Turkiye Petrol Rafinerileri A.S. reports 29.7% Net Income decline and 0.83 pp EBITDA Margin decline from 10.4% to 9.6%
13 Feb 2017 • About Turkiye Petrol Rafinerileri A.S. (
$TPRD) • By InTwits
Turkiye Petrol Rafinerileri A.S. reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Turkiye Petrol Rafinerileri A.S. is a company in decline: 2016 revenue growth was -5.5%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is quite volatile: 9.6% in 2016, 10.4% in 2015, 2.1% in 2014, 2.0% in 2013, 3.1% in 2012
- Turkiye Petrol Rafinerileri A.S. has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 885 in 2016, 961 in 2015, 2,258 in 2014, 2,255 in 2013, 2,267 in 2012
- The company has highly profitable business model: ROIC is at 17.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Turkiye Petrol Rafinerileri A.S. ($TPRD) key annual financial indicators
| mln. TRY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 42,437 | 41,078 | 39,723 | 36,893 | 34,855 | -5.5% |
| Gross Profit | 1,691 | 1,473 | 1,263 | 4,175 | 3,649 | -12.6% |
| SG&A | 632 | 657 | 687 | 778 | 913 | 17.3% |
| EBITDA | 1,310 | 803 | 837 | 3,848 | 3,348 | -13.0% |
| Net Income | 1,464 | 1,197 | 1,459 | 2,550 | 1,793 | -29.7% |
Balance Sheet
|
|---|
| Cash | 3,249 | 3,663 | 3,898 | 3,028 | 6,051 | 99.9% |
| Short Term Debt | 704 | 1,075 | 777 | 1,871 | 1,958 | 4.6% |
| Long Term Debt | 3,540 | 5,447 | 6,978 | 8,048 | 10,176 | 26.4% |
Cash flow
|
|---|
| Capex | 2,267 | 2,255 | 2,258 | 961 | 885 | -7.9% |
Ratios
|
|---|
| Revenue growth | 2.4% | -3.2% | -3.3% | -7.1% | -5.5% | |
| EBITDA growth | -41.3% | -38.7% | 4.2% | 359.9% | -13.0% | |
| Gross Margin | 4.0% | 3.6% | 3.2% | 11.3% | 10.5% | -0.8% |
| EBITDA Margin | 3.1% | 2.0% | 2.1% | 10.4% | 9.6% | -0.8% |
| Net Income Margin | 3.5% | 2.9% | 3.7% | 6.9% | 5.1% | -1.8% |
| SG&A, % of revenue | 1.5% | 1.6% | 1.7% | 2.1% | 2.6% | 0.5% |
| CAPEX, % of revenue | 5.3% | 5.5% | 5.7% | 2.6% | 2.5% | -0.1% |
| ROIC | 13.6% | 5.8% | 5.3% | 25.4% | 17.4% | -8.0% |
| ROE | 31.8% | 24.1% | 25.9% | 35.3% | 21.9% | -13.4% |
| Net Debt/EBITDA | 0.8x | 3.6x | 4.6x | 1.8x | 1.8x | 0.0x |
Revenue and profitability
Turkiye Petrol Rafinerileri A.S.'s Revenue decreased on 5.5% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.90 pp from 8.4% to 9.3% in FY2016.
Gross Margin decreased slightly on 0.85 pp from 11.3% to 10.5% in 2016. SG&A as a % of Revenue increased slightly on 0.51 pp from 2.1% to 2.6% in 2016.
Net Income marign decreased slightly on 1.8 pp from 6.9% to 5.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.5%. CAPEX/Revenue decreased on 2.9 pp from 5.5% in 2013 to 2.5% in 2016. Average CAPEX/Revenue for the last three years was 3.6%.
Return on investment
The company operates at high and attractive ROE (21.88%) while ROIC is a bit lower (17.45%). ROIC decreased on 8.0 pp from 25.4% to 17.4% in 2016. ROE dropped on 13.4 pp from 35.3% to 21.9% in 2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA increased on 0.026x from 1.8x to 1.8x in 2016. Debt jumped on 22.3% in 2016 while cash surged on 99.9% in 2016.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Turkiye Petrol Rafinerileri A.S. 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 ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 18.5% | 4.3% | 0.5% | -20.1% | -21.3% |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | | -3.2% | -3.3% | -7.1% | -5.5% |
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 ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| |
|---|
| Median (23 companies) | 18.3% | 21.7% | 17.4% | 12.6% | 11.9% |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 4.0% | 3.6% | 3.2% | 11.3% | 10.5% |
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 ($CAZA) | -50.7% | -3.0% | 47.7% | 49.8% | |
| |
|---|
| Median (39 companies) | 17.2% | 20.6% | 16.5% | 21.8% | 11.7% |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 3.1% | 2.0% | 2.1% | 10.4% | 9.6% |
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 ($VGAS) | | | 14.0% | 45.5% | |
| |
|---|
| Median (39 companies) | 17.7% | 24.6% | 16.5% | 16.5% | 9.1% |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 5.3% | 5.5% | 5.7% | 2.6% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Great Eastern Energy Corp ($GEEC) | 7.1% | 8.9% | 10.7% | 11.2% | 6.0% |
| |
|---|
| Median (39 companies) | 4.2% | 4.6% | 5.2% | 0.8% | 0.9% |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 13.6% | 5.8% | 5.3% | 25.4% | 17.4% |
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 ($BP.A) | 1.1x | 0.6x | 1.3x | 4.0x | 2.7x |
| |
|---|
| Median (30 companies) | 0.4x | 0.7x | 1.3x | 1.5x | 2.7x |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 0.8x | 3.6x | 4.6x | 1.8x | 1.8x |
