South Sea Petroleum Holdings Ltd revenue increased slightly on 0.85% in 2015 and EBITDA Margin surged on 20.9 pp from -23.4% to -2.5%
31/03/2016 • About South Sea Petroleum Holdings Ltd (
$76) • By InTwits
South Sea Petroleum Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- South Sea Petroleum Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.6%
- The company operates at negative EBITDA Margin: -2.5%
- EBITDA Margin is quite volatile: -2.5% in 2015, -23.4% in 2014, 16.2% in 2013, 14.0% in 2012, 13.4% in 2011
- South Sea Petroleum Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 0.61 in 2015, 2.5 in 2014, 2.6 in 2013, 5.3 in 2012, 4.7 in 2011
- The company has unprofitable business model: ROIC is at -1.6%
- It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
South Sea Petroleum Holdings Ltd ($76) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 92.2 | 111.9 | 370.5 | 82.9 | 83.6 | 0.8% |
| Gross Profit | 44.4 | 30.6 | 93.7 | 31.9 | 18.6 | -41.9% |
| SG&A | | 24.7 | 23.3 | 34.0 | 29.5 | -13.2% |
| EBITDA | 12.4 | 15.7 | 60.2 | -19.4 | -2.1 | -89.1% |
| Net Income | 46.6 | -12.9 | 40.8 | -23.0 | -7.7 | -66.7% |
Balance Sheet
|
|---|
| Cash | 33.1 | 26.2 | 21.8 | 28.7 | 20.1 | -30.1% |
| Short Term Debt | 1.5 | 0.5 | 0.1 | 0.3 | 0.2 | -24.2% |
| Long Term Debt | 1.1 | 0.2 | 0.1 | 0.8 | 0.5 | -35.2% |
Cash flow
|
|---|
| Capex | 4.7 | 5.3 | 2.6 | 2.5 | 0.6 | -76.0% |
Ratios
|
|---|
| Revenue growth | 49.4% | 21.5% | 231.0% | -77.6% | 0.8% | |
| EBITDA growth | -257.4% | 26.5% | 284.2% | -132.3% | -89.1% | |
| Gross Margin | 48.2% | 27.3% | 25.3% | 38.5% | 22.2% | -16.3% |
| EBITDA Margin | 13.4% | 14.0% | 16.2% | -23.4% | -2.5% | 20.9% |
| Net Income Margin | 50.6% | -11.5% | 11.0% | -27.8% | -9.2% | 18.6% |
| SG&A, % of revenue | | 22.1% | 6.3% | 41.0% | 35.3% | -5.7% |
| CAPEX, % of revenue | 5.1% | 4.7% | 0.7% | 3.0% | 0.7% | -2.3% |
| ROIC | 5.4% | 4.8% | 17.7% | -6.5% | -1.6% | 4.9% |
| ROE | 28.0% | -5.5% | 13.5% | -6.7% | -2.2% | 4.5% |
| Net Debt/EBITDA | -2.5x | -1.6x | -0.4x | | | 0.0x |
Revenue and profitability
South Sea Petroleum Holdings Ltd's Revenue increased slightly on 0.85% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 11.6 pp from 2.3% to 13.8% in FY2015.
Gross Margin dropped on 16.3 pp from 38.5% to 22.2% in 2015. SG&A as a % of Revenue decreased on 5.7 pp from 41.0% to 35.3% in 2015.
Net Income marign jumped on 18.6 pp from -27.8% to -9.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.72%. South Sea Petroleum Holdings Ltd showed decline in CAPEX/Revenue of 4.0 pp from 4.7% in 2012 to 0.72% in 2015. Average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at negative ROIC (-1.58%) and ROE (-2.23%). ROIC increased on 4.9 pp from -6.5% to -1.6% in 2015. ROE increased on 4.5 pp from -6.7% to -2.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 32.1% in 2015 while cash dropped on 30.1% in 2015.
Appendix 1: Peers in Oil&Gas
Below you can find South Sea Petroleum Holdings 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 |
|---|
| Enviro Energy International Holdings Ltd ($1102) | | -57.9% | 1,572.5% | -9.6% | 1,162.8% |
| Sino Oil And Gas Holdings Ltd ($702) | | -17.5% | -25.3% | -23.4% | 305.2% |
| China CBM Group Co Ltd ($8270) | | -27.6% | 1.8% | 60.9% | 9.3% |
| Yanchang Petroleum International Ltd ($346) | | 641.9% | 155.6% | 15.5% | 4.4% |
| Zhongyu Gas Holdings Ltd ($3633) | | 53.5% | 13.7% | 9.0% | -4.0% |
| |
|---|
| Median (16 companies) | 30.1% | 10.3% | 3.7% | -1.8% | -15.7% |
|---|
| South Sea Petroleum Holdings Ltd ($76) | | 21.5% | 231.0% | -77.6% | 0.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Energy Group Ltd ($467) | 15.4% | 39.4% | 48.0% | 53.8% | 51.5% |
| EPI Holdings Ltd ($689) | 0.3% | 58.0% | 50.7% | 54.6% | 41.2% |
| Zhongyu Gas Holdings Ltd ($3633) | 23.9% | 23.6% | 23.8% | 24.9% | 24.0% |
| COSCO International Holdings Ltd ($517) | 8.4% | 6.9% | 7.5% | 10.6% | 11.5% |
| Sino Oil And Gas Holdings Ltd ($702) | 10.5% | 12.2% | -17.6% | -19.3% | 5.5% |
| |
|---|
| Median (9 companies) | 6.2% | 6.9% | 4.1% | 8.7% | 5.5% |
|---|
| South Sea Petroleum Holdings Ltd ($76) | 48.2% | 27.3% | 25.3% | 38.5% | 22.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 50.3% | 48.5% | 47.2% | 50.7% | 53.0% |
| 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% | 21.5% |
| PetroChina Co Ltd ($857) | 16.0% | 14.9% | 15.6% | 15.2% | 16.3% |
| China CBM Group Co Ltd ($8270) | 14.4% | 16.0% | -4.7% | 7.5% | 11.4% |
| |
|---|
| Median (16 companies) | 4.0% | 3.7% | 1.4% | 6.9% | -3.3% |
|---|
| South Sea Petroleum Holdings Ltd ($76) | 13.4% | 14.0% | 16.2% | -23.4% | -2.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MIE Holdings Corp ($1555) | 43.9% | 52.2% | 43.3% | 44.1% | 62.4% |
| 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% |
| Zhongyu Gas Holdings Ltd ($3633) | 9.2% | 8.2% | 17.8% | 18.9% | 22.9% |
| Kunlun Energy Co Ltd ($135) | 52.1% | 46.7% | 35.5% | 19.9% | 14.2% |
| |
|---|
| Median (16 companies) | 27.7% | 15.0% | 10.7% | 11.0% | 8.8% |
|---|
| South Sea Petroleum Holdings Ltd ($76) | 5.1% | 4.7% | 0.7% | 3.0% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 18.2% | 4.2% | -4.4% | 6.5% | 13.8% |
| Zhongyu Gas Holdings Ltd ($3633) | 10.6% | 17.4% | 15.0% | 12.3% | 8.2% |
| Kunlun Energy Co Ltd ($135) | 12.3% | 13.0% | 12.6% | 11.0% | 7.7% |
| China Petroleum & Chemical Corp ($386) | 14.2% | 11.9% | 10.6% | 7.5% | 5.5% |
| PetroChina Co Ltd ($857) | 13.4% | 11.2% | 10.9% | 9.3% | 4.2% |
| |
|---|
| Median (18 companies) | 3.6% | 3.8% | 1.6% | 4.7% | -1.7% |
|---|
| South Sea Petroleum Holdings Ltd ($76) | 5.4% | 4.8% | 17.7% | -6.5% | -1.6% |
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 | 4.8x |
| 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 | 2.1x |
| |
|---|
| Median (13 companies) | 1.3x | 1.6x | 1.2x | 2.2x | 1.7x |
|---|
