Yanchang Petroleum International Ltd revenue growth decelerated to 4.4% in 2015 vs. 15.5% a year earliner
31/03/2016 • About Yanchang Petroleum International Ltd (
$346) • By InTwits
Yanchang Petroleum International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yanchang Petroleum International Ltd doesn't have a profitable business model yet: 2015 ROIC is -88.0%
- The company operates at negative EBITDA Margin: -18.7%
- Yanchang Petroleum International Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -11.7%0
- Yanchang Petroleum International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -88.0%
- It operates with high leverage: Net Debt/EBITDA is 6.4x 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.
Yanchang Petroleum International Ltd ($346) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,021 | 7,573 | 19,355 | 22,347 | 23,321 | 4.4% |
| Gross Profit | 35 | 42 | 153 | | | |
| SG&A | 43 | 54 | 70 | 176 | 107 | -38.9% |
| EBITDA | 26 | -54 | 85 | -4,303 | -4,367 | 1.5% |
| Net Income | 23 | -78 | 31 | -4,635 | -4,544 | -2.0% |
Balance Sheet
|
|---|
| Cash | 103 | 634 | 848 | 576 | 887 | 54.0% |
| Short Term Debt | 0 | 213 | 320 | 928 | 664 | -28.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 354 | |
Cash flow
|
|---|
| Capex | 2 | 6 | 31 | 686 | 216 | -68.4% |
Ratios
|
|---|
| Revenue growth | -1.8% | 641.9% | 155.6% | 15.5% | 4.4% | |
| EBITDA growth | -161.4% | -310.2% | -256.2% | -5,154.3% | 1.5% | |
| Gross Margin | 3.4% | 0.6% | 0.8% | | | 0.0% |
| EBITDA Margin | 2.5% | -0.7% | 0.4% | -19.3% | -18.7% | 0.5% |
| Net Income Margin | 2.3% | -1.0% | 0.2% | -20.7% | -19.5% | 1.3% |
| SG&A, % of revenue | 4.2% | 0.7% | 0.4% | 0.8% | 0.5% | -0.3% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.2% | 3.1% | 0.9% | -2.1% |
| ROIC | 0.3% | -0.7% | 0.8% | -51.4% | -88.0% | -36.6% |
| ROE | 0.3% | -0.8% | 0.3% | -57.5% | -112.0% | -54.5% |
| Net Debt/EBITDA | -4.0x | | -6.2x | | | 0.0x |
Revenue and profitability
The company's Revenue increased on 4.4% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.53 pp from -19.3% to -18.7% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.3 pp from -20.7% to -19.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Yanchang Petroleum International Ltd had CAPEX/Revenue of 0.93%. CAPEX/Revenue increased slightly on 0.84 pp from 0.086% in 2012 to 0.93% in 2015. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at negative ROIC (-87.97%) and ROE (-112.01%). ROIC dropped on 36.6 pp from -51.4% to -88.0% in 2015. ROE dropped on 54.5 pp from -57.5% to -112% in 2015.
Leverage (Debt)
Debt level is 6.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt increased on 9.7% in 2015 while cash surged on 54.0% in 2015.
Appendix 1: Peers in Oil&Gas
Below we provide Yanchang Petroleum International Ltd benchmarking against other companies in Oil&Gas 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 |
|---|
| 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% |
| South Sea Petroleum Holdings Ltd ($76) | | 21.5% | 231.0% | -77.6% | 0.8% |
| Zhongyu Gas Holdings Ltd ($3633) | | 53.5% | 13.7% | 9.0% | -4.0% |
| |
|---|
| Median (16 companies) | 30.1% | 10.3% | 3.7% | -3.9% | -15.7% |
|---|
| Yanchang Petroleum International Ltd ($346) | | 641.9% | 155.6% | 15.5% | 4.4% |
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% |
| South Sea Petroleum Holdings Ltd ($76) | 48.2% | 27.3% | 25.3% | 38.5% | 22.2% |
| COSCO International Holdings Ltd ($517) | 8.4% | 6.9% | 7.5% | 10.6% | 11.5% |
| |
|---|
| Median (10 companies) | 6.4% | 10.7% | 6.8% | 9.7% | 8.5% |
|---|
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) | 5.6% | 5.2% | 4.1% | 6.9% | 0.8% |
|---|
| Yanchang Petroleum International Ltd ($346) | 2.5% | -0.7% | 0.4% | -19.3% | -18.7% |
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% |
|---|
| Yanchang Petroleum International Ltd ($346) | 0.2% | 0.1% | 0.2% | 3.1% | 0.9% |
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) | 4.5% | 4.2% | 6.3% | 4.7% | -1.6% |
|---|
| Yanchang Petroleum International Ltd ($346) | 0.3% | -0.7% | 0.8% | -51.4% | -88.0% |
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 | 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 | 1.5x | 1.2x | 2.2x | 1.7x |
|---|
