Gazprom Neft OJSC Debt surged on 45.2% in 2015 and Revenue increased on 4.2%
02 Mar 2016 • About Gazprom Neft OJSC (
$GAZ) • By InTwits
Gazprom Neft OJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gazprom Neft OJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.5%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: 349,036 in 2015, 271,330 in 2014, 208,611 in 2013, 169,213 in 2012, 118,449 in 2011
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gazprom Neft OJSC ($GAZ) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,298,622 | 1,232,649 | 1,267,603 | 1,408,238 | 1,467,943 | 4.2% |
| SG&A | 52,301 | 68,389 | 72,005 | 86,318 | 100,176 | 16.1% |
| EBITDA | 262,888 | 287,089 | 298,902 | 298,596 | 320,204 | 7.2% |
| Net Income | 157,345 | 176,296 | 177,917 | 122,093 | 109,661 | -10.2% |
Balance Sheet
|
|---|
| Cash | 29,362 | 79,199 | 91,077 | 53,167 | 114,198 | 114.8% |
| Short Term Debt | 41,024 | 77,193 | 52,413 | 61,121 | 147,319 | 141.0% |
| Long Term Debt | 174,118 | 166,447 | 261,455 | 502,306 | 670,779 | 33.5% |
Cash flow
|
|---|
| Capex | 118,449 | 169,213 | 208,611 | 271,330 | 349,036 | 28.6% |
Ratios
|
|---|
| Revenue growth | 30.5% | -5.1% | 2.8% | 11.1% | 4.2% | |
| EBITDA growth | 37.9% | 9.2% | 4.1% | -0.1% | 7.2% | |
| EBITDA Margin | 20.2% | 23.3% | 23.6% | 21.2% | 21.8% | 0.6% |
| Net Income Margin | 12.1% | 14.3% | 14.0% | 8.7% | 7.5% | -1.2% |
| SG&A, % of revenue | 4.0% | 5.5% | 5.7% | 6.1% | 6.8% | 0.7% |
| CAPEX, % of revenue | 9.1% | 13.7% | 16.5% | 19.3% | 23.8% | 4.5% |
| ROIC | 22.8% | 19.7% | 17.6% | 13.6% | 10.6% | -3.1% |
| ROE | 25.4% | 22.2% | 20.0% | 12.1% | 9.9% | -2.2% |
| Net Debt/EBITDA | 0.7x | 0.6x | 0.7x | 1.7x | 2.2x | 0.5x |
Revenue and profitability
The company's Revenue increased on 4.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.61 pp from 21.2% to 21.8% in 2015.
SG&A as a % of Revenue increased slightly on 0.69 pp from 6.1% to 6.8% in 2015.
Net Income marign decreased slightly on 1.2 pp from 8.7% to 7.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Gazprom Neft OJSC had CAPEX/Revenue of 23.8%. The company showed fast CAPEX/Revenue growth of 10.0 pp from 13.7% in 2012 to 23.8% in 2015. It's average CAPEX/Revenue for the last three years was 19.8%.The company maintained rich investment policy and has spent a lot to CAPEX (109% of EBITDA).
Return on investment
The company operates at low ROIC (10.59%) and ROE (9.87%). ROIC decreased on 3.1 pp from 13.6% to 10.6% in 2015. ROE decreased on 2.2 pp from 12.1% to 9.9% in 2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.7x to 2.2x in 2015. Debt surged on 45.2% in 2015 while cash surged on 115% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Gazprom Neft OJSC 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 ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 30.5% | 17.1% | 4.3% | -0.8% | -18.6% |
|---|
| Gazprom Neft OJSC ($GAZ) | | -5.1% | 2.8% | 11.1% | 4.2% |
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% | 15.9% | 19.3% |
|---|
| Gazprom Neft OJSC ($GAZ) | 20.2% | 23.3% | 23.6% | 21.2% | 21.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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% | 15.9% | 16.7% |
|---|
| Gazprom Neft OJSC ($GAZ) | 9.1% | 13.7% | 16.5% | 19.3% | 23.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($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% | 5.3% | 3.8% |
|---|
| Gazprom Neft OJSC ($GAZ) | 22.8% | 19.7% | 17.6% | 13.6% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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 (27 companies) | 0.5x | 0.4x | 0.7x | 1.3x | 1.9x |
|---|
| Gazprom Neft OJSC ($GAZ) | 0.7x | 0.6x | 0.7x | 1.7x | 2.2x |
