Oil & Gas Development Co demonstrates profitable growth
12 Aug 2014 • About Oil & Gas Development Co (
$OGDC) • By InTwits
Have you thought about Oil & Gas Development Co as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Oil & Gas Development Co showed fast growth in the last financial year. The company's revenue surged on 15.1% in FY2014. The growth also happened in EBITDA of 21.0% for the same period.
If we look for the longer period Oil & Gas Development Co showed fast revenue growth of 18.2% from FY2011 to FY2014 annually. EBITDA surged on 19.2% from FY2011 to FY2014 annually.
Oil & Gas Development Co ($OGDC) financials for the last 5 years
| mln. PKR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 142,572 | 155,631 | 197,839 | 223,365 | 257,014 |
|---|
| Revenue growth, % | | 9.2% | 27.1% | 12.9% | 15.1% |
|---|
| Gross margin, % | 70.6% | 66.0% | 69.9% | 70.9% | 68.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 99,542 | 105,169 | 145,712 | 147,175 | 178,115 |
|---|
| EBITDA growth, % | | 5.7% | 38.6% | 1.0% | 21.0% |
|---|
| EBITDA margin, % | 69.8% | 67.6% | 73.7% | 65.9% | 69.3% |
|---|
| Net Income | 59,177 | 63,527 | 96,906 | 91,273 | 123,915 |
|---|
| Net Income margin, % | 41.5% | 40.8% | 49.0% | 40.9% | 48.2% |
|---|
| |
| CAPEX | 24,211 | 18,093 | 21,010 | 30,152 | 44,288 |
|---|
| CAPEX/Revenue, % | 17.0% | 11.6% | 10.6% | 13.5% | 17.2% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 170 | 116 | 98 | 235 | 154 |
|---|
| Net Debt/EBITDA | -0.0x | -0.0x | -0.0x | -0.0x | -0.0x |
|---|
| |
| ROIC, % | 54.1% | 41.2% | 46.7% | 40.4% | 39.7% |
|---|
| ROE, % | 41.7% | 35.4% | 41.2% | 31.4% | 35.0% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. Oil & Gas Development Co's EBITDA margin increased on 3.40 pp from 65.9% to 69.3% in FY2014. If we look for the longer period EBITDA margin increased slightly on 1.70 pp from 67.6% in FY2011 to 69.3% in FY2014.
We call Oil & Gas Development Co an attractive growth stock as together with the growth it delivers high ROIC at 39.7%. Three years ago it was a bit higher at 41.2%. It's average ROIC for the last three years was 42.3%.
Net Income margin surged on 7.30 pp from 40.9% to 48.2% in FY2014. In the longer period Oil & Gas Development Co's Net Income margin surged on 7.40 pp from 40.8% in FY2011 to 48.2% in FY2014.
Oil & Gas Development Co operates at ROE of 35.0%. It's average ROE for the last three years was 35.9%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2014 Oil & Gas Development Co had CAPEX/Revenue of 17.2%. The company's CAPEX/Revenue surged on 5.61 pp from 11.6% in FY2011 to 17.2% in FY2014. It's average level of CAPEX/Revenue for the last three years was 13.8%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.0x Net Debt/EBITDA. In the last 3 years leverage surged on 0.00x from -0.00x in FY2011 to -0.00x in FY2014.
Peers in Oil & Gas Producers
Below you can find Oil & Gas Development Co benchmarking vs. other companies in Oil & Gas Producers 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Great Eastern Energy Corp ($GEEC) | | 443.0% | 73.9% | 24.7% | 16.0% |
| Edge Resources Inc ($EDG) | | | 472.1% | 45.4% | 10.0% |
| Gazprom OAO ($OGZD) | | | | 10.1% | 6.5% |
| AO Tatneft ($ATAD) | | | | 2.5% | 4.7% |
| Jubilant Energy N.V. ($JUB) | | 10.9% | 41.0% | 2.3% | -10.8% |
| |
|---|
| Median (5 companies) | | 227.0% | 73.9% | 10.1% | 6.5% |
|---|
| Oil & Gas Development Co ($OGDC) | | 9.2% | 27.1% | 12.9% | 15.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Great Eastern Energy Corp ($GEEC) | -61.5% | 48.7% | 61.2% | 64.1% | 70.4% |
| Jubilant Energy N.V. ($JUB) | -266.4% | -250.4% | 23.7% | 60.9% | 67.6% |
| Gazprom OAO ($OGZD) | | | 35.6% | 38.2% | 31.9% |
| AO Tatneft ($ATAD) | | | 26.9% | 27.2% | 26.8% |
| Edge Resources Inc ($EDG) | | -141.4% | -0.9% | -9.9% | 24.7% |
| |
|---|
| Median (5 companies) | -164.0% | -141.4% | 26.9% | 38.2% | 31.9% |
|---|
| Oil & Gas Development Co ($OGDC) | 69.8% | 67.6% | 73.7% | 65.9% | 69.3% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Jubilant Energy N.V. ($JUB) | 924.8% | 301.5% | 322.7% | 481.7% | 208.5% |
| Great Eastern Energy Corp ($GEEC) | 1,086.8% | 198.8% | 176.2% | 108.3% | 63.4% |
| Edge Resources Inc ($EDG) | | 1,491.8% | 303.0% | 75.0% | 44.6% |
| Gazprom OAO ($OGZD) | | | 28.3% | 26.6% | 22.6% |
| AO Tatneft ($ATAD) | | | 11.4% | 12.5% | 13.1% |
| |
|---|
| Median (5 companies) | 1,005.8% | 301.5% | 176.2% | 75.0% | 44.6% |
|---|
| Oil & Gas Development Co ($OGDC) | 17.0% | 11.6% | 10.6% | 13.5% | 17.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| AO Tatneft ($ATAD) | | | 19.2% | 19.1% | 17.8% |
| Great Eastern Energy Corp ($GEEC) | -2.9% | 2.9% | 7.1% | 8.9% | 10.7% |
| Gazprom OAO ($OGZD) | | | 13.4% | 14.2% | 10.3% |
| Jubilant Energy N.V. ($JUB) | -16.5% | -12.2% | 0.2% | 2.0% | 1.7% |
| Edge Resources Inc ($EDG) | -84.4% | -20.1% | -8.7% | -18.7% | 0.2% |
| |
|---|
| Median (5 companies) | -16.5% | -12.2% | 7.1% | 8.9% | 10.3% |
|---|
| Oil & Gas Development Co ($OGDC) | 54.1% | 41.2% | 46.7% | 40.4% | 39.7% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Jubilant Energy N.V. ($JUB) | | | 77.9x | 38.8x | 44.6x |
| Edge Resources Inc ($EDG) | | | | | 8.0x |
| Great Eastern Energy Corp ($GEEC) | | 10.7x | 6.0x | 5.6x | 4.8x |
| Gazprom OAO ($OGZD) | | | 0.6x | 0.6x | 0.9x |
| AO Tatneft ($ATAD) | | | 0.5x | 0.2x | -0.1x |
| |
|---|
| Median (5 companies) | | 10.7x | 3.3x | 3.1x | 4.8x |
|---|
| Oil & Gas Development Co ($OGDC) | -0.0x | -0.0x | -0.0x | -0.0x | -0.0x |
