CWC Energy Services Corp revenue decline decelerated from 43.4% in FY2015 to 10.0% in FY2016
28.02.2017 • About CWC Energy Services Corp (
$CWC) • By InTwits
CWC Energy Services Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CWC Energy Services Corp is a company in decline: FY2016 revenue growth was -10.0%, 5 years revenue CAGR was -7.8%
- EBITDA Margin is declining: in FY2016 vs. -16.5% in FY2015 vs. 21.6% in FY2012
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CWC Energy Services Corp ($CWC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 112.3 | 113.3 | 143.7 | 81.3 | 73.1 | -10.0% |
| Gross Profit | 24.9 | 25.4 | 32.4 | 26.1 | | -100.0% |
| SG&A | | 14.7 | 17.9 | 14.1 | | -100.0% |
| EBITDA | 24.2 | 25.3 | 31.9 | -13.4 | | |
| Net Income | 4.8 | 4.9 | -13.5 | -29.1 | -7.5 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.2 | 0.1 | 0.0 | | -100.0% |
| Short Term Debt | 5.6 | 0.2 | 0.2 | 0.2 | | -100.0% |
| Long Term Debt | 39.4 | 43.8 | 65.5 | 52.0 | | -100.0% |
Cash flow
|
|---|
| Capex | 16.4 | 11.4 | 28.8 | 9.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.6% | 0.9% | 26.8% | -43.4% | -10.0% | |
| EBITDA growth | -12.5% | 4.3% | 26.2% | -142.0% | | |
| Gross Margin | 22.1% | 22.4% | 22.5% | 32.2% | | -32.2% |
| EBITDA Margin | 21.6% | 22.3% | 22.2% | -16.5% | 0.0% | 16.5% |
| Net Income Margin | 4.3% | 4.3% | -9.4% | -35.8% | -10.2% | 25.6% |
| SG&A, % of revenue | | 13.0% | 12.4% | 17.4% | | -17.4% |
| CAPEX, % of revenue | 14.6% | 10.1% | 20.0% | 11.0% | | -11.0% |
| ROIC | 6.8% | 7.0% | 6.2% | -12.1% | | 12.1% |
| ROE | 4.8% | 5.2% | -10.2% | -18.2% | | 18.2% |
| Net Debt/EBITDA | 1.9x | 1.7x | 2.1x | | | 0.0x |
CWC Energy Services Corp ($CWC) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 20 | 14 | 19 | 21 | -29.1% | 2.8% | -12.4% | 11.7% |
| EBITDA | 2 | 1 | 2 | 2 | -52.5% | 262.3% | | |
| Net Income | -1 | -2 | -2 | -2 | -3,863.2% | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | -97.0% | -97.0% | 0.0% | 0.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 22.7% | 19.1% | -3.5% | -14.1% |
| Long Term Debt | 51 | 32 | 34 | 33 | -8.0% | -37.8% | -41.0% | -36.6% |
Ratios
|
|---|
| Gross Margin | 28.5% | 28.8% | 24.6% | 27.4% | -6.0% | 0.7% | -8.3% | -3.4% |
| EBITDA Margin | 11.8% | 6.4% | 8.4% | 10.0% | -5.8% | 4.6% | 73.8% | 35.2% |
| Net Income Margin | -7.2% | -16.4% | -11.0% | -8.2% | -7.4% | 15.4% | 74.6% | 27.7% |
Revenue and profitability
The company's Revenue dropped on 10.0%. Annual revenue decline showed slowdown in FY16Q4 - revenue surged on 11.7%.
Net Income marign surged on 25.6 pp from -35.8% to -10.2% in FY2016.
Appendix 1: Peers in Energy
Below you can find CWC Energy Services Corp benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 16.9% | -27.7% | -19.1% |
|---|
| CWC Energy Services Corp ($CWC) | | 0.9% | 26.8% | -43.4% | -10.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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 (114 companies) | 32.0% | 32.2% | 32.4% | 33.9% | 32.0% |
|---|
| CWC Energy Services Corp ($CWC) | 22.1% | 22.4% | 22.5% | 32.2% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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% | 9.0% | 28.2% |
|---|
| CWC Energy Services Corp ($CWC) | 21.6% | 22.3% | 22.2% | -16.5% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 23.0% |
|---|
| CWC Energy Services Corp ($CWC) | 14.6% | 10.1% | 20.0% | 11.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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) | 3.6% | 5.4% | 5.5% | -8.2% | -1.9% |
|---|
| CWC Energy Services Corp ($CWC) | 6.8% | 7.0% | 6.2% | -12.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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) | 1.5x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
