Kazmunaigas Exploration Production Net Income dropped on 46.0% in 2016 while EBITDA Margin surged on 36.8 pp from -9.2% to 27.6%
17 Feb 2017 • About Kazmunaigas Exploration Production (
$KMG) • By InTwits
Kazmunaigas Exploration Production reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 27.6% in 2016, -9.2% in 2015, -7.1% in 2014, 21.2% in 2013, 25.5% in 2012
- Kazmunaigas Exploration Production has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.2%. At the same time it's in pair with industry average of 20.4%.
- CAPEX is quite volatile: 32,319 in FY2016, 28,898 in FY2015, 52,697 in FY2014, 89,904 in FY2013, 98,482 in FY2012
- The company has business model with low profitability: ROIC is at 9.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kazmunaigas Exploration Production ($KMG) key annual financial indicators
| mln. KZT | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 797,170 | 816,712 | 845,770 | 529,812 | 727,154 | 37.2% |
| SG&A | 93,088 | 92,360 | 102,568 | 118,601 | 115,022 | -3.0% |
| EBITDA | 203,244 | 172,930 | -59,940 | -48,602 | 200,725 | -513.0% |
| Net Income | 160,823 | 141,829 | 47,038 | 243,669 | 131,576 | -46.0% |
Balance Sheet
|
|---|
| Cash | 154,705 | 119,036 | 180,245 | 237,310 | 162,091 | -31.7% |
| Short Term Debt | 2,462 | 2,503 | 3,000 | 5,585 | 5,483 | -1.8% |
| Long Term Debt | 4,848 | 4,291 | 4,218 | 5,990 | 3,844 | -35.8% |
Cash flow
|
|---|
| Capex | 99,240 | 140,402 | 132,186 | 88,174 | 101,233 | 14.8% |
Ratios
|
|---|
| Revenue growth | 10.5% | 2.5% | 3.6% | -37.4% | 37.2% | |
| EBITDA growth | -3.0% | -14.9% | -134.7% | -18.9% | -513.0% | |
| EBITDA Margin | 25.5% | 21.2% | -7.1% | -9.2% | 27.6% | 36.8% |
| Net Income Margin | 20.2% | 17.4% | 5.6% | 46.0% | 18.1% | -27.9% |
| SG&A, % of revenue | 11.7% | 11.3% | 12.1% | 22.4% | 15.8% | -6.6% |
| CAPEX, % of revenue | 12.4% | 17.2% | 15.6% | 16.6% | 13.9% | -2.7% |
| ROIC | 11.1% | 9.5% | -9.2% | -4.6% | 9.3% | 13.9% |
| ROE | 12.0% | 10.5% | 3.5% | 15.5% | 7.0% | -8.4% |
| Net Debt/EBITDA | -0.7x | -0.6x | | | -0.8x | -0.8x |
Revenue and profitability
The company's Revenue jumped on 37.2% in 2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 36.8 pp from -9.2% to 27.6% in 2016.
SG&A as a % of Revenue decreased on 6.6 pp from 22.4% to 15.8% in 2016.
Net Income marign dropped on 27.9 pp from 46.0% to 18.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 13.9% in 2016. CAPEX/Revenue decreased on 3.3 pp from 17.2% in 2013 to 13.9% in 2016. It's average CAPEX/Revenue for the last three years was 15.4%.To maintain this fast growth the company invested a large share of EBITDA (50.4%) to CAPEX.
Return on investment
The company operates at low ROIC (9.32%) and ROE (7.03%). ROIC jumped on 13.9 pp from -4.6% to 9.3% in 2016. ROE decreased on 8.4 pp from 15.5% to 7.0% in 2016.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped0.8x from to -0.8x in 2016. Debt dropped on 19.4% in 2016 while cash dropped on 31.7% in 2016.
Appendix 1: Peers in Oil & Gas Producers
Below you can find Kazmunaigas Exploration Production 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 ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 19.8% | 4.3% | -0.8% | -19.5% | -19.6% |
|---|
| Kazmunaigas Exploration Production ($KMG) | | 2.5% | 3.6% | -37.4% | 37.2% |
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 ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| |
|---|
| Median (24 companies) | 17.7% | 20.0% | 15.1% | 12.1% | 11.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Energy Corp ($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) | 16.2% | 17.4% | 16.5% | 21.8% | 10.7% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 25.5% | 21.2% | -7.1% | -9.2% | 27.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| President Energy ($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% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 12.4% | 17.2% | 15.6% | 16.6% | 13.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 13.6% | 5.8% | 5.3% | 25.4% | 17.4% |
| 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% | 5.3% | 1.8% | 2.1% |
|---|
| Kazmunaigas Exploration Production ($KMG) | 11.1% | 9.5% | -9.2% | -4.6% | 9.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jubilant Energy N.V. ($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 (31 companies) | 0.5x | 0.7x | 1.3x | 1.5x | 2.2x |
|---|
