United Energy Group Ltd Net Income surged on 133% in 2016 and EBITDA Margin jumped on 102 pp from -31.9% to 70.5%
20/03/2017 • About United Energy Group Ltd (
$467) • By InTwits
United Energy Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 70.5% in FY2016, -31.9% in FY2015, 69.8% in FY2014, 65.3% in FY2013, 71.2% in FY2012
- The company has business model with average profitability: ROIC is at 10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Energy Group Ltd ($467) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,214 | 4,788 | 6,120 | 5,418 | 4,061 | -25.0% |
| Gross Profit | 1,266 | 2,300 | 3,291 | 2,793 | 2,136 | -23.5% |
| SG&A | 356 | 368 | 481 | 403 | 380 | -5.5% |
| EBITDA | 2,288 | 3,125 | 4,274 | -1,730 | 2,862 | |
| Net Income | 786 | 1,215 | 1,828 | -2,944 | 965 | |
Balance Sheet
|
|---|
| Cash | 1,111 | 1,710 | 2,494 | 2,574 | 5,850 | 127.3% |
| Short Term Debt | 164 | 665 | 768 | 1,460 | 820 | -43.9% |
| Long Term Debt | 4,836 | 4,368 | 4,318 | 3,120 | 2,496 | -20.0% |
Cash flow
|
|---|
| Capex | 1,196 | 3,000 | 2,593 | 2,662 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 266.5% | 49.0% | 27.8% | -11.5% | -25.0% | |
| EBITDA growth | 159.3% | 36.6% | 36.8% | -140.5% | -265.4% | |
| Gross Margin | 39.4% | 48.0% | 53.8% | 51.5% | 52.6% | 1.0% |
| EBITDA Margin | 71.2% | 65.3% | 69.8% | -31.9% | 70.5% | 102.4% |
| Net Income Margin | 24.5% | 25.4% | 29.9% | -54.3% | 23.8% | 78.1% |
| SG&A, % of revenue | 11.1% | 7.7% | 7.9% | 7.4% | 9.4% | 1.9% |
| CAPEX, % of revenue | 37.2% | 62.7% | 42.4% | 49.1% | | -49.1% |
| ROIC | 7.4% | 10.3% | 15.7% | -25.0% | 10.8% | 35.8% |
| ROE | 12.7% | 16.6% | 20.6% | -35.5% | 11.2% | 46.7% |
| Net Debt/EBITDA | 1.7x | 1.1x | 0.6x | | -0.9x | -0.9x |
Revenue and profitability
United Energy Group Ltd's Revenue dropped on 25.0%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 102 pp from -31.9% to 70.5% in FY2016.
Gross Margin increased slightly on 1.0 pp from 51.5% to 52.6% in FY2016. SG&A as a % of Revenue increased slightly on 1.9 pp from 7.4% to 9.4% in FY2016.
Net Income marign jumped on 78.1 pp from -54.3% to 23.8% in FY2016.
Return on investment
The company operates at low ROIC (10.82%) and ROE (11.21%). ROIC jumped on 35.8 pp from -25.0% to 10.8% in FY2016. ROE surged on 46.7 pp from -35.5% to 11.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 1.2x. Net Debt / EBITDA dropped0.9x from to -0.9x in FY2016. Debt dropped on 27.6% while cash surged on 127%.
Appendix 1: Peers in Oil&Gas
Below we provide United Energy Group 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) | | 33.1% | -10.1% | 55.4% | 74.7% |
| 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) | -8.2% | 3.7% | -4.6% | -12.3% | 30.1% |
|---|
| United Energy Group Ltd ($467) | | 49.0% | 27.8% | -11.5% | -25.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 5.6% | 6.8% | 7.3% | 6.1% | 4.2% |
| |
|---|
| Median (10 companies) | 6.9% | 4.1% | 8.7% | 5.8% | 4.2% |
|---|
| United Energy Group Ltd ($467) | 39.4% | 48.0% | 53.8% | 51.5% | 52.6% |
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% | 3.5% |
| |
|---|
| Median (15 companies) | 1.1% | -0.1% | 3.5% | -2.5% | 5.0% |
|---|
| United Energy Group Ltd ($467) | 71.2% | 65.3% | 69.8% | -31.9% | 70.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MIE Holdings Corp ($1555) | 52.2% | 43.3% | 44.1% | 62.4% | |
| 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% | |
| EPI Holdings Ltd ($689) | 30.6% | 30.9% | 4.1% | 12.8% | |
| |
|---|
| Median (15 companies) | 10.8% | 5.3% | 4.1% | 5.1% | 3.1% |
|---|
| United Energy Group Ltd ($467) | 37.2% | 62.7% | 42.4% | 49.1% | |
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% | 9.6% |
| Brightoil Petroleum Holdings Ltd ($933) | 4.2% | -4.4% | 6.5% | 13.8% | 6.7% |
| 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) | -1.0% | -0.0% | -0.6% | -1.7% | 3.3% |
|---|
| United Energy Group Ltd ($467) | 7.4% | 10.3% | 15.7% | -25.0% | 10.8% |
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 | 2.6x |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 6.0x | 4.3x | 3.6x | 2.8x | 3.5x |
| 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 | 0.9x | 3.2x | 2.1x | 3.0x |
|---|
