Brightoil Petroleum Holdings Ltd revenue decline accelerated from 12.3% in FY2015 to 35.1% in FY2016
26/09/2016 • About Brightoil Petroleum Holdings Ltd (
$933) • By InTwits
Brightoil Petroleum Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 6.5% in FY2016 vs. 4.7% in FY2015 vs. 1.1% in FY2012
- EBITDA Margin is quite volatile: 6.5% in FY2016, 4.7% in FY2015, 1.4% in FY2014, -0.6% in FY2013, 1.1% in FY2012
- Brightoil Petroleum Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 19.0%.
- CAPEX is quite volatile: 1,493 in FY2016, 660 in FY2015, 544 in FY2014, 1,504 in FY2013, 1,099 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.7%
- It operates with high leverage: Net Debt/EBITDA is 2.6x 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.
Brightoil Petroleum Holdings Ltd ($933) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 69,946 | 55,414 | 84,499 | 74,097 | 48,071 | -35.1% |
| Gross Profit | 883 | 1,171 | 1,759 | 1,892 | 2,013 | 6.4% |
| SG&A | 1,146 | 922 | 565 | 513 | 608 | 18.4% |
| EBITDA | 735 | -340 | 1,153 | 3,451 | 3,122 | -9.5% |
| Net Income | 306 | -722 | 599 | 1,387 | 844 | -39.1% |
Balance Sheet
|
|---|
| Cash | 1,635 | 1,352 | 1,611 | 935 | 4,471 | 378.3% |
| Short Term Debt | 7,006 | 4,276 | 2,909 | 4,567 | 4,861 | 6.4% |
| Long Term Debt | 1,209 | 1,548 | 2,259 | 6,287 | 7,579 | 20.5% |
Cash flow
|
|---|
| Capex | 1,099 | 1,504 | 544 | 660 | 1,493 | 126.2% |
Ratios
|
|---|
| Revenue growth | 76.9% | -20.8% | 52.5% | -12.3% | -35.1% | |
| EBITDA growth | -57.5% | -146.2% | -439.6% | 199.2% | -9.5% | |
| Gross Margin | 1.3% | 2.1% | 2.1% | 2.6% | 4.2% | 1.6% |
| EBITDA Margin | 1.1% | -0.6% | 1.4% | 4.7% | 6.5% | 1.8% |
| Net Income Margin | 0.4% | -1.3% | 0.7% | 1.9% | 1.8% | -0.1% |
| SG&A, % of revenue | 1.6% | 1.7% | 0.7% | 0.7% | 1.3% | 0.6% |
| CAPEX, % of revenue | 1.6% | 2.7% | 0.6% | 0.9% | 3.1% | 2.2% |
| ROIC | 4.2% | -4.4% | 6.5% | 13.8% | 6.7% | -7.1% |
| ROE | 4.4% | -10.0% | 8.3% | 15.2% | 7.7% | -7.5% |
| Net Debt/EBITDA | 8.9x | | 3.1x | 2.9x | 2.6x | -0.3x |
Revenue and profitability
Brightoil Petroleum Holdings Ltd's Revenue dropped on 35.1%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 4.7% to 6.5% in FY2016.
Gross Margin increased slightly on 1.6 pp from 2.6% to 4.2% in FY2016. SG&A as a % of Revenue increased slightly on 0.57 pp from 0.69% to 1.3% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Brightoil Petroleum Holdings Ltd had CAPEX/Revenue of 3.1%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (6.71%) and ROE (7.70%). ROIC decreased on 7.1 pp from 13.8% to 6.7% in FY2016. ROE decreased on 7.5 pp from 15.2% to 7.7% in FY2016.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 2.9x to 2.6x in FY2016. Debt surged on 14.6% while cash surged on 378%.
Management team
Brightoil Petroleum Holdings Ltd's CEO Sit Kwong Lam "Raymond" has spent 10 years at the company. Brightoil Petroleum Holdings Ltd's CFO is Tan Yih Lin "Danny". Tan Yih Lin "Danny" has 10 years tenure at the company.
Appendix 1: Peers in Oil&Gas
Below you can find Brightoil 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 | 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) | 7.7% | 13.7% | -4.6% | -11.5% | 311.6% |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | | -20.8% | 52.5% | -12.3% | -35.1% |
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) | 10.7% | 6.8% | 10.6% | 8.8% | 2.1% |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 1.3% | 2.1% | 2.1% | 2.6% | 4.2% |
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% | -10.9% | 22.5% |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 1.1% | -0.6% | 1.4% | 4.7% | 6.5% |
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) | 15.9% | 12.8% | 11.0% | 7.9% | 18.4% |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 1.6% | 2.7% | 0.6% | 0.9% | 3.1% |
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% | |
| 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% |
| COSCO International Holdings Ltd ($517) | 3.8% | 2.4% | 2.9% | 2.8% | |
| |
|---|
| Median (17 companies) | -1.0% | 1.6% | -0.6% | -3.7% | -0.3% |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 4.2% | -4.4% | 6.5% | 13.8% | 6.7% |
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 | |
| 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 |
| Kunlun Energy Co Ltd ($135) | 0.8x | 1.0x | 0.9x | 0.9x | |
| |
|---|
| Median (6 companies) | 1.6x | 1.0x | 2.8x | 1.9x | 8.0x |
|---|
| Brightoil Petroleum Holdings Ltd ($933) | 8.9x | | 3.1x | 2.9x | 2.6x |
