Surgutneftegaz reports 32.5% EBITDA growth and 12.6% Revenue growth
29 Apr 2016 • About Surgutneftegaz (
$SGGD) • By InTwits
Surgutneftegaz reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 7.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Surgutneftegaz ($SGGD) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 787,854 | 849,575 | 837,734 | 890,574 | 1,002,605 | 12.6% |
| Gross Profit | 284,373 | | | | | |
| SG&A | 60,970 | | | | | |
| EBITDA | | 283,135 | 265,824 | 237,411 | 314,614 | 32.5% |
| Net Income | 237,770 | 184,300 | 279,070 | 884,824 | 761,558 | -13.9% |
Balance Sheet
|
|---|
| Cash | 19,644 | 40,964 | 32,990 | 27,919 | 105,696 | 278.6% |
| Short Term Debt | 141 | 18,322 | 22,158 | 37,671 | 79,077 | 109.9% |
| Long Term Debt | 23 | 8,498 | 13,069 | 13,198 | 4,349 | -67.0% |
Cash flow
|
|---|
| Capex | | 139,701 | 176,789 | 159,152 | 170,849 | 7.3% |
Ratios
|
|---|
| Revenue growth | 26.8% | 7.8% | -1.4% | 6.3% | 12.6% | |
| EBITDA growth | | | -6.1% | -10.7% | 32.5% | |
| Gross Margin | 36.1% | | | | | 0.0% |
| EBITDA Margin | 0.0% | 33.3% | 31.7% | 26.7% | 31.4% | 4.7% |
| Net Income Margin | 30.2% | 21.7% | 33.3% | 99.4% | 76.0% | -23.4% |
| SG&A, % of revenue | 7.7% | | | | | 0.0% |
| CAPEX, % of revenue | | 16.4% | 21.1% | 17.9% | 17.0% | -0.8% |
| ROIC | 15.0% | 13.3% | 10.5% | 6.2% | 7.1% | 0.9% |
| ROE | 15.2% | 10.3% | 13.7% | 33.5% | 22.0% | -11.5% |
| Net Debt/EBITDA | | -0.0x | 0.0x | 0.1x | -0.1x | -0.2x |
Revenue and profitability
The company's Revenue surged on 12.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.7 pp from 26.7% to 31.4% in 2015.
Net Income marign dropped on 23.4 pp from 99.4% to 76.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 17.0%. Surgutneftegaz showed small growth in CAPEX/Revenue of 0.60 pp from 16.4% in 2012 to 17.0% in 2015. It's average CAPEX/Revenue for the last three years was 18.7%.To deliver this fast growth Surgutneftegaz invested a large share of EBITDA (54.3%) to CAPEX.
Return on investment
The company operates at good ROE (22.05%) while ROIC is low (7.08%). ROIC increased slightly on 0.93 pp from 6.2% to 7.1% in 2015. ROE dropped on 11.5 pp from 33.5% to 22.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.2x from 0.1x to -0.1x in 2015. Debt surged on 64.0% in 2015 while cash surged on 279% in 2015.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Surgutneftegaz 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 ($CAD) | | -46.1% | 0.3% | 764.9% | 131.2% |
| Zoltav Resources Inc ($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 ($GEEC) | | 73.9% | 24.7% | 16.0% | 10.4% |
| |
|---|
| Median (29 companies) | 12.2% | 17.1% | 4.3% | -0.8% | -19.1% |
|---|
| Surgutneftegaz ($SGGD) | | 7.8% | -1.4% | 6.3% | 12.6% |
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 ($VGAS) | 45.5% | | | 42.9% | 12.6% |
| |
|---|
| Median (23 companies) | 15.7% | 17.7% | 20.0% | 15.1% | 11.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Eastern Energy Corp ($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 (30 companies) | 11.8% | 16.2% | 17.4% | 15.9% | 13.7% |
|---|
| Surgutneftegaz ($SGGD) | | 33.3% | 31.7% | 26.7% | 31.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ruspetro ($RPO) | 83.5% | 139.8% | 55.2% | 77.2% | 80.3% |
| Parkmead Group(The) ($PMG) | 2.9% | 6.4% | 85.4% | 39.8% | 67.4% |
| Bankers Petroleum Ltd ($BNK) | 88.0% | 64.1% | 50.0% | 58.7% | 47.3% |
| Volga Gas ($VGAS) | 2.7% | | | 14.0% | 45.5% |
| Range Resources ($RRL) | 256.2% | 107.5% | 47.0% | 22.1% | 43.4% |
| |
|---|
| Median (30 companies) | 14.4% | 17.7% | 24.6% | 15.9% | 16.7% |
|---|
| Surgutneftegaz ($SGGD) | | 16.4% | 21.1% | 17.9% | 17.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oil & Gas Development Co ($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) | 5.4% | 4.6% | 5.8% | 5.3% | 1.7% |
|---|
| Surgutneftegaz ($SGGD) | 15.0% | 13.3% | 10.5% | 6.2% | 7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Energy N.V. ($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 (23 companies) | 0.5x | 0.5x | 0.7x | 1.3x | 1.8x |
|---|
| Surgutneftegaz ($SGGD) | | -0.0x | 0.0x | 0.1x | -0.1x |
