Bonavista Energy Corp reports 56.7% CAPEX decline and 28.0% Revenue decline
02.03.2017 • About Bonavista Energy Corp (
$BNP) • By InTwits
Bonavista Energy Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bonavista Energy Corp is a company in decline: 2016 revenue growth was -28.0%, 5 years revenue CAGR was -10.9%
- Bonavista Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 55.6%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 166 in 2016, 383 in 2015, 685 in 2014, 460 in 2013, 417 in 2012
- The company has unprofitable business model: ROIC is at -3.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.7x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bonavista Energy Corp ($BNP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 716.8 | 826.2 | 905.5 | 695.0 | 500.3 | -28.0% |
| Gross Profit | 448.6 | 550.4 | 637.0 | 467.6 | 337.1 | -27.9% |
| SG&A | 27.0 | 30.8 | 32.0 | 32.5 | 27.1 | -16.5% |
| EBITDA | 463.1 | 517.5 | 829.3 | 379.0 | 229.2 | -39.5% |
| Net Income | 64.2 | 49.5 | 4.8 | -751.5 | -96.0 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 86.0 | |
| Short Term Debt | 0.0 | 0.0 | 50.0 | 34.6 | 154.3 | 346.1% |
| Long Term Debt | 889.1 | 1,046.2 | 989.7 | 1,231.0 | 775.9 | -37.0% |
Cash flow
|
|---|
| Capex | 416.7 | 460.1 | 685.1 | 383.5 | 166.0 | -56.7% |
Ratios
|
|---|
| Revenue growth | -19.5% | 15.3% | 9.6% | -23.3% | -28.0% | |
| EBITDA growth | -18.5% | 11.7% | 60.2% | -54.3% | -39.5% | |
| Gross Margin | 62.6% | 66.6% | 70.4% | 67.3% | 67.4% | 0.1% |
| EBITDA Margin | 64.6% | 62.6% | 91.6% | 54.5% | 45.8% | -8.7% |
| Net Income Margin | 9.0% | 6.0% | 0.5% | -108.1% | -19.2% | 89.0% |
| SG&A, % of revenue | 3.8% | 3.7% | 3.5% | 4.7% | 5.4% | 0.7% |
| CAPEX, % of revenue | 58.1% | 55.7% | 75.7% | 55.2% | 33.2% | -22.0% |
| ROIC | 4.0% | 4.8% | 4.4% | -24.1% | -3.4% | 20.7% |
| ROE | 3.0% | 2.2% | 0.2% | -38.5% | -6.2% | 32.3% |
| Net Debt/EBITDA | 1.9x | 2.0x | 1.3x | 3.3x | 3.7x | 0.3x |
Bonavista Energy Corp ($BNP) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 122 | 118 | 121 | 139 | -32.4% | -31.4% | -30.3% | -17.3% |
| EBITDA | 101 | -11 | 58 | 80 | 13.3% | -109.1% | -36.9% | -1.9% |
| Net Income | 46 | -101 | -29 | -12 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 86 | | | | |
| Short Term Debt | 32 | 32 | 33 | 154 | -35.1% | -60.2% | -60.7% | 346.1% |
| Long Term Debt | 1,173 | 1,035 | 920 | 776 | 2.5% | -7.3% | -20.9% | -37.0% |
Ratios
|
|---|
| Gross Margin | 64.0% | 66.0% | 69.7% | 69.6% | -1.3% | -1.2% | 1.8% | 0.6% |
| EBITDA Margin | 82.9% | -8.9% | 48.1% | 57.6% | 33.5% | -76.1% | -5.0% | 9.0% |
| Net Income Margin | 38.0% | -85.7% | -24.2% | -8.7% | 81.6% | -84.6% | 99.9% | 262.3% |
Revenue and profitability
Bonavista Energy Corp's Revenue dropped on 28.0%. Annual revenue decline showed slowdown in 16Q4 - revenue dropped on 17.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 38.1 pp from 69.7% to 108% in 2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue increased slightly on 0.75 pp from 4.7% to 5.4% in 2016.
Net Income marign jumped on 89.0 pp from -108% to -19.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
Bonavista Energy Corp's CAPEX/Revenue was 33.2% in 2016. CAPEX/Revenue dropped on 22.5 pp from 55.7% in 2013 to 33.2% in 2016. It's average CAPEX/Revenue for the last three years was 54.7%.Bonavista Energy Corp invested a big chunk of EBITDA (72.4%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-3.36%) and ROE (-6.18%). ROIC jumped on 20.7 pp from -24.1% to -3.4% in 2016. ROE surged on 32.3 pp from -38.5% to -6.2% in 2016.
Leverage (Debt)
Debt level is 3.7x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 3.3x to 3.7x in 2016. Debt dropped on 26.5% while cash surged.
Management team
The company's CEO is Jason E Skehar. Jason E Skehar is a founder and has 6 years tenure at the company. The company's CFO is Dean Mark Kobelka. Dean Mark Kobelka has 3 years tenure at the company.
Appendix 1: Peers in Energy
Below we provide Bonavista Energy Corp benchmarking against other companies in Energy industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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% | -29.5% | -18.0% |
|---|
| Bonavista Energy Corp ($BNP) | | 15.3% | 9.6% | -23.3% | -28.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% | 32.1% | 32.2% | 33.6% | 31.5% |
|---|
| Bonavista Energy Corp ($BNP) | 62.6% | 66.6% | 70.4% | 67.3% | 67.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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% | 8.1% | 27.3% |
|---|
| Bonavista Energy Corp ($BNP) | 64.6% | 62.6% | 91.6% | 54.5% | 45.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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) | 42.3% | 39.0% | 45.0% | 27.6% | 22.9% |
|---|
| Bonavista Energy Corp ($BNP) | 58.1% | 55.7% | 75.7% | 55.2% | 33.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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% | 5.8% | 5.7% | -8.2% | -1.9% |
|---|
| Bonavista Energy Corp ($BNP) | 4.0% | 4.8% | 4.4% | -24.1% | -3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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 | 2.6x | 2.6x |
|---|
| Bonavista Energy Corp ($BNP) | 1.9x | 2.0x | 1.3x | 3.3x | 3.7x |
