Niko Resources Ltd EBITDA Margin jumped on 397 pp from -228% to 169% in 2016 while Revenue dropped on 22.2%
28.06.2016 • About Niko Resources Ltd (
$NKO) • By InTwits
Niko Resources Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Niko Resources Ltd is a company in decline: FY2016 revenue growth was -22.2%, 5 years revenue CAGR was -25.3%
- Niko Resources Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -106.2% for the sames years0
- Niko Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 70.1%. At the same time it's a lot of higher than industry average of 44.7%.
- CAPEX is quite volatile: 27.6 in FY2016, 50.6 in FY2015, 154 in FY2014, 204 in FY2013, 188 in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Niko Resources Ltd ($NKO) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 321.3 | 199.4 | 129.4 | 121.1 | 94.2 | -22.2% |
| Gross Profit | 136.5 | 17.3 | -22.2 | -11.9 | 12.2 | |
| SG&A | 8.8 | 6.9 | 9.5 | 9.9 | 8.4 | -14.9% |
| EBITDA | -128.8 | 3.9 | -677.0 | -276.1 | 159.0 | |
| Net Income | -322.6 | -216.5 | -657.0 | -672.9 | -85.8 | |
Balance Sheet
|
|---|
| Cash | 64.5 | 56.4 | 82.5 | 59.6 | 37.1 | -37.8% |
| Short Term Debt | 310.9 | 6.1 | 27.7 | 390.8 | 371.0 | -5.1% |
| Long Term Debt | 43.7 | 206.8 | 347.1 | 22.6 | 14.0 | -38.0% |
Cash flow
|
|---|
| Capex | 188.0 | 203.8 | 153.8 | 50.6 | 27.6 | -45.4% |
Ratios
|
|---|
| Revenue growth | -20.4% | -38.0% | -35.1% | -6.4% | -22.2% | |
| EBITDA growth | -160.4% | -103.0% | -17,601.6% | -59.2% | -157.6% | |
| Gross Margin | 42.5% | 8.7% | -17.1% | -9.9% | 13.0% | 22.8% |
| EBITDA Margin | -40.1% | 1.9% | -523.1% | -228.0% | 168.9% | 396.9% |
| Net Income Margin | -100.4% | -108.6% | -507.7% | -555.7% | -91.1% | 464.6% |
| SG&A, % of revenue | 2.7% | 3.5% | 7.4% | 8.2% | 8.9% | 0.8% |
| CAPEX, % of revenue | 58.5% | 102.2% | 118.9% | 41.8% | 29.3% | -12.4% |
| ROIC | -17.6% | -10.6% | -81.7% | -112.1% | | 112.1% |
| ROE | -31.0% | -24.4% | -115.3% | | | 0.0% |
| Net Debt/EBITDA | | 40.5x | | | 2.2x | 2.2x |
Niko Resources Ltd ($NKO) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 27 | 25 | 22 | 20 | -24.1% | -12.4% | -23.6% | -28.4% |
| EBITDA | 12 | -56 | -5 | 209 | 234.8% | -751.8% | | |
| Net Income | -29 | -110 | -24 | 77 | | | | |
Balance Sheet
|
|---|
| Cash | 39 | 37 | 37 | 37 | -63.2% | -69.2% | -49.9% | -37.8% |
| Short Term Debt | 365 | 361 | 362 | 371 | 4,706.8% | 4,914.4% | -12.7% | -5.1% |
| Long Term Debt | 21 | 18 | 16 | 14 | -94.0% | -94.7% | -33.9% | -38.0% |
Ratios
|
|---|
| Gross Margin | 12.2% | 7.9% | 12.6% | 20.6% | 8.3% | 24.7% | 20.7% | 42.3% |
| EBITDA Margin | 44.0% | -224.5% | -24.8% | 1,024.7% | 34.0% | -254.7% | 121.5% | 1,888.8% |
| Net Income Margin | -109.8% | -441.2% | -106.9% | 379.2% | 46.4% | -303.6% | 387.9% | 1,909.3% |
Revenue and profitability
Niko Resources Ltd's Revenue dropped on 22.2%. Revenue decline showed acceleration in FY16Q4 - it was 28.4% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 397 pp from -228% to 169% in FY2016.
Gross Margin jumped on 22.8 pp from -9.9% to 13.0% in FY2016. SG&A as a % of Revenue increased slightly on 0.77 pp from 8.2% to 8.9% in FY2016.
Net Income marign jumped on 465 pp from -556% to -91.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Niko Resources Ltd's CAPEX/Revenue was 29.3% in FY2016. Niko Resources Ltd's CAPEX/Revenue dropped on 72.9 pp from 102% in FY2013 to 29.3% in FY2016. Average CAPEX/Revenue for the last three years was 63.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.4x. Net Debt / EBITDA jumped2.2x from to 2.2x in FY2016. Debt decreased on 6.9% while cash dropped on 37.8%.
Appendix 1: Peers in Energy
Below you can find Niko Resources 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 |
|---|
