Cequence Energy Ltd revenue decline decelerated to 13.6% in FY2016 vs. 36.5% a year earliner
13.03.2017 • About Cequence Energy Ltd (
$CQE) • By InTwits
Cequence Energy Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cequence Energy Ltd is a company in decline: FY2016 revenue growth was -13.6%, 5 years revenue CAGR was -5.2%
- Cequence Energy Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -11.5% for the sames years0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cequence Energy Ltd ($CQE) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 70.9 | 93.3 | 122.9 | 78.0 | 67.4 | -13.6% |
| Gross Profit | -26.7 | 15.8 | 19.5 | 39.9 | | -100.0% |
| SG&A | | | | 8.0 | | -100.0% |
| EBITDA | 26.9 | 47.9 | 75.2 | -199.6 | | |
| Net Income | -17.7 | -2.6 | 79.4 | -250.1 | -28.1 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 27.7 | 13.2 | | -100.0% |
| Short Term Debt | 23.2 | 22.8 | 0.0 | 0.0 | | |
| Long Term Debt | 0.0 | 56.6 | 57.2 | 57.8 | | -100.0% |
Cash flow
|
|---|
| Capex | 91.7 | 117.9 | 182.5 | 63.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -19.7% | 31.6% | 31.7% | -36.5% | -13.6% | |
| EBITDA growth | -27.9% | 77.7% | 57.1% | -365.5% | | |
| Gross Margin | -37.7% | 16.9% | 15.9% | 51.2% | | -51.2% |
| EBITDA Margin | 38.0% | 51.3% | 61.2% | -256.0% | 0.0% | 256.0% |
| Net Income Margin | -24.9% | -2.8% | 64.6% | -320.6% | -41.6% | 279.0% |
| SG&A, % of revenue | | | | 10.2% | | -10.2% |
| CAPEX, % of revenue | 129.3% | 126.4% | 148.5% | 81.2% | | -81.2% |
| ROIC | -10.7% | 1.1% | 1.5% | -53.1% | | 53.1% |
| ROE | -4.4% | -0.6% | 16.6% | -63.5% | | 63.5% |
| Net Debt/EBITDA | 0.9x | 1.7x | 0.4x | | | 0.0x |
Cequence Energy Ltd ($CQE) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 11 | 14 | 17 | -29.5% | -44.8% | -26.0% | 1.0% |
| EBITDA | 1 | 3 | 5 | 8 | -90.9% | -67.1% | | |
| Net Income | -6 | -12 | -1 | -9 | | -5,064.2% | | |
Balance Sheet
|
|---|
| Cash | 6 | 0 | 5 | 18 | 214.0% | -100.0% | -78.6% | 34.2% |
| Short Term Debt | 0 | 2 | 0 | 0 | | -56.8% | | |
| Long Term Debt | 58 | 58 | 58 | 59 | 1.1% | 1.2% | 1.2% | 1.2% |
Ratios
|
|---|
| Gross Margin | 32.2% | 42.6% | 48.6% | 56.3% | -22.7% | -10.7% | 2.7% | 6.7% |
| EBITDA Margin | 5.7% | 25.2% | 32.9% | 45.4% | -38.3% | -17.0% | 453.5% | 875.4% |
| Net Income Margin | -38.7% | -106.5% | -6.3% | -54.1% | -17.1% | -107.7% | 514.8% | 828.0% |
Revenue and profitability
Cequence Energy Ltd's Revenue dropped on 13.6%. Annual revenue decline showed slowdown in FY16Q4 - revenue increased slightly on 1.0%.
Net Income marign jumped on 279 pp from -321% to -41.6% in FY2016.
Appendix 1: Peers in Energy
Below we provide Cequence Energy Ltd benchmarking against other companies in Energy industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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) | | 15.4% | 16.9% | -27.7% | -19.1% |
|---|
| Cequence Energy Ltd ($CQE) | | 31.6% | 31.7% | -36.5% | -13.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% | 33.6% | 32.0% |
|---|
| Cequence Energy Ltd ($CQE) | -37.7% | 16.9% | 15.9% | 51.2% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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) | 25.3% | 34.1% | 28.9% | 9.0% | 28.2% |
|---|
| Cequence Energy Ltd ($CQE) | 38.0% | 51.3% | 61.2% | -256.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 23.0% |
|---|
| Cequence Energy Ltd ($CQE) | 129.3% | 126.4% | 148.5% | 81.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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) | 3.9% | 5.8% | 5.7% | -8.2% | -1.9% |
|---|
| Cequence Energy Ltd ($CQE) | -10.7% | 1.1% | 1.5% | -53.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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) | 1.6x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
