RusHydro OJSC reports 27.5% Net Income growth and 7.6% Revenue growth
20 Mar 2017 • About RusHydro OJSC (
$HYDR) • By InTwits
RusHydro OJSC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 19.2% in 2016, 16.4% in 2015, 16.8% in 2014, 13.1% in 2013, 4.3% in 2012
- RusHydro OJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.1%. At the same time it's in pair with industry average of 29.1%.
- CAPEX is quite volatile: 27,421 in 2016, 25,019 in 2015, 12,232 in 2014, 10,772 in 2013, 11,290 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
RusHydro OJSC ($HYDR) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 298,805 | 313,632 | 329,560 | 347,512 | 374,072 | 7.6% |
| EBITDA | 12,930 | 41,062 | 55,222 | 57,158 | 71,669 | 25.4% |
| Net Income | -22,631 | 19,767 | 25,606 | 31,539 | 40,205 | 27.5% |
Balance Sheet
|
|---|
| Cash | 39,819 | 34,472 | 34,394 | 48,025 | 67,354 | 40.2% |
| Short Term Debt | 73,752 | 19,887 | 57,843 | 62,214 | 41,757 | -32.9% |
| Long Term Debt | 67,283 | 131,890 | 119,187 | 135,179 | 158,046 | 16.9% |
Cash flow
|
|---|
| Capex | 83,042 | 61,641 | 78,577 | 79,238 | 60,957 | -23.1% |
Ratios
|
|---|
| Revenue growth | -17.6% | 5.0% | 5.1% | 5.4% | 7.6% | |
| EBITDA growth | -80.9% | 217.6% | 34.5% | 3.5% | 25.4% | |
| EBITDA Margin | 4.3% | 13.1% | 16.8% | 16.4% | 19.2% | 2.7% |
| Net Income Margin | -7.6% | 6.3% | 7.8% | 9.1% | 10.7% | 1.7% |
| CAPEX, % of revenue | 27.8% | 19.7% | 23.8% | 22.8% | 16.3% | -6.5% |
| ROIC | -0.7% | 3.0% | 4.3% | 4.2% | 5.5% | 1.3% |
| ROE | -4.5% | 3.6% | 4.4% | 5.3% | 6.4% | 1.1% |
| Net Debt/EBITDA | 7.8x | 2.9x | 2.6x | 2.6x | 1.8x | -0.8x |
Revenue and profitability
The company's Revenue increased on 7.6% in 2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.3 pp from 49.2% to 38.9% in 2016.
Net Income marign increased slightly on 1.7 pp from 9.1% to 10.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
RusHydro OJSC's CAPEX/Revenue was 16.3% in 2016. CAPEX/Revenue decreased on 3.4 pp from 19.7% in 2013 to 16.3% in 2016. It's average CAPEX/Revenue for the last three years was 21.0%.RusHydro OJSC maintained rich investment policy and has spent a big chunk of EBITDA (85.1%) to CAPEX.
Return on investment
The company operates at low ROIC (5.51%) and ROE (6.44%). ROIC increased slightly on 1.3 pp from 4.2% to 5.5% in 2016. ROE increased slightly on 1.1 pp from 5.3% to 6.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 0.8x from 2.6x to 1.8x in 2016. Debt increased slightly on 1.2% in 2016 while cash surged on 40.2% in 2016.
Appendix 1: Peers in Electricity
Below we provide RusHydro OJSC 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 ($ELSA) | -2.2% | 2.5% | -6.3% | 9.1% | |
| Mosenergo AO ($AOMD) | | -0.8% | 3.5% | 6.0% | 11.4% |
| Renewable Energy Generation Ltd ($WIND) | 23.3% | 10.7% | -13.8% | 4.2% | |
| |
|---|
| Median (8 companies) | 15.9% | 2.5% | -4.0% | 5.1% | 3.3% |
|---|
| RusHydro OJSC ($HYDR) | | 5.0% | 5.1% | 5.4% | 7.6% |
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% | 25.1% |
| Ksk Power Ventur ($KSK) | 33.9% | 40.0% | 27.1% | 27.0% | 34.3% |
| |
|---|
| Median (5 companies) | 38.2% | 41.4% | 34.3% | 33.1% | 34.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renewable Energy Generation Ltd ($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% | 38.9% |
| 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% | 38.1% |
|---|
| RusHydro OJSC ($HYDR) | 4.3% | 13.1% | 16.8% | 16.4% | 19.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renewable Energy Generation Ltd ($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% | 28.1% |
| Good Energy Group ($GOOD) | 1.0% | 23.2% | 31.8% | 27.6% | |
| Infinis Energy ($INFI) | 23.6% | 32.3% | 16.2% | 22.8% | 56.6% |
| |
|---|
| Median (8 companies) | 18.5% | 27.7% | 22.5% | 25.2% | 18.4% |
|---|
| RusHydro OJSC ($HYDR) | 27.8% | 19.7% | 23.8% | 22.8% | 16.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Societatea Comerciala De Dis Si Fur ($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 ($DAT) | 5.7% | 5.9% | 4.8% | 4.6% | 4.8% |
| Public Power Corp S.A. ($PPCD) | 1.5% | 3.6% | 3.7% | 1.4% | |
| |
|---|
| Median (8 companies) | 3.7% | 3.8% | 3.4% | 3.0% | 4.6% |
|---|
| RusHydro OJSC ($HYDR) | -0.7% | 3.0% | 4.3% | 4.2% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Power Ventur ($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 | 6.1x |
| 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) | 4.3x | 2.8x | 5.4x | 4.5x | 5.8x |
|---|
| RusHydro OJSC ($HYDR) | 7.8x | 2.9x | 2.6x | 2.6x | 1.8x |
