AO Tatneft reports 48.4% CAPEX growth and 16.0% Revenue growth
31 Mar 2016 • About AO Tatneft (
$ATAD) • By InTwits
AO Tatneft reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AO Tatneft has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.5%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 28,898 in FY2015, 52,697 in FY2014, 89,904 in FY2013, 98,482 in FY2012, 72,458 in FY2011
- The company has highly profitable business model: ROIC is at 19.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AO Tatneft ($ATAD) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 615,867 | 444,099 | 454,983 | 476,360 | 552,712 | 16.0% |
| SG&A | 33,339 | 40,910 | 44,123 | 43,355 | 48,871 | 12.7% |
| EBITDA | 102,473 | 119,445 | 123,732 | 127,654 | 155,553 | 21.9% |
| Net Income | 61,428 | 73,473 | 70,832 | 92,227 | 98,930 | 7.3% |
Balance Sheet
|
|---|
| Cash | 17,044 | 13,083 | 29,535 | 41,548 | 24,600 | -40.8% |
| Short Term Debt | 40,722 | 32,096 | 36,561 | 15,859 | 5,281 | -66.7% |
| Long Term Debt | 61,776 | 37,991 | 12,785 | 12,888 | 12,880 | -0.1% |
Cash flow
|
|---|
| Capex | 52,679 | 50,795 | 56,827 | 62,574 | 92,872 | 48.4% |
Ratios
|
|---|
| Revenue growth | 31.6% | -27.9% | 2.5% | 4.7% | 16.0% | |
| EBITDA growth | 33.8% | 16.6% | 3.6% | 3.2% | 21.9% | |
| EBITDA Margin | 16.6% | 26.9% | 27.2% | 26.8% | 28.1% | 1.3% |
| Net Income Margin | 10.0% | 16.5% | 15.6% | 19.4% | 17.9% | -1.5% |
| SG&A, % of revenue | 5.4% | 9.2% | 9.7% | 9.1% | 8.8% | -0.3% |
| CAPEX, % of revenue | 8.6% | 11.4% | 12.5% | 13.1% | 16.8% | 3.7% |
| ROIC | 18.0% | 19.2% | 19.1% | 17.8% | 19.7% | 1.9% |
| ROE | 16.7% | 17.7% | 15.3% | 17.6% | 16.5% | -1.1% |
| Net Debt/EBITDA | 0.8x | 0.5x | 0.2x | -0.1x | -0.0x | 0.1x |
Revenue and profitability
AO Tatneft's Revenue jumped on 16.0% 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.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.5 pp from 19.4% to 17.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 AO Tatneft had CAPEX/Revenue of 16.8%. CAPEX/Revenue increased on 5.4 pp from 11.4% in 2012 to 16.8% in 2015. Average CAPEX/Revenue for the last three years was 14.1%.AO Tatneft invested a big chunk of EBITDA (59.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (19.70%) and ROE (16.46%). ROIC increased slightly on 1.9 pp from 17.8% to 19.7% in 2015. ROE decreased slightly on 1.1 pp from 17.6% to 16.5% in 2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -0.1x to -0.041x in 2015. Debt dropped on 36.8% in 2015 while cash dropped on 40.8% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below you can find AO Tatneft 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 ($CAZA) | | 21.5% | 67.0% | 178.3% | -22.2% |
| Nighthawk Energy ($HAWK) | -57.5% | 75.5% | 1,533.7% | 81.8% | |
| Iofina ($IOF) | 13.4% | 17.1% | 2.9% | 29.7% | |
| |
|---|
| Median (35 companies) | 26.0% | 15.0% | 4.3% | -0.8% | -19.2% |
|---|
| AO Tatneft ($ATAD) | | | 2.5% | 4.7% | 16.0% |
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 ($HAWK) | 14.5% | 38.8% | 66.8% | 58.1% | |
| Tethys Petroleum Limited ($TPL) | -4.2% | 14.7% | 28.9% | 46.2% | -76.0% |
| Volga Gas ($VGAS) | 45.5% | | | 42.9% | |
| |
|---|
| Median (23 companies) | 16.6% | 17.7% | 20.0% | 15.1% | 10.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($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% | 16.2% | 17.4% | 15.9% | 11.5% |
|---|
| AO Tatneft ($ATAD) | | 26.9% | 27.2% | 26.8% | 28.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | 301.5% | 322.7% | 481.7% | 208.5% | 5.9% |
| Caza Oil & Gas Inc ($CAZA) | 430.1% | 249.9% | 352.9% | 177.4% | 15.5% |
| Ithaca Energy Inc ($IAE) | 160.2% | 95.1% | 83.4% | 103.5% | 42.8% |
| Tethys Petroleum Limited ($TPL) | 182.8% | 52.0% | 64.4% | 95.2% | 37.5% |
| Ruspetro ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | |
| |
|---|
| Median (37 companies) | 14.4% | 17.7% | 24.6% | 17.2% | 16.6% |
|---|
| AO Tatneft ($ATAD) | | 11.4% | 12.5% | 13.1% | 16.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($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) | 6.5% | 4.6% | 5.8% | 5.3% | 2.5% |
|---|
| AO Tatneft ($ATAD) | | 19.2% | 19.1% | 17.8% | 19.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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 | 1.9x |
|---|
| AO Tatneft ($ATAD) | | 0.5x | 0.2x | -0.1x | -0.0x |
