Perusahaan Gas Negara. June 2010 update

Transcription

1 Perusahaan Gas Negara Presentation to the investors June 2010 update

2 Disclaimer: The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-looking statements that reflect the Company s current views with respect to future events and financial performance. These views are based on assumptions subject to various risk. No assurance can be given that further events will occur, that projections will be achieved, or that the Company s assumptions are correct. Actual results may differ materially from those projected.

3 Indonesia : A Major Producer of Natural Gas 3 The largest proven gas reserves in Asia Pacific Ahead of Australia, China and Malaysia (BP World Energy Report 2010) Source: Director General of Oil and Gas Natural Gas: Proved reserves (BP World Energy Report 2010) 2009 share Trillion cubic metres of total Indonesia % Australia % China % Malaysia % Total Asia Pacific % Total World % Experience domestic natural gas shortages Due to fast growing demand and limited natural gas infrastructure

4 Demand for Natural Gas Key Drivers No Subsidy of Fuel for the Industries Subsidies for industries revoked in 2005 Pii Pricing and Efficienciesi i Significant price and efficiencies benefits by converting to natural gas, as well as environmental concerns Conversion of Power Plants Pent up demand from the conversion of existing dual fired power plants pending availibility of gas Demand from the industries Require natural gas to compete in the era of Free Trade Agreement.

5 Unmet Demand for Natural Gas 5 Power Sector 2500 PLN (state power company) gas demand was 1.8 BSCFD in 2009 for eistingd existing dual fired power plants growing to 2.1 BSCFD in Representing unmet demand of 0.8 BSCFD Source : PLN Primary Energy Unit Demand Supply Gap Ministry of Industry cited major gas shortage for industry Firm unmet demand from industry of 0.4 BSCFD Additional demand of 0.1 BSCFD from IPP Industry Non Power Sector 3,000 2,500 1,500 Fertilizers 2,000 Petrochem 500 Paper Metal 1,000 Ceramics Source : Ministry of Industry and PGN Others Total

6 Current Low Consumption to Drive Demand 6 Low level of currentconsumption consumption of naturalgas and electricity Ensure the continuing growth of demand for natural gas

7 Opportunity : Price Advantages 7 Lower gas price compares to other fuels Industrial Prices are set on B to B basis PGN Gas Price and HSD Price USD/MMBtu HSD Unsubsidized Price (USD/MMBTU) PGN Average Selling Price (USD/MMBTU) Natural Gas LPG 3 kg (Subsidized) MFO LPG 12 kg MDF/IDO (Diesel) HSD (Solar) Premium PGN Average Selling Price /1/2005 7/14/ /26/2007 4/9/2009 6/2/2010 LPG 50 kg LPG Bulk Kerosene Note: Fuel price Pertamina as of June 2010 Exchange rate +IDR 9,500/USD USD/MMBtu

8 New Pricing Scheme Minister of Energy and Mineral Resources Decree No. 19 Year Cost of Gas 2009 Allows pricing for general users to be determined by the Companies General users are non subsidized industries and power plants Gas Selling Price Transport & Distribution Costs Internal Cost Pricing Considerations Demand and Supply Dynamics Affordability Reasonable Margin Intended to stimulate more supplies to meet the growing demands Margin/ Spread Implementation ti PGN has taken the effort to communicate and educate the end users market on the merit of new pricing flexibility Implement new pricing scheme with regionalized and differentiated pricing on nationwide basis starting from 1 April 2010

9 Growing operational performance Transmission Volume Distribution Volume Volume (MMSCFD) Volume (MMSCFD) Deliver strong growth following completion of SSWJ

10 Growing Revenues, Expanding EBITDA 10 Revenue EBITDA and EBIT 20,000 18,000 16, ,624 10,000 9,000 8,000 47% 50% 52% 54% 55% 60% IDR bil llion 14,000 12,000 10, ,000 1,208 1,519 16,380 IDR billion 7,000 6,000 5,000 4,000 6,375 9,303 7,676 40% 6,000 4,000 7,594 11, ,000 2,000 4,094 4,657 2,430 20% 2,000 4,013 4,095 1,000 3,082 2,472 1,997 2,110 0% 2007* M09 3M * M09 3M10 Distribution Transmission Fiber Optic EBITDA EBIT EBITDA Margin *note: as restated

11 Financial Statements (3M 2010) 11 IDR billion 5, FX Gain/Loss 4,500 4,000 3,500 3,000 2,500 2,000 4,478 4,486 IDR billion (50) 3M09 3M10 (100) (150) (200) (134) 1,500 1, ,836 1, ,997 2,110 1,220 1,771 Exchange Rate 31 Maret 2009 USD 1 = IDR 11,575 & JPY 1 = IDR Revenue Cost of Revenue Operating Expense 3M09 Operating Income 3M10 Net Income 31 Maret 2010 USD 1 = IDR 9,115 & JPY 1 = IDR 97.71

12 12 Our Sound Balance Sheet (IDR billion) Mar 31, 2009 Mar 31, 2010 % Current Assets 7,235 10, Non Current Assets 20,803 19,037 8 Total Assets 28,038 29,668 6 Current Liabilities i 4,071 3, Non Current Liabilities Minority Interest In Net Assets of a Subsidiary 14,342 1,069 11,599 1, Government Project Funds Total Equity 28 8,529 13, Total Liabilities And Shareholders Equity 28,038 29,668 6 Key Ratios Debt to Equity Ratio (x) Return on Investment (ROI) 25% 32% Return on Equity (ROE) 10% 113% Net debt/ebitda (x) Net debt/equity (x) EBITDA/Interest expense (x)

13 DEBT COMPOSITION (as of March 31, 2010) 13 Long-term debt amounting to USD billion Mostly long dated/maturity loans from Developmental Banks USD 58.3% JPY 41.7% Float 52.2% Fixed 47.8% Effective Cost of Debt of Around 2.6%

14 Customers Profile 14 As of March 31, 2010, sales volume of industrial customers was 826 MMSCFD or equal to 98% of PGN s sales 40.00% 38.00% 30.00% 20.00% 14.00% 10.00% 0.00% 9.00% 9.00% 8.00% 6.00% 5.00% 5.00% 3.00% 2.00% 0.76% 0.03% Power Plant Chemical Ceramic Basic Metal Food Glass Paper Fabricated Metal Textile Others Cement Wood

15 Our Business Model 15 GAS SUPPLY Contracted for volume and prices Key Suppliers Under Upstream Authority / BPMigas PGN CUSTOMERS Contracted for volume Business tobusiness Prices Industrial Power Sectors Commercial Residential (PLN, IPP) Customers Customers (Steel Millls, Petrochemical, Ceramics, Textile, Glass) Customers (Hotels, Shopping Malls, Commercial buildings) Represented 98% of volume

16 Our Network & Facilities 16 PLN Medan (80 MMSCFD) Duri Panaran Station, Batam KALIMANTAN Grissik Receiving Station Pagardewa Compressor St. Legend: Strategic Business Unit (SBU) I Strategic Business Unit (SBU) II Strategic Business Unit (SBU) III South Sumatera West Java Transmission Pipeline (SSWJ) (970 MMSCFD) Grissik Duri transmission pipeline (425 MMSCFD) Pagardewa Station Terbanggi Besar St. Labuhan Maringgai St. Muara Bekasi Station Grissik Singapore transmission pipeline (364 MMSCFD)

17 Our Sources of Gas 17 Pertamina Medan DOH Rantau 44 BCF Medco E&P Lematang Lematang Block K A L I M A N T A N PSC Grissik Corridor Block 2581 BCF Grissik Medco E&P Indonesia South & Central Sumatra Block 14 BCF Pertamina Sumatera Selatan DOH Sumsel, Merbau Field, Pagardewa, Prabumenang, Tasim, Musi Barat 1006 BCF Pertamina JBB DOH Cirebon 338 BCF 1000 BTU/SCF Indonesia Pertamina TAC Ellipse Jatirarangon Field 41 BCF Pertamina Cirebon DOH Cirebon 15 BCF Kodeco West Madura PSC 52 BCF Lapindo Brantas Wunut Field 136 BCF Husky Oil BD Field 146 BCF Maleo Field 243 BCF

18 18 Update on South Sumatera Supply Chevron Duri (Steamflood) Singapore Power Gas Grissik PGN (West Java & South Sumatera) Flow from South Sumatera Supply No issue with production or technical aspect PGN owns and operates all pipelines connecting to the gas field Trend of increasing/recovering flow starting from mid Q2

19 Strategy to Fulfill Demand Obtain access to new gas supplies Actively seeking new gas supplies, starting from the ones located in the proximity of existing infrastructure Seek to obtain more allocation from the imposed domestic market obligations to new productions and contracts, but will require new infrastructure to be built Develop existing and build new infrastructure Expandexisting distributionandtransmission transmission capacity Plan for inter mode gas transportation such as CNG and LNG Aim for non conventional sources Plan and anticipate the non conventional sources such as Coal BdMth Bed Methane

20 20 Event Recent Developments Detail of Event SigningonsecondamendmentofGSPAongas Extending gas delivery of 3.78 TBTU starting from May supply from Pertamina ONWJ 2010 up to December 2010 Signing on amendment and restatement to replace interruptible GSPA on gas supply from ConocoPhillips Grissik AGM Resolutions for FY2009 performance Schedule of dividend payment Gasdeliveryof12.5BBTUDfor5yearsstartingJune 2010 The meeting approved the distribution of cash dividend Rp. 3,737,755,293,823 or 60% of 2009 net income which has been partially distributed in the form of interim dividends Rp. 242,396,581,960 and has been paid on December 23, The remaining cash dividend amount to be paid to shareholder is Rp. 3,495,358,711,863 or equal to Rp per share The meeting approved to discharge Djoko Pramono as Director and the appointment of replacement will be decided in the next General Meeting of Shareholders h Cum dividend for Regular and Negotiable Market July 8, 2010 Cum dividend for Cash Market July 13, 2010 Payment date of cash dividend July 27, 2010

21 Plan for New LNG Infrastructure 21 To Build the first 2 LNG Receiving Terminals Arun Mahakam Block Tangguh Donggi Senoro (planned) Masela Existing LNG Liquefaction Plant (planned) Existing transmission pipelines Planned LNG Liquefaction Plant Planned LNG Receiving Terminal (Source : LNGpedia)

22 Floating LNG Terminals 22 Northeast Gateway Teesside Dubai LNG Ship Golar Spirit converted into LNG Regas Terminal (Source : LNGpedia) Gulf Gateway Livorno Kuwait Medan Pecem W. Java Operational Under Development Guanabara Bay Mossel Bay Bahía Blanca

23 Floating LNG Terminal Overview 23

24 24 LNG Receiving Terminals WEST JAVA NORTH SUMATRA Location Jakarta Bay Belawan, Medan Capacity (MTPA) Customers MTPA Power plants, industry Potential ti lsupply Bontang and others Domestic and international sources Owner PGN (40%) Pertamina (60%) PGN Scope FSRU, jetty, subsea and overland pipelines

25 25 West Java FSRU Recent Developments Cooperation aspects: PLN pulled out of consortium citing focus on core business JV between PGN and Pertamina signed Technical aspects: JV appointed WorleyParsons Indonesia as Project Management Consultant Tender for EIA Consultant in evaluation process Commercial aspects: LNG SPA being negotiated JV preparing key terms of GSPA with PLN

26 26 North Sumatera a FSRU Recent Developments eeop e Legal/Coordination: Close coordination with Regional Government of North Sumatera and Belawan Port Authority Technical aspects: Site has been selected in consultation with Belawan Port Authority and Regional Government Tender for EIA Consultant underway PGN tendered for PMC Commercial aspects: MoU with PLN as gas offtaker signed Initial discussion with BP Tangguh and BP Migas on LNG supply

27 WEST JAVA DISTRIBUTION EXPANSION km West Java Distribution Expansion Project Distribution of SSWJ gas expected in 2011 Palembang 460 km expansion of Jakarta, Bekasi, Cikampek, Bogor and Banten distribution system Lampung Bekasi Karawang System capacity increased by 85% in West Java 50% nationwide Banten Bogor Cirebon Gas supply fromsouthsumatra Scheduled for completion in 2011 Project funded by World Bank and PGN

28 28 Recently Issued Regulations Government Regulation No. 55/2009 Upstream has a mandate to meet domestic demand by allocating 25% of natural gas production Ministerial Decree No. 19/2009 Set the structure of natural gas trading, transmission and distribution business and licensing Provides special rights and licensing for dedicated downstream Set pricing mechanismfor piped natural gas: o o o Residential regulated by BPH Migas Special users determined by Minister of Energy General users determined by the companies Ministerial Decree No. 3/2010 Upstream has a mandate to serve domestic demand by 25% of natural gas production Domestic gas utilization priorities for national oil and gas production, fertilizer, electricity and industrial uses Exemption for existing Gas Sales & Purchase Agreements, Heads of Agreement, MemorandaofUnderstandingof ornegotiations inprogress

29 Guidance For Gas Flow Projections Transmission: flat Distribution: MMSCFD Capital Expenditure Commitment in 2010: USD million

30 30 THANK YOU Contact: Investor Relations PT Perusahaan Gas Negara (Persero) Tbk Jl. K H Zainul Arifin No. 20, Jakarta 11140, Indonesia Ph: Fax: