Aban Offshore Net Income surged on 38.6% in 2015 and EBITDA Margin increased slightly on 1.9 pp from 57.0% to 58.9%
27-05-2015 • About Aban Offshore (
$ABAN) • By InTwits
Aban Offshore reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aban Offshore has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.4%. At the same time it's in pair with industry average of 24.7%.
- CAPEX is quite volatile: 9,169 in FY2015, 14,197 in FY2014, 9,313 in FY2013, 6,599 in FY2012, 5,636 in FY2011
- The company has business model with low profitability: ROIC is at 9.1%
- It operates with high leverage: Net Debt/EBITDA is 5.9x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aban Offshore ($ABAN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 33,472 | 31,629 | 36,727 | 39,363 | 40,408 | 2.7% |
| SG&A | | | | | 9 | |
| EBITDA | 21,954 | 18,898 | 20,351 | 22,436 | 23,788 | 6.0% |
| Net Income | 1,449 | 3,215 | 1,939 | 3,931 | 5,449 | 38.6% |
Balance Sheet
|
|---|
| Cash | 5,304 | 697 | 1,310 | 747 | 1,013 | 35.6% |
| Short Term Debt | 33,120 | 23,691 | 22,854 | 35,100 | 9,719 | -72.3% |
| Long Term Debt | 97,129 | 111,444 | 113,614 | 110,508 | 130,878 | 18.4% |
Cash flow
|
|---|
| Capex | 5,636 | 6,599 | 9,313 | 14,197 | 9,169 | -35.4% |
Ratios
|
|---|
| Revenue growth | -35.4% | -5.5% | 16.1% | 7.2% | 2.7% | |
| EBITDA growth | 7.9% | -13.9% | 7.7% | 10.2% | 6.0% | |
| EBITDA Margin | 65.6% | 59.7% | 55.4% | 57.0% | 58.9% | 1.9% |
| Net Income Margin | 4.3% | 10.2% | 5.3% | 10.0% | 13.5% | 3.5% |
| SG&A, % of revenue | | | | | 0.0% | 0.0% |
| CAPEX, % of revenue | 16.8% | 20.9% | 25.4% | 36.1% | 22.7% | -13.4% |
| ROIC | 10.7% | 8.6% | 9.2% | 9.4% | 9.1% | -0.3% |
| ROE | 7.9% | 14.7% | 5.8% | 10.5% | 11.0% | 0.6% |
| Net Debt/EBITDA | 5.7x | 7.1x | 6.6x | 6.5x | 5.9x | -0.6x |
Revenue and profitability
The company's Revenue increased on 2.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased on 3.5 pp from 10.0% to 13.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Aban Offshore had CAPEX/Revenue of 22.7%. CAPEX/Revenue increased slightly on 1.8 pp from 20.9% in FY2012 to 22.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 28.0%.
Return on investment
The company operates at low ROIC (9.09%) and ROE (11.03%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.57 pp from 10.5% to 11.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.9x and Debt / EBITDA is 5.9x. Net Debt / EBITDA dropped on 0.6x from 6.5x to 5.9x in FY2015. Debt decreased on 3.4% in FY2015 while cash surged on 35.6% in FY2015.
Appendix 1: Peers in Exploration & Production
Below you can find Aban Offshore benchmarking vs. other companies in Exploration & Production 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil And Natural Gas Corporation ($ONGC) | 15.5% | 24.5% | 10.3% | 7.3% | |
| Cairn India ($CAIRN) | | 15.5% | 48.3% | 7.1% | -21.9% |
| Oil India ($OIL) | -26.6% | 18.5% | 1.1% | -2.8% | |
| Shiv-Vani Oil & Gas Exploration Services ($SHIV-VANI) | 503.4% | 1.5% | -16.5% | -72.5% | |
| |
|---|
| Median (4 companies) | 15.5% | 17.0% | 5.7% | 2.1% | -21.9% |
|---|
| Aban Offshore ($ABAN) | | -5.5% | 16.1% | 7.2% | 2.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cairn India ($CAIRN) | 82.0% | 78.6% | 74.6% | 73.3% | 73.1% |
| Oil India ($OIL) | 43.9% | 42.7% | 43.7% | 37.6% | |
| Oil And Natural Gas Corporation ($ONGC) | 36.1% | 33.9% | 27.3% | 28.4% | |
| |
|---|
| Median (3 companies) | 46.0% | 44.7% | 44.4% | 37.6% | 73.1% |
|---|
| Aban Offshore ($ABAN) | 65.6% | 59.7% | 55.4% | 57.0% | 58.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil India ($OIL) | 11.4% | 9.4% | 17.9% | 29.4% | |
| Cairn India ($CAIRN) | 25.1% | 25.0% | 9.3% | 15.3% | 38.1% |
| Oil And Natural Gas Corporation ($ONGC) | 16.8% | 13.1% | 11.1% | 8.6% | |
| |
|---|
| Median (3 companies) | 14.1% | 19.0% | 11.1% | 15.3% | 38.1% |
|---|
| Aban Offshore ($ABAN) | 16.8% | 20.9% | 25.4% | 36.1% | 22.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cairn India ($CAIRN) | 17.6% | 16.6% | 22.7% | 21.3% | 10.0% |
| Selan Exploration Technology ($SELAN) | 19.6% | 23.2% | 21.9% | 18.6% | |
| Oil And Natural Gas Corporation ($ONGC) | 24.3% | 25.2% | 18.6% | 15.8% | |
| Oil India ($OIL) | 21.1% | 19.8% | 18.3% | 10.5% | |
| Shiv-Vani Oil & Gas Exploration Services ($SHIV-VANI) | 13.1% | 11.7% | 8.0% | | |
| |
|---|
| Median (5 companies) | 19.6% | 19.8% | 18.6% | 17.2% | 10.0% |
|---|
| Aban Offshore ($ABAN) | 10.7% | 8.6% | 9.2% | 9.4% | 9.1% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil India ($OIL) | 0.2x | -0.0x | 0.2x | 2.7x | |
| Oil And Natural Gas Corporation ($ONGC) | -0.3x | -0.2x | 0.0x | 0.5x | |
| Cairn India ($CAIRN) | 0.2x | -0.3x | -0.0x | -0.0x | -0.0x |
| Selan Exploration Technology ($SELAN) | 0.8x | -1.7x | -0.2x | -2.2x | |
| |
|---|
| Median (4 companies) | 0.2x | -0.2x | 0.0x | 0.3x | -0.0x |
|---|
| Aban Offshore ($ABAN) | 5.7x | 7.1x | 6.6x | 6.5x | 5.9x |
