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. INR | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 4,842 | 4,986 | 4,827 | 5,321 | 4,988 | -6.3% |
| EBITDA | 282 | 295 | 271 | 320 | 153 | -52.1% |
| Net Income | 269 | 327 | 341 | 406 | 496 | 22.3% |
Balance Sheet
|
|---|
| Cash | 210 | 338 | 510 | 574 | 384 | -33.1% |
| Short Term Debt | 2,341 | 390 | 556 | 397 | 483 | 21.7% |
| Long Term Debt | 10,134 | 7,336 | 4,616 | 1,833 | 11,399 | 521.7% |
Cash flow
|
|---|
| Capex | 87 | 111 | 206 | 138 | | |
Ratios
|
|---|
| Revenue growth | 24.1% | 3.0% | -3.2% | 10.2% | -6.3% | |
| EBITDA growth | -11.8% | 4.4% | -8.1% | 18.0% | -52.1% | |
|
|---|
| EBITDA Margin | 5.8% | 5.9% | 5.6% | 6.0% | 3.1% | -2.9% |
| Net Income Margin | 5.6% | 6.5% | 7.1% | 7.6% | 9.9% | 2.3% |
| CAPEX, % of revenue | 1.8% | 2.2% | 4.3% | 2.6% | | |
|
|---|
| ROIC | 1.0% | 1.3% | 1.6% | 2.0% | 0.5% | -1.6% |
| ROE | 2.6% | 4.2% | 5.1% | 4.6% | 5.4% | 0.8% |
| Net Debt/EBITDA | 43.4x | 25.1x | 17.2x | 5.2x | 75.2x | 70.0x |
Gulf Oil Corporation ($GULFOILCOR) key quoterly financial indicators
| mln. INR | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,331 | 1,135 | 1,187 | 1,335 | | 0.0% | 12.6% | -17.7% | -13.3% |
| EBITDA | 48 | 28 | 33 | 44 | | -42.8% | -36.6% | -47.7% | -65.8% |
| Net Income | 59 | 51 | 249 | 138 | | -26.2% | -15.4% | 96.1% | -1.0% |
Balance Sheet
|
|---|
Ratios
|
|---|
| 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.
