Gulf Oil Corporation Net Debt / EBITDA dropped on 7.9x from 25.1x to 17.2x in 2018 and Revenue decreased on 3.2%
30-05-2018 • About Gulf Oil Corporation (
$GULFOILCOR) • By InTwits
Gulf Oil Corporation reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gulf Oil Corporation is a company in decline: FY2018 revenue growth was -3.2%, 5 years revenue CAGR was -17.5%
- Gulf Oil Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹206m in FY2018, ₹111m in FY2017, ₹87m in FY2016, ₹75m in FY2015, ₹537m in FY2014
- The company has potentially unprofitable business model: ROIC is 1.6%
- It operates with high leverage: Net Debt/EBITDA is 17.2x 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
Gulf Oil Corporation's Revenue decreased on 3.2%. EBITDA Margin showed almost no change in FY2018.
Net Income margin increased slightly on 0.52 pp from 6.5% to 7.1% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Gulf Oil Corporation had CAPEX/Revenue of 4.3%. Gulf Oil Corporation showed CAPEX/Revenue growth of 2.3 pp from 1.9% in FY2015 to 4.3% in FY2018. It's average CAPEX/Revenue for the last three years was 2.8%. The company invested a big chunk of EBITDA (76.0%) to CAPEX which didn't stop revenue from falling. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2016 at 1.8% and was growing since that time.
Return on investment
The company operates at low ROIC (1.6%) and ROE (5.1%). ROIC showed almost no change in FY2018. ROE increased slightly on 0.87 pp from 4.2% to 5.1% in FY2018. ROIC followed a growing trend at 0.17 pp per annum in FY2014-FY2018. During the last 5 years ROE bottomed in FY2016 at 2.6% and was growing since that time.
Leverage (Debt)
Debt level is 17.2x Net Debt / EBITDA and 19.1x Debt / EBITDA. Net Debt / EBITDA dropped on 7.9x from 25.1x to 17.2x in FY2018. Debt dropped on 33.1% while cash jumped on 50.9%. During FY2014-FY2018 Net Debt/EBITDA topped in FY2016 at 43.4x and was declining since that time.
Gulf Oil Corporation has short term refinancing risk: cash is only 91.8% of short term debt.
Management team
Gulf Oil Corporation's CFO is Ravi Jain. Ravi Jain has 4 years tenure at the company.
Financial and operational results
FY ended 31-03-2018
Gulf Oil Corporation ($GULFOILCOR) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 13,024 | 3,901 | 4,842 | 4,986 | 4,827 | -3.2% |
| EBITDA | 432 | 320 | 282 | 295 | 271 | -8.1% |
| Net Income | 677 | 416 | 269 | 327 | 341 | 4.4% |
Balance Sheet
|
|---|
| Cash | 432 | 111 | 210 | 338 | 510 | 50.9% |
| Short Term Debt | 1,927 | 2,180 | 2,341 | 390 | 556 | 42.7% |
| Long Term Debt | 12,542 | 11,207 | 10,134 | 7,336 | 4,616 | -37.1% |
Cash flow
|
|---|
| Capex | 537 | 75 | 87 | 111 | 206 | 86.2% |
Ratios
|
|---|
| Revenue growth | 3.0% | -70.0% | 24.1% | 3.0% | -3.2% | |
| EBITDA growth | 89.8% | -26.0% | -11.8% | 4.4% | -8.1% | |
|
|---|
| EBITDA Margin | 3.3% | 8.2% | 5.8% | 5.9% | 5.6% | -0.3% |
| Net Income Margin | 5.2% | 10.7% | 5.6% | 6.5% | 7.1% | 0.5% |
| CAPEX, % of revenue | 4.1% | 1.9% | 1.8% | 2.2% | 4.3% | 2.0% |
|
|---|
| ROIC | 0.9% | 1.1% | 1.0% | 1.3% | 1.6% | 0.3% |
| ROE | 6.1% | 3.9% | 2.6% | 4.2% | 5.1% | 0.9% |
| Net Debt/EBITDA | 32.5x | 41.5x | 43.4x | 25.1x | 17.2x | -7.9x |
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.
