United Energy Group Ltd Net Income dropped on 261% in 2015 and EBITDA Margin dropped on 102 pp from 69.8% to -31.9%
08/03/2016 • About United Energy Group Ltd (
$467) • By InTwits
United Energy Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Energy Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -25.0%
- EBITDA Margin is quite volatile: -31.9% in 2015, 69.8% in 2014, 65.3% in 2013, 71.2% in 2012, 100.6% in 2011
- United Energy Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 50.3%. At the same time it's a lot of higher than industry average of 19.1%.
- CAPEX is quite volatile: 2,662 in 2015, 2,593 in 2014, 3,000 in 2013, 1,196 in 2012, 526 in 2011
- The company has unprofitable business model: ROIC is at -25.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Energy Group Ltd ($467) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 877 | 3,214 | 4,788 | 6,120 | 5,418 | -11.5% |
| Gross Profit | 135 | 1,266 | 2,300 | 3,291 | 2,793 | -15.1% |
| SG&A | 273 | 356 | 368 | 481 | 403 | -16.3% |
| EBITDA | 882 | 2,288 | 3,125 | 4,274 | -1,730 | -140.5% |
| Net Income | 532 | 786 | 1,215 | 1,828 | -2,944 | -261.0% |
Balance Sheet
|
|---|
| Cash | 482 | 1,111 | 1,710 | 2,494 | 2,574 | 3.2% |
| Short Term Debt | 103 | 164 | 665 | 768 | 1,460 | 90.1% |
| Long Term Debt | 4,914 | 4,836 | 4,368 | 4,318 | 3,120 | -27.7% |
Cash flow
|
|---|
| Capex | 526 | 1,196 | 3,000 | 2,593 | 2,662 | 2.7% |
Ratios
|
|---|
| Revenue growth | 3,819.1% | 266.5% | 49.0% | 27.8% | -11.5% | |
| EBITDA growth | 81.4% | 159.3% | 36.6% | 36.8% | -140.5% | |
| Gross Margin | 15.4% | 39.4% | 48.0% | 53.8% | 51.5% | -2.2% |
| EBITDA Margin | 100.6% | 71.2% | 65.3% | 69.8% | -31.9% | -101.8% |
| Net Income Margin | 60.7% | 24.5% | 25.4% | 29.9% | -54.3% | -84.2% |
| SG&A, % of revenue | 31.1% | 11.1% | 7.7% | 7.9% | 7.4% | -0.4% |
| CAPEX, % of revenue | 60.0% | 37.2% | 62.7% | 42.4% | 49.1% | 6.8% |
| ROIC | 3.6% | 7.4% | 10.3% | 15.7% | -25.0% | -40.7% |
| ROE | 9.8% | 12.7% | 16.6% | 20.6% | -35.5% | -56.1% |
| Net Debt/EBITDA | 5.1x | 1.7x | 1.1x | 0.6x | | -0.6x |
Revenue and profitability
United Energy Group Ltd's Revenue dropped on 11.5% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 102 pp from 69.8% to -31.9% in 2015.
Gross Margin decreased on 2.2 pp from 53.8% to 51.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 84.2 pp from 29.9% to -54.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 49.1%. United Energy Group Ltd's CAPEX/Revenue jumped on 11.9 pp from 37.2% in 2012 to 49.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 51.4%.
Return on investment
The company operates at negative ROIC (-25.02%) and ROE (-35.49%). ROIC dropped on 40.7 pp from 15.7% to -25.0% in 2015. ROE dropped on 56.1 pp from 20.6% to -35.5% in 2015.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.6x to in 2015. Debt decreased on 9.9% in 2015 while cash increased on 3.2% in 2015.
Appendix 1: Peers in Oil&Gas
Below you can find United Energy Group 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) | | 76.9% | -20.8% | 52.5% | -12.3% |
| 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% | |
| Zhongyu Gas Holdings Ltd ($3633) | 53.4% | 53.5% | 13.7% | 9.0% | |
| |
|---|
| Median (17 companies) | 26.5% | 10.3% | 3.7% | -3.9% | -15.2% |
|---|
| United Energy Group Ltd ($467) | | 266.5% | 49.0% | 27.8% | -11.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EPI Holdings Ltd ($689) | 0.3% | 58.0% | 50.7% | 54.6% | |
| 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% | |
| COSCO International Holdings Ltd ($517) | 8.4% | 6.9% | 7.5% | 10.6% | |
| |
|---|
| Median (11 companies) | 6.2% | 6.9% | 4.1% | 8.7% | 1.5% |
|---|
| United Energy Group Ltd ($467) | 15.4% | 39.4% | 48.0% | 53.8% | 51.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Zhongyu Gas Holdings Ltd ($3633) | 15.3% | 18.6% | 18.9% | 21.0% | |
| |
|---|
| Median (17 companies) | 4.0% | 3.7% | 1.4% | 5.9% | -3.1% |
|---|
| United Energy Group Ltd ($467) | 100.6% | 71.2% | 65.3% | 69.8% | -31.9% |
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% | |
| 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% | |
| Kunlun Energy Co Ltd ($135) | 52.1% | 46.7% | 35.5% | 19.9% | |
| |
|---|
| Median (17 companies) | 17.6% | 12.5% | 6.7% | 4.5% | 0.9% |
|---|
| United Energy Group Ltd ($467) | 60.0% | 37.2% | 62.7% | 42.4% | 49.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 32.4% | 25.7% | 18.1% | 15.8% | |
| 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% | |
| MIE Holdings Corp ($1555) | 24.4% | 17.5% | 11.8% | 9.7% | |
| |
|---|
| Median (19 companies) | 4.5% | 3.8% | 1.6% | 1.5% | 0.2% |
|---|
| United Energy Group Ltd ($467) | 3.6% | 7.4% | 10.3% | 15.7% | -25.0% |
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 (12 companies) | 1.2x | 1.5x | 1.1x | 2.7x | 2.9x |
|---|
| United Energy Group Ltd ($467) | 5.1x | 1.7x | 1.1x | 0.6x | |
