Gazprom OAO Net Income surged on 395% in 2015 and Revenue increased on 8.6%
28 Apr 2016 • About Gazprom OAO (
$OGZD) • By InTwits
Gazprom OAO reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gazprom OAO has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.6%. At the same time it's a lot of higher than industry average of 21.1%.
- CAPEX is quite volatile: 307,539 in FY2015, 496,108 in FY2014, 581,786 in FY2013, 412,991 in FY2012, 228,654 in FY2011
- The company has business model with low profitability: ROIC is at 8.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gazprom OAO ($OGZD) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,637,090 | 4,766,495 | 5,249,965 | 5,589,811 | 6,073,318 | 8.6% |
| EBITDA | 1,932,027 | 1,696,367 | 2,006,228 | 1,782,575 | 1,743,501 | -2.2% |
| Net Income | 1,307,020 | 1,224,470 | 1,139,260 | 159,004 | 787,056 | 395.0% |
Balance Sheet
|
|---|
| Cash | 501,344 | 425,720 | 689,130 | 1,038,191 | 1,359,095 | 30.9% |
| Short Term Debt | 366,868 | 322,633 | 331,926 | 464,782 | 646,372 | 39.1% |
| Long Term Debt | 1,173,294 | 1,177,959 | 1,470,002 | 2,224,042 | 2,795,843 | 25.7% |
Cash flow
|
|---|
| Capex | 1,553,118 | 1,349,114 | 1,397,195 | 1,262,140 | 1,641,024 | 30.0% |
Ratios
|
|---|
| Revenue growth | 28.9% | 2.8% | 10.1% | 6.5% | 8.6% | |
| EBITDA growth | 42.3% | -12.2% | 18.3% | -11.1% | -2.2% | |
| EBITDA Margin | 41.7% | 35.6% | 38.2% | 31.9% | 28.7% | -3.2% |
| Net Income Margin | 28.2% | 25.7% | 21.7% | 2.8% | 13.0% | 10.1% |
| CAPEX, % of revenue | 33.5% | 28.3% | 26.6% | 22.6% | 27.0% | 4.4% |
| ROIC | 18.6% | 13.4% | 14.2% | 10.3% | 8.7% | -1.7% |
| ROE | 19.1% | 15.7% | 13.0% | 1.7% | 7.7% | 6.1% |
| Net Debt/EBITDA | 0.5x | 0.6x | 0.6x | 0.9x | 1.2x | 0.3x |
Revenue and profitability
The company's Revenue increased on 8.6% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 31.9% to 28.7% in 2015.
Net Income marign surged on 10.1 pp from 2.8% to 13.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Gazprom OAO's CAPEX/Revenue was 27.0% in 2015. The company's CAPEX/Revenue decreased slightly on 1.3 pp from 28.3% in 2012 to 27.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 25.4%.The company invested a large share of EBITDA (94.1%) to CAPEX.
Return on investment
The company operates at low ROIC (8.66%) and ROE (7.71%). ROIC decreased slightly on 1.7 pp from 10.3% to 8.7% in 2015. ROE increased on 6.1 pp from 1.7% to 7.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 2.0x. Net Debt / EBITDA surged on 0.3x from 0.9x to 1.2x in 2015. Debt surged on 28.0% in 2015 while cash surged on 30.9% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Gazprom OAO 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 ($CAD) | | -46.1% | 0.3% | 764.9% | 131.2% |
| Zoltav Resources Inc ($ZOL) | | | | | 40.6% |
| Novatek OAO ($NVTK) | | 19.8% | 41.3% | 20.0% | 32.9% |
| AO Tatneft ($ATAD) | | | 2.5% | 4.7% | 16.0% |
| Great Eastern Energy Corp ($GEEC) | | 73.9% | 24.7% | 16.0% | 10.4% |
| |
|---|
| Median (28 companies) | 13.4% | 15.0% | 3.6% | -0.8% | -19.2% |
|---|
| Gazprom OAO ($OGZD) | | | 10.1% | 6.5% | 8.6% |
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 ($VGAS) | 45.5% | | | 42.9% | 12.6% |
| |
|---|
| Median (23 companies) | 16.6% | 17.7% | 20.0% | 15.1% | 11.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($GEEC) | 48.7% | 61.2% | 64.1% | 70.4% | 66.5% |
| Oil & Gas Development Co ($OGDC) | 67.6% | 73.7% | 65.9% | 69.3% | 62.4% |
| Serica Energy ($SQZ) | 39.9% | | | | 61.3% |
| Caza Oil & Gas Inc ($CAZA) | -79.5% | -50.7% | -3.0% | 47.7% | 49.8% |
| Bg Group ($BG.) | 52.4% | 46.6% | 34.3% | 5.4% | 39.0% |
| |
|---|
| Median (29 companies) | 11.8% | 16.2% | 17.4% | 15.9% | 11.5% |
|---|
| Gazprom OAO ($OGZD) | | 35.6% | 38.2% | 31.9% | 28.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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% | 80.3% |
| |
|---|
| Median (37 companies) | 14.4% | 17.5% | 21.1% | 15.9% | 16.6% |
|---|
| Gazprom OAO ($OGZD) | | 28.3% | 26.6% | 22.6% | 27.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($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% | 0.8% |
|---|
| Gazprom OAO ($OGZD) | | 13.4% | 14.2% | 10.3% | 8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($JUB) | | 77.9x | 38.8x | 44.6x | 192.7x |
| Ruspetro ($RPO) | | 369.1x | 34.8x | 27.9x | 116.8x |
| Edge Resources Inc ($EDG) | | | | 8.0x | 7.6x |
| BP ($BP.A) | 0.7x | 1.1x | 0.6x | 1.3x | 4.0x |
| Great Eastern Energy Corp ($GEEC) | 10.7x | 6.0x | 5.6x | 4.8x | 3.8x |
| |
|---|
| Median (22 companies) | 0.5x | 0.4x | 0.7x | 1.3x | 1.8x |
|---|
| Gazprom OAO ($OGZD) | | 0.6x | 0.6x | 0.9x | 1.2x |
