Bonterra Energy Corp CAPEX dropped on 29.6% in 2016 and Revenue dropped on 12.9%
14.03.2017 • About Bonterra Energy Corp (
$BNE) • By InTwits
Bonterra Energy Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bonterra Energy Corp doesn't have a profitable business model yet: 2016 ROIC is -0.7%
- Bonterra Energy Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 44.3%. At the same time it's in pair with industry average of 45.3%.
- CAPEX is quite volatile: 40.9 in 2016, 58.0 in 2015, 155 in 2014, 122 in 2013, 84.6 in 2012
- The company has unprofitable business model: ROIC is at -0.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.5x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bonterra Energy Corp ($BNE) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 129.0 | 257.8 | 301.6 | 183.9 | 160.1 | -12.9% |
| Gross Profit | 87.6 | 199.8 | 234.7 | 128.7 | 105.6 | -17.9% |
| SG&A | 2.1 | 4.5 | 3.6 | 3.3 | 2.6 | -21.7% |
| EBITDA | 77.3 | 184.0 | 221.3 | 117.0 | 93.4 | -20.2% |
| Net Income | 33.2 | 62.8 | 38.8 | -9.1 | -24.1 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 166.8 | 156.8 | 154.7 | 332.5 | 329.2 | -1.0% |
Cash flow
|
|---|
| Capex | 84.6 | 121.6 | 155.3 | 58.0 | 40.9 | -29.6% |
Ratios
|
|---|
| Revenue growth | -10.8% | 99.8% | 17.0% | -39.0% | -12.9% | |
| EBITDA growth | -19.5% | 138.2% | 20.3% | -47.1% | -20.2% | |
| Gross Margin | 67.9% | 77.5% | 77.8% | 70.0% | 66.0% | -4.0% |
| EBITDA Margin | 59.9% | 71.4% | 73.4% | 63.6% | 58.4% | -5.3% |
| Net Income Margin | 25.7% | 24.3% | 12.9% | -4.9% | -15.1% | -10.1% |
| SG&A, % of revenue | 1.6% | 1.7% | 1.2% | 1.8% | 1.6% | -0.2% |
| CAPEX, % of revenue | 65.6% | 47.2% | 51.5% | 31.6% | 25.5% | -6.0% |
| ROIC | 10.9% | 10.0% | 9.1% | 1.2% | -0.7% | -1.9% |
| ROE | 19.3% | 15.1% | 6.0% | -1.5% | -4.2% | -2.8% |
| Net Debt/EBITDA | 2.2x | 0.9x | 0.7x | 2.8x | 3.5x | 0.7x |
Bonterra Energy Corp ($BNE) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 31 | 40 | 43 | 46 | -20.4% | -26.7% | -11.1% | 9.9% |
| EBITDA | 15 | 24 | 25 | 29 | -35.4% | -36.8% | -19.6% | 19.4% |
| Net Income | -12 | -6 | -6 | -1 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 345 | 337 | 336 | 329 | 66.5% | -6.8% | 0.0% | -1.0% |
Ratios
|
|---|
| Gross Margin | 58.9% | 67.6% | 64.7% | 70.5% | -7.5% | -6.9% | -5.2% | 3.1% |
| EBITDA Margin | 48.9% | 60.0% | 57.9% | 63.8% | -11.4% | -9.5% | -6.1% | 5.1% |
| Net Income Margin | -37.2% | -13.9% | -13.5% | -2.5% | -32.3% | -9.0% | -12.9% | 11.0% |
Revenue and profitability
The company's Revenue dropped on 12.9%. Annual revenue decline showed slowdown in 16Q4 - revenue increased on 9.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.3 pp from 63.6% to 58.4% in 2016.
Gross Margin decreased on 4.0 pp from 70.0% to 66.0% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign dropped on 10.1 pp from -4.9% to -15.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
Bonterra Energy Corp's CAPEX/Revenue was 25.5% in 2016. CAPEX/Revenue dropped on 21.7 pp from 47.2% in 2013 to 25.5% in 2016. It's average level of CAPEX/Revenue for the last three years was 36.2%.
Return on investment
The company operates at negative ROIC (-0.73%) and ROE (-4.24%). ROIC decreased slightly on 1.9 pp from 1.2% to -0.73% in 2016. ROE decreased on 2.8 pp from -1.5% to -4.2% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.5x and Debt / EBITDA is 3.5x. Net Debt / EBITDA jumped on 0.7x from 2.8x to 3.5x in 2016. Debt decreased slightly on 0.98% while cash didn't change in 2016.
Management team
George F Fink is a the company's CEO. George F Fink is a founder and has spent 16 years at the company. The company's CFO is Robb D Thompson. Robb D Thompson has 7 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Bonterra Energy 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% | -27.7% | -19.1% |
|---|
| Bonterra Energy Corp ($BNE) | | 99.8% | 17.0% | -39.0% | -12.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% |
|---|
| Bonterra Energy Corp ($BNE) | 67.9% | 77.5% | 77.8% | 70.0% | 66.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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) | 25.3% | 34.1% | 28.9% | 8.1% | 27.3% |
|---|
| Bonterra Energy Corp ($BNE) | 59.9% | 71.4% | 73.4% | 63.6% | 58.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | 1,997.8% | 712.8% | |
| WesternZagros Resources Ltd ($WZR) | | | | 385.6% | |
| Athabasca Oil Corp ($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% |
|---|
| Bonterra Energy Corp ($BNE) | 65.6% | 47.2% | 51.5% | 31.6% | 25.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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% |
| 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% | -8.5% | -1.9% |
|---|
| Bonterra Energy Corp ($BNE) | 10.9% | 10.0% | 9.1% | 1.2% | -0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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 | 1.5x | 1.4x | 2.6x | 2.6x |
|---|
| Bonterra Energy Corp ($BNE) | 2.2x | 0.9x | 0.7x | 2.8x | 3.5x |
