Parkmead Group(The) reports 94.9% CAPEX decline and 44.0% Revenue decline
18 Nov 2016 • About Parkmead Group(The) (
$PMG) • By InTwits
Parkmead Group(The) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parkmead Group(The) doesn't have a profitable business model yet: FY2016 ROIC is -7.6%
- The company operates at negative EBITDA Margin: -26.2%
- Parkmead Group(The) motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -33.0% for the sames years0
- Parkmead Group(The) has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.0%. At the same time it's a lot of higher than industry average of 20.5%.
- CAPEX is quite volatile: 0.64 in FY2016, 12.6 in FY2015, 9.8 in FY2014, 3.5 in FY2013, 0.19 in FY2012
- The company has unprofitable business model: ROIC is at -7.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parkmead Group(The) ($PMG) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2.949 | 4.070 | 24.656 | 18.639 | 10.441 | -44.0% |
| Gross Profit | 1.513 | 1.615 | 3.230 | -20.779 | -4.620 | -77.8% |
| SG&A | | | 5.668 | 0.000 | 0.527 | |
| EBITDA | -4.593 | -5.912 | 6.605 | -13.402 | -2.732 | -79.6% |
| Net Income | -4.912 | -5.585 | 1.237 | -31.361 | -6.692 | -78.7% |
Balance Sheet
|
|---|
| Cash | 7.694 | 13.269 | 46.346 | 41.121 | 28.288 | -31.2% |
| Short Term Debt | 0.000 | 2.000 | 2.071 | 0.412 | 0.000 | -100.0% |
| Long Term Debt | 2.982 | 0.000 | 4.178 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.190 | 3.475 | 9.810 | 12.566 | 0.642 | -94.9% |
Ratios
|
|---|
| Revenue growth | -21.3% | 38.0% | 505.8% | -24.4% | -44.0% | |
| EBITDA growth | 40.0% | 28.7% | -211.7% | -302.9% | -79.6% | |
| Gross Margin | 51.3% | 39.7% | 13.1% | -111.5% | -44.2% | 67.2% |
| EBITDA Margin | -155.8% | -145.3% | 26.8% | -71.9% | -26.2% | 45.7% |
| Net Income Margin | -166.6% | -137.2% | 5.0% | -168.3% | -64.1% | 104.2% |
| SG&A, % of revenue | | | 23.0% | 0.0% | 5.0% | 5.0% |
| CAPEX, % of revenue | 6.4% | 85.4% | 39.8% | 67.4% | 6.1% | -61.3% |
| ROIC | -38.6% | -22.5% | -3.7% | -21.3% | -7.6% | 13.8% |
| ROE | -46.2% | -22.5% | 1.8% | -34.8% | -8.7% | 26.1% |
| Net Debt/EBITDA | | | -6.1x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 44.0% in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 45.7 pp from -71.9% to -26.2% in FY2016.
Gross Margin surged on 67.2 pp from -111% to -44.2% in FY2016. SG&A as a % of Revenue increased5.0 pp from 0% to 5.0% in FY2016.
Net Income marign jumped on 104 pp from -168% to -64.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 6.1%. The company showed big decline in CAPEX/Revenue of 79.2 pp from 85.4% in FY2013 to 6.1% in FY2016. For the last three years the average CAPEX/Revenue was 37.8%.
Return on investment
The company operates at negative ROIC (-7.59%) and ROE (-8.71%). ROIC surged on 13.8 pp from -21.3% to -7.6% in FY2016. ROE surged on 26.1 pp from -34.8% to -8.7% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 31.2% in FY2016.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Parkmead Group(The) 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 | 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 ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 12.7% | 3.6% | -0.8% | -19.5% | -22.7% |
|---|
| Parkmead Group(The) ($PMG) | | 38.0% | 505.8% | -24.4% | -44.0% |
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% | |
| Oil & Gas Development Co ($OGDC) | 69.9% | 70.9% | 68.5% | 62.7% | 54.0% |
| Nighthawk Energy ($HAWK) | 38.8% | 66.8% | 58.1% | 49.8% | |
| Caza Oil & Gas Inc ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| |
|---|
| Median (23 companies) | 16.5% | 19.2% | 17.4% | 12.6% | -28.2% |
|---|
| Parkmead Group(The) ($PMG) | 51.3% | 39.7% | 13.1% | -111.5% | -44.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Energy Corp ($GEEC) | 61.2% | 64.1% | 70.4% | 66.5% | 50.0% |
| Oil & Gas Development Co ($OGDC) | 73.7% | 65.9% | 69.3% | 62.4% | 55.0% |
| Serica Energy ($SQZ) | | | | 61.3% | |
| Circle Oil ($COP) | 53.5% | 54.8% | 51.1% | 53.0% | |
| Caza Oil & Gas Inc ($CAZA) | -50.7% | -3.0% | 47.7% | 49.8% | |
| |
|---|
| Median (39 companies) | 17.2% | 20.6% | 15.3% | 21.8% | 50.0% |
|---|
| Parkmead Group(The) ($PMG) | -155.8% | -145.3% | 26.8% | -71.9% | -26.2% |
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% | |
| Bankers Petroleum Ltd ($BNK) | 64.1% | 50.0% | 58.7% | 47.3% | |
| Volga Gas ($VGAS) | | | 14.0% | 45.5% | |
| Range Resources ($RRL) | 107.5% | 47.0% | 22.1% | 43.4% | 5.7% |
| |
|---|
| Median (39 companies) | 17.7% | 21.1% | 15.8% | 15.5% | 5.7% |
|---|
| Parkmead Group(The) ($PMG) | 6.4% | 85.4% | 39.8% | 67.4% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 13.6% | 5.8% | 5.3% | 25.4% | |
| Oil & Gas Development Co ($OGDC) | 46.7% | 40.4% | 39.7% | 24.3% | 14.1% |
| AO Tatneft ($ATAD) | 19.2% | 19.1% | 17.8% | 19.7% | |
| Novatek OAO ($NVTK) | 21.7% | 29.0% | 21.2% | 19.4% | |
| Serica Energy ($SQZ) | -6.2% | -5.1% | -5.5% | 19.4% | |
| |
|---|
| Median (39 companies) | 5.8% | 6.4% | 5.3% | 1.8% | 6.0% |
|---|
| Parkmead Group(The) ($PMG) | -38.6% | -22.5% | -3.7% | -21.3% | -7.6% |
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 (31 companies) | 0.5x | 0.7x | 1.3x | 1.5x | 3.1x |
|---|
