Strategic Oil & Gas Ltd Net Income surged on 130% in 2016 while Revenue dropped on 44.8%
24.03.2017 • About Strategic Oil & Gas Ltd (
$SOG) • By InTwits
Strategic Oil & Gas Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. -208.0% in FY2015 vs. 39.1% in FY2012
- Strategic Oil & Gas Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -12.4% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 12.4x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Strategic Oil & Gas Ltd ($SOG) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 47.205 | 58.894 | 58.709 | 37.732 | 20.811 | -44.8% |
| Gross Profit | 12.787 | 2.191 | -15.815 | 17.972 | | -100.0% |
| SG&A | | | | 6.655 | | -100.0% |
| EBITDA | 18.452 | 18.058 | 14.220 | -78.468 | | |
| Net Income | -4.788 | -22.316 | -129.490 | -110.115 | 33.242 | |
Balance Sheet
|
|---|
| Cash | 2.510 | 0.226 | 0.360 | 0.003 | | -100.0% |
| Short Term Debt | 34.125 | 63.775 | 29.016 | 52.560 | | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 62.612 | 119.151 | 101.319 | 11.742 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 151.4% | 24.8% | -0.3% | -35.7% | -44.8% | |
| EBITDA growth | -730.5% | -2.1% | -21.3% | -651.8% | | |
| Gross Margin | 27.1% | 3.7% | -26.9% | 47.6% | | -47.6% |
| EBITDA Margin | 39.1% | 30.7% | 24.2% | -208.0% | 0.0% | 208.0% |
| Net Income Margin | -10.1% | -37.9% | -220.6% | -291.8% | 159.7% | 451.6% |
| SG&A, % of revenue | | | | 17.6% | | -17.6% |
| CAPEX, % of revenue | 132.6% | 202.3% | 172.6% | 31.1% | | -31.1% |
| ROIC | -2.4% | -6.3% | -15.6% | -89.5% | | 89.5% |
| ROE | -5.7% | -20.5% | -97.9% | -148.8% | | 148.8% |
| Net Debt/EBITDA | 1.7x | 3.5x | 2.0x | | | 0.0x |
Strategic Oil & Gas Ltd ($SOG) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 5 | 5 | 7 | -62.6% | -55.1% | -39.5% | -11.3% |
| EBITDA | -2 | 0 | -0 | 54 | -190.1% | -93.1% | | |
| Net Income | -7 | -6 | -6 | 52 | | | | |
Balance Sheet
|
|---|
| Cash | 27 | 27 | 23 | 51 | 13,720.3% | 2,989.6% | 857.9% | 1,693,300.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | -100.0% |
| Long Term Debt | 79 | 80 | 84 | 84 | | | | |
Ratios
|
|---|
| Gross Margin | 1.8% | 32.2% | 26.7% | 49.2% | 32.2% | -19.3% | -16.5% | -4.2% |
| EBITDA Margin | -41.1% | 5.3% | -1.3% | 813.0% | -58.2% | -29.5% | 778.9% | 1,154.0% |
| Net Income Margin | -177.4% | -110.2% | -131.7% | 781.0% | -98.7% | -60.7% | 718.3% | 1,202.0% |
Revenue and profitability
The company's Revenue dropped on 44.8%. Annual revenue decline showed slowdown in FY16Q4 - revenue dropped on 11.3%.
Net Income marign surged on 452 pp from -292% to 160% in FY2016.
Appendix 1: Peers in Energy
Below you can find Strategic Oil & Gas Ltd benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 17.0% | -27.7% | -18.0% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | | 24.8% | -0.3% | -35.7% | -44.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($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% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | 27.1% | 3.7% | -26.9% | 47.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($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% | 35.7% | 28.9% | 9.0% | 28.2% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | 39.1% | 30.7% | 24.2% | -208.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($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% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | 132.6% | 202.3% | 172.6% | 31.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($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% |
|---|
| Strategic Oil & Gas Ltd ($SOG) | -2.4% | -6.3% | -15.6% | -89.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($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) | 1.5x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
