Manitok Energy Inc reports 104% EBITDA decline and 8.7% Revenue decline
29.04.2016 • About Manitok Energy Inc (
$MEI) • By InTwits
Manitok Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Manitok Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -18.5%
- EBITDA Margin is quite volatile: -2.9% in 2015, 65.0% in 2014, 58.9% in 2013, 50.4% in 2012, 10.4% in 2011
- Manitok Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 284.3%. At the same time it's a lot of higher than industry average of 59.1%.
- CAPEX is quite volatile: 13.0 in FY2015, 11.3 in FY2014, 31.3 in FY2013, 50.4 in FY2012, 27.3 in FY2011
- The company has unprofitable business model: ROIC is at -18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Manitok Energy Inc ($MEI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8.490 | 34.231 | 63.490 | 71.675 | 65.468 | -8.7% |
| Gross Profit | | | | 33.061 | 18.106 | -45.2% |
| SG&A | 4.153 | 8.040 | 11.333 | 13.012 | 10.803 | -17.0% |
| EBITDA | 0.887 | 17.252 | 37.369 | 46.601 | -1.895 | -104.1% |
| Net Income | -7.190 | -2.657 | 3.615 | -3.587 | -27.195 | 658.2% |
Balance Sheet
|
|---|
| Cash | 0.145 | 0.145 | 0.000 | 0.000 | 0.000 | |
| Short Term Debt | 1.960 | 3.101 | 16.237 | 53.258 | 62.398 | 17.2% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 2.500 | 14.948 | 497.9% |
Cash flow
|
|---|
| Capex | 74.747 | 49.892 | 82.778 | 104.773 | 77.646 | -25.9% |
Ratios
|
|---|
| Revenue growth | 254.7% | 303.2% | 85.5% | 12.9% | -8.7% | |
| EBITDA growth | -590.9% | 1,845.0% | 116.6% | 24.7% | -104.1% | |
| Gross Margin | | | | 46.1% | 27.7% | -18.5% |
| EBITDA Margin | 10.4% | 50.4% | 58.9% | 65.0% | -2.9% | -67.9% |
| Net Income Margin | -84.7% | -7.8% | 5.7% | -5.0% | -41.5% | -36.5% |
| SG&A, % of revenue | 48.9% | 23.5% | 17.9% | 18.2% | 16.5% | -1.7% |
| CAPEX, % of revenue | 880.4% | 145.8% | 130.4% | 146.2% | 118.6% | -27.6% |
| ROIC | -8.6% | 5.4% | 15.2% | 13.9% | -18.5% | -32.5% |
| ROE | -15.9% | -3.2% | 3.6% | -3.7% | -33.0% | -29.3% |
| Net Debt/EBITDA | 2.0x | 0.2x | 0.4x | 1.2x | | -1.2x |
Revenue and profitability
Manitok Energy Inc's Revenue decreased on 8.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 67.9 pp from 65.0% to -2.9% in 2015.
Gross Margin dropped on 18.5 pp from 46.1% to 27.7% in 2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 18.2% to 16.5% in 2015.
Net Income marign dropped on 36.5 pp from -5.0% to -41.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 119% in 2015. CAPEX/Revenue dropped on 27.1 pp from 146% in 2012 to 119% in 2015. Average CAPEX/Revenue for the last three years was 132%.
Return on investment
The company operates at negative ROIC (-18.54%) and ROE (-32.99%). ROIC dropped on 32.5 pp from 13.9% to -18.5% in 2015. ROE dropped on 29.3 pp from -3.7% to -33.0% in 2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 1.2x to in 2015. Debt jumped on 38.7% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below we provide Manitok Energy 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 |
|---|
| 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 ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (162 companies) | 78.9% | 9.4% | 17.3% | 19.0% | -27.6% |
|---|
| Manitok Energy Inc ($MEI) | | 303.2% | 85.5% | 12.9% | -8.7% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (143 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 33.6% |
|---|
| Manitok Energy Inc ($MEI) | | | | 46.1% | 27.7% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (163 companies) | 25.7% | 24.2% | 31.1% | 29.6% | 5.5% |
|---|
| Manitok Energy Inc ($MEI) | 10.4% | 50.4% | 58.9% | 65.0% | -2.9% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (164 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 28.6% |
|---|
| Manitok Energy Inc ($MEI) | 880.4% | 145.8% | 130.4% | 146.2% | 118.6% |
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 ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| |
|---|
| Median (165 companies) | 4.5% | 3.0% | 4.6% | 5.0% | -10.0% |
|---|
| Manitok Energy Inc ($MEI) | -8.6% | 5.4% | 15.2% | 13.9% | -18.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.5x |
|---|
| Manitok Energy Inc ($MEI) | 2.0x | 0.2x | 0.4x | 1.2x | |
