Tethys Petroleum Limited CAPEX dropped on 68.2% in 2015 and Revenue dropped on 19.2%
29 Mar 2016 • About Tethys Petroleum Limited (
$TPL) • By InTwits
Tethys Petroleum Limited reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tethys Petroleum Limited doesn't have a profitable business model yet: 2015 ROIC is -31.3%
- The company operates at negative EBITDA Margin: -146.5%
- Tethys Petroleum Limited motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -36.2% for the sames years0
- Tethys Petroleum Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 86.4%. At the same time it's a lot of higher than industry average of 26.1%.
- CAPEX is quite volatile: 8.3 in 2015, 26.1 in 2014, 23.8 in 2013, 17.5 in 2012, 41.9 in 2011
- The company has unprofitable business model: ROIC is at -31.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tethys Petroleum Limited ($TPL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22.922 | 33.629 | 36.945 | 27.389 | 22.135 | -19.2% |
| Gross Profit | -0.974 | 4.953 | 10.686 | 12.643 | -16.828 | -233.1% |
| SG&A | | | 21.739 | 19.934 | 13.702 | -31.3% |
| EBITDA | -9.627 | -0.448 | -1.076 | -8.126 | -32.426 | 299.0% |
| Net Income | -26.939 | -20.423 | -17.148 | -16.027 | -74.629 | 365.6% |
Balance Sheet
|
|---|
| Cash | 10.746 | 1.750 | 25.109 | 3.112 | 3.272 | 5.1% |
| Short Term Debt | 8.396 | 13.625 | 4.965 | 5.139 | 9.159 | 78.2% |
| Long Term Debt | 1.632 | 3.688 | 0.000 | 5.489 | 22.873 | 316.7% |
Cash flow
|
|---|
| Capex | 41.902 | 17.501 | 23.809 | 26.069 | 8.293 | -68.2% |
Ratios
|
|---|
| Revenue growth | 55.9% | 46.7% | 9.9% | -25.9% | -19.2% | |
| EBITDA growth | -49.8% | -95.3% | 140.2% | 655.2% | 299.0% | |
| Gross Margin | -4.2% | 14.7% | 28.9% | 46.2% | -76.0% | -122.2% |
| EBITDA Margin | -42.0% | -1.3% | -2.9% | -29.7% | -146.5% | -116.8% |
| Net Income Margin | -117.5% | -60.7% | -46.4% | -58.5% | -337.2% | -278.6% |
| SG&A, % of revenue | | | 58.8% | 72.8% | 61.9% | -10.9% |
| CAPEX, % of revenue | 182.8% | 52.0% | 64.4% | 95.2% | 37.5% | -57.7% |
| ROIC | -9.1% | -7.7% | -6.5% | -4.4% | -31.3% | -26.9% |
| ROE | -11.5% | -9.3% | -8.4% | -8.1% | -45.9% | -37.8% |
Revenue and profitability
Tethys Petroleum Limited's Revenue dropped on 19.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin dropped on 122 pp from 46.2% to -76.0% in 2015. SG&A as a % of Revenue dropped on 10.9 pp from 72.8% to 61.9% in 2015.
Net Income marign dropped on 279 pp from -58.5% to -337% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tethys Petroleum Limited had CAPEX/Revenue of 37.5%. Tethys Petroleum Limited's CAPEX/Revenue dropped on 14.6 pp from 52.0% in 2012 to 37.5% in 2015. Average CAPEX/Revenue for the last three years was 65.7%.
Return on investment
The company operates at negative ROIC (-31.34%) and ROE (-45.91%). ROIC dropped on 26.9 pp from -4.4% to -31.3% in 2015. ROE dropped on 37.8 pp from -8.1% to -45.9% in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged on 201% in 2015 while cash increased on 5.1% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Tethys Petroleum Limited 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 ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 28.7% | 12.8% | 3.6% | 0.5% | -19.1% |
|---|
| Tethys Petroleum Limited ($TPL) | | 46.7% | 9.9% | -25.9% | -19.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.9% | 77.5% | 81.1% | 80.8% | 72.2% |
| Oil & Gas Development Co ($OGDC) | 66.0% | 69.9% | 70.9% | 68.5% | 62.7% |
| Nighthawk Energy ($HAWK) | 14.5% | 38.8% | 66.8% | 58.1% | |
| Volga Gas ($VGAS) | 45.5% | | | 42.9% | |
| Caza Oil & Gas Inc ($CAZA) | 3.0% | 0.1% | 30.5% | 40.8% | |
| |
|---|
| Median (22 companies) | 17.5% | 18.3% | 19.2% | 14.1% | 10.4% |
|---|
| Tethys Petroleum Limited ($TPL) | -4.2% | 14.7% | 28.9% | 46.2% | -76.0% |
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 ($BNK) | 51.4% | 53.3% | 59.4% | 68.3% | 38.5% |
| Jubilant Energy N.V. ($JUB) | -250.4% | 23.7% | 60.9% | 67.6% | 28.7% |
| Nighthawk Energy ($HAWK) | -358.5% | -80.7% | 72.2% | 57.7% | |
| |
|---|
| Median (36 companies) | 11.8% | 17.2% | 20.6% | 18.2% | 11.5% |
|---|
| Tethys Petroleum Limited ($TPL) | -42.0% | -1.3% | -2.9% | -29.7% | -146.5% |
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 ($IAE) | 160.2% | 95.1% | 83.4% | 103.5% | 42.8% |
| Ruspetro ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | |
| Zoltav Resources Inc ($ZOL) | | | | 65.8% | |
| |
|---|
| Median (37 companies) | 13.9% | 17.5% | 21.1% | 15.9% | 16.8% |
|---|
| Tethys Petroleum Limited ($TPL) | 182.8% | 52.0% | 64.4% | 95.2% | 37.5% |
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 ($BNK) | 19.7% | 17.4% | 20.8% | 20.8% | -0.2% |
| |
|---|
| Median (38 companies) | 7.7% | 7.1% | 7.0% | 5.7% | 2.5% |
|---|
| Tethys Petroleum Limited ($TPL) | -9.1% | -7.7% | -6.5% | -4.4% | -31.3% |
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 (28 companies) | 0.5x | 0.5x | 0.7x | 1.3x | 1.8x |
|---|
