Bengal Energy Ltd EBITDA dropped on 772% in 2016 and Revenue decreased on 7.8%
17.06.2016 • About Bengal Energy Ltd (
$BNG) • By InTwits
Bengal Energy Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bengal Energy Ltd doesn't have a profitable business model yet: FY2016 ROIC is -18.5%
- The company operates at negative EBITDA Margin: -43.1%
- Bengal Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 202.9%. At the same time it's a lot of higher than industry average of 44.7%.
- CAPEX is quite volatile: 3.3 in FY2016, 13.5 in FY2015, 16.6 in FY2014, 28.4 in FY2013, 11.1 in FY2012
- The company has unprofitable business model: ROIC is at -18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bengal Energy Ltd ($BNG) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3.892 | 5.359 | 18.488 | 15.503 | 14.299 | -7.8% |
| SG&A | | | | 3.407 | 2.663 | -21.8% |
| EBITDA | -2.618 | -0.320 | 8.878 | 0.917 | -6.158 | -771.5% |
| Net Income | -7.209 | -1.799 | 0.150 | -3.172 | -10.380 | |
Balance Sheet
|
|---|
| Cash | 26.934 | 2.614 | 5.984 | 1.749 | 3.010 | 72.1% |
| Short Term Debt | 0.000 | 0.000 | 3.158 | 0.000 | 10.049 | |
| Long Term Debt | 0.000 | 0.000 | 6.085 | 16.982 | 7.816 | -54.0% |
Cash flow
|
|---|
| Capex | 11.068 | 28.381 | 16.647 | 13.463 | 3.347 | -75.1% |
Ratios
|
|---|
| Revenue growth | 132.8% | 37.7% | 245.0% | -16.1% | -7.8% | |
| EBITDA growth | -15.1% | -87.8% | -2,874.4% | -89.7% | -771.5% | |
| EBITDA Margin | -67.3% | -6.0% | 48.0% | 5.9% | -43.1% | -49.0% |
| Net Income Margin | -185.2% | -33.6% | 0.8% | -20.5% | -72.6% | -52.1% |
| SG&A, % of revenue | | | | 22.0% | 18.6% | -3.4% |
| CAPEX, % of revenue | 284.4% | 529.6% | 90.0% | 86.8% | 23.4% | -63.4% |
| ROIC | -9.5% | -4.3% | 8.8% | -7.1% | -18.5% | -11.4% |
| ROE | -22.5% | -4.4% | 0.3% | -6.8% | -25.6% | -18.8% |
| Net Debt/EBITDA | | | 0.4x | 16.6x | | -16.6x |
Bengal Energy Ltd ($BNG) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 4 | 3 | 4 | 7.6% | -8.5% | -32.2% | 2.2% |
| EBITDA | 1 | 1 | 0 | -9 | 113.3% | -25.1% | | -858.8% |
| Net Income | -1 | 1 | 1 | -12 | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 3 | 3 | -78.6% | -30.8% | -61.0% | 72.1% |
| Short Term Debt | 2 | 2 | 11 | 10 | -48.1% | -43.7% | 514.2% | |
| Long Term Debt | 15 | 16 | 8 | 8 | 159.3% | 181.8% | -46.6% | -54.0% |
Ratios
|
|---|
| EBITDA Margin | 38.4% | 34.4% | 17.1% | -236.8% | 19.0% | -7.6% | 92.2% | -268.7% |
| Net Income Margin | -32.3% | 30.0% | 55.6% | -294.1% | -12.1% | 32.3% | 90.1% | -267.0% |
Revenue and profitability
The company's Revenue decreased on 7.8%. Annual revenue decline showed slowdown in FY16Q4 - revenue increased on 2.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 49.0 pp from 5.9% to -43.1% in FY2016.
SG&A as a % of Revenue decreased on 3.4 pp from 22.0% to 18.6% in FY2016.
Net Income marign dropped on 52.1 pp from -20.5% to -72.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 23.4% in FY2016. Bengal Energy Ltd's CAPEX/Revenue dropped on 506 pp from 530% in FY2013 to 23.4% in FY2016. For the last three years the average CAPEX/Revenue was 66.8%.
Return on investment
The company operates at negative ROIC (-18.46%) and ROE (-25.60%). ROIC dropped on 11.4 pp from -7.1% to -18.5% in FY2016. ROE dropped on 18.8 pp from -6.8% to -25.6% in FY2016.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 16.6x from 16.6x to in FY2016. Debt increased on 5.2% while cash surged on 72.1%.
Appendix 1: Peers in Energy
Below you can find Bengal 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | -18.4% | 141.2% |
| Seven Generations Energy Ltd ($VII) | | 115.7% | 340.2% | 39.0% | 94.4% |
| Athabasca Oil Corp ($ATH) | | 342.7% | 5.5% | -22.9% | 73.1% |
| Painted Pony Petroleum Ltd ($PPY) | | 41.3% | 56.0% | -42.5% | 60.7% |
| ONEnergy Inc ($OEG) | | | 6,002.6% | 231.5% | 57.4% |
| |
|---|
| Median (117 companies) | -29.1% | 16.2% | 17.0% | -29.5% | -19.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($BOE) | 77.1% | 43.3% | -34.3% | 121.1% | |
| TransAlta Renewables Inc ($RNW) | | 94.4% | 94.5% | 94.5% | 91.1% |
| Serinus Energy Inc ($SEN) | 80.5% | 76.5% | 86.8% | 88.5% | |
| Advantage Oil & Gas Ltd ($AAV) | 62.0% | 84.5% | 92.5% | 88.5% | 90.3% |
| Polaris Infrastructure Inc ($PIF) | 39.9% | 33.6% | 32.0% | 86.7% | 88.6% |
| |
|---|
| Median (116 companies) | 32.0% | 32.1% | 32.2% | 33.6% | 32.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($GXO) | 59.4% | 64.5% | 70.8% | 201.9% | |
| Perpetual Energy Inc ($PMT) | 35.5% | 70.7% | 58.0% | 110.3% | |
| Petro Rio SA ($PRJ) | -4,809.7% | -6,899.7% | 28.2% | 90.7% | |
| Peyto Exploration & Development Corp ($PEY) | 86.1% | 83.2% | 86.3% | 84.6% | 80.7% |
| Innergex Renewable Energy Inc ($INE) | 111.8% | 110.0% | 82.9% | 83.4% | 83.5% |
| |
|---|
| Median (130 companies) | 25.3% | 34.1% | 28.9% | 8.1% | 28.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | 1,997.8% | 712.8% | |
| WesternZagros Resources Ltd ($WZR) | | | | 385.6% | |
| Athabasca Oil Corp ($ATH) | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% |
| TORC Oil & Gas Ltd ($TOG) | 453.8% | 466.9% | 104.5% | 229.4% | 76.3% |
| Seven Generations Energy Ltd ($VII) | 452.8% | 513.1% | 227.4% | 191.2% | 73.5% |
| |
|---|
| Median (131 companies) | 43.8% | 39.0% | 45.0% | 27.6% | 23.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($ERF) | -17.3% | 10.2% | 11.5% | -55.5% | 16.3% |
| Whitecap Resources Inc ($WCP) | 7.1% | 8.1% | 9.6% | -10.6% | 10.1% |
| Ecopetrol SA ($ECP) | 29.3% | 24.4% | 16.5% | 3.0% | 9.6% |
| Parkland Fuel Corp ($PKI) | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| |
|---|
| Median (129 companies) | 3.8% | 5.4% | 5.5% | -8.5% | -1.9% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($PXX) | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x |
| Paramount Resources Ltd ($POU) | 14.6x | 23.9x | 8.9x | 421.5x | -5.8x |
| Precision Drilling Corp ($PD) | 2.2x | 1.9x | 2.0x | 68.4x | 7.6x |
| Trican Well Service Ltd ($TCW) | 2.5x | 3.4x | 2.9x | 31.4x | |
| Trilogy Energy Corp ($TET) | 2.6x | 1.8x | 2.3x | 25.5x | 7.3x |
| |
|---|
| Median (79 companies) | 1.6x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
