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Gulf Oil Corporation Net Debt / EBITDA jumped on 70.0x from 5.2x to 75.2x in 2020 while Revenue decreased on 6.3%

14-09-2020 • About Gulf Oil Corporation ($GULFOILCOR) • By InTwits

Gulf Oil Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
  • The company has potentially unprofitable business model: ROIC is 0.5%
  • It operates with high leverage: Net Debt/EBITDA is 75.2x 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 6.3%. Revenue decline showed acceleration in FY20Q4 - it was 13.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 6.4% to 7.5% in FY2020.

Net Income margin increased on 2.3 pp from 7.6% to 9.9% in FY2020. Net Income margin grew at 0.98 pp per annum in the last 5 years.

Return on investment

The company operates at low ROIC (0.5%) and ROE (5.4%). ROIC decreased slightly on 1.6 pp from 2.0% to 0.50% in FY2020. ROE increased slightly on 0.76 pp from 4.6% to 5.4% in FY2020. During the last 5 years ROIC topped in FY2019 at 2.0%.

Leverage (Debt)

Debt level is 75.2x Net Debt / EBITDA and 77.7x Debt / EBITDA. Net Debt / EBITDA surged on 70.0x from 5.2x to 75.2x in FY2020. Debt surged on 433% while cash dropped on 33.1%. During FY2016-FY2020 Net Debt/EBITDA bottomed in FY2019 at 5.2x.

Gulf Oil Corporation has short term refinancing risk: cash is only 79.4% of short term debt.

Management team

Ravi Jain is a Gulf Oil Corporation's CFO. Ravi Jain has spent 4 years at the company.

Financial and operational results

FY ended 31-03-2020

Gulf Oil Corporation ($GULFOILCOR) key annual financial indicators

mln. INR201620172018201920202020/2019
Net Income26932734140649622.3%
Balance Sheet
Short Term Debt2,34139055639748321.7%
Long Term Debt10,1347,3364,6161,83311,399521.7%
Cash flow
Revenue growth24.1%3.0%-3.2%10.2%-6.3%
EBITDA growth-11.8%4.4%-8.1%18.0%-52.1%

EBITDA Margin5.8%5.9%5.6%6.0%3.1%-2.9%
Net Income Margin5.6%6.5%7.1%7.6%9.9%2.3%
CAPEX, % of revenue1.8%2.2%4.3%2.6%

Net Debt/EBITDA43.4x25.1x17.2x5.2x75.2x70.0x

Gulf Oil Corporation ($GULFOILCOR) key quoterly financial indicators

mln. INRFY20Q1FY20Q2FY20Q3FY20Q4 YoY change
Revenue1,3311,1351,1871,335 0.0%12.6%-17.7%-13.3%
EBITDA48283344 -42.8%-36.6%-47.7%-65.8%
Net Income5951249138 -26.2%-15.4%96.1%-1.0%
Balance Sheet
EBITDA Margin 3.6% 2.5% 2.8% 3.3% -2.7%-1.9%-1.6%-5.0%
Net Income Margin 4.4% 4.5% 20.9% 10.3% -1.6%-1.5%12.2%1.3%

Peers in Oil Marketing & Distribution

Below you can find Gulf Oil Corporation benchmarking vs. other companies in Oil Marketing & Distribution 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.