Sea Dragon Energy Inc EBITDA dropped on 143% in 2015 and EBITDA Margin dropped on 111 pp from 57.7% to -53.2%
29.04.2016 • About Sea Dragon Energy Inc (
$SDX) • By InTwits
Sea Dragon Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sea Dragon Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -16.6%
- The company operates at negative EBITDA Margin: -53.2%
- EBITDA Margin is quite volatile: -53.2% in 2015, 57.7% in 2014, 45.2% in 2013, 42.1% in 2012, -18.7% in 2011
- Sea Dragon Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 40.7%. At the same time it's in pair with industry average of 58.1%.
- CAPEX is quite volatile: 5.1 in 2015, 13.6 in 2014, 7.1 in 2013, 8.4 in 2012, 8.0 in 2011
- The company has unprofitable business model: ROIC is at -16.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sea Dragon Energy Inc ($SDX) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20.494 | 21.194 | 29.420 | 24.533 | 11.372 | -53.6% |
| SG&A | | | | | 4.770 | |
| EBITDA | -3.839 | 8.926 | 13.300 | 14.165 | -6.050 | -142.7% |
| Net Income | -12.838 | -28.108 | -7.708 | 8.356 | 10.047 | 20.2% |
Balance Sheet
|
|---|
| Cash | 6.125 | 5.658 | 4.287 | 17.935 | 8.170 | -54.4% |
| Short Term Debt | 3.000 | 3.000 | 0.000 | 2.207 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.024 | 8.355 | 7.137 | 13.634 | 5.120 | -62.4% |
Ratios
|
|---|
| Revenue growth | 63.6% | 3.4% | 38.8% | -16.6% | -53.6% | |
| EBITDA growth | -236.4% | -332.5% | 49.0% | 6.5% | -142.7% | |
| EBITDA Margin | -18.7% | 42.1% | 45.2% | 57.7% | -53.2% | -110.9% |
| Net Income Margin | -62.6% | -132.6% | -26.2% | 34.1% | 88.3% | 54.3% |
| SG&A, % of revenue | | | | | 41.9% | 41.9% |
| CAPEX, % of revenue | 39.2% | 39.4% | 24.3% | 55.6% | 45.0% | -10.6% |
| ROIC | -10.1% | 8.1% | 21.8% | 32.9% | -16.6% | -49.5% |
| ROE | -17.1% | -51.0% | -20.4% | 22.6% | 21.2% | -1.4% |
| Net Debt/EBITDA | | -0.3x | -0.3x | -1.1x | | 1.1x |
Revenue and profitability
The company's Revenue dropped on 53.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 26.1 pp from 9.3% to 35.4% in 2015.
Net Income marign jumped on 54.3 pp from 34.1% to 88.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sea Dragon Energy Inc's CAPEX/Revenue was 45.0% in 2015. The company showed CAPEX/Revenue growth of 5.6 pp from 39.4% in 2012 to 45.0% in 2015. It's average CAPEX/Revenue for the last three years was 41.6%.
Return on investment
The company operates at negative ROIC (-16.62%) and low but positive ROE (21.22%). ROIC dropped on 49.5 pp from 32.9% to -16.6% in 2015. ROE decreased slightly on 1.4 pp from 22.6% to 21.2% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 54.4% in 2015.
Appendix 1: Peers in Energy
Below we provide Sea Dragon 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 ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (162 companies) | 78.9% | 9.6% | 17.3% | 19.0% | -27.4% |
|---|
| Sea Dragon Energy Inc ($SDX) | | 3.4% | 38.8% | -16.6% | -53.6% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (144 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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% |
|---|
| Sea Dragon Energy Inc ($SDX) | -18.7% | 42.1% | 45.2% | 57.7% | -53.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($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 (164 companies) | 44.3% | 50.5% | 39.2% | 48.6% | 28.6% |
|---|
| Sea Dragon Energy Inc ($SDX) | 39.2% | 39.4% | 24.3% | 55.6% | 45.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| 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% |
|---|
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | -16.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 |
|---|
| Sea Dragon Energy Inc ($SDX) | | -0.3x | -0.3x | -1.1x | |
