Mosenergo AO CAPEX jumped on 31.1% in 2015 and Revenue increased on 6.0%
09 Mar 2016 • About Mosenergo AO (
$AOMD) • By InTwits
Mosenergo AO reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mosenergo AO doesn't have a profitable business model yet: 2015 ROIC is -0.1%
- Mosenergo AO has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.1%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 42,550 in 2015, 20,549 in 2014, 17,795 in 2013, 13,370 in 2012, 12,905 in 2011
- The company has unprofitable business model: ROIC is at -0.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mosenergo AO ($AOMD) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 161,119 | 157,139 | 155,932 | 161,432 | 171,163 | 6.0% |
| EBITDA | 23,928 | 20,250 | 23,809 | 17,079 | 18,131 | 6.2% |
| Net Income | 9,892 | 6,313 | 7,473 | -2,972 | -1,796 | -39.6% |
Balance Sheet
|
|---|
| Cash | 25,572 | 12,632 | 2,871 | 9,677 | 5,666 | -41.4% |
| Short Term Debt | 5,354 | 1,898 | 7,275 | 1,824 | 3,113 | 70.7% |
| Long Term Debt | 10,223 | 16,616 | 19,202 | 47,315 | 45,857 | -3.1% |
Cash flow
|
|---|
| Capex | 17,191 | 19,759 | 27,780 | 17,660 | 23,145 | 31.1% |
Ratios
|
|---|
| Revenue growth | 10.9% | -2.5% | -0.8% | 3.5% | 6.0% | |
| EBITDA growth | 19.1% | -15.4% | 17.6% | -28.3% | 6.2% | |
| EBITDA Margin | 14.9% | 12.9% | 15.3% | 10.6% | 10.6% | 0.0% |
| Net Income Margin | 6.1% | 4.0% | 4.8% | -1.8% | -1.0% | 0.8% |
| CAPEX, % of revenue | 10.7% | 12.6% | 17.8% | 10.9% | 13.5% | 2.6% |
| ROIC | 4.6% | 2.7% | 3.4% | 0.5% | -0.1% | -0.6% |
| ROE | 5.0% | 3.1% | 3.2% | -1.2% | -0.8% | 0.4% |
| Net Debt/EBITDA | -0.4x | 0.3x | 1.0x | 2.3x | 2.4x | 0.1x |
Revenue and profitability
The company's Revenue increased on 6.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from 69.3% to 62.4% in FY2015.
Net Income marign increased slightly on 0.79 pp from -1.8% to -1.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Mosenergo AO had CAPEX/Revenue of 13.5%. CAPEX/Revenue increased slightly on 0.95 pp from 12.6% in 2012 to 13.5% in 2015. It's average CAPEX/Revenue for the last three years was 14.1%.The company investments to CAPEX were large: 128% of EBITDA.
Return on investment
The company operates at negative ROIC (-0.14%) and ROE (-0.76%). ROIC decreased slightly on 0.62 pp from 0.48% to -0.14% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 2.7x. Net Debt / EBITDA increased on 0.1x from 2.3x to 2.4x in 2015. Debt showed almost no change in 2015 while cash dropped on 41.4% in 2015.
Appendix 1: Peers in Electricity
Below we provide Mosenergo AO benchmarking against other companies in Electricity 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 |
|---|
| Good Energy Group ($GOOD) | 7.7% | 30.7% | 43.3% | 42.6% | |
| Infinis Energy ($INFI) | | 14.0% | 3.5% | 5.5% | -24.5% |
| RusHydro OJSC ($HYDR) | -31.1% | -17.6% | 5.0% | 5.1% | |
| Public Power Corp S.A. ($PPCD) | -5.1% | 8.6% | -0.2% | -1.8% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | -2.2% | 2.5% | -6.3% | |
| |
|---|
| Median (8 companies) | 1.3% | 11.3% | 3.0% | -4.0% | 4.2% |
|---|
| Mosenergo AO ($AOMD) | | -2.5% | -0.8% | 3.5% | 6.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Infinis Energy ($INFI) | 45.3% | 44.7% | 45.0% | 45.8% | 45.1% |
| Renewable Energy Generation Ltd ($WIND) | 38.7% | 42.5% | 42.7% | 35.9% | 36.5% |
| Good Energy Group ($GOOD) | 40.3% | 33.9% | 33.6% | 32.7% | |
| Ksk Power Ventur ($KSK) | 33.7% | 33.9% | 40.0% | 27.1% | 27.0% |
| |
|---|
| Median (4 companies) | 39.5% | 38.2% | 41.4% | 34.3% | 36.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Infinis Energy ($INFI) | 52.5% | 55.1% | 54.6% | 45.2% | 69.8% |
| Datang Intl Power Generation ($DAT) | 25.0% | 28.7% | 33.6% | 34.8% | |
| Ksk Power Ventur ($KSK) | 33.0% | 43.1% | 40.6% | 30.3% | 26.0% |
| Public Power Corp S.A. ($PPCD) | 17.1% | 15.3% | 19.1% | 20.0% | |
| RusHydro OJSC ($HYDR) | 18.6% | 4.3% | 13.1% | 16.8% | |
| |
|---|
| Median (8 companies) | 17.9% | 19.8% | 21.0% | 18.4% | 69.8% |
|---|
| Mosenergo AO ($AOMD) | 14.9% | 12.9% | 15.3% | 10.6% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renewable Energy Generation Ltd ($WIND) | 163.4% | 142.1% | 77.4% | 167.6% | 100.1% |
| Ksk Power Ventur ($KSK) | 119.9% | 194.9% | 100.4% | 59.5% | 58.3% |
| Good Energy Group ($GOOD) | 9.7% | 1.0% | 23.2% | 31.8% | |
| Datang Intl Power Generation ($DAT) | 35.9% | 34.3% | 43.2% | 28.8% | |
| RusHydro OJSC ($HYDR) | 22.6% | 27.8% | 19.7% | 23.8% | |
| |
|---|
| Median (8 companies) | 23.4% | 25.7% | 27.7% | 26.3% | 58.3% |
|---|
| Mosenergo AO ($AOMD) | 10.7% | 12.6% | 17.8% | 10.9% | 13.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Good Energy Group ($GOOD) | 11.7% | 10.8% | 12.2% | 7.0% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | 3.2% | 4.0% | 6.5% | |
| Datang Intl Power Generation ($DAT) | 4.6% | 5.7% | 5.9% | 4.8% | |
| RusHydro OJSC ($HYDR) | 7.5% | -0.7% | 3.0% | 4.3% | |
| Public Power Corp S.A. ($PPCD) | 1.7% | 1.5% | 3.6% | 3.7% | |
| |
|---|
| Median (8 companies) | 3.5% | 3.7% | 3.8% | 4.0% | 1.1% |
|---|
| Mosenergo AO ($AOMD) | 4.6% | 2.7% | 3.4% | 0.5% | -0.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Power Ventur ($KSK) | 16.9x | 12.8x | 16.0x | 26.5x | 30.7x |
| Renewable Energy Generation Ltd ($WIND) | | 8.4x | 0.9x | 9.6x | 0.5x |
| Datang Intl Power Generation ($DAT) | 9.2x | 8.4x | 7.7x | 8.3x | |
| Good Energy Group ($GOOD) | 2.6x | -0.1x | 1.5x | 5.7x | |
| Infinis Energy ($INFI) | 2.7x | 3.3x | 4.2x | 5.1x | 4.3x |
| |
|---|
| Median (8 companies) | 2.7x | 6.6x | 3.5x | 5.4x | 4.3x |
|---|
| Mosenergo AO ($AOMD) | -0.4x | 0.3x | 1.0x | 2.3x | 2.4x |
