Parkland Fuel Corp Debt jumped on 81.5% in 2016 and EBITDA surged on 23.8%
02.03.2017 • About Parkland Fuel Corp (
$PKI) • By InTwits
Parkland Fuel Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parkland Fuel Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 140 in FY2016, 130 in FY2015, 50 in FY2014, 146 in FY2013, 176 in FY2012
- The company has business model with low profitability: ROIC is at 8.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.6x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parkland Fuel Corp ($PKI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,134 | 5,663 | 7,528 | 6,300 | 6,266 | -0.5% |
| Gross Profit | 437 | 520 | 538 | 627 | 717 | 14.4% |
| SG&A | 80 | 112 | 133 | 162 | 178 | 10.3% |
| EBITDA | 205 | 218 | 162 | 184 | 228 | 23.8% |
| Net Income | 85 | 92 | 50 | 39 | 47 | 19.5% |
Balance Sheet
|
|---|
| Cash | 15 | 9 | 203 | 37 | 26 | -30.3% |
| Short Term Debt | 1 | 4 | 8 | 20 | 299 | 1,412.3% |
| Long Term Debt | 290 | 267 | 435 | 441 | 538 | 22.0% |
Cash flow
|
|---|
| Capex | 49 | 56 | 50 | 73 | 95 | 29.8% |
Ratios
|
|---|
| Revenue growth | 3.8% | 37.0% | 32.9% | -16.3% | -0.5% | |
| EBITDA growth | 37.4% | 6.6% | -25.5% | 13.2% | 23.8% | |
| Gross Margin | 10.6% | 9.2% | 7.1% | 9.9% | 11.4% | 1.5% |
| EBITDA Margin | 4.9% | 3.9% | 2.2% | 2.9% | 3.6% | 0.7% |
| Net Income Margin | 2.1% | 1.6% | 0.7% | 0.6% | 0.8% | 0.1% |
| SG&A, % of revenue | 1.9% | 2.0% | 1.8% | 2.6% | 2.8% | 0.3% |
| CAPEX, % of revenue | 1.2% | 1.0% | 0.7% | 1.2% | 1.5% | 0.4% |
| ROIC | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% | 0.8% |
| ROE | 26.6% | 23.5% | 10.0% | 5.7% | 5.8% | 0.1% |
| Net Debt/EBITDA | 1.4x | 1.2x | 1.5x | 2.3x | 3.6x | 1.3x |
Parkland Fuel Corp ($PKI) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,318 | 1,570 | 1,638 | 1,740 | -5.3% | 12.9% | -12.0% | 5.1% |
| EBITDA | 56 | 49 | 54 | 69 | 5.9% | 129.6% | 0.2% | 24.4% |
| Net Income | 25 | 5 | 15 | 3 | 25.7% | | 1.3% | -81.0% |
Balance Sheet
|
|---|
| Cash | 23 | 38 | 17 | 26 | -91.7% | 23.6% | -43.3% | -30.3% |
| Short Term Debt | 5 | 4 | 300 | 299 | -90.7% | -93.5% | 582.8% | 1,412.3% |
| Long Term Debt | 432 | 421 | 471 | 538 | -1.5% | -3.6% | 7.0% | 22.0% |
Ratios
|
|---|
| Gross Margin | 13.2% | 10.7% | 10.4% | 11.7% | 2.1% | 1.8% | 1.4% | 0.8% |
| EBITDA Margin | 4.2% | 3.1% | 3.3% | 4.0% | 0.4% | 1.6% | 0.4% | 0.6% |
| Net Income Margin | 1.9% | 0.3% | 0.9% | 0.2% | 0.5% | 1.0% | 0.1% | -0.8% |
Revenue and profitability
The company's Revenue decreased slightly on 0.53%. Annual revenue decline showed slowdown in 16Q4 - revenue increased on 5.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.71 pp from 2.9% to 3.6% in 2016.
Gross Margin increased slightly on 1.5 pp from 9.9% to 11.4% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
Parkland Fuel Corp's CAPEX/Revenue was 1.5% in 2016. The company showed small growth in CAPEX/Revenue of 0.51 pp from 1.00% in 2013 to 1.5% in 2016. For the last three years the average CAPEX/Revenue was 1.1%.
Return on investment
The company operates at low ROIC (8.58%) and ROE (5.84%). ROIC increased slightly on 0.76 pp from 7.8% to 8.6% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 3.7x. Net Debt / EBITDA jumped on 1.3x from 2.3x to 3.6x in 2016. Debt surged on 81.5% while cash dropped on 30.3%.
Management team
The company's CEO Robert Berthold Espey "Bob" is a founder and has spent 7 years at the company. The company's CFO Michael S Mcmillan "Mike" has spent 3 years at the company.
Appendix 1: Peers in Energy
Below you can find Parkland Fuel 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) | | 15.4% | 16.9% | -29.5% | -19.1% |
|---|
| Parkland Fuel Corp ($PKI) | | 37.0% | 32.9% | -16.3% | -0.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% |
|---|
| Parkland Fuel Corp ($PKI) | 10.6% | 9.2% | 7.1% | 9.9% | 11.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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) | 25.9% | 35.7% | 28.9% | 9.0% | 29.2% |
|---|
| Parkland Fuel Corp ($PKI) | 4.9% | 3.9% | 2.2% | 2.9% | 3.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% |
|---|
| Parkland Fuel Corp ($PKI) | 1.2% | 1.0% | 0.7% | 1.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| Pembina Pipeline Corp ($PPL) | 8.2% | 8.5% | 7.6% | 6.3% | 6.9% |
| |
|---|
| Median (128 companies) | 3.6% | 5.4% | 5.5% | -8.5% | -1.9% |
|---|
| Parkland Fuel Corp ($PKI) | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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) | 1.6x | 1.5x | 1.4x | 2.7x | 2.6x |
|---|
| Parkland Fuel Corp ($PKI) | 1.4x | 1.2x | 1.5x | 2.3x | 3.6x |
