Total Sa reports 27.8% CAPEX decline and 10.6% Revenue decline
09 Feb 2017 • About Total Sa (
$TTA) • By InTwits
Total Sa reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Total Sa is a company in decline: 2016 revenue growth was -10.6%, 5 years revenue CAGR was -7.0%
- Total Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's in pair with industry average of 13.2%.
- CAPEX is quite volatile: 3,248 in 2016, 1,653 in 2015, 1,402 in 2014, 2,202 in 2013, 6,298 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Total Sa ($TTA) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 182,299 | 171,655 | 159,859 | 129,295 | 115,639 | -10.6% |
| EBITDA | 31,274 | 27,071 | 17,614 | 14,890 | 15,708 | 5.5% |
| Net Income | 10,609 | 8,440 | 3,200 | 4,586 | 5,601 | 22.1% |
Balance Sheet
|
|---|
| Cash | 15,469 | 14,647 | 20,811 | 21,415 | 23,321 | 8.9% |
| Short Term Debt | 11,016 | 8,116 | 9,043 | 11,493 | 13,198 | 14.8% |
| Long Term Debt | 22,263 | 24,833 | 36,807 | 38,260 | 37,372 | -2.3% |
Cash flow
|
|---|
| Capex | 19,905 | 22,400 | 19,845 | 22,657 | 16,367 | -27.8% |
Ratios
|
|---|
| Revenue growth | 9.5% | -5.8% | -6.9% | -19.1% | -10.6% | |
| EBITDA growth | -4.4% | -13.4% | -34.9% | -15.5% | 5.5% | |
| EBITDA Margin | 17.2% | 15.8% | 11.0% | 11.5% | 13.6% | 2.1% |
| Net Income Margin | 5.8% | 4.9% | 2.0% | 3.5% | 4.8% | 1.3% |
| CAPEX, % of revenue | 10.9% | 13.0% | 12.4% | 17.5% | 14.2% | -3.4% |
| ROIC | 19.5% | 15.2% | 6.5% | 2.5% | 3.2% | 0.7% |
| ROE | 15.2% | 11.7% | 4.5% | 5.6% | 6.5% | 0.9% |
| Net Debt/EBITDA | 0.6x | 0.7x | 1.4x | 1.9x | 1.7x | -0.2x |
Revenue and profitability
Total Sa's Revenue dropped on 10.6% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.1 pp from 11.5% to 13.6% in 2016.
Net Income marign increased slightly on 1.3 pp from 3.5% to 4.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 14.2%. CAPEX/Revenue increased slightly on 1.1 pp from 13.0% in 2013 to 14.2% in 2016. It's average CAPEX/Revenue for the last three years was 14.7%.The company has spent a lot to CAPEX (104% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (3.23%) and ROE (6.48%). ROIC increased slightly on 0.69 pp from 2.5% to 3.2% in 2016. ROE increased slightly on 0.92 pp from 5.6% to 6.5% in 2016.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.9x to 1.7x in 2016. Debt increased slightly on 1.6% in 2016 while cash increased on 8.9% in 2016.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Total Sa 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 ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 17.1% | 4.3% | 0.5% | -20.1% | -22.0% |
|---|
| Total Sa ($TTA) | | -5.8% | -6.9% | -19.1% | -10.6% |
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 ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| |
|---|
| Median (24 companies) | 17.7% | 20.0% | 15.1% | 12.1% | 11.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Energy Corp ($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) | 16.2% | 20.6% | 16.5% | 21.8% | 9.4% |
|---|
| Total Sa ($TTA) | 17.2% | 15.8% | 11.0% | 11.5% | 13.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| President Energy ($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% | 6.1% |
| 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% | 16.5% | 15.5% | 7.6% |
|---|
| Total Sa ($TTA) | 10.9% | 13.0% | 12.4% | 17.5% | 14.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Turkiye Petrol Rafinerileri A.S. ($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) | 4.2% | 4.1% | 5.2% | 0.8% | -0.4% |
|---|
| Total Sa ($TTA) | 19.5% | 15.2% | 6.5% | 2.5% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jubilant Energy N.V. ($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 | 2.7x |
| |
|---|
| Median (30 companies) | 0.4x | 0.7x | 1.3x | 1.5x | 2.7x |
|---|
| Total Sa ($TTA) | 0.6x | 0.7x | 1.4x | 1.9x | 1.7x |
