Jkx Oil & Gas CAPEX surged on 30.8% in 2016 while Revenue dropped on 16.6%
20 Mar 2017 • About Jkx Oil & Gas (
$JKX) • By InTwits
Jkx Oil & Gas reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jkx Oil & Gas is a company in decline: FY2016 revenue growth was -16.6%, 5 years revenue CAGR was -20.8%
- The company operates at negative EBITDA Margin: -19.7%
- Jkx Oil & Gas has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.1%. At the same time it's in pair with industry average of 20.4%.
- CAPEX is quite volatile: 7.4 in FY2016, 5.6 in FY2015, 40.0 in FY2014, 61.5 in FY2013, 66.7 in FY2012
- The company has unprofitable business model: ROIC is at -18.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jkx Oil & Gas ($JKX) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 202.9 | 180.7 | 146.2 | 88.5 | 73.8 | -16.6% |
| Gross Profit | 28.0 | 33.4 | -35.7 | -50.1 | -8.5 | -83.0% |
| SG&A | 21.2 | 24.1 | 19.5 | 17.5 | 26.7 | 52.2% |
| EBITDA | 91.3 | 66.3 | -20.8 | -43.1 | -14.6 | -66.2% |
| Net Income | -11.3 | 6.5 | -79.5 | -81.5 | -37.1 | -54.4% |
Balance Sheet
|
|---|
| Cash | 12.0 | 25.7 | 25.4 | 25.9 | 14.1 | -45.8% |
| Short Term Debt | 15.0 | 4.0 | 5.6 | 10.9 | 16.8 | 54.7% |
| Long Term Debt | 0.0 | 28.2 | 30.8 | 23.5 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 66.7 | 61.5 | 40.0 | 5.6 | 7.4 | 30.8% |
Ratios
|
|---|
| Revenue growth | -14.4% | -10.9% | -19.1% | -39.4% | -16.6% | |
| EBITDA growth | -21.3% | -27.3% | -131.4% | 106.7% | -66.2% | |
| Gross Margin | 13.8% | 18.5% | -24.4% | -56.6% | -11.5% | 45.1% |
| EBITDA Margin | 45.0% | 36.7% | -14.3% | -48.6% | -19.7% | 28.9% |
| Net Income Margin | -5.6% | 3.6% | -54.4% | -92.0% | -50.3% | 41.8% |
| SG&A, % of revenue | 10.4% | 13.4% | 13.4% | 19.8% | 36.1% | 16.3% |
| CAPEX, % of revenue | 32.9% | 34.0% | 27.3% | 6.4% | 10.0% | 3.6% |
| ROIC | 1.3% | 1.8% | -13.3% | -26.7% | -18.2% | 8.5% |
| ROE | -2.2% | 1.3% | -20.6% | -35.8% | -22.4% | 13.3% |
| Net Debt/EBITDA | 0.0x | 0.1x | | | | 0.0x |
Revenue and profitability
Jkx Oil & Gas's Revenue dropped on 16.6% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 28.9 pp from -48.6% to -19.7% in FY2016.
Gross Margin jumped on 45.1 pp from -56.6% to -11.5% in FY2016. SG&A as a % of Revenue surged on 16.3 pp from 19.8% to 36.1% in FY2016.
Net Income marign jumped on 41.8 pp from -92.0% to -50.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.0% in FY2016. The company showed big decline in CAPEX/Revenue of 24.0 pp from 34.0% in FY2013 to 10.0% in FY2016. For the last three years the average CAPEX/Revenue was 14.6%.
Return on investment
The company operates at negative ROIC (-18.19%) and ROE (-22.42%). ROIC increased on 8.5 pp from -26.7% to -18.2% in FY2016. ROE surged on 13.3 pp from -35.8% to -22.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 51.1% in FY2016 while cash dropped on 45.8% in FY2016.
Appendix 1: Peers in Oil & Gas Producers
Below we provide Jkx Oil & Gas 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) | | 41.3% | 20.0% | 32.9% | 13.1% |
| AO Tatneft ($ATAD) | | 2.5% | 4.7% | 16.0% | |
| |
|---|
| Median (38 companies) | 26.4% | 4.3% | 0.5% | -19.5% | -9.5% |
|---|
| Jkx Oil & Gas ($JKX) | | -10.9% | -19.1% | -39.4% | -16.6% |
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 ($CAZA) | 0.1% | 30.5% | 40.8% | 44.8% | |
| |
|---|
| Median (23 companies) | 18.3% | 21.7% | 17.4% | 12.6% | 11.9% |
|---|
| Jkx Oil & Gas ($JKX) | 13.8% | 18.5% | -24.4% | -56.6% | -11.5% |
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 ($CAZA) | -50.7% | -3.0% | 47.7% | 49.8% | |
| |
|---|
| Median (39 companies) | 16.2% | 17.4% | 16.5% | 21.8% | 14.5% |
|---|
| Jkx Oil & Gas ($JKX) | 45.0% | 36.7% | -14.3% | -48.6% | -19.7% |
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 ($VGAS) | | | 14.0% | 45.5% | |
| |
|---|
| Median (39 companies) | 17.5% | 21.1% | 15.8% | 16.5% | 9.3% |
|---|
| Jkx Oil & Gas ($JKX) | 32.9% | 34.0% | 27.3% | 6.4% | 10.0% |
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% | 26.6% |
| Serica Energy ($SQZ) | -6.2% | -5.1% | -5.5% | 19.4% | |
| |
|---|
| Median (39 companies) | 5.8% | 6.4% | 5.3% | 1.8% | 9.2% |
|---|
| Jkx Oil & Gas ($JKX) | 1.3% | 1.8% | -13.3% | -26.7% | -18.2% |
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 (31 companies) | 0.5x | 0.7x | 1.3x | 1.5x | 1.8x |
|---|
