Public Power Corp S.A. reports 13.5% EBITDA decline and 2.2% Revenue decline
29 Mar 2016 • About Public Power Corp S.A. (
$PPCD) • By InTwits
Public Power Corp S.A. reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Public Power Corp S.A. doesn't have a profitable business model yet: 2015 ROIC is 1.4%
- Public Power Corp S.A. has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.1%. At the same time it's in pair with industry average of 3.3%.
- CAPEX is quite volatile: 220 in FY2015, 153 in FY2014, 134 in FY2013, 97.8 in FY2012, 57.5 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Public Power Corp S.A. ($PPCD) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,514 | 5,985 | 5,971 | 5,864 | 5,736 | -2.2% |
| EBITDA | 942 | 913 | 1,139 | 1,175 | 1,016 | -13.5% |
| Net Income | -149 | 42 | -225 | 91 | -103 | -212.3% |
Balance Sheet
|
|---|
| Cash | 364 | 279 | 260 | 435 | 452 | 3.9% |
| Short Term Debt | 1,663 | 1,802 | 1,935 | 679 | 841 | 23.9% |
| Long Term Debt | 3,566 | 3,303 | 3,009 | 4,851 | 4,491 | -7.4% |
Cash flow
|
|---|
| Capex | 1,131 | 798 | 722 | 670 | 753 | 12.3% |
Ratios
|
|---|
| Revenue growth | -5.1% | 8.6% | -0.2% | -1.8% | -2.2% | |
| EBITDA growth | -47.9% | -3.0% | 24.7% | 3.1% | -13.5% | |
| EBITDA Margin | 17.1% | 15.3% | 19.1% | 20.0% | 17.7% | -2.3% |
| Net Income Margin | -2.7% | 0.7% | -3.8% | 1.6% | -1.8% | -3.3% |
| CAPEX, % of revenue | 20.5% | 13.3% | 12.1% | 11.4% | 13.1% | 1.7% |
| ROIC | 1.7% | 1.5% | 3.6% | 3.7% | 1.4% | -2.4% |
| ROE | -2.3% | 0.7% | -4.1% | 1.6% | -1.7% | -3.3% |
| Net Debt/EBITDA | 5.2x | 5.3x | 4.1x | 4.3x | 4.8x | 0.5x |
Revenue and profitability
The company's Revenue decreased on 2.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 20.0% to 17.7% in 2015.
Net Income marign decreased on 3.3 pp from 1.6% to -1.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Public Power Corp S.A. had CAPEX/Revenue of 13.1%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 12.2%.Public Power Corp S.A. invested a big chunk of EBITDA (74.1%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (1.35%) and negative ROE (-1.70%). ROIC decreased on 2.4 pp from 3.7% to 1.4% in 2015. ROE decreased on 3.3 pp from 1.6% to -1.7% in 2015.
Leverage (Debt)
Debt level is 4.8x Net Debt / EBITDA and 5.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 4.3x to 4.8x in 2015. Debt decreased on 3.6% in 2015 while cash increased on 3.9% in 2015.
Appendix 1: Peers in Electricity
Below you can find Public Power Corp S.A. benchmarking vs. other companies in Electricity 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 |
|---|
| Ksk Power Ventur ($KSK) | | 69.0% | 2.5% | -14.5% | 13.8% |
| Good Energy Group ($GOOD) | | 30.7% | 43.3% | 42.6% | 11.6% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | | -2.2% | 2.5% | -6.3% | 9.1% |
| Mosenergo AO ($AOMD) | | -2.5% | -0.8% | 3.5% | 6.0% |
| RusHydro OJSC ($HYDR) | | -17.6% | 5.0% | 5.1% | 5.4% |
| |
|---|
| Median (8 companies) | | 10.6% | 3.0% | -1.4% | 5.7% |
|---|
| Public Power Corp S.A. ($PPCD) | | 8.6% | -0.2% | -1.8% | -2.2% |
Top companies by Gross margin, %
| Top 5 | 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 ($GOOD) | 40.3% | 33.9% | 33.6% | 32.7% | 33.1% |
| Datang Intl Power Generation ($DAT) | | | | | 30.7% |
| Ksk Power Ventur ($KSK) | 33.7% | 33.9% | 40.0% | 27.1% | 27.0% |
| |
|---|
| Median (5 companies) | 39.5% | 38.2% | 41.4% | 34.3% | 33.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renewable Energy Generation Ltd ($WIND) | -0.2% | 24.4% | 23.0% | 10.5% | 125.2% |
| 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% | 38.0% |
| Ksk Power Ventur ($KSK) | 33.0% | 43.1% | 40.6% | 30.3% | 26.0% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | 5.0% | 12.2% | 11.9% | 16.7% | 17.8% |
| |
|---|
| Median (8 companies) | 16.7% | 18.7% | 19.1% | 16.7% | 21.9% |
|---|
| Public Power Corp S.A. ($PPCD) | 17.1% | 15.3% | 19.1% | 20.0% | 17.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Renewable Energy Generation Ltd ($WIND) | 163.4% | 142.1% | 77.4% | 167.6% | 100.1% |
| Ksk Power Ventur ($KSK) | 119.9% | 194.9% | 100.4% | 59.5% | 58.3% |
| Datang Intl Power Generation ($DAT) | 35.9% | 34.3% | 43.2% | 28.8% | 29.7% |
| Good Energy Group ($GOOD) | 9.7% | 1.0% | 23.2% | 31.8% | 27.6% |
| RusHydro OJSC ($HYDR) | 22.6% | 27.8% | 19.7% | 23.8% | 22.8% |
| |
|---|
| Median (8 companies) | 23.4% | 25.7% | 27.7% | 26.3% | 25.2% |
|---|
| Public Power Corp S.A. ($PPCD) | 20.5% | 13.3% | 12.1% | 11.4% | 13.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Societatea Comerciala De Dis Si Fur ($ELSA) | | 3.2% | 4.0% | 6.5% | 7.9% |
| Good Energy Group ($GOOD) | 11.7% | 10.8% | 12.2% | 7.0% | 5.8% |
| Infinis Energy ($INFI) | | 4.6% | 5.0% | 3.0% | 5.2% |
| Datang Intl Power Generation ($DAT) | 4.6% | 5.7% | 5.9% | 4.8% | 4.6% |
| RusHydro OJSC ($HYDR) | 7.5% | -0.7% | 3.0% | 4.3% | 4.2% |
| |
|---|
| Median (8 companies) | 4.6% | 3.7% | 3.8% | 3.6% | 4.4% |
|---|
| Public Power Corp S.A. ($PPCD) | 1.7% | 1.5% | 3.6% | 3.7% | 1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Power Ventur ($KSK) | 16.9x | 12.8x | 16.0x | 26.5x | 30.7x |
| Good Energy Group ($GOOD) | 2.6x | -0.1x | 1.5x | 5.7x | 7.8x |
| Datang Intl Power Generation ($DAT) | 9.2x | 8.4x | 7.7x | 8.3x | 7.5x |
| Infinis Energy ($INFI) | 2.7x | 3.3x | 4.2x | 5.1x | 4.3x |
| RusHydro OJSC ($HYDR) | 1.1x | 7.8x | 2.9x | 2.6x | 2.6x |
| |
|---|
| Median (8 companies) | 2.6x | 5.6x | 2.2x | 5.4x | 3.4x |
|---|
| Public Power Corp S.A. ($PPCD) | 5.2x | 5.3x | 4.1x | 4.3x | 4.8x |
