PetroAsian Energy Holdings Ltd revenue decline accelerated from 0.96% in FY2014 to 18.1% in FY2015
26/06/2015 • About PetroAsian Energy Holdings Ltd (
$850) • By InTwits
PetroAsian Energy Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PetroAsian Energy Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -13.4%
- The company operates at negative EBITDA Margin: -10.9%
- PetroAsian Energy Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -15.5% for the sames years0
- PetroAsian Energy Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.8%. At the same time it's in pair with industry average of 18.7%.
- CAPEX is quite volatile: 6.6 in FY2015, 2.3 in FY2014, 10.1 in FY2013, 54.0 in FY2012, 173 in FY2011
- The company has unprofitable business model: ROIC is at -13.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PetroAsian Energy Holdings Ltd ($850) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 282.4 | 340.0 | 991.8 | 982.3 | 804.2 | -18.1% |
| Gross Profit | 18.2 | 36.3 | 40.4 | 26.7 | 3.0 | -88.9% |
| SG&A | | | | | 80.1 | |
| EBITDA | -172.0 | -113.2 | -56.6 | -96.7 | -87.7 | -9.3% |
| Net Income | -305.5 | -176.9 | -115.3 | -151.2 | -148.3 | -1.9% |
Balance Sheet
|
|---|
| Cash | 165.6 | 77.5 | 110.5 | 134.7 | 212.8 | 58.0% |
| Short Term Debt | 24.5 | 53.8 | 54.5 | 75.6 | 75.2 | -0.5% |
| Long Term Debt | 44.2 | 0.0 | 0.0 | 52.6 | 263.3 | 400.9% |
Cash flow
|
|---|
| Capex | 172.6 | 54.0 | 10.1 | 2.3 | 6.6 | 185.9% |
Ratios
|
|---|
| Revenue growth | -8.3% | 20.4% | 191.7% | -1.0% | -18.1% | |
| EBITDA growth | 8.4% | -34.2% | -50.0% | 71.0% | -9.3% | |
| Gross Margin | 6.4% | 10.7% | 4.1% | 2.7% | 0.4% | -2.4% |
| EBITDA Margin | -60.9% | -33.3% | -5.7% | -9.8% | -10.9% | -1.1% |
| Net Income Margin | -108.2% | -52.0% | -11.6% | -15.4% | -18.4% | -3.1% |
| SG&A, % of revenue | | | | | 10.0% | 10.0% |
| CAPEX, % of revenue | 61.1% | 15.9% | 1.0% | 0.2% | 0.8% | 0.6% |
| ROIC | -20.7% | -16.2% | -10.3% | -15.5% | -13.4% | 2.1% |
| ROE | -37.1% | -23.0% | -16.7% | -23.9% | -28.4% | -4.5% |
Revenue and profitability
PetroAsian Energy Holdings Ltd's Revenue dropped on 18.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.9 pp from 30.7% to 47.6% in 2015.
Gross Margin decreased on 2.4 pp from 2.7% to 0.37% in FY2015.
Net Income marign decreased on 3.1 pp from -15.4% to -18.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.82% in FY2015. CAPEX/Revenue dropped on 15.1 pp from 15.9% in FY2012 to 0.82% in FY2015. For the last three years the average CAPEX/Revenue was 0.69%.
Return on investment
The company operates at negative ROIC (-13.42%) and ROE (-28.42%). ROIC increased on 2.1 pp from -15.5% to -13.4% in FY2015. ROE decreased on 4.5 pp from -23.9% to -28.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 164% in FY2015 while cash jumped on 58.0% in FY2015.
Appendix 1: Peers in Oil&Gas
Below you can find PetroAsian Energy Holdings Ltd benchmarking vs. other companies in Oil&Gas 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China CBM Group Co Ltd ($8270) | 9.9% | -27.6% | 1.8% | 60.9% | |
| Brightoil Petroleum Holdings Ltd ($933) | 190.1% | 76.9% | -20.8% | 52.5% | |
| United Energy Group Ltd ($467) | 3,819.1% | 266.5% | 49.0% | 27.8% | |
| Yanchang Petroleum International Ltd ($346) | -1.8% | 641.9% | 155.6% | 15.5% | |
| Kunlun Energy Co Ltd ($135) | 49.5% | 27.2% | 31.8% | 10.6% | |
| |
|---|
| Median (17 companies) | 30.7% | 10.3% | 3.7% | -3.9% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | | 20.4% | 191.7% | -1.0% | -18.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EPI Holdings Ltd ($689) | 0.3% | 58.0% | 50.7% | 54.6% | |
| United Energy Group Ltd ($467) | 15.4% | 39.4% | 48.0% | 53.8% | |
| Enviro Energy International Holdings Ltd ($1102) | 25.0% | 49.3% | 76.9% | 38.6% | |
| South Sea Petroleum Holdings Ltd ($76) | 48.2% | 27.3% | 25.3% | 38.5% | |
| Zhongyu Gas Holdings Ltd ($3633) | 23.9% | 23.6% | 23.8% | 24.9% | |
| |
|---|
| Median (11 companies) | 6.2% | 6.9% | 6.8% | 10.6% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | 6.4% | 10.7% | 4.1% | 2.7% | 0.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Energy Group Ltd ($467) | 100.6% | 71.2% | 65.3% | 69.8% | |
| MIE Holdings Corp ($1555) | 58.1% | 57.0% | 54.5% | 57.1% | |
| CNOOC Ltd ($883) | 50.3% | 48.5% | 47.2% | 50.7% | |
| Sino Oil And Gas Holdings Ltd ($702) | -273.6% | -170.8% | -132.3% | 49.6% | |
| Kunlun Energy Co Ltd ($135) | 46.8% | 47.0% | 39.5% | 34.9% | |
| |
|---|
| Median (17 companies) | 5.6% | 5.2% | 4.1% | 6.9% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | -60.9% | -33.3% | -5.7% | -9.8% | -10.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enviro Energy International Holdings Ltd ($1102) | 1,208.5% | 301.4% | 46.5% | 111.0% | |
| MIE Holdings Corp ($1555) | 43.9% | 52.2% | 43.3% | 44.1% | |
| United Energy Group Ltd ($467) | 60.0% | 37.2% | 62.7% | 42.4% | |
| CNOOC Ltd ($883) | 21.9% | 25.4% | 30.3% | 34.8% | |
| China CBM Group Co Ltd ($8270) | 52.3% | 58.1% | 81.7% | 22.5% | |
| |
|---|
| Median (17 companies) | 17.6% | 12.5% | 10.7% | 11.0% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | 61.1% | 15.9% | 1.0% | 0.2% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 32.4% | 25.7% | 18.1% | 15.8% | |
| United Energy Group Ltd ($467) | 3.6% | 7.4% | 10.3% | 15.7% | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 5.4% | 7.3% | 12.6% | 13.0% | |
| Zhongyu Gas Holdings Ltd ($3633) | 10.6% | 17.4% | 15.0% | 12.3% | |
| Kunlun Energy Co Ltd ($135) | 12.3% | 13.0% | 12.6% | 11.0% | |
| |
|---|
| Median (19 companies) | 4.5% | 4.2% | 6.3% | 4.7% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | -20.7% | -16.2% | -10.3% | -15.5% | -13.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Titan Petrochemicals Group Ltd ($1192) | | | | 95.2x | |
| Sino Oil And Gas Holdings Ltd ($702) | | | | 55.5x | |
| Zhongyu Gas Holdings Ltd ($3633) | 2.0x | 1.6x | 2.3x | 3.7x | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 8.3x | 6.0x | 4.3x | 3.6x | |
| China CBM Group Co Ltd ($8270) | 1.3x | 3.2x | | 3.3x | |
| |
|---|
| Median (13 companies) | 1.2x | 1.5x | 1.1x | 2.2x | |
|---|
