Kazmunaigas Exploration Production Net Income surged on 418% in 2015 while Revenue dropped on 37.4%
26 Feb 2016 • About Kazmunaigas Exploration Production (
$KMG) • By InTwits
Kazmunaigas Exploration Production reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kazmunaigas Exploration Production is a company in decline: 2015 revenue growth was -37.4%, 5 years revenue CAGR was -2.8%
- The company operates at negative EBITDA Margin: -9.2%
- EBITDA Margin is quite volatile: -9.2% in 2015, -7.1% in 2014, 21.2% in 2013, 25.5% in 2012, 29.0% in 2011
- Kazmunaigas Exploration Production has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.0%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 28,898 in FY2015, 52,697 in FY2014, 89,904 in FY2013, 98,482 in FY2012, 72,458 in FY2011
- The company has unprofitable business model: ROIC is at -4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kazmunaigas Exploration Production ($KMG) key annual financial indicators
| mln. KZT | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 721,194 | 797,170 | 816,712 | 845,770 | 529,812 | -37.4% |
| SG&A | 100,173 | 93,088 | 92,360 | 102,568 | 118,601 | 15.6% |
| EBITDA | 209,499 | 203,244 | 172,930 | -59,940 | -48,602 | -18.9% |
| Net Income | 208,931 | 160,823 | 141,829 | 47,038 | 243,669 | 418.0% |
Balance Sheet
|
|---|
| Cash | 206,512 | 154,705 | 119,036 | 180,245 | 237,310 | 31.7% |
| Short Term Debt | 54,931 | 2,462 | 2,503 | 3,000 | 5,585 | 86.2% |
| Long Term Debt | 33,034 | 4,848 | 4,291 | 4,218 | 5,990 | 42.0% |
Cash flow
|
|---|
| Capex | 92,760 | 99,240 | 140,402 | 132,186 | 88,174 | -33.3% |
Ratios
|
|---|
| Revenue growth | 18.4% | 10.5% | 2.5% | 3.6% | -37.4% | |
| EBITDA growth | -5.7% | -3.0% | -14.9% | -134.7% | -18.9% | |
| EBITDA Margin | 29.0% | 25.5% | 21.2% | -7.1% | -9.2% | -2.1% |
| Net Income Margin | 29.0% | 20.2% | 17.4% | 5.6% | 46.0% | 40.4% |
| SG&A, % of revenue | 13.9% | 11.7% | 11.3% | 12.1% | 22.4% | 10.3% |
| CAPEX, % of revenue | 12.9% | 12.4% | 17.2% | 15.6% | 16.6% | 1.0% |
| ROIC | 12.4% | 11.1% | 9.5% | -9.2% | -4.6% | 4.6% |
| ROE | 16.8% | 12.0% | 10.5% | 3.5% | 15.5% | 12.0% |
| Net Debt/EBITDA | -0.6x | -0.7x | -0.6x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 37.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from -7.1% to -9.2% in 2015.
SG&A as a % of Revenue jumped on 10.3 pp from 12.1% to 22.4% in 2015.
Net Income marign surged on 40.4 pp from 5.6% to 46.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Kazmunaigas Exploration Production had CAPEX/Revenue of 16.6%. CAPEX/Revenue increased on 4.2 pp from 12.4% in 2012 to 16.6% in 2015. For the last three years the average CAPEX/Revenue was 16.5%.
Return on investment
The company operates at negative ROIC (-4.56%) and low but positive ROE (15.48%). ROIC increased on 4.6 pp from -9.2% to -4.6% in 2015. ROE jumped on 12.0 pp from 3.5% to 15.5% in 2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 60.4% in 2015 while cash surged on 31.7% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Kazmunaigas Exploration Production 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) | | -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 ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 30.5% | 17.1% | 4.3% | -0.8% | -18.0% |
|---|
| Kazmunaigas Exploration Production ($KMG) | | 10.5% | 2.5% | 3.6% | -37.4% |
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% | 17.4% | 18.2% | 27.1% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 29.0% | 25.5% | 21.2% | -7.1% | -9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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% | 16.8% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 12.9% | 12.4% | 17.2% | 15.6% | 16.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($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 ($NVTK) | 47.4% | 21.7% | 29.0% | 21.2% | 19.4% |
| Bankers Petroleum Ltd ($BNK) | 19.7% | 17.4% | 20.8% | 20.8% | |
| |
|---|
| Median (38 companies) | 5.4% | 4.6% | 5.8% | 5.7% | 5.0% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 12.4% | 11.1% | 9.5% | -9.2% | -4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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 (28 companies) | 0.5x | 0.5x | 0.7x | 1.3x | 1.9x |
|---|
