Hans Energy Co Ltd Net Debt / EBITDA dropped on 1.7x from 12.9x to 11.3x in 2015 while EBITDA increased on 5.3%
21/03/2016 • About Hans Energy Co Ltd (
$554) • By InTwits
Hans Energy Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hans Energy Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.2%
- EBITDA Margin is quite volatile: 42.7% in 2015, 42.8% in 2014, 45.0% in 2013, 40.4% in 2012, -38.3% in 2011
- Hans Energy Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.3%. At the same time it's a lot of higher than industry average of 15.1%.
- CAPEX is quite volatile: 10.8 in 2015, 5.3 in 2014, 15.4 in 2013, 33.2 in 2012, 103 in 2011
- The company has unprofitable business model: ROIC is at -2.2%
- It operates with high leverage: Net Debt/EBITDA is 11.3x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hans Energy Co Ltd ($554) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 144.9 | 204.0 | 220.4 | 211.5 | 223.2 | 5.5% |
| Gross Profit | 38.8 | 11.5 | 24.9 | 18.0 | 30.0 | 66.4% |
| SG&A | | | | 57.8 | 63.3 | 9.5% |
| EBITDA | -55.5 | 82.4 | 99.3 | 90.4 | 95.3 | 5.3% |
| Net Income | -133.9 | -116.7 | -108.1 | -108.8 | -94.5 | -13.2% |
Balance Sheet
|
|---|
| Cash | 68.3 | 73.6 | 57.0 | 37.9 | 52.7 | 38.9% |
| Short Term Debt | 1,179.6 | 52.3 | 28.4 | 63.4 | 109.2 | 72.3% |
| Long Term Debt | 0.0 | 1,174.1 | 1,210.9 | 1,143.4 | 1,016.9 | -11.1% |
Cash flow
|
|---|
| Capex | 102.6 | 33.2 | 15.4 | 5.3 | 10.8 | 103.9% |
Ratios
|
|---|
| Revenue growth | -9.2% | 40.8% | 8.0% | -4.0% | 5.5% | |
| EBITDA growth | -160.0% | -248.4% | 20.5% | -8.9% | 5.3% | |
| Gross Margin | 26.7% | 5.6% | 11.3% | 8.5% | 13.4% | 4.9% |
| EBITDA Margin | -38.3% | 40.4% | 45.0% | 42.8% | 42.7% | -0.1% |
| Net Income Margin | -92.4% | -57.2% | -49.0% | -51.4% | -42.3% | 9.1% |
| SG&A, % of revenue | | | | 27.3% | 28.3% | 1.0% |
| CAPEX, % of revenue | 70.8% | 16.3% | 7.0% | 2.5% | 4.8% | 2.3% |
| ROIC | -6.4% | -2.5% | -1.9% | -2.3% | -2.2% | 0.1% |
| ROE | -24.4% | -26.6% | -32.5% | -47.3% | -78.6% | -31.4% |
| Net Debt/EBITDA | | 14.0x | 11.9x | 12.9x | 11.3x | -1.7x |
Revenue and profitability
The company's Revenue increased on 5.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.1 pp from -11.1% to -4.0% in 2015.
Gross Margin increased on 4.9 pp from 8.5% to 13.4% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 27.3% to 28.3% in 2015.
Net Income marign increased on 9.1 pp from -51.4% to -42.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.8% in 2015. CAPEX/Revenue dropped on 11.4 pp from 16.3% in 2012 to 4.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.8%.
Return on investment
The company operates at negative ROIC (-2.21%) and ROE (-78.64%). ROIC showed almost no change in 2015. ROE dropped on 31.4 pp from -47.3% to -78.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.3x and Debt / EBITDA is 11.8x. Net Debt / EBITDA dropped on 1.7x from 12.9x to 11.3x in 2015. Debt decreased on 6.7% in 2015 while cash surged on 38.9% in 2015.
Appendix 1: Peers in Oil&Gas Services
Below we provide Hans Energy Co Ltd benchmarking against other companies in Oil&Gas Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | 196.3% | 207.4% | 105.9% | -36.4% |
| CIMC Enric Holdings Ltd ($3899) | | 18.4% | -0.3% | 39.7% | -26.9% |
| TSC Group Holdings Ltd ($206) | -2.8% | 31.7% | 9.9% | 34.0% | |
| China Oilfield Services Ltd ($2883) | 4.9% | 20.0% | 23.8% | 20.6% | |
| Sinopec Engineering Group Co Ltd ($2386) | | 25.9% | 13.1% | 13.3% | -7.8% |
| |
|---|
| Median (12 companies) | 15.3% | 24.7% | 11.5% | 6.0% | -26.9% |
|---|
| Hans Energy Co Ltd ($554) | | 40.8% | 8.0% | -4.0% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hilong Holding Ltd ($1623) | 41.0% | 39.5% | 40.3% | 39.6% | 32.6% |
| Anton Oilfield Services Group/Hong Kong ($3337) | 41.5% | 45.0% | 44.3% | 31.2% | |
| TSC Group Holdings Ltd ($206) | 38.0% | 30.7% | 31.6% | 27.8% | |
| Jutal Offshore Oil Services Ltd ($3303) | 20.3% | 21.7% | 25.1% | 19.6% | |
| CIMC Enric Holdings Ltd ($3899) | 18.7% | 19.5% | 20.4% | 18.8% | 18.6% |
| |
|---|
| Median (9 companies) | 18.7% | 19.5% | 20.4% | 18.8% | 16.1% |
|---|
| Hans Energy Co Ltd ($554) | 26.7% | 5.6% | 11.3% | 8.5% | 13.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Oilfield Services Ltd ($2883) | 43.7% | 39.8% | 40.0% | 37.0% | |
| Hilong Holding Ltd ($1623) | 28.5% | 25.9% | 27.8% | 28.8% | 22.7% |
| SPT Energy Group Inc ($1251) | 24.7% | 23.8% | 19.8% | 14.1% | -36.0% |
| TSC Group Holdings Ltd ($206) | 11.7% | 11.4% | 14.0% | 13.2% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 18.6% | 24.5% | 28.0% | 12.5% | |
| |
|---|
| Median (12 companies) | 12.8% | 12.4% | 14.0% | 11.0% | 9.3% |
|---|
| Hans Energy Co Ltd ($554) | -38.3% | 40.4% | 45.0% | 42.8% | 42.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Petro-King Oilfield Services Ltd ($2178) | 8.2% | 13.3% | 13.3% | 75.4% | |
| Hilong Holding Ltd ($1623) | 17.1% | 16.7% | 18.9% | 48.1% | 9.6% |
| China Oilfield Services Ltd ($2883) | 24.9% | 16.5% | 30.9% | 29.8% | |
| Anton Oilfield Services Group/Hong Kong ($3337) | 13.3% | 12.6% | 32.2% | 22.8% | |
| Jutal Offshore Oil Services Ltd ($3303) | 6.6% | 12.8% | 8.4% | 12.9% | |
| |
|---|
| Median (12 companies) | 6.7% | 6.4% | 5.2% | 7.3% | 2.5% |
|---|
| Hans Energy Co Ltd ($554) | 70.8% | 16.3% | 7.0% | 2.5% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yuan Heng Gas Holdings Ltd ($332) | | -59.8% | -0.0% | 25.6% | 3.9% |
| CIMC Enric Holdings Ltd ($3899) | 19.4% | 20.3% | 20.0% | 21.3% | 8.9% |
| Sinopec Engineering Group Co Ltd ($2386) | 59.6% | 77.5% | 33.3% | 18.6% | 15.3% |
| Hilong Holding Ltd ($1623) | 19.0% | 15.5% | 14.8% | 12.0% | 6.0% |
| China Oilfield Services Ltd ($2883) | 8.6% | 8.9% | 11.2% | 11.6% | |
| |
|---|
| Median (12 companies) | 8.6% | 11.8% | 12.2% | 10.2% | 6.0% |
|---|
| Hans Energy Co Ltd ($554) | -6.4% | -2.5% | -1.9% | -2.3% | -2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | -0.5x | 0.0x | 0.9x | 7.4x | |
| Yuan Heng Gas Holdings Ltd ($332) | | | | 2.7x | 8.9x |
| Hilong Holding Ltd ($1623) | 0.8x | 0.9x | 1.1x | 2.6x | 3.3x |
| Sinopec Kantons Holdings Ltd ($934) | -1.2x | -7.1x | -7.4x | 2.5x | |
| Jutal Offshore Oil Services Ltd ($3303) | 1.0x | 0.4x | 1.7x | 1.8x | |
| |
|---|
| Median (11 companies) | -0.2x | 0.0x | -0.4x | 1.8x | 1.5x |
|---|
| Hans Energy Co Ltd ($554) | | 14.0x | 11.9x | 12.9x | 11.3x |
