Estrella International Energy Services Ltd reports 86.1% EBITDA decline and 7.0 pp EBITDA Margin decline from 9.4% to 2.4%
02.05.2016 • About Estrella International Energy Services Ltd (
$EEN) • By InTwits
Estrella International Energy Services Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Estrella International Energy Services Ltd doesn't have a profitable business model yet: 2015 ROIC is -21.5%
- Estrella International Energy Services Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's in pair with industry average of 84.7%.
- CAPEX is quite volatile: 5.8 in 2015, 18.3 in 2014, 7.3 in 2013, 9.1 in 2012, 7.2 in 2011
- The company has unprofitable business model: ROIC is at -21.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Estrella International Energy Services Ltd ($EEN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 58.8 | 62.7 | 132.2 | 236.3 | 129.4 | -45.2% |
| Gross Profit | -1.1 | -8.3 | -3.2 | -1.6 | 24.9 | -1,656.8% |
| SG&A | | | | | 12.8 | |
| EBITDA | -10.2 | -9.5 | 6.9 | 22.1 | 3.1 | -86.1% |
| Net Income | -30.0 | -29.0 | -20.0 | -34.1 | -27.7 | -18.6% |
Balance Sheet
|
|---|
| Cash | 8.7 | 6.7 | 12.1 | 8.8 | 12.9 | 45.4% |
| Short Term Debt | 13.2 | 3.7 | 2.8 | 13.2 | 8.3 | -36.7% |
| Long Term Debt | 33.3 | 33.9 | 64.0 | 41.8 | 36.3 | -13.2% |
Cash flow
|
|---|
| Capex | 7.2 | 9.1 | 7.3 | 18.3 | 5.8 | -68.2% |
Ratios
|
|---|
| Revenue growth | 75.1% | 6.6% | 110.9% | 78.8% | -45.2% | |
| EBITDA growth | -371.1% | -6.2% | -172.0% | 222.1% | -86.1% | |
| Gross Margin | -1.9% | -13.3% | -2.4% | -0.7% | 19.2% | 19.9% |
| EBITDA Margin | -17.3% | -15.2% | 5.2% | 9.4% | 2.4% | -7.0% |
| Net Income Margin | -51.0% | -46.3% | -15.1% | -14.4% | -21.4% | -7.0% |
| SG&A, % of revenue | | | | | 9.9% | 9.9% |
| CAPEX, % of revenue | 12.3% | 14.5% | 5.5% | 7.8% | 4.5% | -3.3% |
| ROIC | -22.8% | -22.4% | -10.5% | -8.6% | -21.5% | -13.0% |
| ROE | -54.7% | -58.8% | -58.7% | | | 0.0% |
| Net Debt/EBITDA | | | 8.0x | 2.1x | 10.3x | 8.2x |
Revenue and profitability
The company's Revenue dropped on 45.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 7.0 pp from 9.4% to 2.4% in 2015.
Gross Margin surged on 19.9 pp from -0.68% to 19.2% in 2015.
Net Income marign decreased on 7.0 pp from -14.4% to -21.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Estrella International Energy Services Ltd's CAPEX/Revenue was 4.5% in 2015. The company showed decline in CAPEX/Revenue of 10.0 pp from 14.5% in 2012 to 4.5% in 2015. It's average CAPEX/Revenue for the last three years was 5.9%.Estrella International Energy Services Ltd has spent a lot to CAPEX (189% of EBITDA) which didn't stop revenue from falling.
Leverage (Debt)
Debt level is 10.3x Net Debt / EBITDA and 14.5x Debt / EBITDA. Net Debt / EBITDA jumped on 8.2x from 2.1x to 10.3x in 2015. Debt dropped on 18.8% in 2015 while cash jumped on 45.4% in 2015.
Appendix 1: Peers in Energy
Below we provide Estrella International Energy Services Ltd 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 ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (163 companies) | 82.7% | 9.6% | 17.3% | 18.7% | -27.5% |
|---|
| Estrella International Energy Services Ltd ($EEN) | | 6.6% | 110.9% | 78.8% | -45.2% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (144 companies) | 34.2% | 29.3% | 31.6% | 29.6% | 33.5% |
|---|
| Estrella International Energy Services Ltd ($EEN) | -1.9% | -13.3% | -2.4% | -0.7% | 19.2% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (164 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 5.3% |
|---|
| Estrella International Energy Services Ltd ($EEN) | -17.3% | -15.2% | 5.2% | 9.4% | 2.4% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (165 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.1% |
|---|
| Estrella International Energy Services Ltd ($EEN) | 12.3% | 14.5% | 5.5% | 7.8% | 4.5% |
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 ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| |
|---|
| Median (166 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -10.2% |
|---|
| Estrella International Energy Services Ltd ($EEN) | -22.8% | -22.4% | -10.5% | -8.6% | -21.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.5x |
|---|
| Estrella International Energy Services Ltd ($EEN) | | | 8.0x | 2.1x | 10.3x |
