MIE Holdings Corp reports 145% EBITDA decline and 132 pp EBITDA Margin decline from 57.1% to -74.8%
24/03/2016 • About MIE Holdings Corp (
$1555) • By InTwits
MIE Holdings Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MIE Holdings Corp is a company in decline: 2015 revenue growth was -65.4%, 5 years revenue CAGR was -10.6%
- EBITDA Margin is quite volatile: -74.8% in 2015, 57.1% in 2014, 54.5% in 2013, 57.0% in 2012, 58.1% in 2011
- MIE Holdings Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 49.2%. At the same time it's a lot of higher than industry average of 14.3%.
- CAPEX is quite volatile: 243 in 2015, 173 in 2014, 134 in 2013, 136 in 2012, 89.6 in 2011
- The company has unprofitable business model: ROIC is at -17.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MIE Holdings Corp ($1555) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,827 | 3,486 | 3,256 | 2,983 | 1,033 | -65.4% |
| SG&A | 122 | 151 | 134 | 160 | 205 | 27.8% |
| EBITDA | 1,641 | 1,986 | 1,774 | 1,702 | -773 | -145.4% |
| Net Income | 1,106 | 544 | 283 | 58 | -1,523 | -2,704.6% |
Balance Sheet
|
|---|
| Cash | 533 | 467 | 275 | 689 | 199 | -71.1% |
| Short Term Debt | 1 | 60 | 60 | 339 | 530 | 56.1% |
| Long Term Debt | 2,463 | 3,328 | 3,590 | 4,175 | 4,424 | 6.0% |
Cash flow
|
|---|
| Capex | 1,242 | 1,821 | 1,409 | 1,314 | 645 | -50.9% |
Ratios
|
|---|
| Revenue growth | 56.6% | 23.3% | -6.6% | -8.4% | -65.4% | |
| EBITDA growth | 41.2% | 21.0% | -10.7% | -4.1% | -145.4% | |
| EBITDA Margin | 58.1% | 57.0% | 54.5% | 57.1% | -74.8% | -131.9% |
| Net Income Margin | 39.1% | 15.6% | 8.7% | 2.0% | -147.5% | -149.5% |
| SG&A, % of revenue | 4.3% | 4.3% | 4.1% | 5.4% | 19.8% | 14.5% |
| CAPEX, % of revenue | 43.9% | 52.2% | 43.3% | 44.1% | 62.4% | 18.4% |
| ROIC | 24.4% | 17.5% | 11.8% | 9.7% | -17.5% | -27.2% |
| ROE | 45.0% | 16.9% | 7.9% | 1.6% | -53.2% | -54.8% |
| Net Debt/EBITDA | 1.2x | 1.5x | 1.9x | 2.2x | | -2.2x |
Revenue and profitability
The company's Revenue dropped on 65.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 132 pp from 57.1% to -74.8% in 2015.
SG&A as a % of Revenue jumped on 14.5 pp from 5.4% to 19.8% in 2015.
Net Income marign dropped on 149 pp from 2.0% to -147% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 62.4% in 2015. MIE Holdings Corp's CAPEX/Revenue jumped on 10.2 pp from 52.2% in 2012 to 62.4% in 2015. It's average CAPEX/Revenue for the last three years was 49.9%.
Return on investment
The company operates at negative ROIC (-17.52%) and ROE (-53.18%). ROIC dropped on 27.2 pp from 9.7% to -17.5% in 2015. ROE dropped on 54.8 pp from 1.6% to -53.2% in 2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 2.2x to in 2015. Debt increased on 9.7% in 2015 while cash dropped on 71.1% in 2015.
Appendix 1: Peers in Oil&Gas
Below you can find MIE Holdings Corp 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% |
| United Energy Group Ltd ($467) | | 266.5% | 49.0% | 27.8% | -11.5% |
| Yanchang Petroleum International Ltd ($346) | -1.8% | 641.9% | 155.6% | 15.5% | |
| Kunlun Energy Co Ltd ($135) | | 27.2% | 31.8% | 10.6% | -13.3% |
| |
|---|
| Median (17 companies) | 15.0% | 10.3% | 8.7% | -1.8% | -15.7% |
|---|
| MIE Holdings Corp ($1555) | | 23.3% | -6.6% | -8.4% | -65.4% |
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% | 51.5% |
| Enviro Energy International Holdings Ltd ($1102) | 25.0% | 49.3% | 76.9% | 38.6% | 3.4% |
| 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 (12 companies) | 6.3% | 8.8% | 5.4% | 9.7% | 3.4% |
|---|
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% | -31.9% |
| CNOOC Ltd ($883) | 50.3% | 48.5% | 47.2% | 50.7% | 53.0% |
| 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% | 30.9% |
| Zhongyu Gas Holdings Ltd ($3633) | 15.3% | 18.6% | 18.9% | 21.0% | |
| |
|---|
| Median (17 companies) | 4.0% | 3.7% | 1.4% | 5.9% | 4.4% |
|---|
| MIE Holdings Corp ($1555) | 58.1% | 57.0% | 54.5% | 57.1% | -74.8% |
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% | 7.9% |
| United Energy Group Ltd ($467) | 60.0% | 37.2% | 62.7% | 42.4% | 49.1% |
| CNOOC Ltd ($883) | 21.9% | 25.4% | 30.3% | 34.8% | 39.5% |
| 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% | 14.2% |
| |
|---|
| Median (17 companies) | 17.6% | 12.5% | 6.7% | 4.5% | 10.2% |
|---|
| MIE Holdings Corp ($1555) | 43.9% | 52.2% | 43.3% | 44.1% | 62.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 32.4% | 25.7% | 18.1% | 15.8% | 3.2% |
| United Energy Group Ltd ($467) | 3.6% | 7.4% | 10.3% | 15.7% | -25.0% |
| 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% | 7.7% |
| |
|---|
| Median (19 companies) | 3.6% | 3.8% | 1.6% | 1.5% | 3.0% |
|---|
| MIE Holdings Corp ($1555) | 24.4% | 17.5% | 11.8% | 9.7% | -17.5% |
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) | 1.3x | 1.6x | 1.0x | 2.5x | 1.7x |
|---|
| MIE Holdings Corp ($1555) | 1.2x | 1.5x | 1.9x | 2.2x | |
