Bankers Petroleum Ltd Net Income dropped on 103% in 2015 and EBITDA Margin dropped on 29.8 pp from 68.3% to 38.5%
10 Mar 2016 • About Bankers Petroleum Ltd (
$BNK) • By InTwits
Bankers Petroleum Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bankers Petroleum Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.2%
- Bankers Petroleum Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 61.6%. At the same time it's a lot of higher than industry average of 30.0%.
- CAPEX is quite volatile: 165 in 2015, 406 in 2014, 356 in 2013, 166 in 2012, 207 in 2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bankers Petroleum Ltd ($BNK) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 276.0 | 347.2 | 468.2 | 496.0 | 304.7 | -38.6% |
| Gross Profit | 215.1 | 269.2 | 379.7 | 400.6 | 220.0 | -45.1% |
| SG&A | 59.2 | 73.6 | 88.4 | 81.7 | 59.8 | -26.8% |
| EBITDA | 141.9 | 185.0 | 278.2 | 338.7 | 117.3 | -65.4% |
| Net Income | 36.0 | 34.4 | 61.7 | 128.8 | -3.6 | -102.8% |
Balance Sheet
|
|---|
| Cash | 49.0 | 33.7 | 24.6 | 68.0 | 52.0 | -23.6% |
| Short Term Debt | 13.2 | 2.1 | 1.5 | 1.2 | 18.1 | 1,404.6% |
| Long Term Debt | 46.7 | 97.2 | 98.2 | 98.3 | 98.6 | 0.4% |
Cash flow
|
|---|
| Capex | 242.8 | 222.7 | 234.2 | 291.3 | 144.0 | -50.6% |
Ratios
|
|---|
| Revenue growth | 101.9% | 25.8% | 34.9% | 5.9% | -38.6% | |
| EBITDA growth | 126.5% | 30.3% | 50.4% | 21.7% | -65.4% | |
| Gross Margin | 77.9% | 77.5% | 81.1% | 80.8% | 72.2% | -8.6% |
| EBITDA Margin | 51.4% | 53.3% | 59.4% | 68.3% | 38.5% | -29.8% |
| Net Income Margin | 13.0% | 9.9% | 13.2% | 26.0% | -1.2% | -27.2% |
| SG&A, % of revenue | 21.5% | 21.2% | 18.9% | 16.5% | 19.6% | 3.2% |
| CAPEX, % of revenue | 88.0% | 64.1% | 50.0% | 58.7% | 47.3% | -11.5% |
| ROIC | 19.7% | 17.4% | 20.8% | 20.8% | -0.2% | -21.0% |
| ROE | 9.5% | 7.7% | 11.8% | 20.1% | -0.5% | -20.6% |
| Net Debt/EBITDA | 0.1x | 0.4x | 0.3x | 0.1x | 0.6x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 38.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 29.8 pp from 68.3% to 38.5% in 2015.
Gross Margin decreased on 8.6 pp from 80.8% to 72.2% in 2015. SG&A as a % of Revenue increased on 3.2 pp from 16.5% to 19.6% in 2015.
Net Income marign dropped on 27.2 pp from 26.0% to -1.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Bankers Petroleum Ltd had CAPEX/Revenue of 47.3%. The company's CAPEX/Revenue dropped on 16.9 pp from 64.1% in 2012 to 47.3% in 2015. For the last three years the average CAPEX/Revenue was 52.0%.Battling declining revenue the company made large investments to CAPEX (123% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.19%) and ROE (-0.50%). ROIC dropped on 21.0 pp from 20.8% to -0.19% in 2015. ROE dropped on 20.6 pp from 20.1% to -0.50% in 2015.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 0.1x to 0.6x in 2015. Debt surged on 17.3% in 2015 while cash dropped on 23.6% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Bankers Petroleum Ltd 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 ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 28.7% | 12.8% | 3.6% | -0.8% | -18.0% |
|---|
| Bankers Petroleum Ltd ($BNK) | | 25.8% | 34.9% | 5.9% | -38.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Caza Oil & Gas Inc ($CAZA) | 3.0% | 0.1% | 30.5% | 40.8% | |
| |
|---|
| Median (22 companies) | 15.7% | 16.5% | 19.2% | 14.1% | 9.5% |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | 72.2% |
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% |
| 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% | |
| Circle Oil ($COP) | 46.2% | 53.5% | 54.8% | 51.1% | |
| |
|---|
| Median (36 companies) | 9.3% | 16.2% | 17.4% | 15.9% | 21.8% |
|---|
| Bankers Petroleum Ltd ($BNK) | 51.4% | 53.3% | 59.4% | 68.3% | 38.5% |
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 ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | |
| |
|---|
| Median (37 companies) | 13.9% | 17.5% | 21.1% | 15.9% | 16.8% |
|---|
| Bankers Petroleum Ltd ($BNK) | 88.0% | 64.1% | 50.0% | 58.7% | 47.3% |
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% |
| AO Tatneft ($ATAD) | | 19.2% | 19.1% | 17.8% | 19.7% |
| |
|---|
| Median (38 companies) | 5.4% | 4.6% | 5.8% | 5.3% | 5.0% |
|---|
| Bankers Petroleum Ltd ($BNK) | 19.7% | 17.4% | 20.8% | 20.8% | -0.2% |
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 ($EDG) | | | | 8.0x | 7.6x |
| |
|---|
| Median (27 companies) | 0.5x | 0.5x | 0.7x | 1.3x | 2.0x |
|---|
| Bankers Petroleum Ltd ($BNK) | 0.1x | 0.4x | 0.3x | 0.1x | 0.6x |
