Mosenergo AO Net Income jumped on 848% in 2016 and Revenue jumped on 11.4%
02 Mar 2017 • About Mosenergo AO (
$AOMD) • By InTwits
Mosenergo AO reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mosenergo AO has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.8%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 8,192 in 2016, 23,145 in 2015, 17,660 in 2014, 27,780 in 2013, 19,759 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mosenergo AO ($AOMD) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 157,139 | 155,932 | 161,432 | 171,163 | 190,656 | 11.4% |
| EBITDA | 20,250 | 23,809 | 17,079 | 18,131 | 31,626 | 74.4% |
| Net Income | 6,313 | 7,473 | -2,972 | -1,796 | 13,438 | -848.2% |
Balance Sheet
|
|---|
| Cash | 12,632 | 2,871 | 9,677 | 5,666 | 10,097 | 78.2% |
| Short Term Debt | 1,898 | 7,275 | 1,824 | 3,113 | 21,453 | 589.1% |
| Long Term Debt | 16,616 | 19,202 | 47,315 | 45,857 | 21,549 | -53.0% |
Cash flow
|
|---|
| Capex | 19,759 | 27,780 | 17,660 | 23,145 | 8,192 | -64.6% |
Ratios
|
|---|
| Revenue growth | -2.5% | -0.8% | 3.5% | 6.0% | 11.4% | |
| EBITDA growth | -15.4% | 17.6% | -28.3% | 6.2% | 74.4% | |
| EBITDA Margin | 12.9% | 15.3% | 10.6% | 10.6% | 16.6% | 6.0% |
| Net Income Margin | 4.0% | 4.8% | -1.8% | -1.0% | 7.0% | 8.1% |
| CAPEX, % of revenue | 12.6% | 17.8% | 10.9% | 13.5% | 4.3% | -9.2% |
| ROIC | 2.7% | 3.4% | 0.5% | -0.1% | 5.1% | 5.3% |
| ROE | 3.1% | 3.2% | -1.2% | -0.8% | 5.6% | 6.4% |
| Net Debt/EBITDA | 0.3x | 1.0x | 2.3x | 2.4x | 1.0x | -1.3x |
Revenue and profitability
The company's Revenue jumped on 11.4% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 3.0% to 7.0% in FY2016.
Net Income marign increased on 8.1 pp from -1.0% to 7.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
Mosenergo AO's CAPEX/Revenue was 4.3% in 2016. The company showed big decline in CAPEX/Revenue of 13.5 pp from 17.8% in 2013 to 4.3% in 2016. It's average level of CAPEX/Revenue for the last three years was 9.6%.
Return on investment
The company operates at low ROIC (5.13%) and ROE (5.63%). ROIC increased on 5.3 pp from -0.14% to 5.1% in 2016. ROE increased on 6.4 pp from -0.76% to 5.6% in 2016.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 2.4x to 1.0x in 2016. Debt dropped on 12.2% in 2016 while cash surged on 78.2% in 2016.
Appendix 1: Peers in Electricity
Below we provide Mosenergo AO benchmarking against other companies in Electricity 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 |
|---|
| Ksk Power Ventur ($KSK) | | 2.5% | -14.5% | 13.8% | 76.4% |
| Good Energy Group ($GOOD) | 30.7% | 43.3% | 42.6% | 11.6% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | -2.2% | 2.5% | -6.3% | 9.1% | |
| RusHydro OJSC ($HYDR) | -17.6% | 5.0% | 5.1% | 5.4% | |
| Renewable Energy Generation Ltd ($WIND) | 23.3% | 10.7% | -13.8% | 4.2% | |
| |
|---|
| Median (8 companies) | 7.9% | 3.0% | -4.0% | 4.8% | 34.4% |
|---|
| Mosenergo AO ($AOMD) | | -0.8% | 3.5% | 6.0% | 11.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Infinis Energy ($INFI) | 44.7% | 45.0% | 45.8% | 45.1% | 45.9% |
| Renewable Energy Generation Ltd ($WIND) | 42.5% | 42.7% | 35.9% | 36.5% | |
| Good Energy Group ($GOOD) | 33.9% | 33.6% | 32.7% | 33.1% | |
| Datang Intl Power Generation ($DAT) | | | | 30.7% | |
| Ksk Power Ventur ($KSK) | 33.9% | 40.0% | 27.1% | 27.0% | 34.3% |
| |
|---|
| Median (5 companies) | 38.2% | 41.4% | 34.3% | 33.1% | 40.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renewable Energy Generation Ltd ($WIND) | 24.4% | 23.0% | 10.5% | 125.2% | |
| Infinis Energy ($INFI) | 55.1% | 54.6% | 45.2% | 69.8% | 56.0% |
| Datang Intl Power Generation ($DAT) | 28.7% | 33.6% | 34.8% | 38.0% | |
| Ksk Power Ventur ($KSK) | 43.1% | 40.6% | 30.3% | 26.0% | 37.3% |
| Societatea Comerciala De Dis Si Fur ($ELSA) | 12.2% | 11.9% | 16.7% | 17.8% | |
| |
|---|
| Median (8 companies) | 19.8% | 21.0% | 18.4% | 21.9% | 46.6% |
|---|
| Mosenergo AO ($AOMD) | 12.9% | 15.3% | 10.6% | 10.6% | 16.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renewable Energy Generation Ltd ($WIND) | 142.1% | 77.4% | 167.6% | 100.1% | |
| Ksk Power Ventur ($KSK) | 194.9% | 100.4% | 59.5% | 58.3% | 8.7% |
| Datang Intl Power Generation ($DAT) | 34.3% | 43.2% | 28.8% | 29.7% | |
| Good Energy Group ($GOOD) | 1.0% | 23.2% | 31.8% | 27.6% | |
| RusHydro OJSC ($HYDR) | 27.8% | 19.7% | 23.8% | 22.8% | |
| |
|---|
| Median (8 companies) | 25.7% | 27.7% | 26.3% | 25.2% | 32.6% |
|---|
| Mosenergo AO ($AOMD) | 12.6% | 17.8% | 10.9% | 13.5% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Societatea Comerciala De Dis Si Fur ($ELSA) | 3.2% | 4.0% | 6.5% | 7.9% | |
| Good Energy Group ($GOOD) | 10.8% | 12.2% | 7.0% | 5.8% | |
| Infinis Energy ($INFI) | 4.6% | 5.0% | 3.0% | 5.2% | 3.5% |
| Datang Intl Power Generation ($DAT) | 5.7% | 5.9% | 4.8% | 4.6% | |
| RusHydro OJSC ($HYDR) | -0.7% | 3.0% | 4.3% | 4.2% | |
| |
|---|
| Median (8 companies) | 3.7% | 3.8% | 4.0% | 4.4% | 4.0% |
|---|
| Mosenergo AO ($AOMD) | 2.7% | 3.4% | 0.5% | -0.1% | 5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Power Ventur ($KSK) | 12.8x | 16.0x | 26.5x | 30.7x | 12.7x |
| Good Energy Group ($GOOD) | -0.1x | 1.5x | 5.7x | 7.8x | |
| Datang Intl Power Generation ($DAT) | 8.4x | 7.7x | 8.3x | 7.5x | |
| Public Power Corp S.A. ($PPCD) | 5.3x | 4.1x | 4.3x | 4.8x | |
| Infinis Energy ($INFI) | 3.3x | 4.2x | 5.1x | 4.3x | 5.4x |
| |
|---|
| Median (8 companies) | 6.6x | 3.5x | 5.4x | 4.5x | 9.1x |
|---|
| Mosenergo AO ($AOMD) | 0.3x | 1.0x | 2.3x | 2.4x | 1.0x |
