Total Sa revenue dropped on 19.1% in 2015 and EBITDA Margin showed almost no change
11 Feb 2016 • About Total Sa (
$TTA) • By InTwits
Total Sa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Total Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.9%. At the same time it's in pair with industry average of 12.2%.
- CAPEX is quite volatile: 2,516 in 2015, 4,103 in 2014, 9,997 in 2013, 14,978 in 2012, 20,502 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Total Sa ($TTA) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 166,550 | 182,299 | 171,655 | 159,859 | 129,295 | -19.1% |
| EBITDA | 32,718 | 31,274 | 27,071 | 17,614 | 14,890 | -15.5% |
| Net Income | 12,276 | 10,609 | 8,440 | 3,200 | 4,586 | 43.3% |
Balance Sheet
|
|---|
| Cash | 14,025 | 15,469 | 14,647 | 20,811 | 21,415 | 2.9% |
| Short Term Debt | 9,675 | 11,016 | 8,116 | 9,043 | 11,493 | 27.1% |
| Long Term Debt | 22,411 | 22,263 | 24,833 | 36,807 | 38,260 | 3.9% |
Cash flow
|
|---|
| Capex | 17,950 | 19,905 | 22,400 | 19,845 | 22,657 | 14.2% |
Ratios
|
|---|
| Revenue growth | 18.6% | 9.5% | -5.8% | -6.9% | -19.1% | |
| EBITDA growth | 20.8% | -4.4% | -13.4% | -34.9% | -15.5% | |
| EBITDA Margin | 19.6% | 17.2% | 15.8% | 11.0% | 11.5% | 0.5% |
| Net Income Margin | 7.4% | 5.8% | 4.9% | 2.0% | 3.5% | 1.5% |
| CAPEX, % of revenue | 10.8% | 10.9% | 13.0% | 12.4% | 17.5% | 5.1% |
| ROIC | 23.4% | 19.5% | 15.2% | 6.5% | 2.5% | -3.9% |
| ROE | 19.1% | 15.2% | 11.7% | 4.5% | 5.6% | 1.1% |
| Net Debt/EBITDA | 0.6x | 0.6x | 0.7x | 1.4x | 1.9x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 19.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 6.5% to 3.0% in 2015.
Net Income marign increased slightly on 1.5 pp from 2.0% to 3.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Total Sa had CAPEX/Revenue of 17.5%. CAPEX/Revenue increased on 6.6 pp from 10.9% in 2012 to 17.5% in 2015. Average CAPEX/Revenue for the last three years was 14.3%.Total Sa has spent a lot to CAPEX (152% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (2.55%) and ROE (5.56%). ROIC decreased on 3.9 pp from 6.5% to 2.5% in 2015. ROE increased slightly on 1.1 pp from 4.5% to 5.6% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from 1.4x to 1.9x in 2015. Debt increased on 8.5% in 2015 while cash increased on 2.9% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Total Sa benchmarking against other companies in Oil & Gas Producers 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.
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) | | -21.3% | 38.0% | 505.8% | -24.4% |
| 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 ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 30.5% | 17.1% | 4.3% | 0.5% | -18.0% |
|---|
| Total Sa ($TTA) | | 9.5% | -5.8% | -6.9% | -19.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | |
| Oil & Gas Development Co ($OGDC) | 66.0% | 69.9% | 70.9% | 68.5% | 62.7% |
| 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 ($VGAS) | 45.5% | | | 42.9% | |
| |
|---|
| Median (23 companies) | 16.6% | 17.7% | 20.0% | 15.1% | 9.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($GEEC) | 48.7% | 61.2% | 64.1% | 70.4% | 66.5% |
| Oil & Gas Development Co ($OGDC) | 67.6% | 73.7% | 65.9% | 69.3% | 62.4% |
| Bankers Petroleum Ltd ($BNK) | 51.4% | 53.3% | 59.4% | 68.3% | |
| Jubilant Energy N.V. ($JUB) | -250.4% | 23.7% | 60.9% | 67.6% | 28.7% |
| Nighthawk Energy ($HAWK) | -358.5% | -80.7% | 72.2% | 57.7% | |
| |
|---|
| Median (36 companies) | 9.3% | 16.2% | 20.6% | 18.2% | 28.1% |
|---|
| Total Sa ($TTA) | 19.6% | 17.2% | 15.8% | 11.0% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | 301.5% | 322.7% | 481.7% | 208.5% | 5.9% |
| 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% | 17.2% | 27.0% |
|---|
| Total Sa ($TTA) | 10.8% | 10.9% | 13.0% | 12.4% | 17.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($OGDC) | 41.2% | 46.7% | 40.4% | 39.7% | 24.3% |
| 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% | |
| |
|---|
| Median (38 companies) | 5.4% | 4.6% | 5.8% | 5.3% | 0.2% |
|---|
| Total Sa ($TTA) | 23.4% | 19.5% | 15.2% | 6.5% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | | 77.9x | 38.8x | 44.6x | 192.7x |
| Ruspetro ($RPO) | | 369.1x | 34.8x | 27.9x | |
| Bg Group ($BG.) | 1.2x | 1.3x | 1.7x | 11.7x | 1.5x |
| President Energy ($PPC) | | | | 9.9x | |
| Edge Resources Inc ($EDG) | | | | 8.0x | 7.6x |
| |
|---|
| Median (27 companies) | 0.5x | 0.4x | 0.7x | 1.3x | 1.5x |
|---|
| Total Sa ($TTA) | 0.6x | 0.6x | 0.7x | 1.4x | 1.9x |
