ANALYST S BRIEFING : No.1/2015. March 10, 2015

Transcription

1 ANALYST S BRIEFING : No.1/2015 March 10,

2 This presentation was made from the analysis of reliable information in order to assist investment community to better understand the company's financial status and operation. It also supports the "Good Corporate Governance Project" of the Securities and Exchange Commission (SEC). However, the information within this presentation has been derived from the existing factors in the present time. Therefore, the forward-looking information on this presentation may not occur in the future if the aforementioned factors or situations are changed. Investors are, nevertheless, required to use their own discretion regarding the use of information contained in this presentation for any purpose. For further information, please contact Investor Relations Section of the Electricity Generating Public Company Limited (EGCO) at Tel: (662) or 2

3 Highlights in Present 2014 Financial Results EGCO Group s Overview 3

4 Projects Under Construction Highlights in Present Projects Under Development Significant Events 4

5 Laos Under Construction: 4 projects XPCL Xayaburi, Laos PDR SCOD: October 2019 Thailand KEGCO (KN4) BRWF Nakhon Si Thammarat, Thailand SCOD: June 2016 GIDEC Songkhla, Thailand SCOD: December 2014 COD Achievement Australia New South Wales, Australia SCOD: February 2015 COD Achievement 5

6 Type : Waste Power Plant Location : Hat Yai, Songkhla Shareholders : EGCO 50% and IEC Green Energy 50% SCOD : December 2014 Contractual Type : VSPP Non-Firm Contracted Capacity : 6.5 MW with PEA Adder : 3.50 baht/kwh for 7 years GIDEC Waste Power Plant (GIDEC) COD on December 11,

7 Type : Wind Power Plant Location : New South Wales, Australia Shareholders : EGCO 100% SCOD : February 2015 Contracted Capacity : 113 MW PPA : 15 years with Energy Australia Pty Ltd. Boco Rock Wind Farm (BRWF) COD on November 28,

8 Type : Combined Cycle Power Plant Location : Khanom, Nakhon Si Thammarat Shareholders : EGCO 100% SCOD : June 2016 Contractual Type : IPP Contracted Capacity : 930 MW PPA : 25 years with EGAT Khanom Power Plant Project Unit 4 (KN4) Overall Progress : Ending Q4/2014, the overall progress was 56.70%. Details of Construction work : Turbine and HRSG foundations were completed. Gas turbine and generator train 1 are being transported. 8

9 Type : Hydro Power Plant (Run-off River) Location : Xayaburi District, Laos PDR Shareholders : EGCO 12.5%, CK 30%, EDL 20%, BECL 7.5%, Natee Synergy 25%, PT Construction and Irrigation Co., Ltd. 5% SCOD : October 2019 Contractual Type : IPP Contracted Capacity : 1,220 MW with EGAT and 60 MW with EDL PPA : 29 years with EGAT and EDL Xayaburi Power Plant Project (XPCL) Overall Progress : Ending Q4/2014, the overall progress was 40.79%. Details of Construction work : River diversion was done on January 26,

10 GIDEC 100% BRWF 100% KEGCO (KN4) 56.70% XPCL 40.79% 10

11 Projects Under Construction Highlights in Present Projects Under Development Significant Events 11

12 TP Cogen Under Development: 4 projects Ban Pong, Ratchaburi SCOD: October 2017 Thailand CWF Sub Yai, Chaiyaphum SCOD: December 2016 SK Cogen Ban Pong, Ratchaburi SCOD: October 2017 TJ Cogen Klong Luang, Pathum Thani SCOD: June

13 Type : Wind Power Plant Location : Sub Yai, Chaiyaphum Shareholders : EGCO 90%, PVI Group 10% SCOD : December 2016 Contractual Type : SPP Non-Firm Contracted Capacity : 90 MW with EGAT Adder : 3.50 baht/kwh for 10 years Chaiyaphum Wind Farm (CWF) EPC Contract : EPC and O&M Contracts were signed in December Financing : Financial Close was achieved on February 6,

14 Type : Cogeneration Power Plant Location : Klong Luang, Pathum Thani Shareholders : EGCO 100% SCOD : June 2017 Contractual Type : SPP Cogeneration Installed Capacity : 110 MW Contracted Capacity : 90 MW with EGAT Contracted Capacity with IU : 17 MW and 10 t/h of steam TJ Cogeneration Project (TJ Cogen) EPC Contract : EPC signing is expected within March Financing : Financial Close is expected to be achieved in May Others : EIA for natural gas pipeline and EIA for power plant were approved on July 31, 2014 and February 5, 2015, respectively. 14

15 Type : Cogeneration Power Plant Location : Ban Pong, Ratchaburi Shareholders : EGCO 100% SCOD : October 2017 Contractual Type : SPP Cogeneration Installed Capacity : 125 MW each Contracted Capacity : 90 MW each with EGAT Contracted Capacity with IU : TP Cogen 23 MW and 40 t/h of steam SK Cogen 17 MW and TP & SK Cogeneration Project (TP Cogen & SK Cogen) EPC Contract : EPC Contract was signed on November 1, Financing : Financial Close is expected to be achieved in September Others : EIA for natural gas pipeline was approved on March 20, t/h of steam 15

16 Projects Under Construction Highlights in Present Projects Under Development Significant Events 16

17 NED Lopburi, Thailand Acquisition date: February 4, 2015 Thailand Philippines MPPCL Zambales, The Philippines Acquisition date: July 15, 2014 RYPP Rayong, Thailand Expiry date: December 7, 2014 MPPCL Acquisition SEG Acquisition NED Shares Purchase SEG West Java, Indonesia Acquisition date: July 30, 2014 Indonesia RYPP s PPA Expiration 17

18 Type : Coal Fired Power Plant Technology : Subcritical Location : Zambales Province, Luzon, The Philippines Shareholders : EGCO 40.95%, AES 51% and IFC 8.05% COD : Unit 1 June 1998 Unit 2 December 1998 Installed Capacity : 2x315 MW Contracted Capacity : 589 MW Masinloc Power Partners Co., Ltd. (MPPCL) Achievement for signing SPA to acquire the shares in MPPCL was on June 25, Acquisition transaction was completed on July 15,

19 Type : Geothermal Power Plant Location : 40 km South of Bandung, West Java, Indonesia Shareholders : EGCO 20%, Star Energy 60% and DGA 20% COD : Unit 1 June 2000 (110 MW) Unit 2 March 2009 (117 MW) Contracted Capacity with PLN : up to 400 MW Energy Sale Contract : 30 years from COD of each unit (extendable) Star Energy Geothermal Pte Ltd. (SEG) Acquisition transaction was completed on July 30, Shareholders Agreement was signed on October 30,

20 Type : Solar Power Plant Technology : Thin-Film Solar Cell Location : Lopburi Province Shareholders after Acquisition : EGCO 66.66% and CLP 33.33% COD : Lopburi Solar Dec 2011 Wang Ploeng Solar May 2013 Contracted Capacity : Lopburi Solar 55 MW with EGAT Wang Ploeng Solar 8 MW with PEA Adder : 8 baht/kwh for 10 years Natural Energy Development Co., Ltd. (NED) Acquisition of additional shares of 33.33% in NED from Diamond Generating Asia, Limited. Share Transfer was completed on February 4,

21 Type : Combined Cycle Power Plant Location : Huay Pong District, Amphur Muang, Rayong Province Shareholders : EGCO 100% PPA Commencement Date : December 7, 1994 Installed Capacity : 4x308 MW Contracted Capacity : 1, MW Rayong Power Plant (RYPP) The 20-year PPA of RYPP, Thailand s first independent power producer with EGAT expired on December 7,

22 Highlights in Present 2014 Financial Results EGCO Group s Overview 22

23 Unit: Million Baht 7, MD&A +330 MB or % 7, ,091 7, (restated) Power Generation Others

24 Unit: Million Baht Change of AP KEGCO (526) KK2 (338) RYPP (200) BLCP 101 Under Construction Under Development GIDEC (3) SBPL (30) BRWF 15 TP&SK (4) CWF (2) (963) 386 (24) 931 7,375 Operating Performance QPL 444 Roi-Et Green 3 MPPCL 436 GEC (12) KEGCO 159 BLCP (26) RYPP 144 ESCO (38) NT2 103 Conal (48) APPC 24 North Pole (88) MME 12 EGCO Cogen (90) Egcom Tara 9 KK2 (295) SEG 5 EGCO (356) Solar & Wind Solarco 773 NED 61 TWF 25 SPP3 18 SPP5 17 GPS 15 SPP2 11 SPP4 11 7, (restated)

25 Unit: Million Baht 7, Net Profit +503 MB or % MD&A +330 MB or % 7, Net Profit before FX, DT and TFRIC 4&12 FX Deferred Tax TFRIC 4&12 7,375 7,705 (182) (279) (677) 2013 (restated)

26 Million Baht 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000-7,705 7,375 6,319 6,585 4,435 4,098 1,993 1,869 3M 6M 9M 12M

27 Unit: Million Baht Highlights in Present 2014 Financial Results EGCO Group s Overview Net Profit before FX, Deferred Tax and TFRIC 4&12 Net Profit 11,240 Gain from Combination 4,310 MB 5,301 6,060 7,375 7,705 4,990 7,164 7,667 6,

28 SPP 617 MB (GEC, EGCO Cogen, Roi-Et Green) RYPP 461 MB NT2 1,187 MB MPPCL 436 MB 5% 11% 4% 4% 3% Others 296 MB (Egcom Tara, ESCO, MME, SEG) 26% Quezon 2,905 MB KK2 1,202 MB 11% 15% 21% BLCP 2,327 MB Solar & Wind 1,615 MB Note: Excluding EGCO 28

29 Total Outstanding As of December 31, 2013 Total Outstanding As of December 31, 2014 AUD 99 M AUD 236 M USD 910 M USD 1,487 M JPY 262 M JPY 157 M THB 17,095 M THB 20,527 M Total Outstanding (Baht equivalence) THB 49,982 M THB 76,725 M 29

30 Times (X) Equity 74,219 MB EGCO + Subsidiaries EGCO EGCO + Subsidiaries Equity 56,296 MB Debt 86,468 MB EGCO Debt 43,769 MB 30

31 Unit: Million Baht 2014 Beginning Cash 1,800 Cash Payments from Operations (EGCO) (816) Cash Receipts from RYPP 1,604 Net Cash Receipts from Operating Activities 788 Dividend Receipts from Subsidiaries, JVs & Others 5,285 Cash Payments for Additional Paid-up Share Capital in Subsidiaries, JVs & Others (21,434) Other Investments (Payments) and Interest Receipts (146) Net Cash Payments in Investing Activities (16,295) Loan Receipts and Payments 18,567 Interest Payments (678) Dividend Payments (3,290) Net Cash Receipts from Financing Activities 14,599 Ending Cash 892 Note Dividend Receipts from QPL 69 MUSD and PEPOI 2 MUSD Cash Payments from Offshore to BRWF 60 MAUD and MPPCL 33 MUSD 31

32 Baht/Share Interim Payment Second Payment Note: EGCO Board of Directors on February 23, 2015 resolved to propose to Shareholder s 2015 Annual General Meeting to approve the 2014 final dividend payment at 6.25 baht per share. 32

33 Highlights in Present 2014 Financial Results EGCO Group s Overview 33

34 EGCO Group s Overview EGCO s Shareholders Portfolio and Corporate Strategies 34

35 As of December 4, 2014 EGAT 25.41% TEPCO 50% NDF* 50.11% NVDR 15.16% TEPDIA 23.94% Others 49.89% Mitsubishi 50% Foreign Investors 20.88% Thai Investors 14.61% * Nuclear Damage Liability Facilitation Fund 35

36 EGCO Group s Overview EGCO s Shareholders Portfolio and Corporate Strategies 36

37 Currently, EGCO Group s portfolio comprises 23 operating power plants, totaling contracted capacity 3, MWe. Power Plant: Renewable (Domestic) EGCO s Shares Contracted Cap. (MW) MW Equity NED 66.66% % Power Plant: IPP EGCO s Shares Contracted Cap. (MW) MW Equity KEGCO (KN 2&3) % KK % 1, BLCP 50.00% 1, SPP % SPP % SPP % SPP % GPS 60.00% TWF 90.00% Solarco 49.00% % Total 2, GIDEC 50.00% % 7.39% Power Plant: SPP EGCO s Shares Contracted Cap. (MW) MW Equity EGCO Cogen 80.00% Roi-Et Green 70.30% Power Plant: Overseas EGCO s Shares Contracted Cap. (MW) Total MW Equity NT % 1, GCC 50.00% QPL 98.00% NKCC 50.00% MPPCL 40.95% IPP Renewable SCC 50.00% GYG 50.00% SEG 20.00% BRWF % SPP Overseas Total Total 1,

38 Currently, EGCO Group s portfolio consists of 2 under construction projects and 4 under development projects, totaling contracted capacity 1, MWe. Power Plant: Under Construction EGCO s Shares Contracted Cap. (MW) MW Equity 27.24% KEGCO (KN4) % XPCL 12.50% 1, Total 1, Power Plant: Under Development EGCO s Shares Contracted Cap. (MW) MW Equity 72.76% CWF 90.00% TP Cogen % SK Cogen % TJ Cogen % Total Under Construction Under Development 38

39 Currently, EGCO Group s other business portfolio comprises 6 companies: Company Business Type EGCO Engineering and Service Co., Ltd. (ESCO) O&M Pearl Energy Philippines Operating Inc. (PEPOI) O&M Quezon Management Services Inc. (QMS) Management Service Eastern Water Resources Development and Management Plc. (EASTW) Water Egcom Tara Co., Ltd. (Egcom Tara) Water Manambang Muara Enim Co., Ltd. (MME) Coal Mining 39

40 KEGCO (KN4) XPCL (Gas) (Hydro) CWF TP Cogen SBPL (Wind) (Gas) (Coal) SK Cogen Under Construction Projects (Gas) Under Development Projects TJ Cogen Potential Project (Waiting for ERC s Approval) (Gas) 40

41 Operate power plants to achieve optimum efficiency and manage projects under construction to achieve COD on time Boost long-term earnings by acquisition of greenfield projects and/or expansion of existing projects Acquire operating assets to realize quick earnings 41

42 THANK YOU 42

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44 As of December 2014, Thailand s Power Installed Capacity was 34, MW. Classified by Producer Classified by Fuel type 1.8% 6.9% 10.4% 13.1% 44.7% 16.0% 38.0% 69.0% EGAT IPP SPP IMPORT NATURAL GAS HYDRO COAL OTHERS* EGAT : 15,482 MW SPP : 3,614 MW Natural Gas : 23,936 MW Coal : 4,556 MW IPP : 13,167 MW Import : 2,405 MW Hydro : 5,549 MW Others* : 627 MW Source: EGAT *OTHERS = Fuel Oil, Diesel, Renewable 44

45 MW 30,000 26, MW (April 23, 2014) 26, MW (May 16, 2013) 1.3% 24, MW (December 3, 2014) 25,000 20,000 15,000 January Februaary March April May June July August September October November December Source: EGAT

46 FX Variance MD&A 46

47 Deferred Income (Expense) Tax 47

48 Impact of the Adoption of TFRIC 4 and TFRIC 12 Million Baht (100) (0) (97) (13) (12) (43) (11) (12) (5) (200) (300) (239) RYPP KEGCO Roi-Et Green BLCP GEC NT2 Egcom Tara 48

49 Financial Ratio Highlights (Consolidated) 2013 * 2014 Debt to Equity (Time) Net Debt to Equity (Time) Net Profit before FX** (Million Baht) 6,745 7,787 EPS (Baht) Operating Cash Flow / share (Baht) BV / share (Baht) * The information is up on the financial statements as of December 31, ** FX gains/losses from Income Statements including financial cost from foreign currency loans (EGCO & Subs and JVs) 49

50 Segmental Operating Results, Ended December 31,

51 Segmental Operating Results, Ended December 31,

52 3,722 2,319 2,535 2,788 2,258 2,170 2,167 1,762 2,201 2,038 1,959 1,528 6,317 7,672 8,107 7,937 10,825 8,667 17,909 17,706 17,868 18,505 17,255 22,506 22,750 22,655 20,462 29,649 27,470 2,952 2,127 1,155 2,693 4,783 4,004 5,643 5,476 4,976 5,816 6,361 5,311 5,770 5,188 6,274 5,258 6,150 6,283 10,018 9,329 10,036 9,857 8,813 10,617 10,770 10,157 9,323 10,848 10,825 Net Generation RYPP KEGCO (KN2&3) BLCP KK2 NT2 Annual Net Generation & Electricity Sales for the Year GWh 12,000 10,000 8,000 6,000 4,000 2, Electricity Sales Million Baht 35,000 30,000 25,000 20,000 15,000 10,000 5, EGAT is the sole off-taker for electricity produced by Rayong Power Plant and KEGCO under long term cost-plus based Power Purchase Agreements (PPAs). REGCO and KEGCO receive the capacity payment (Rayong Power Plant) or availability payment (KEGCO) for maintaining the availability of the power plants, regardless of whether the electric power will be supplied to EGAT or not. 52

53 Major Maintenance Expenses for the Year 2014 Million Baht Rayong Power Plant Quarter Total Actual Actual Actual Actual Spare Parts Service Charge Total KEGCO (KN2&3) Quarter Total Actual Actual Actual Actual Spare Parts Service Charge Total

54 Major Maintenance Expenses for the Year 2013 Million Baht Rayong Power Plant Quarter Total Actual Actual Actual Actual Spare Parts Service Charge Total KEGCO (KN2&3) Quarter Total Actual Actual Actual Actual Spare Parts Service Charge Total

55 Operating Performance Equivalent Availability Factor Rayong Power Plant 2013 Plant Type 1Q13 2Q13 3Q13 4Q13 Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) CCGT # CCGT # CCGT # CCGT # Rayong Power Plant 2014 Plant Type 1Q14 2Q14 3Q14 4Q14 Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) CCGT # CCGT # CCGT # CCGT # KEGCO (KN2&3) 2013 Plant Type 1Q13 2Q13 3Q13 4Q13 Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Barge # Barge # CCGT # KEGCO (KN2&3) Q14 2Q14 3Q14 4Q14 Plant Type Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Barge # Barge # CCGT #

56 Net Generation and Fuel Consumption Rayong Power Plant CCGT #1-4 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Net Generation - By Natural Gas (GWh) 979 1, By Secondary Fuel (GWh) Fuel Consumption - By Natural Gas (MMBTU) 8,432,352 9,904,901 2,557,558 2,483,331 3,906,610 4,951,634 1,095, ,278 - By Secondary Fuel (Million Litre) KEGCO (KN2&3) Barge # 2 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Net Generation - By Natural Gas (GWh) By Secondary Fuel (GWh) Fuel Consumption By Natural Gas (MMBTU) 1,791,289 1,286,936 1,695,172 1,590,779 1,470,853 1,659,281 1,590,779 1,286,092 - By Secondary Fuel (Million Litre) CCGT # 3 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Net Generation - - By Natural Gas (GWh) 1,162 1,181 1,288 1,062 1,099 1,302 1,062 1,152 - By Secondary Fuel (GWh) Fuel Consumption By Natural Gas (MMBTU) 9,404,137 9,571,503 10,481,570 8,696,415 10,493,579 10,619,075 8,696,415 10,269,237 - By Secondary Fuel (Million Litre)

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