North American Energy Partners Inc revenue decline decelerated to 24.2% in 2016 vs. 40.4% a year earliner
14.02.2017 • About North American Energy Partners Inc (
$NOA) • By InTwits
North American Energy Partners Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North American Energy Partners Inc is a company in decline: 2016 revenue growth was -24.2%, 5 years revenue CAGR was -24.3%
- EBITDA Margin is expanding: 21.8% in 2016 vs. 16.0% in 2015 vs. 5.3% in 2012
- EBITDA Margin is quite volatile: 21.8% in 2016, 16.0% in 2015, 12.9% in 2014, 5.1% in 2013, 5.3% in 2012
- North American Energy Partners Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 11.1 in 2016, 28.2 in 2015, 94.1 in 2014, 75.0 in 2013, 89.4 in 2012
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North American Energy Partners Inc ($NOA) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 670.7 | 544.6 | 471.8 | 281.3 | 213.2 | -24.2% |
| Gross Profit | 139.5 | 106.3 | 51.4 | 31.9 | 32.3 | 1.4% |
| SG&A | | | | 26.3 | 27.2 | 3.5% |
| EBITDA | 35.3 | 27.5 | 60.9 | 44.9 | 46.4 | 3.4% |
| Net Income | -21.2 | -1.5 | -1.2 | -7.5 | -0.4 | |
Balance Sheet
|
|---|
| Cash | 1.4 | 0.6 | 1.0 | 32.4 | 13.7 | -57.8% |
| Short Term Debt | 14.4 | 21.4 | 22.2 | 30.1 | 32.2 | 7.2% |
| Long Term Debt | 300.1 | 290.7 | 106.1 | 80.9 | 68.6 | -15.2% |
Cash flow
|
|---|
| Capex | 49.5 | 32.6 | 35.1 | 32.5 | 27.1 | -16.7% |
Ratios
|
|---|
| Revenue growth | -21.8% | -18.8% | -13.4% | -40.4% | -24.2% | |
| EBITDA growth | -6.4% | -22.1% | 121.1% | -26.3% | 3.4% | |
| Gross Margin | 20.8% | 19.5% | 10.9% | 11.3% | 15.2% | 3.8% |
| EBITDA Margin | 5.3% | 5.1% | 12.9% | 16.0% | 21.8% | 5.8% |
| Net Income Margin | -3.2% | -0.3% | -0.2% | -2.7% | -0.2% | 2.4% |
| SG&A, % of revenue | | | | 9.3% | 12.8% | 3.4% |
| CAPEX, % of revenue | 7.4% | 6.0% | 7.4% | 11.6% | 12.7% | 1.1% |
| ROIC | -2.9% | -3.0% | 3.5% | 0.9% | 1.3% | 0.4% |
| ROE | -15.4% | -1.1% | -0.7% | -4.1% | -0.3% | 3.9% |
| Net Debt/EBITDA | 8.9x | 11.3x | 2.1x | 1.8x | 1.9x | 0.1x |
North American Energy Partners Inc ($NOA) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 79 | 24 | 48 | 62 | -7.7% | -62.4% | -27.8% | -4.3% |
| EBITDA | 25 | 1 | 8 | 12 | 78.8% | -87.1% | -27.5% | 2.3% |
| Net Income | 6 | -5 | -1 | -0 | | | | |
Balance Sheet
|
|---|
| Cash | 38 | 33 | 23 | 14 | 48.2% | -19.5% | -30.4% | -57.8% |
| Short Term Debt | 40 | 38 | 26 | 32 | 78.3% | 80.3% | -2.5% | 7.2% |
| Long Term Debt | 66 | 62 | 68 | 69 | -32.8% | -32.0% | -7.1% | -15.2% |
Ratios
|
|---|
| Gross Margin | 23.5% | 8.8% | 11.1% | 10.3% | 10.6% | 1.7% | 0.1% | -3.5% |
| EBITDA Margin | 32.3% | 4.1% | 17.3% | 18.7% | 15.6% | -7.9% | 0.1% | 1.2% |
| Net Income Margin | 8.2% | -20.3% | -3.0% | -0.8% | 8.8% | -13.9% | 0.2% | 0.3% |
Revenue and profitability
North American Energy Partners Inc's Revenue dropped on 24.2%. Annual revenue decline showed slowdown in 16Q4 - revenue decreased on 4.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from 16.0% to 21.8% in 2016.
Gross Margin increased on 3.8 pp from 11.3% to 15.2% in 2016. SG&A as a % of Revenue increased on 3.4 pp from 9.3% to 12.8% in 2016.
Net Income marign increased on 2.4 pp from -2.7% to -0.21% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 North American Energy Partners Inc had CAPEX/Revenue of 12.7%. The company showed CAPEX/Revenue growth of 6.7 pp from 6.0% in 2013 to 12.7% in 2016. It's average CAPEX/Revenue for the last three years was 10.6%.The company invested a big chunk of EBITDA (58.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (1.32%) and negative ROE (-0.27%). ROIC showed almost no change in 2016. ROE increased on 3.9 pp from -4.1% to -0.27% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.2x. Net Debt / EBITDA jumped on 0.1x from 1.8x to 1.9x in 2016. Debt decreased on 9.1% while cash dropped on 57.8%.
Appendix 1: Peers in Energy
Below you can find North American Energy Partners Inc 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 (116 companies) | | 16.2% | 17.0% | -27.7% | -18.0% |
|---|
| North American Energy Partners Inc ($NOA) | | -18.8% | -13.4% | -40.4% | -24.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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 (114 companies) | 32.0% | 32.2% | 32.4% | 33.9% | 32.5% |
|---|
| North American Energy Partners Inc ($NOA) | 20.8% | 19.5% | 10.9% | 11.3% | 15.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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 (128 companies) | 25.9% | 35.7% | 28.9% | 8.1% | 29.2% |
|---|
| North American Energy Partners Inc ($NOA) | 5.3% | 5.1% | 12.9% | 16.0% | 21.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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 (129 companies) | 43.8% | 39.2% | 45.6% | 28.1% | 23.8% |
|---|
| North American Energy Partners Inc ($NOA) | 7.4% | 6.0% | 7.4% | 11.6% | 12.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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 (128 companies) | 3.9% | 5.8% | 5.7% | -8.5% | -1.9% |
|---|
| North American Energy Partners Inc ($NOA) | -2.9% | -3.0% | 3.5% | 0.9% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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 (78 companies) | 1.5x | 1.4x | 1.4x | 2.7x | 2.7x |
|---|
| North American Energy Partners Inc ($NOA) | 8.9x | 11.3x | 2.1x | 1.8x | 1.9x |
