PetroAsian Energy Holdings Ltd revenue jumped on 638% and EBITDA Margin surged on 11.1 pp from -10.9% to 0.19%
25/06/2016 • About PetroAsian Energy Holdings Ltd (
$850) • By InTwits
PetroAsian Energy Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PetroAsian Energy Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.0%
- PetroAsian Energy Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -3.8%0
- PetroAsian Energy Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 7.8%.
- CAPEX is quite volatile: 104 in FY2016, 6.6 in FY2015, 2.3 in FY2014, 10.1 in FY2013, 54.0 in FY2012
- The company has unprofitable business model: ROIC is at -0.0%
- It operates with high leverage: Net Debt/EBITDA is 13.9x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PetroAsian Energy Holdings Ltd ($850) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 340 | 992 | 982 | 804 | 5,932 | 637.7% |
| Gross Profit | 36 | 40 | 27 | 3 | 124 | 4,068.5% |
| SG&A | | | | 80 | 103 | 28.6% |
| EBITDA | -113 | -57 | -97 | -88 | 11 | |
| Net Income | -177 | -115 | -151 | -148 | -227 | |
Balance Sheet
|
|---|
| Cash | 78 | 110 | 135 | 213 | 208 | -2.2% |
| Short Term Debt | 54 | 54 | 76 | 75 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 53 | 263 | 367 | 39.3% |
Cash flow
|
|---|
| Capex | 54 | 10 | 2 | 7 | 104 | 1,475.3% |
Ratios
|
|---|
| Revenue growth | 20.4% | 191.7% | -1.0% | -18.1% | 637.7% | |
| EBITDA growth | -34.2% | -50.0% | 71.0% | -9.3% | -113.1% | |
| Gross Margin | 10.7% | 4.1% | 2.7% | 0.4% | 2.1% | 1.7% |
| EBITDA Margin | -33.3% | -5.7% | -9.8% | -10.9% | 0.2% | 11.1% |
| Net Income Margin | -52.0% | -11.6% | -15.4% | -18.4% | -3.8% | 14.6% |
| SG&A, % of revenue | | | | 10.0% | 1.7% | -8.2% |
| CAPEX, % of revenue | 15.9% | 1.0% | 0.2% | 0.8% | 1.7% | 0.9% |
| ROIC | -16.2% | -10.3% | -15.5% | -13.4% | -0.0% | 13.4% |
| ROE | -23.0% | -16.7% | -23.9% | -28.4% | -53.4% | -25.0% |
| Net Debt/EBITDA | | | | | 13.9x | 13.9x |
Revenue and profitability
PetroAsian Energy Holdings Ltd's Revenue jumped on 638%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from -16.3% to -15.3% in FY2016.
Gross Margin increased slightly on 1.7 pp from 0.37% to 2.1% in FY2016. SG&A as a % of Revenue decreased on 8.2 pp from 10.0% to 1.7% in FY2016.
Net Income marign surged on 14.6 pp from -18.4% to -3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue increased slightly on 0.73 pp from 1.0% in FY2013 to 1.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.93%.PetroAsian Energy Holdings Ltd has spent a lot to CAPEX (904% of EBITDA) to fuel its growth.
Return on investment
The company operates at negative ROIC (-0.04%) and ROE (-53.42%). ROIC surged on 13.4 pp from -13.4% to -0.043% in FY2016. ROE dropped on 25.0 pp from -28.4% to -53.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.9x and Debt / EBITDA is 32.0x. Net Debt / EBITDA jumped13.9x from to 13.9x in FY2016. Debt increased on 8.4% while cash decreased on 2.2%.
Appendix 1: Peers in Oil&Gas
Below we provide PetroAsian Energy Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 37.3% | 33.1% | -10.1% | 55.4% | |
| 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% | |
| |
|---|
| Median (15 companies) | 21.5% | 3.7% | -4.6% | -11.5% | -14.6% |
|---|
| PetroAsian Energy Holdings Ltd ($850) | | 191.7% | -1.0% | -18.1% | 637.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Energy Group Ltd ($467) | 39.4% | 48.0% | 53.8% | 51.5% | |
| EPI Holdings Ltd ($689) | 58.0% | 50.7% | 54.6% | 41.2% | |
| Zhongyu Gas Holdings Ltd ($3633) | 23.6% | 23.8% | 24.9% | 24.0% | |
| South Sea Petroleum Holdings Ltd ($76) | 27.3% | 25.3% | 38.5% | 22.2% | |
| COSCO International Holdings Ltd ($517) | 6.9% | 7.5% | 10.6% | 11.5% | |
| |
|---|
| Median (10 companies) | 6.9% | 6.8% | 10.6% | 8.8% | |
|---|
| PetroAsian Energy Holdings Ltd ($850) | 10.7% | 4.1% | 2.7% | 0.4% | 2.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CNOOC Ltd ($883) | | 47.2% | 50.7% | 53.0% | 44.8% |
| Kunlun Energy Co Ltd ($135) | 47.0% | 39.5% | 34.9% | 30.9% | |
| Zhongyu Gas Holdings Ltd ($3633) | 18.6% | 18.9% | 21.0% | 21.5% | |
| China CBM Group Co Ltd ($8270) | 16.0% | -4.7% | 7.5% | 11.4% | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 4.2% | 6.0% | 6.9% | 5.4% | |
| |
|---|
| Median (15 companies) | 3.1% | 1.4% | 6.9% | -2.5% | 44.8% |
|---|
| PetroAsian Energy Holdings Ltd ($850) | -33.3% | -5.7% | -9.8% | -10.9% | 0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MIE Holdings Corp ($1555) | 52.2% | 43.3% | 44.1% | 62.4% | |
| United Energy Group Ltd ($467) | 37.2% | 62.7% | 42.4% | 49.1% | |
| CNOOC Ltd ($883) | | 30.3% | 34.8% | 39.5% | 35.1% |
| Zhongyu Gas Holdings Ltd ($3633) | 8.2% | 17.8% | 18.9% | 22.9% | |
| Kunlun Energy Co Ltd ($135) | 46.7% | 35.5% | 19.9% | 14.2% | |
| |
|---|
| Median (15 companies) | 10.8% | 12.8% | 11.0% | 7.9% | 35.1% |
|---|
| PetroAsian Energy Holdings Ltd ($850) | 15.9% | 1.0% | 0.2% | 0.8% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 7.3% | 12.6% | 13.0% | 13.9% | |
| Brightoil Petroleum Holdings Ltd ($933) | 4.2% | -4.4% | 6.5% | 13.8% | |
| Zhongyu Gas Holdings Ltd ($3633) | 17.4% | 15.0% | 12.3% | 8.2% | |
| Kunlun Energy Co Ltd ($135) | 13.0% | 12.6% | 11.0% | 7.7% | |
| CNOOC Ltd ($883) | | 18.1% | 15.8% | 3.2% | -0.6% |
| |
|---|
| Median (17 companies) | 1.6% | 1.6% | 1.5% | -1.7% | -0.6% |
|---|
| PetroAsian Energy Holdings Ltd ($850) | -16.2% | -10.3% | -15.5% | -13.4% | -0.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zhongyu Gas Holdings Ltd ($3633) | 1.6x | 2.3x | 3.7x | 4.8x | |
| Brightoil Petroleum Holdings Ltd ($933) | 8.9x | | 3.1x | 2.9x | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 6.0x | 4.3x | 3.6x | 2.8x | |
| China CBM Group Co Ltd ($8270) | 3.2x | | 3.3x | 2.1x | |
| CNOOC Ltd ($883) | | 0.9x | 0.9x | 1.7x | 2.1x |
| |
|---|
| Median (7 companies) | 1.6x | 1.0x | 3.1x | 2.1x | 2.1x |
|---|
