Anton Oilfield Services Group/Hong Kong reports 63.1% CAPEX decline and 11.5% Revenue decline
28/03/2016 • About Anton Oilfield Services Group/Hong Kong (
$3337) • By InTwits
Anton Oilfield Services Group/Hong Kong reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anton Oilfield Services Group/Hong Kong doesn't have a profitable business model yet: 2015 ROIC is 2.0%
- Anton Oilfield Services Group/Hong Kong has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 10.0%.
- CAPEX is quite volatile: 175 in 2015, 473 in 2014, 817 in 2013, 253 in 2012, 168 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.0%
- It operates with high leverage: Net Debt/EBITDA is 6.4x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anton Oilfield Services Group/Hong Kong ($3337) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,259 | 2,005 | 2,534 | 2,071 | 1,833 | -11.5% |
| Gross Profit | 523 | 901 | 1,123 | 645 | 583 | -9.7% |
| SG&A | 258 | 386 | 441 | 552 | 467 | -15.5% |
| EBITDA | 234 | 491 | 710 | 260 | 315 | 21.1% |
| Net Income | 77 | 303 | 383 | -198 | -195 | -1.8% |
Balance Sheet
|
|---|
| Cash | 462 | 523 | 1,770 | 760 | 458 | -39.7% |
| Short Term Debt | 331 | 223 | 399 | 993 | 875 | -12.0% |
| Long Term Debt | 15 | 302 | 1,983 | 1,697 | 1,585 | -6.6% |
Cash flow
|
|---|
| Capex | 168 | 253 | 817 | 473 | 175 | -63.1% |
Ratios
|
|---|
| Revenue growth | 32.4% | 59.2% | 26.4% | -18.2% | -11.5% | |
| EBITDA growth | 19.2% | 110.1% | 44.5% | -63.4% | 21.1% | |
| Gross Margin | 41.5% | 45.0% | 44.3% | 31.2% | 31.8% | 0.6% |
| EBITDA Margin | 18.6% | 24.5% | 28.0% | 12.5% | 17.2% | 4.6% |
| Net Income Margin | 6.1% | 15.1% | 15.1% | -9.6% | -10.6% | -1.1% |
| SG&A, % of revenue | 20.5% | 19.3% | 17.4% | 26.7% | 25.5% | -1.2% |
| CAPEX, % of revenue | 13.3% | 12.6% | 32.2% | 22.8% | 9.5% | -13.3% |
| ROIC | 8.8% | 16.7% | 15.3% | 0.8% | 2.0% | 1.2% |
| ROE | 4.7% | 16.6% | 18.0% | -9.1% | -9.9% | -0.7% |
| Net Debt/EBITDA | -0.5x | 0.0x | 0.9x | 7.4x | 6.4x | -1.1x |
Revenue and profitability
The company's Revenue dropped on 11.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.6 pp from 12.5% to 17.2% in 2015.
Gross Margin increased slightly on 0.63 pp from 31.2% to 31.8% in 2015. SG&A as a % of Revenue decreased slightly on 1.2 pp from 26.7% to 25.5% in 2015.
Net Income marign decreased slightly on 1.1 pp from -9.6% to -10.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.5% in 2015. The company showed decline in CAPEX/Revenue of 3.1 pp from 12.6% in 2012 to 9.5% in 2015. It's average CAPEX/Revenue for the last three years was 21.5%.Anton Oilfield Services Group/Hong Kong invested a big chunk of EBITDA (55.5%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (2.00%) and negative ROE (-9.86%). ROIC increased slightly on 1.2 pp from 0.78% to 2.0% in 2015. ROE decreased slightly on 0.72 pp from -9.1% to -9.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.4x and Debt / EBITDA is 7.8x. Net Debt / EBITDA dropped on 1.1x from 7.4x to 6.4x in 2015. Debt decreased on 8.6% in 2015 while cash dropped on 39.7% in 2015.
Management team
Pi Zhifeng is a Anton Oilfield Services Group/Hong Kong's CEO. Pi Zhifeng has spent 2 years at the company.
Appendix 1: Peers in Oil&Gas Services
Below you can find Anton Oilfield Services Group/Hong Kong benchmarking vs. other companies in Oil&Gas Services 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 |
|---|
| 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) | 10.1% | 24.7% | 9.1% | 6.0% | -18.7% |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | | 59.2% | 26.4% | -18.2% | -11.5% |
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% |
| 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% |
| Sinopec Engineering Group Co Ltd ($2386) | 16.6% | 14.3% | 14.7% | 12.7% | 13.5% |
| |
|---|
| Median (9 companies) | 18.7% | 14.3% | 14.7% | 12.7% | 16.1% |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | 41.5% | 45.0% | 44.3% | 31.2% | 31.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hans Energy Co Ltd ($554) | -38.3% | 40.4% | 45.0% | 42.8% | 42.7% |
| 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% | |
| |
|---|
| Median (12 companies) | 12.0% | 12.4% | 14.0% | 11.0% | 10.0% |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | 18.6% | 24.5% | 28.0% | 12.5% | 17.2% |
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% | 12.3% |
| 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% | |
| Jutal Offshore Oil Services Ltd ($3303) | 6.6% | 12.8% | 8.4% | 12.9% | |
| SPT Energy Group Inc ($1251) | 6.8% | 7.4% | 5.6% | 7.9% | 23.5% |
| |
|---|
| Median (12 companies) | 6.7% | 6.4% | 5.2% | 6.3% | 7.2% |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | 13.3% | 12.6% | 32.2% | 22.8% | 9.5% |
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) | 8.3% | 7.8% | 10.1% | 10.2% | 4.4% |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | 8.8% | 16.7% | 15.3% | 0.8% | 2.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hans Energy Co Ltd ($554) | | 14.0x | 11.9x | 12.9x | 11.3x |
| 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 | 2.2x |
| Jutal Offshore Oil Services Ltd ($3303) | 1.0x | 0.4x | 1.7x | 1.8x | |
| |
|---|
| Median (11 companies) | 0.2x | 0.1x | -0.4x | 1.8x | 2.8x |
|---|
| Anton Oilfield Services Group/Hong Kong ($3337) | -0.5x | 0.0x | 0.9x | 7.4x | 6.4x |
