Total Sa EBITDA surged on 31.4% and EBITDA Margin increased slightly on 1.7 pp from 15.1% to 16.8%
07 Feb 2019 • About Total Sa (
$TTA) • By InTwits
Total Sa reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 16.8% in 2018 vs. 15.1% in 2017 vs. 11.0% in 2014
- Total Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.5%. At the same time it's in pair with industry average of 15.3%
- CAPEX is quite volatile: ₹6,512m in FY2018, ₹4,489m in FY2017, ₹2,619m in FY2016, ₹2,509m in FY2015, ₹4,081m in FY2014
- The company has business model with low profitability: ROIC is 9.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 18.0%. During 2014-2018 Revenue growth bottomed in 2015 at -19.1% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 15.1% to 16.8% in 2018. EBITDA Margin followed a growing trend at 1.5 pp per annum in the last 5 years.
Net Income margin showed almost no change in 2018. Net Income margin grew at 1.1 pp per annum in 2014-2018. The efficient tax rate was 36.3% in 2018.
Investments (CAPEX, working capital and M&A)
Total Sa's CAPEX/Revenue was 9.3% in 2018. Total Sa's CAPEX/Revenue decreased on 8.2 pp from 17.5% in 2015 to 9.3% in 2018. Average CAPEX/Revenue for the last three years was 10.9%. To secure its fast growth the company invested a large share of EBITDA (55.3%) to CAPEX.
Return on investment
The company operates at low ROIC (9.2%) and ROE (11.1%). ROIC increased on 3.4 pp from 5.8% to 9.2% in 2018. ROE increased on 2.2 pp from 8.8% to 11.1% in 2018. During 2014-2018 ROIC bottomed in 2015 at 2.5% and was growing since that time. ROE followed a growing trend at 1.7 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA increased on 0.030x from 0.8x to 0.8x in 2018. Debt increased on 5.4% while cash dropped on 11.7%.
Total Sa has no short term refinancing risk: cash is higher than short term debt (209.7%).
Valuation and dividends
Total Sa's trades at EV/EBITDA 0.8x and P/E 0.1x.
The company paid 42.9% of Net Income as dividends in 2018.
Management team
Total Sa's CEO Patrick Pouyanne has spent 4 years with the company. CEO total compensation was €3,869,532 in 2018 which included €1,400,000 salary and €2,400,300 annual bonus.
0.0054% of the company is owned by insiders.
The company has 104,460 employees. Average revenue per employee in 2018 was €1,493,624.
Financial and operational results
FY ended 31 Dec 2018
Total Sa ($TTA) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 159,859 | 129,295 | 115,639 | 132,252 | 156,024 | 18.0% |
| EBITDA | 17,614 | 14,890 | 15,708 | 19,935 | 26,199 | 31.4% |
| EBIT | | | | | 13,839 | |
| Tax | | | | | 5,522 | |
| Net Income | 3,200 | 4,586 | 5,601 | 7,656 | 9,700 | 26.7% |
Balance Sheet
|
|---|
| Cash | 20,811 | 21,415 | 23,321 | 27,604 | 24,369 | -11.7% |
| Accounts Receivable | | | | | 15,080 | |
| Inventory | | | | | 12,993 | |
| Accounts Payable | | | | | 22,820 | |
| Short Term Debt | 9,043 | 11,493 | 13,198 | 9,230 | 11,619 | 25.9% |
| Long Term Debt | 36,807 | 38,260 | 37,372 | 33,487 | 33,399 | -0.3% |
Cash flow
|
|---|
| Capex | 19,845 | 22,657 | 16,367 | 12,211 | 14,475 | 18.5% |
| Dividends | | | | | 4,164 | |
Ratios
|
|---|
| Revenue growth | -6.9% | -19.1% | -10.6% | 14.4% | 18.0% | |
| EBITDA growth | -34.9% | -15.5% | 5.5% | 26.9% | 31.4% | |
|
|---|
| EBITDA Margin | 11.0% | 11.5% | 13.6% | 15.1% | 16.8% | 1.7% |
| EBIT Margin | | | | | 8.9% |
| Net Income Margin | 2.0% | 3.5% | 4.8% | 5.8% | 6.2% | 0.4% |
| CAPEX, % of revenue | 12.4% | 17.5% | 14.2% | 9.2% | 9.3% | 0.0% |
|
|---|
| ROIC | 6.5% | 2.5% | 3.2% | 5.8% | 9.2% | 3.4% |
| ROE | 4.5% | 5.6% | 6.9% | 8.8% | 11.1% | 2.2% |
| Net Debt/EBITDA | 1.4x | 1.9x | 1.7x | 0.8x | 0.8x | 0.0x |
People
|
|---|
| Insider ownership | | | | | 0.0% | |
| Employees | | | | | 104,460 | |
| Revenue/Employee, th. € | | | | | 1,494 | |
Peers in Oil & Gas Producers
Below you can find Total Sa 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Eland Oil & Gas ($ELA) | | 54.8% | -86.9% | 2,804.1% | |
| President Energy ($PPC) | -6.1% | -19.8% | -1.9% | 81.3% | |
| Amerisur Resources ($AMER) | 17.9% | -69.3% | -22.9% | 79.6% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | -3.3% | -7.1% | -5.5% | 54.8% | |
| Urals Energy Public Co ($UEN) | -11.5% | -38.8% | 6.8% | 52.1% | |
| |
|---|
| Median (32 companies) | -0.2% | -20.1% | -8.9% | 19.7% | 27.3% |
|---|
| Total Sa ($TTA) | | -19.1% | -10.6% | 14.4% | 18.0% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 99.0% | 98.5% | 98.7% | |
| Serica Energy ($SQZ) | | 67.0% | 30.7% | 60.4% | |
| Oil & Gas Development Co ($OGDC) | 68.5% | 62.7% | 54.0% | 55.3% | 59.2% |
| Tethys Petroleum Limited ($TPL) | 46.2% | -76.0% | -30.0% | 42.8% | |
| Zoltav Resources Inc ($ZOL) | 32.5% | 30.7% | 41.9% | 36.0% | |
| |
|---|
| Median (22 companies) | 17.4% | 12.1% | 12.2% | 18.1% | 17.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 25.1% | 30.9% | 13.0% | 77.1% | |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 62.5% | 49.7% | 59.3% | |
| Oil & Gas Development Co ($OGDC) | 69.3% | 62.4% | 53.9% | 55.8% | 59.3% |
| Zoltav Resources Inc ($ZOL) | -16.1% | 25.6% | 42.6% | 49.8% | |
| Serica Energy ($SQZ) | | 61.3% | 24.6% | 47.9% | |
| |
|---|
| Median (32 companies) | 15.9% | 18.8% | 12.8% | 17.9% | 10.1% |
|---|
| Total Sa ($TTA) | 11.0% | 11.5% | 13.6% | 15.1% | 16.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| President Energy ($PPC) | 10.4% | 142.7% | 147.0% | 69.1% | |
| Tethys Petroleum Limited ($TPL) | 95.2% | 37.5% | 12.0% | 66.0% | |
| Ithaca Energy Inc ($IAE) | 103.5% | 42.8% | 41.6% | 33.9% | |
| Volga Gas ($VGAS) | 14.0% | 45.5% | 12.8% | 33.9% | |
| Amerisur Resources ($AMER) | 21.2% | 72.4% | 65.8% | 33.8% | |
| |
|---|
| Median (32 companies) | 15.7% | 15.4% | 12.4% | 11.7% | 5.6% |
|---|
| Total Sa ($TTA) | 12.4% | 17.5% | 14.2% | 9.2% | 9.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 8.0% | 11.0% | -18.7% | 80.5% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 5.3% | 25.4% | 16.8% | 25.6% | |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | | 10.9% | 20.3% | |
| Novatek OAO ($NVTK) | 21.2% | 19.4% | 26.6% | 17.7% | |
| Serica Energy ($SQZ) | -5.5% | 19.4% | 5.5% | 16.9% | |
| |
|---|
| Median (36 companies) | 5.2% | 0.5% | 4.7% | 5.5% | -6.3% |
|---|
| Total Sa ($TTA) | 6.5% | 2.5% | 3.2% | 5.8% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ruspetro ($RPO) | 27.9x | 116.8x | | 22.9x | |
| Ithaca Energy Inc ($IAE) | | | 4.5x | 7.5x | |
| Jkx Oil & Gas ($JKX) | | | | 3.5x | |
| Rosneft OJSC ($ROSN) | 2.8x | 2.3x | 2.3x | 3.1x | |
| Hellenic Petroleum Sa ($HLPD) | | 2.5x | 2.1x | 2.1x | |
| |
|---|
| Median (26 companies) | 1.3x | 1.4x | 0.9x | 1.0x | 0.5x |
|---|
| Total Sa ($TTA) | 1.4x | 1.9x | 1.7x | 0.8x | 0.8x |
