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 ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (152 companies) | 4.4% | 3.0% | 4.6% | 5.3% | -8.7% |
|---|
| Hawk Exploration Ltd ($HWK.A) | 6.1% | 8.7% | 7.7% | 2.8% | -19.1% |
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 ($PSH) | 0.1x | | | 21.7x | 9.9x |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.6x |
|---|
| Hawk Exploration Ltd ($HWK.A) | 0.1x | 0.4x | 0.9x | 1.5x | |
