PetroChina Co Ltd revenue dropped on 17.2% and EBITDA Margin increased slightly on 0.67 pp from 16.3% to 17.0%
30/03/2017 • About PetroChina Co Ltd (
$857) • By InTwits
PetroChina Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PetroChina Co Ltd is a company in decline: 2016 revenue growth was -17.2%, 5 years revenue CAGR was -6.5%
- PetroChina Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.4%. At the same time it's in pair with industry average of 12.1%.
- The company has potentially unprofitable business model: ROIC is at 2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PetroChina Co Ltd ($857) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,195,296 | 2,258,124 | 2,282,962 | 1,725,428 | 1,429,057 | -17.2% |
| Gross Profit | | | | | 193,350 | |
| SG&A | 74,692 | 79,021 | 73,413 | 71,270 | 124,328 | 74.4% |
| EBITDA | 326,155 | 351,649 | 347,021 | 281,839 | 242,983 | -13.8% |
| Net Income | 115,326 | 129,599 | 107,172 | 35,517 | 7,900 | -77.8% |
Balance Sheet
|
|---|
| Cash | 43,395 | 51,407 | 73,778 | 72,773 | 98,617 | 35.5% |
| Short Term Debt | 151,052 | 192,586 | 167,783 | 106,027 | 153,317 | 44.6% |
| Long Term Debt | 293,774 | 302,862 | 370,301 | 434,475 | 372,887 | -14.2% |
Cash flow
|
|---|
| Capex | 311,744 | 304,100 | 306,551 | 217,750 | 189,421 | -13.0% |
Ratios
|
|---|
| Revenue growth | 9.6% | 2.9% | 1.1% | -24.4% | -17.2% | |
| EBITDA growth | 1.8% | 7.8% | -1.3% | -18.8% | -13.8% | |
| Gross Margin | | | | | 13.5% | 13.5% |
| EBITDA Margin | 14.9% | 15.6% | 15.2% | 16.3% | 17.0% | 0.7% |
| Net Income Margin | 5.3% | 5.7% | 4.7% | 2.1% | 0.6% | -1.5% |
| SG&A, % of revenue | 3.4% | 3.5% | 3.2% | 4.1% | 8.7% | 4.6% |
| CAPEX, % of revenue | 14.2% | 13.5% | 13.4% | 12.6% | 13.3% | 0.6% |
| ROIC | 11.2% | 10.9% | 9.3% | 4.2% | 2.0% | -2.2% |
| ROE | 11.2% | 11.8% | 9.3% | 3.0% | 0.7% | -2.3% |
| Net Debt/EBITDA | 1.2x | 1.3x | 1.3x | 1.7x | 1.8x | 0.1x |
PetroChina Co Ltd ($857) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 352,830 | 386,237 | 411,370 | 415,175 | | | | |
| Net Income | -13,785 | 14,316 | 1,200 | 6,176 | | | | |
Balance Sheet
|
|---|
| Cash | 99,610 | 101,322 | 119,947 | 98,617 | | | | |
| Short Term Debt | 138,538 | 136,543 | 141,016 | 153,317 | | | | |
| Long Term Debt | 424,830 | 414,932 | 383,941 | 372,887 | | | | |
Ratios
|
|---|
| Net Income Margin | -3.9% | 3.7% | 0.3% | 1.5% | | | | |
Revenue and profitability
PetroChina Co Ltd's Revenue dropped on 17.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.67 pp from 16.3% to 17.0% in 2016.
SG&A as a % of Revenue increased on 4.6 pp from 4.1% to 8.7% in 2016.
Net Income marign decreased slightly on 1.5 pp from 2.1% to 0.55% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 13.3%. PetroChina Co Ltd showed almost no change in CAPEX/Revenue from 2013 to 2016. For the last three years the average CAPEX/Revenue was 13.1%.Battling declining revenue the company invested a large share of EBITDA (78.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (2.02%) and ROE (0.67%). ROIC decreased on 2.2 pp from 4.2% to 2.0% in 2016. ROE decreased on 2.3 pp from 3.0% to 0.67% in 2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 1.7x to 1.8x in 2016. Debt decreased on 2.6% while cash surged on 35.5%.
Appendix 1: Peers in Oil&Gas
Below we provide PetroChina Co 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 (16 companies) | -13.9% | 8.7% | -4.3% | -11.9% | 13.6% |
|---|
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% | 52.6% |
| 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 (11 companies) | 8.8% | 5.4% | 9.7% | 6.1% | 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% | 3.5% |
| |
|---|
| Median (16 companies) | 2.1% | 0.4% | 5.2% | -6.7% | 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 (16 companies) | 13.4% | 7.9% | 7.5% | 6.5% | 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% | 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 (18 companies) | -0.7% | 0.8% | 0.1% | -1.7% | 3.3% |
|---|
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 | 1.0x | 3.1x | 2.1x | 2.6x |
|---|
