Gulf Oil Corporation Net Debt / EBITDA dropped on 18.4x from 43.4x to 25.1x in 2017 while Revenue increased on 3.0%
29-05-2017 • About Gulf Oil Corporation (
$GULFOILCOR) • By InTwits
Gulf Oil Corporation reported FY2017 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 5.9% in FY2017, 5.8% in FY2016, 8.2% in FY2015, 3.3% in FY2014, 1.8% in FY2013
- Gulf Oil Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 12.1%
- CAPEX is quite volatile: ₹111m in FY2017, ₹87m in FY2016, ₹75m in FY2015, ₹537m in FY2014, ₹120m in FY2013
- The company has potentially unprofitable business model: ROIC is 1.3%
- It operates with high leverage: Net Debt/EBITDA is 25.1x while industry average is 27.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.0%. EBITDA Margin showed almost no change in FY2017.
Net Income margin increased slightly on 0.99 pp from 5.6% to 6.5% in FY2017.
Investments (CAPEX, working capital and M&A)
Gulf Oil Corporation's CAPEX/Revenue was 2.2% in FY2017. CAPEX/Revenue decreased slightly on 1.9 pp from 4.1% in FY2014 to 2.2% in FY2017. For the last three years the average CAPEX/Revenue was 2.0%.
Return on investment
The company operates at low ROIC (1.3%) and ROE (4.2%). ROIC showed almost no change in FY2017. ROE increased slightly on 1.6 pp from 2.6% to 4.2% in FY2017. ROIC stuck to a growing trend at 0.24 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 25.1x and Debt / EBITDA is 26.2x. Net Debt / EBITDA dropped on 18.4x from 43.4x to 25.1x in FY2017. Debt dropped on 38.1% while cash jumped on 61.3%.
Gulf Oil Corporation has short term refinancing risk: cash is only 86.8% of short term debt.
Management team
Ravi Jain is a the company's CFO. Ravi Jain has spent 4 years at the company.
Financial and operational results
FY ended 31-03-2017
Gulf Oil Corporation ($GULFOILCOR) key annual financial indicators| mln. INR | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 12,648 | 13,024 | 3,901 | 4,842 | 4,986 | 3.0% |
| EBITDA | 228 | 432 | 320 | 282 | 295 | 4.4% |
| Net Income | 502 | 677 | 416 | 269 | 327 | 21.2% |
Balance Sheet
|
|---|
| Cash | 514 | 432 | 111 | 210 | 338 | 61.3% |
| Short Term Debt | 3,003 | 1,927 | 2,180 | 2,341 | 390 | -83.4% |
| Long Term Debt | 17,510 | 12,542 | 11,207 | 10,134 | 7,336 | -27.6% |
Cash flow
|
|---|
| Capex | 120 | 537 | 75 | 87 | 111 | 26.8% |
Ratios
|
|---|
| Revenue growth | 2.3% | 3.0% | -70.0% | 24.1% | 3.0% | |
| EBITDA growth | -66.5% | 89.8% | -26.0% | -11.8% | 4.4% | |
|
|---|
| EBITDA Margin | 1.8% | 3.3% | 8.2% | 5.8% | 5.9% | 0.1% |
| Net Income Margin | 4.0% | 5.2% | 10.7% | 5.6% | 6.5% | 1.0% |
| CAPEX, % of revenue | 1.0% | 4.1% | 1.9% | 1.8% | 2.2% | 0.4% |
|
|---|
| ROIC | 0.2% | 0.9% | 1.1% | 1.0% | 1.3% | 0.3% |
| ROE | 4.7% | 6.1% | 3.9% | 2.6% | 4.2% | 1.6% |
| Net Debt/EBITDA | 87.8x | 32.5x | 41.5x | 43.4x | 25.1x | -18.4x |
Peers in Oil Marketing & Distribution
Below we provide Gulf Oil Corporation benchmarking against other companies in Oil Marketing & Distribution 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Eastern Gases ($EASTERNGAS) | 54.1% | 8.5% | 0.5% | 17.2% | - |
| Sah Petroleums ($SAHPETRO) | -13.1% | -3.3% | 0.9% | 3.7% | - |
| Indian Oil Corporation ($IOC) | 13.1% | 5.8% | -8.0% | -20.9% | - |
| |
|---|
| Median (3 companies) | 13.1% | 5.8% | 0.5% | 3.7% | - |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | - | - | - | - | 3.0% |
Top companies by EBITDA margin, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Indian Oil Corporation ($IOC) | 3.4% | 4.3% | 2.5% | 7.0% | - |
| Sah Petroleums ($SAHPETRO) | 3.5% | 3.8% | 3.5% | 6.8% | - |
| |
|---|
| Median (2 companies) | 3.4% | 4.0% | 3.0% | 6.9% | - |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | - | - | - | 5.8% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Indian Oil Corporation ($IOC) | 2.8% | 4.5% | 2.9% | 4.4% | - |
| Sah Petroleums ($SAHPETRO) | 0.2% | 0.2% | 3.9% | 2.8% | - |
| |
|---|
| Median (2 companies) | 1.5% | 2.3% | 3.4% | 3.6% | - |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | - | - | - | 1.8% | 2.2% |
Top companies by ROIC, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Indian Oil Corporation ($IOC) | 6.4% | 8.7% | 3.9% | 13.0% | - |
| Sah Petroleums ($SAHPETRO) | 10.0% | 10.9% | 7.5% | 11.8% | - |
| Eastern Gases ($EASTERNGAS) | 15.1% | - | - | - | - |
| |
|---|
| Median (3 companies) | 10.0% | 9.8% | 5.7% | 12.4% | - |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | - | - | - | 1.0% | 1.3% |
Top companies by Net Debt / EBITDA
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Sah Petroleums ($SAHPETRO) | -0.8x | -1.0x | 1.9x | 3.5x | - |
| Indian Oil Corporation ($IOC) | 5.7x | 4.4x | 5.6x | 2.4x | - |
| |
|---|
| Median (2 companies) | 2.9x | 1.7x | 3.7x | 2.9x | - |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | - | - | - | 43.4x | 25.1x |
