RusHydro OJSC reports 23.2% Net Income growth and almost no change in EBITDA Margin of 16.4%
23 Mar 2016 • About RusHydro OJSC (
$HYDR) • By InTwits
RusHydro OJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 16.4% in 2015, 16.8% in 2014, 13.1% in 2013, 4.3% in 2012, 18.6% in 2011
- RusHydro OJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.3%. At the same time it's in pair with industry average of 32.5%.
- CAPEX is quite volatile: 25,019 in 2015, 12,232 in 2014, 10,772 in 2013, 11,290 in 2012, 14,725 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
RusHydro OJSC ($HYDR) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 362,599 | 298,805 | 313,632 | 329,560 | 347,512 | 5.4% |
| EBITDA | 67,537 | 12,930 | 41,062 | 55,222 | 57,158 | 3.5% |
| Net Income | 31,411 | -22,631 | 19,767 | 25,606 | 31,539 | 23.2% |
Balance Sheet
|
|---|
| Cash | 47,337 | 39,819 | 34,472 | 34,394 | 48,025 | 39.6% |
| Short Term Debt | 21,411 | 73,752 | 19,887 | 57,843 | 62,214 | 7.6% |
| Long Term Debt | 102,624 | 67,283 | 131,890 | 119,187 | 135,179 | 13.4% |
Cash flow
|
|---|
| Capex | 81,905 | 83,042 | 61,641 | 78,577 | 79,238 | 0.8% |
Ratios
|
|---|
| Revenue growth | -31.1% | -17.6% | 5.0% | 5.1% | 5.4% | |
| EBITDA growth | 49.0% | -80.9% | 217.6% | 34.5% | 3.5% | |
| EBITDA Margin | 18.6% | 4.3% | 13.1% | 16.8% | 16.4% | -0.3% |
| Net Income Margin | 8.7% | -7.6% | 6.3% | 7.8% | 9.1% | 1.3% |
| CAPEX, % of revenue | 22.6% | 27.8% | 19.7% | 23.8% | 22.8% | -1.0% |
| ROIC | 7.5% | -0.7% | 3.0% | 4.3% | 4.2% | -0.1% |
| ROE | 6.2% | -4.5% | 3.6% | 4.4% | 5.3% | 0.9% |
| Net Debt/EBITDA | 1.1x | 7.8x | 2.9x | 2.6x | 2.6x | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 5.9% to 8.6% in 2015.
Net Income marign increased slightly on 1.3 pp from 7.8% to 9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 22.8%. The company showed decline in CAPEX/Revenue of 5.0 pp from 27.8% in 2012 to 22.8% in 2015. It's average CAPEX/Revenue for the last three years was 22.1%.RusHydro OJSC investments to CAPEX were large: 139% of EBITDA.
Return on investment
The company operates at low ROIC (4.22%) and ROE (5.34%). ROIC showed almost no change in 2015. ROE increased slightly on 0.92 pp from 4.4% to 5.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 3.5x. Net Debt / EBITDA increased on 0.030x from 2.6x to 2.6x in 2015. Debt surged on 11.5% in 2015 while cash jumped on 39.6% in 2015.
Appendix 1: Peers in Electricity
Below we provide RusHydro OJSC 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 ($GOOD) | | 30.7% | 43.3% | 42.6% | 11.6% |
| Infinis Energy ($INFI) | | 14.0% | 3.5% | 5.5% | -24.5% |
| Mosenergo AO ($AOMD) | | -2.5% | -0.8% | 3.5% | 6.0% |
| Public Power Corp S.A. ($PPCD) | -5.1% | 8.6% | -0.2% | -1.8% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | -2.2% | 2.5% | -6.3% | 9.1% |
| |
|---|
| Median (8 companies) | 7.1% | 11.3% | 2.5% | -4.0% | 7.6% |
|---|
| RusHydro OJSC ($HYDR) | | -17.6% | 5.0% | 5.1% | 5.4% |
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 ($GOOD) | 40.3% | 33.9% | 33.6% | 32.7% | 33.1% |
| Ksk Power Ventur ($KSK) | 33.7% | 33.9% | 40.0% | 27.1% | 27.0% |
| |
|---|
| Median (4 companies) | 39.5% | 38.2% | 41.4% | 34.3% | 34.8% |
|---|
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% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | 5.0% | 12.2% | 11.9% | 16.7% | 17.8% |
| |
|---|
| Median (8 companies) | 16.0% | 19.8% | 21.0% | 18.4% | 21.9% |
|---|
| RusHydro OJSC ($HYDR) | 18.6% | 4.3% | 13.1% | 16.8% | 16.4% |
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 ($GOOD) | 9.7% | 1.0% | 23.2% | 31.8% | 27.6% |
| Datang Intl Power Generation ($DAT) | 35.9% | 34.3% | 43.2% | 28.8% | |
| Infinis Energy ($INFI) | 24.1% | 23.6% | 32.3% | 16.2% | 22.8% |
| |
|---|
| Median (8 companies) | 22.3% | 18.5% | 27.7% | 22.5% | 25.2% |
|---|
| RusHydro OJSC ($HYDR) | 22.6% | 27.8% | 19.7% | 23.8% | 22.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Good Energy Group ($GOOD) | 11.7% | 10.8% | 12.2% | 7.0% | 5.8% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | 3.2% | 4.0% | 6.5% | 7.9% |
| Datang Intl Power Generation ($DAT) | 4.6% | 5.7% | 5.9% | 4.8% | |
| Public Power Corp S.A. ($PPCD) | 1.7% | 1.5% | 3.6% | 3.7% | |
| Infinis Energy ($INFI) | | 4.6% | 5.0% | 3.0% | 5.2% |
| |
|---|
| Median (8 companies) | 3.5% | 3.7% | 3.8% | 3.4% | 3.1% |
|---|
| RusHydro OJSC ($HYDR) | 7.5% | -0.7% | 3.0% | 4.3% | 4.2% |
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 | 7.8x |
| Infinis Energy ($INFI) | 2.7x | 3.3x | 4.2x | 5.1x | 4.3x |
| |
|---|
| Median (8 companies) | 2.7x | 4.3x | 2.8x | 5.4x | 3.3x |
|---|
| RusHydro OJSC ($HYDR) | 1.1x | 7.8x | 2.9x | 2.6x | 2.6x |
