Tuscany Energy Ltd EBITDA dropped on 113% in 2015 and Revenue dropped on 42.1%
28.04.2016 • About Tuscany Energy Ltd (
$TUS) • By InTwits
Tuscany Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tuscany Energy Ltd doesn't have a profitable business model yet: 2015 ROIC is -32.4%
- EBITDA Margin is quite volatile: -10.8% in 2015, 49.2% in 2014, 40.1% in 2013, 46.5% in 2012, 73.6% in 2011
- Tuscany Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 72.5%. At the same time it's a lot of higher than industry average of 59.3%.
- CAPEX is quite volatile: 3.0 in 2015, 11.8 in 2014, 5.0 in 2013, 4.7 in 2012, 8.7 in 2011
- The company has unprofitable business model: ROIC is at -32.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tuscany Energy Ltd ($TUS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.073 | 7.462 | 9.590 | 16.481 | 9.548 | -42.1% |
| Gross Profit | 1.918 | 0.381 | 0.240 | 3.642 | 3.838 | 5.4% |
| SG&A | | | | | 2.375 | |
| EBITDA | 4.471 | 3.471 | 3.843 | 8.115 | -1.028 | -112.7% |
| Net Income | 2.031 | -0.361 | -2.973 | -5.087 | -6.574 | 29.2% |
Balance Sheet
|
|---|
| Cash | 3.386 | 1.269 | 0.155 | 0.050 | 0.013 | -74.0% |
| Short Term Debt | 0.000 | 0.000 | 7.221 | 3.982 | 7.885 | 98.0% |
| Long Term Debt | 0.000 | 0.000 | 0.424 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.713 | 4.747 | 5.034 | 11.805 | 2.967 | -74.9% |
Ratios
|
|---|
| Revenue growth | 110.0% | 22.9% | 28.5% | 71.9% | -42.1% | |
| EBITDA growth | 895.8% | -22.4% | 10.7% | 111.2% | -112.7% | |
| Gross Margin | 31.6% | 5.1% | 2.5% | 22.1% | 40.2% | 18.1% |
| EBITDA Margin | 73.6% | 46.5% | 40.1% | 49.2% | -10.8% | -60.0% |
| Net Income Margin | 33.4% | -4.8% | -31.0% | -30.9% | -68.9% | -38.0% |
| SG&A, % of revenue | | | | | 24.9% | 24.9% |
| CAPEX, % of revenue | 143.5% | 63.6% | 52.5% | 71.6% | 31.1% | -40.6% |
| ROIC | 4.7% | -7.0% | -6.6% | 5.3% | -32.4% | -37.6% |
| ROE | 15.6% | -1.9% | -15.9% | -28.9% | -46.6% | -17.7% |
| Net Debt/EBITDA | -0.8x | -0.4x | 1.9x | 0.5x | | -0.5x |
Revenue and profitability
The company's Revenue dropped on 42.1% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 60.0 pp from 49.2% to -10.8% in 2015.
Gross Margin surged on 18.1 pp from 22.1% to 40.2% in 2015.
Net Income marign dropped on 38.0 pp from -30.9% to -68.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 31.1%. The company's CAPEX/Revenue dropped on 32.5 pp from 63.6% in 2012 to 31.1% in 2015. For the last three years the average CAPEX/Revenue was 51.7%.
Return on investment
The company operates at negative ROIC (-32.37%) and ROE (-46.55%). ROIC dropped on 37.6 pp from 5.3% to -32.4% in 2015. ROE dropped on 17.7 pp from -28.9% to -46.6% in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.5x to in 2015. Debt surged on 98.0% in 2015 while cash dropped on 74% in 2015.
Appendix 1: Peers in Energy
Below you can find Tuscany Energy 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 |
|---|
| Striker Exploration Corp ($SKX) | | -23.2% | -7.6% | 226.9% | 314.7% |
| NXT Energy Solutions Inc ($SFD) | | 7,543.4% | -75.5% | 61.0% | 303.1% |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Petroshale Inc ($PSH) | | | | 159.9% | 147.8% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (159 companies) | 75.1% | 9.4% | 17.3% | 18.7% | -27.3% |
|---|
| Tuscany Energy Ltd ($TUS) | | 22.9% | 28.5% | 71.9% | -42.1% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (141 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 33.5% |
|---|
| Tuscany Energy Ltd ($TUS) | 31.6% | 5.1% | 2.5% | 22.1% | 40.2% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (160 companies) | 25.3% | 24.2% | 31.1% | 29.6% | 6.0% |
|---|
| Tuscany Energy Ltd ($TUS) | 73.6% | 46.5% | 40.1% | 49.2% | -10.8% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (161 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 28.1% |
|---|
| Tuscany Energy Ltd ($TUS) | 143.5% | 63.6% | 52.5% | 71.6% | 31.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| NXT Energy Solutions Inc ($SFD) | | | -103.5% | -39.7% | 25.5% |
| 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 ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| |
|---|
| Median (162 companies) | 4.4% | 3.1% | 4.7% | 5.0% | -8.7% |
|---|
| Tuscany Energy Ltd ($TUS) | 4.7% | -7.0% | -6.6% | 5.3% | -32.4% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.5x |
|---|
| Tuscany Energy Ltd ($TUS) | -0.8x | -0.4x | 1.9x | 0.5x | |
