Pacific Basin Shipping Ltd revenue dropped on 26.7% in 2015 while EBITDA Margin jumped on 17.3 pp from -7.8% to 9.5%
29/02/2016 • About Pacific Basin Shipping Ltd (
$2343) • By InTwits
Pacific Basin Shipping Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Basin Shipping Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.0%
- EBITDA Margin is quite volatile: 9.5% in 2015, -7.8% in 2014, 7.1% in 2013, 9.9% in 2012, 17.5% in 2011
- Pacific Basin Shipping Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.2%. At the same time it's in pair with industry average of 17.9%.
- CAPEX is quite volatile: 146 in 2015, 194 in 2014, 458 in 2013, 190 in 2012, 170 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Basin Shipping Ltd ($2343) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,313 | 1,443 | 1,709 | 1,718 | 1,260 | -26.7% |
| Gross Profit | 108 | 85 | 55 | -40 | -4 | -89.6% |
| SG&A | 11 | 14 | 18 | 9 | | -100.0% |
| EBITDA | 230 | 143 | 121 | -134 | 120 | -189.9% |
| Net Income | 32 | -158 | 2 | -285 | -19 | -93.5% |
Balance Sheet
|
|---|
| Cash | 599 | 633 | 483 | 362 | 358 | -0.9% |
| Short Term Debt | 65 | 78 | 329 | 179 | 293 | 63.5% |
| Long Term Debt | 714 | 854 | 709 | 821 | 633 | -22.8% |
Cash flow
|
|---|
| Capex | 170 | 190 | 458 | 194 | 146 | -24.7% |
Ratios
|
|---|
| Revenue growth | 3.5% | 9.9% | 18.4% | 0.6% | -26.7% | |
| EBITDA growth | 16.1% | -37.8% | -15.3% | -210.1% | -189.9% | |
| Gross Margin | 8.3% | 5.9% | 3.2% | -2.3% | -0.3% | 2.0% |
| EBITDA Margin | 17.5% | 9.9% | 7.1% | -7.8% | 9.5% | 17.3% |
| Net Income Margin | 2.4% | -11.0% | 0.1% | -16.6% | -1.5% | 15.1% |
| SG&A, % of revenue | 0.8% | 1.0% | 1.0% | 0.5% | | -0.5% |
| CAPEX, % of revenue | 13.0% | 13.2% | 26.8% | 11.3% | 11.6% | 0.3% |
| ROIC | 6.7% | 3.1% | 1.7% | -10.9% | 1.0% | 11.9% |
| ROE | 2.1% | -11.3% | 0.1% | -24.7% | -1.9% | 22.8% |
| Net Debt/EBITDA | 0.8x | 2.1x | 4.6x | | 4.7x | 4.7x |
Revenue and profitability
Pacific Basin Shipping Ltd's Revenue dropped on 26.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 17.3 pp from -7.8% to 9.5% in 2015.
Gross Margin increased slightly on 2.0 pp from -2.3% to -0.33% in 2015.
Net Income marign surged on 15.1 pp from -16.6% to -1.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 11.6%. Pacific Basin Shipping Ltd showed small CAPEX/Revenue decline of 1.6 pp from 13.2% in 2012 to 11.6% in 2015. Average CAPEX/Revenue for the last three years was 16.6%.Battling declining revenue the company made large investments to CAPEX (122% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.02%) and negative ROE (-1.88%). ROIC surged on 11.9 pp from -10.9% to 1.0% in 2015. ROE jumped on 22.8 pp from -24.7% to -1.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 7.7x. Net Debt / EBITDA jumped4.7x from to 4.7x in 2015. Debt decreased on 7.4% in 2015 while cash decreased slightly on 0.93% in 2015.
Management team
Mats Henrik Berglund is a Pacific Basin Shipping Ltd's CEO. Mats Henrik Berglund has spent 6 years at the company.
Appendix 1: Peers in Transportation
Below you can find Pacific Basin Shipping Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 11.7% | -4.2% | -5.9% | 60.4% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | 71.2% | 17.9% | 30.6% | 23.5% | |
| |
|---|
| Median (28 companies) | 9.8% | 5.1% | 4.0% | 5.6% | -3.0% |
|---|
| Pacific Basin Shipping Ltd ($2343) | | 9.9% | 18.4% | 0.6% | -26.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (25 companies) | 18.7% | 13.0% | 10.9% | 10.3% | -1.2% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 8.3% | 5.9% | 3.2% | -2.3% | -0.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (29 companies) | 15.8% | 10.0% | 8.2% | 9.1% | -4.9% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 17.5% | 9.9% | 7.1% | -7.8% | 9.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (29 companies) | 11.1% | 7.9% | 9.0% | 7.4% | 7.3% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 13.0% | 13.2% | 26.8% | 11.3% | 11.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | |
| |
|---|
| Median (29 companies) | 5.0% | 3.3% | 2.8% | 3.7% | -5.3% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 6.7% | 3.1% | 1.7% | -10.9% | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (23 companies) | -0.0x | 1.2x | 1.5x | 0.9x | 2.8x |
|---|
