Athabasca Oil Corp revenue surged on 73.1% in 2016 and EBITDA Margin jumped on 243 pp from -787% to -543%
09.03.2017 • About Athabasca Oil Corp (
$ATH) • By InTwits
Athabasca Oil Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Athabasca Oil Corp doesn't have a profitable business model yet: 2016 ROIC is -32.9%
- The company operates at negative EBITDA Margin: -543.4%
- Athabasca Oil Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 is 0.0%. Average EBITDA Margin for the same period was -317.6%0
- Athabasca Oil Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 785.3%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 128 in 2016, 279 in 2015, 579 in 2014, 649 in 2013, 596 in 2012
- The company has unprofitable business model: ROIC is at -32.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Athabasca Oil Corp ($ATH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.6 | 108.7 | 114.7 | 88.5 | 153.1 | 73.1% |
| SG&A | 50.3 | 65.5 | 58.9 | 32.5 | 26.2 | -19.4% |
| EBITDA | -54.9 | 56.5 | -28.4 | -695.7 | -831.9 | |
| Net Income | 262.4 | -124.6 | -227.6 | -696.8 | -936.7 | |
Balance Sheet
|
|---|
| Cash | 426.0 | 299.0 | 531.5 | 559.5 | 650.3 | 16.2% |
| Short Term Debt | 0.0 | 0.0 | 2.6 | 3.1 | 546.2 | 17,703.4% |
| Long Term Debt | 529.0 | 533.2 | 786.6 | 838.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 595.8 | 648.5 | 578.7 | 278.8 | 128.1 | -54.1% |
Ratios
|
|---|
| Revenue growth | 606.6% | 342.7% | 5.5% | -22.9% | 73.1% | |
| EBITDA growth | 22.3% | -202.9% | -150.2% | 2,353.1% | 19.6% | |
| EBITDA Margin | -223.7% | 52.0% | -24.7% | -786.5% | -543.4% | 243.1% |
| Net Income Margin | 1,068.8% | -114.6% | -198.5% | -787.7% | -611.9% | 175.9% |
| SG&A, % of revenue | 204.9% | 60.2% | 51.4% | 36.8% | 17.1% | -19.6% |
| CAPEX, % of revenue | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% | -231.5% |
| ROIC | -2.0% | -1.9% | -6.7% | -20.8% | -32.9% | -12.1% |
| ROE | 7.9% | -3.6% | -7.0% | -24.7% | -46.4% | -21.7% |
| Net Debt/EBITDA | | 4.1x | | | | 0.0x |
Athabasca Oil Corp ($ATH) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 34 | 32 | 53 | 35 | 127.3% | 72.7% | 149.4% | 2.0% |
| EBITDA | -27 | -15 | -9 | -781 | | | | |
| Net Income | -65 | -59 | -33 | -779 | | | | |
Balance Sheet
|
|---|
| Cash | 494 | 447 | 535 | 650 | -13.5% | -23.2% | -20.3% | 16.2% |
| Short Term Debt | 3 | 0 | 0 | 546 | 1.3% | -100.0% | -100.0% | 17,703.4% |
| Long Term Debt | 820 | 544 | 545 | 0 | 1.2% | -32.6% | -34.1% | -100.0% |
Ratios
|
|---|
| EBITDA Margin | -80.1% | -47.5% | -16.8% | -2,249.9% | 50.7% | -34.8% | 70.0% | -324.5% |
| Net Income Margin | -194.3% | -187.0% | -62.1% | -2,245.1% | -24.0% | -28.5% | 117.2% | -470.0% |
Revenue and profitability
Athabasca Oil Corp's Revenue jumped on 73.1%. Revenue growth showed slow down in 16Q4 - it was 2.0% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 243 pp from -787% to -543% in 2016.
SG&A as a % of Revenue dropped on 19.6 pp from 36.8% to 17.1% in 2016.
Net Income marign surged on 176 pp from -788% to -612% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 83.7%. Athabasca Oil Corp showed big decline in CAPEX/Revenue of 513 pp from 597% in 2013 to 83.7% in 2016. Average CAPEX/Revenue for the last three years was 301%.
Return on investment
The company operates at negative ROIC (-32.91%) and ROE (-46.38%). ROIC dropped on 12.1 pp from -20.8% to -32.9% in 2016. ROE dropped on 21.7 pp from -24.7% to -46.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2016. Debt dropped on 35.1% while cash surged on 16.2%.
Management team
The company's CEO is Robert Broen "Rob". Robert Broen "Rob" is a founder and has 3 years tenure at the company. Athabasca Oil Corp's CFO Kimberly Anderson "Kim" has spent 4 years at the company.
Appendix 1: Peers in Energy
Below you can find Athabasca Oil 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 ($VII) | | 115.7% | 340.2% | 39.0% | 94.4% |
| Painted Pony Petroleum Ltd ($PPY) | | 41.3% | 56.0% | -42.5% | 60.7% |
| ONEnergy Inc ($OEG) | | | 6,002.6% | 231.5% | 57.4% |
| Ballard Power Systems Inc ($BLD) | | 40.2% | 12.2% | -17.8% | 51.0% |
| |
|---|
| Median (116 companies) | | 15.4% | 17.0% | -29.5% | -19.1% |
|---|
| Athabasca Oil Corp ($ATH) | | 342.7% | 5.5% | -22.9% | 73.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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 (115 companies) | 32.0% | 32.1% | 32.4% | 33.6% | 32.0% |
|---|
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 ($INE) | 111.8% | 110.0% | 82.9% | 83.4% | 83.5% |
| |
|---|
| Median (128 companies) | 25.9% | 34.1% | 28.9% | 9.0% | 29.2% |
|---|
| Athabasca Oil Corp ($ATH) | -223.7% | 52.0% | -24.7% | -786.5% | -543.4% |
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% | |
| 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% |
| Crew Energy Inc ($CR) | 80.1% | 83.7% | 139.5% | 136.8% | 63.8% |
| |
|---|
| Median (129 companies) | 42.3% | 39.0% | 45.0% | 27.6% | 22.9% |
|---|
| Athabasca Oil Corp ($ATH) | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% |
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 ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| |
|---|
| Median (128 companies) | 3.9% | 5.8% | 5.7% | -8.2% | -1.9% |
|---|
| Athabasca Oil Corp ($ATH) | -2.0% | -1.9% | -6.7% | -20.8% | -32.9% |
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) | 1.6x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
