Oil & Gas Development Co reports 36.2% CAPEX decline and 22.7% Revenue decline
26 Aug 2016 • About Oil & Gas Development Co (
$OGDC) • By InTwits
Oil & Gas Development Co reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Oil & Gas Development Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.8%. At the same time it's in pair with industry average of 23.1%.
- CAPEX is quite volatile: 42,314 in FY2016, 66,318 in FY2015, 44,288 in FY2014, 30,152 in FY2013, 21,010 in FY2012
- The company has highly profitable business model: ROIC is at 14.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oil & Gas Development Co ($OGDC) key annual financial indicators
| mln. PKR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 197,839 | 223,365 | 257,014 | 210,625 | 162,867 | -22.7% |
| Gross Profit | 138,306 | 158,432 | 176,073 | 131,967 | 87,890 | -33.4% |
| SG&A | | | | | 2,294 | |
| EBITDA | 145,712 | 147,175 | 178,115 | 131,351 | 89,585 | -31.8% |
| Net Income | 96,906 | 91,273 | 123,915 | 87,249 | 59,971 | -31.3% |
Balance Sheet
|
|---|
| Cash | 98 | 235 | 154 | 13,003 | 7,904 | -39.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 21,010 | 30,152 | 44,288 | 66,318 | 42,314 | -36.2% |
Ratios
|
|---|
| Revenue growth | 27.1% | 12.9% | 15.1% | -18.0% | -22.7% | |
| EBITDA growth | 38.6% | 1.0% | 21.0% | -26.3% | -31.8% | |
| Gross Margin | 69.9% | 70.9% | 68.5% | 62.7% | 54.0% | -8.7% |
| EBITDA Margin | 73.7% | 65.9% | 69.3% | 62.4% | 55.0% | -7.4% |
| Net Income Margin | 49.0% | 40.9% | 48.2% | 41.4% | 36.8% | -4.6% |
| SG&A, % of revenue | | | | | 1.4% | 1.4% |
| CAPEX, % of revenue | 10.6% | 13.5% | 17.2% | 31.5% | 26.0% | -5.5% |
| ROIC | 46.7% | 40.4% | 39.7% | 24.3% | 14.1% | -10.2% |
| ROE | 41.2% | 31.4% | 35.0% | 20.8% | 13.0% | -7.8% |
| Net Debt/EBITDA | -0.0x | -0.0x | -0.0x | -0.1x | -0.1x | 0.0x |
Revenue and profitability
Oil & Gas Development Co's Revenue dropped on 22.7% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.4 pp from 62.4% to 55.0% in FY2016.
Gross Margin decreased on 8.7 pp from 62.7% to 54.0% in FY2016.
Net Income marign decreased on 4.6 pp from 41.4% to 36.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Oil & Gas Development Co had CAPEX/Revenue of 26.0%. Oil & Gas Development Co's CAPEX/Revenue jumped on 12.5 pp from 13.5% in FY2013 to 26.0% in FY2016. For the last three years the average CAPEX/Revenue was 24.9%.
Return on investment
The company operates at good ROIC (14.10%) and ROE (13.02%). ROIC dropped on 10.2 pp from 24.3% to 14.1% in FY2016. ROE decreased on 7.8 pp from 20.8% to 13.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 39.2% in FY2016.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Oil & Gas Development Co 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cadogan Petroleum ($CAD) | -46.1% | 0.3% | 764.9% | 131.2% | |
| Eland Oil & Gas ($ELA) | | | | 54.8% | |
| Zoltav Resources Inc ($ZOL) | | | | 40.6% | |
| Novatek OAO ($NVTK) | 19.8% | 41.3% | 20.0% | 32.9% | |
| AO Tatneft ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 12.7% | 3.6% | -0.8% | -20.1% | -21.3% |
|---|
| Oil & Gas Development Co ($OGDC) | | 12.9% | 15.1% | -18.0% | -22.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bankers Petroleum Ltd ($BNK) | 77.5% | 81.1% | 80.8% | 72.2% | |
| Serica Energy ($SQZ) | | | | 67.0% | |
| Nighthawk Energy ($HAWK) | 38.8% | 66.8% | 58.1% | 49.8% | |
| Caza Oil & Gas Inc ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| Ithaca Energy Inc ($IAE) | 22.5% | 23.4% | -2.9% | 39.5% | |
| |
|---|
| Median (23 companies) | 16.5% | 19.2% | 14.1% | 11.6% | |
|---|
| Oil & Gas Development Co ($OGDC) | 69.9% | 70.9% | 68.5% | 62.7% | 54.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Energy Corp ($GEEC) | 61.2% | 64.1% | 70.4% | 66.5% | 50.0% |
| Serica Energy ($SQZ) | | | | 61.3% | |
| Circle Oil ($COP) | 53.5% | 54.8% | 51.1% | 53.0% | |
| Caza Oil & Gas Inc ($CAZA) | -50.7% | -3.0% | 47.7% | 49.8% | |
| Nighthawk Energy ($HAWK) | -80.7% | 72.2% | 57.7% | 48.9% | |
| |
|---|
| Median (39 companies) | 16.2% | 17.4% | 15.3% | 15.8% | 50.0% |
|---|
| Oil & Gas Development Co ($OGDC) | 73.7% | 65.9% | 69.3% | 62.4% | 55.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| President Energy ($PPC) | 51.5% | 24.6% | 10.4% | 142.7% | |
| Ruspetro ($RPO) | 139.8% | 55.2% | 77.2% | 80.3% | |
| Parkmead Group(The) ($PMG) | 6.4% | 85.4% | 39.8% | 67.4% | |
| Bankers Petroleum Ltd ($BNK) | 64.1% | 50.0% | 58.7% | 47.3% | |
| Volga Gas ($VGAS) | | | 14.0% | 45.5% | |
| |
|---|
| Median (39 companies) | 17.7% | 24.6% | 15.8% | 15.5% | 2.2% |
|---|
| Oil & Gas Development Co ($OGDC) | 10.6% | 13.5% | 17.2% | 31.5% | 26.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 13.6% | 5.8% | 5.3% | 25.4% | |
| AO Tatneft ($ATAD) | 19.2% | 19.1% | 17.8% | 19.7% | |
| Novatek OAO ($NVTK) | 21.7% | 29.0% | 21.2% | 19.4% | |
| Serica Energy ($SQZ) | -6.2% | -5.1% | -5.5% | 19.4% | |
| Great Eastern Energy Corp ($GEEC) | 7.1% | 8.9% | 10.7% | 11.2% | 6.0% |
| |
|---|
| Median (39 companies) | 4.2% | 4.1% | 5.2% | 0.8% | 6.0% |
|---|
| Oil & Gas Development Co ($OGDC) | 46.7% | 40.4% | 39.7% | 24.3% | 14.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jubilant Energy N.V. ($JUB) | 77.9x | 38.8x | 44.6x | 192.7x | |
| Ruspetro ($RPO) | 369.1x | 34.8x | 27.9x | 116.8x | |
| Iofina ($IOF) | -5,718.9x | | | 32.8x | |
| Edge Resources Inc ($EDG) | | | 8.0x | 7.6x | |
| BP ($BP.A) | 1.1x | 0.6x | 1.3x | 4.0x | |
| |
|---|
| Median (30 companies) | 0.5x | 0.7x | 1.3x | 1.7x | 6.4x |
|---|
| Oil & Gas Development Co ($OGDC) | -0.0x | -0.0x | -0.0x | -0.1x | -0.1x |
