Oil & Gas Development Co CAPEX surged on 49.7% in 2015 while Revenue dropped on 18.0%
26 Aug 2015 • About Oil & Gas Development Co (
$OGDC) • By InTwits
Oil & Gas Development Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Oil & Gas Development Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.9%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 66,318 in FY2015, 44,288 in FY2014, 30,152 in FY2013, 21,010 in FY2012, 18,093 in FY2011
- The company has highly profitable business model: ROIC is at 24.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oil & Gas Development Co ($OGDC) key annual financial indicators
| mln. PKR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 155,631 | 197,839 | 223,365 | 257,014 | 210,625 | -18.0% |
| Gross Profit | 102,728 | 138,306 | 158,432 | 176,073 | 131,967 | -25.0% |
| EBITDA | 105,169 | 145,712 | 147,175 | 178,115 | 131,351 | -26.3% |
| Net Income | 63,527 | 96,906 | 91,273 | 123,915 | 87,249 | -29.6% |
Balance Sheet
|
|---|
| Cash | 116 | 98 | 235 | 154 | 13,003 | 8,342.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 18,093 | 21,010 | 30,152 | 44,288 | 66,318 | 49.7% |
Ratios
|
|---|
| Revenue growth | 9.2% | 27.1% | 12.9% | 15.1% | -18.0% | |
| EBITDA growth | 5.7% | 38.6% | 1.0% | 21.0% | -26.3% | |
| Gross Margin | 66.0% | 69.9% | 70.9% | 68.5% | 62.7% | -5.9% |
| EBITDA Margin | 67.6% | 73.7% | 65.9% | 69.3% | 62.4% | -6.9% |
| Net Income Margin | 40.8% | 49.0% | 40.9% | 48.2% | 41.4% | -6.8% |
| CAPEX, % of revenue | 11.6% | 10.6% | 13.5% | 17.2% | 31.5% | 14.3% |
| ROIC | 41.2% | 46.7% | 40.4% | 39.7% | 24.3% | -15.4% |
| ROE | 35.4% | 41.2% | 31.4% | 35.0% | 20.8% | -14.2% |
| Net Debt/EBITDA | -0.0x | -0.0x | -0.0x | -0.0x | -0.1x | -0.1x |
Revenue and profitability
The company's Revenue dropped on 18.0% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from 69.3% to 62.4% in FY2015.
Gross Margin decreased on 5.9 pp from 68.5% to 62.7% in FY2015.
Net Income marign decreased on 6.8 pp from 48.2% to 41.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 31.5% in FY2015. The company's CAPEX/Revenue jumped on 20.9 pp from 10.6% in FY2012 to 31.5% in FY2015. Average CAPEX/Revenue for the last three years was 20.7%.Battling declining revenue the company invested a large share of EBITDA (50.5%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at high and attractive ROIC (24.31%) and ROE (20.82%). ROIC dropped on 15.4 pp from 39.7% to 24.3% in FY2015. ROE dropped on 14.2 pp from 35.0% to 20.8% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 8,342% in FY2015.
Appendix 1: 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cadogan Petroleum ($CAD) | 38.9% | -46.1% | 0.3% | 764.9% | |
| Parkmead Group(The) ($PMG) | 58.4% | -21.3% | 38.0% | 505.8% | |
| Caza Oil & Gas Inc ($CAZA) | 83.1% | 21.5% | 67.0% | 178.3% | |
| Nighthawk Energy ($HAWK) | -57.5% | 75.5% | 1,533.7% | 81.8% | |
| Iofina ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 27.7% | 12.8% | 3.6% | -0.8% | 9.5% |
|---|
| Oil & Gas Development Co ($OGDC) | | 27.1% | 12.9% | 15.1% | -18.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | |
| Nighthawk Energy ($HAWK) | 14.5% | 38.8% | 66.8% | 58.1% | |
| Tethys Petroleum Limited ($TPL) | -4.2% | 14.7% | 28.9% | 46.2% | |
| Volga Gas ($VGAS) | 45.5% | | | 42.9% | |
| Caza Oil & Gas Inc ($CAZA) | 3.0% | 0.1% | 30.5% | 40.8% | |
| |
|---|
| Median (22 companies) | 15.7% | 16.5% | 19.2% | 14.1% | |
|---|
| Oil & Gas Development Co ($OGDC) | 66.0% | 69.9% | 70.9% | 68.5% | 62.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($GEEC) | 48.7% | 61.2% | 64.1% | 70.4% | 66.5% |
| Bankers Petroleum Ltd ($BNK) | 51.4% | 53.3% | 59.4% | 68.3% | |
| Jubilant Energy N.V. ($JUB) | -250.4% | 23.7% | 60.9% | 67.6% | |
| Nighthawk Energy ($HAWK) | -358.5% | -80.7% | 72.2% | 57.7% | |
| Circle Oil ($COP) | 46.2% | 53.5% | 54.8% | 51.1% | |
| |
|---|
| Median (36 companies) | 9.3% | 16.2% | 17.4% | 15.9% | 28.4% |
|---|
| Oil & Gas Development Co ($OGDC) | 67.6% | 73.7% | 65.9% | 69.3% | 62.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | 301.5% | 322.7% | 481.7% | 208.5% | |
| Caza Oil & Gas Inc ($CAZA) | 430.1% | 249.9% | 352.9% | 177.4% | |
| Ithaca Energy Inc ($IAE) | 160.2% | 95.1% | 83.4% | 103.5% | |
| Tethys Petroleum Limited ($TPL) | 182.8% | 52.0% | 64.4% | 95.2% | |
| Ruspetro ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | |
| |
|---|
| Median (37 companies) | 14.6% | 17.7% | 24.6% | 15.9% | 21.9% |
|---|
| Oil & Gas Development Co ($OGDC) | 11.6% | 10.6% | 13.5% | 17.2% | 31.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Haike Chemical Group Ltd ($HAIK) | 7.7% | 0.7% | 1.0% | 31.4% | |
| Nighthawk Energy ($HAWK) | -5.1% | -3.9% | 19.6% | 23.1% | |
| Novatek OAO ($NVTK) | 47.4% | 21.7% | 29.0% | 21.2% | |
| Bankers Petroleum Ltd ($BNK) | 19.7% | 17.4% | 20.8% | 20.8% | |
| AO Tatneft ($ATAD) | | 19.2% | 19.1% | 17.8% | 19.7% |
| |
|---|
| Median (38 companies) | 5.4% | 4.6% | 5.8% | 5.3% | 9.9% |
|---|
| Oil & Gas Development Co ($OGDC) | 41.2% | 46.7% | 40.4% | 39.7% | 24.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | | 77.9x | 38.8x | 44.6x | |
| Ruspetro ($RPO) | | 369.1x | 34.8x | 27.9x | |
| Bg Group ($BG.) | 1.2x | 1.3x | 1.7x | 11.7x | |
| President Energy ($PPC) | | | | 9.9x | |
| Edge Resources Inc ($EDG) | | | | 8.0x | 7.6x |
| |
|---|
| Median (27 companies) | 0.5x | 0.5x | 0.7x | 1.3x | 2.5x |
|---|
| Oil & Gas Development Co ($OGDC) | -0.0x | -0.0x | -0.0x | -0.0x | -0.1x |
