BlackPearl Resources Inc reports 127,978% EBITDA growth while 14.4% Revenue decline
23.02.2017 • About BlackPearl Resources Inc (
$PXX) • By InTwits
BlackPearl Resources Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- BlackPearl Resources Inc is a company in decline: 2016 revenue growth was -14.4%, 5 years revenue CAGR was -7.5%
- EBITDA Margin is quite volatile: 32.4% in 2016, 0.0% in 2015, 56.6% in 2014, 45.7% in 2013, 45.3% in 2012
- BlackPearl Resources Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 68.7%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 10.9 in 2016, 68.4 in 2015, 235 in 2014, 93.1 in 2013, 139 in 2012
- The company has unprofitable business model: ROIC is at -2.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BlackPearl Resources Inc ($PXX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 159.0 | 178.4 | 184.5 | 106.0 | 90.8 | -14.4% |
| Gross Profit | 30.1 | 34.2 | 35.6 | -2.2 | 2.8 | |
| SG&A | 7.5 | 8.6 | 8.4 | 7.7 | 6.9 | -10.2% |
| EBITDA | 72.0 | 81.6 | 104.5 | 0.0 | 29.5 | 127,978.3% |
| Net Income | 0.0 | 6.4 | 26.8 | -46.8 | -19.9 | |
Balance Sheet
|
|---|
| Cash | 17.0 | 8.4 | 2.9 | 2.3 | 5.4 | 133.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 29.0 | 88.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 139.2 | 93.1 | 235.1 | 68.4 | 10.9 | -84.0% |
Ratios
|
|---|
| Revenue growth | 18.7% | 12.2% | 3.4% | -42.5% | -14.4% | |
| EBITDA growth | 4.0% | 13.3% | 28.0% | -100.0% | 127,978.3% | |
| Gross Margin | 18.9% | 19.1% | 19.3% | -2.1% | 3.1% | 5.2% |
| EBITDA Margin | 45.3% | 45.7% | 56.6% | 0.0% | 32.4% | 32.4% |
| Net Income Margin | 0.0% | 3.6% | 14.5% | -44.1% | -21.9% | 22.2% |
| SG&A, % of revenue | 4.7% | 4.8% | 4.6% | 7.2% | 7.6% | 0.4% |
| CAPEX, % of revenue | 87.5% | 52.2% | 127.4% | 64.5% | 12.0% | -52.5% |
| ROIC | 0.5% | 1.7% | 5.9% | -7.2% | -2.2% | 5.0% |
| ROE | 0.0% | 1.2% | 4.3% | -7.1% | -3.2% | 3.9% |
| Net Debt/EBITDA | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x | -3,726.3x |
BlackPearl Resources Inc ($PXX) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 17 | 18 | 30 | 26 | -14.8% | -0.6% | -18.4% | -12.4% |
| EBITDA | 3 | 3 | 14 | 10 | | 626.4% | -33.1% | |
| Net Income | -9 | -9 | 1 | -2 | | | -89.7% | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 4 | 5 | -79.2% | -84.7% | -22.7% | 133.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -100.0% | -100.0% | |
| Long Term Debt | 86 | 80 | 67 | 0 | 10.3% | 1.3% | -18.3% | -100.0% |
Ratios
|
|---|
| Gross Margin | -17.0% | -21.9% | 21.0% | 13.3% | 28.9% | 25.0% | -11.7% | 7.0% |
| EBITDA Margin | 14.8% | 17.4% | 46.5% | 38.5% | 14.9% | 15.0% | -10.2% | 120.8% |
| Net Income Margin | -53.8% | -50.1% | 1.9% | -8.6% | 0.0% | 6.0% | -12.9% | 97.5% |
Revenue and profitability
BlackPearl Resources Inc's Revenue dropped on 14.4%. Annual revenue decline showed slowdown in 16Q4 - revenue dropped on 12.4%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 32.4 pp from 0.022% to 32.4% in 2016.
Gross Margin increased on 5.2 pp from -2.1% to 3.1% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign jumped on 22.2 pp from -44.1% to -21.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 12.0% in 2016. CAPEX/Revenue dropped on 40.1 pp from 52.2% in 2013 to 12.0% in 2016. It's average level of CAPEX/Revenue for the last three years was 68.0%.
Return on investment
The company operates at negative ROIC (-2.23%) and ROE (-3.16%). ROIC increased on 5.0 pp from -7.2% to -2.2% in 2016. ROE increased on 3.9 pp from -7.1% to -3.2% in 2016.
Leverage (Debt)
The company paid down all the debt in 2016. Cash surged on 133%.
Management team
The company's CEO is John L Festival. John L Festival is a founder and has 9 years tenure at the company. The company's CFO is Donald W Cook "Don". Donald W Cook "Don" has 9 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find BlackPearl Resources 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% | -19.1% |
|---|
| BlackPearl Resources Inc ($PXX) | | 12.2% | 3.4% | -42.5% | -14.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% |
|---|
| BlackPearl Resources Inc ($PXX) | 18.9% | 19.1% | 19.3% | -2.1% | 3.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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) | 25.3% | 34.1% | 28.9% | 9.0% | 27.3% |
|---|
| BlackPearl Resources Inc ($PXX) | 45.3% | 45.7% | 56.6% | 0.0% | 32.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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) | 42.3% | 39.0% | 45.0% | 27.6% | 23.8% |
|---|
| BlackPearl Resources Inc ($PXX) | 87.5% | 52.2% | 127.4% | 64.5% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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 (128 companies) | 3.9% | 5.8% | 5.5% | -8.5% | -1.9% |
|---|
| BlackPearl Resources Inc ($PXX) | 0.5% | 1.7% | 5.9% | -7.2% | -2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paramount Resources Ltd ($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 ($TET) | 2.6x | 1.8x | 2.3x | 25.5x | 7.3x |
| TransCanada Corp ($TRP) | 5.5x | 5.7x | 5.7x | 22.1x | 9.6x |
| |
|---|
| Median (78 companies) | 1.6x | 1.5x | 1.4x | 2.6x | 2.7x |
|---|
| BlackPearl Resources Inc ($PXX) | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x |
