SCN CREATING SUSTAINABLE ENERGY

Transcription

1 SCN 1 CREATING SUSTAINABLE ENERGY

2 I. Business Overview 2

3 Natural Gas Supply in Thailand SAMKHOK NGV MOTHER STATION 1 2 icng MOTHER STATION 3 Source: PTT

4 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 4

5 1 The structure of the NGV retail price Existing NGV Retail Price Policy (Stations 1 8) New NGV Retail Price Policy (Stations 9 15) Service Fee 2 THB Vat 7% Action Fee THB PTT Wholesale Price of Gas Vat 7% Results from the adjustment of NGV retail price according to the pricefloating policy has enabled new NGV stations to gain revenue of baht per kilogram, from the former private NGV stations which had a marketing fee of baht per kilogram 5 Source: Energy Policy and Planning Office, Ministry of Energy 2016

6 1 Price Comparison Between Gasoline and NGV 6

7 1 Price Comparison Between Diesel and NGV 7

8 1 Current NGV Service Stations Map 1 Scan Inter Service Stations (PBS) 2 Susco Vibhavadi 3 Susco Sukaphiban 4 Susco Bangna 5 Worapapha 6 Kaokong Petroleum 7 NT Energy Gas

9 Ton/day 1 Total SCN Market Share & Sale Volume 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% SCN Market Share 0.00% Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 SCN Sale Volume , ,000 8, , , ,000 6,500 6,000 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 SCN NGV Station Total (LHS) NGV Thailand (RHS) 9

10 Ton/day Ton/day Ton/day Ton/day 1 SCN Sale Volume Scan Inter (Samkhok) ,000 Jan16 Mar16 May16 Jun16 Aug16 Oct16 Nov16 Jan17 Mar17 Scan Inter NGV Thailand (Samkhok) Scan Inter & Susco (Sukhapiban) 9,000 8,000 7,000 10,000 9,000 8, , ,000 Jan16 Mar16 May16 Jun16 Aug16 Oct16 Nov16 Jan17 Mar17 Susco (Sukaphiban) NGV Thailand Scan Inter & Susco (Bangna) , , , ,000 6,000 Jan16 Apr16 Jun16 Aug16 Nov16 Jan17 Mar17 Susco (Bangna) NGV Thailand Scan Inter & Susco (Vibhavadi) , , , ,000 6,000 Jan16 Mar16 May16 Jun16 Aug16 Oct16 Nov16 Jan17 Mar17 Susco (Viphavadi) NGV Thailand 10

11 Ton/day Ton/day Ton/day 1 SCN Sale Volume Kaokong Petroleum , ,500 8, , ,000 6, ,000 Jan16 Mar16 May16 Jun16 Aug16 Oct16 Nov16 Jan17 Mar17 Worapapha , ,500 8, , , , ,000 Jan16 Mar16 May16 Jun16 Aug16 Oct16 Nov16 Jan17 Mar17 Kaokong Petroleum NGV Thailand Worapapha NGV Thailand NT Energy Gas , ,500 8, , ,000 6, ,000 May16 Jul16 Aug16 Sep16 Nov16 Dec16 Jan17 Mar17 NT Energy Gas NGV Thailand 11

12 1 Green Field NGV Service Stations Map 8 Nampong NGV 9 AIMMIE NGV 10 BPA Intertrade (inbound) BPA Intertrade (outbound) Siamvasco (Chai Nat) 8 13 Prospect Station Prospect Station 15 Joint Venture Station Joint Venture Station New structure of the NGV retail price Joint Venture Station

13 1 ESTIMATE SALES VOLUME Status NGV Service Stations Sales goal (kilogram/day) In Operation Green Field Scan Inter (Pathumthani) Kaokong Petroleum (Rayong) Warapapha (Bangkok) NT Energy Gas (Prachinburi) Susco Scan Inter 3 stations (in Bangkok and premises) BPA Intertrade I (Chonburi) AIMMIE NGV (Prachinburi) Namphong NGV 2558 (Khonkaen) BPA Intertrade II (Chonburi) Siamvasco (Chai Nat) Prospect Station (2) 65,000 75,000 30,000 30,000 90,000 60,000 40,000 60,000 60,000 40,000 40,000 Target M&A 3 Stations (In 2017) 100,000 Total Sales Goal by the end of ,000 13

14 THB M 1 NGV Service Station Revenue Q Q NGV Service Stations The revenue in Q1/2017 is less than Q1/2016 because the retail price of NGV decreased from Baht/kg to Baht/kg The actual sales remain the same and due to the pricing regulation, the profit is fixed in Baht/kg and is not related to the retail price. 14

15 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 15

16 2 Pressure Reducing System (PRS) 5 16

17 THB M 2 Industrial Compressed Natural Gas Revenue Q Q icng The actual sales of icng in Q1/2017 increased significantly from Q1/2016 The revenue target for 2017 is 500 million Baht Actual sales to the end users are expected in increase within the year predicted from the backlog of customers that are in contract signing phase. 17

18 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 18

19 THB M THB M 3 NGV Services Distribution Pipeline Natural Gas Quality Improvement Private Mother Station (PMS) Natural Gas Transportation (TPL) Gas Station Revenue Private Mother Station (PMS) Revenue Natural Gas Transportation (TPL) Q Q Q Q SCN is the owner of the largest NGV Mother Station in the nation at the current production capacity at 643 ton/day Providing energy service to PTT by compressing natural gas from the pipeline to the CNG trailers to serve the retail stations in Bangkok and the suburban areas Providing NGV logistic service for PTT by transporting the compressed natural gas from our Private Mother Station to the NGV retail stations in Bangkok and the suburban areas Using the state of the art safety protocol including GPS tracking system, onboard monitoring system and well trained personnel 19

20 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC & Maintenance Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 20

21 THB M 4 EPC & Maintenance NGV Stations and Related Gas System EPC & Maintenance Q Q SCN s core value is being the only CNG Compressors & the related components manufacturer in ASEAN Creating cost competitiveness in EPC & maintenance services for NGV & CNG applications Thus being the first mover and the pioneer of all the CNG business in Thailand and South East Asia EPC & Maintenance NGV Stations and Related Gas System 12 out of 17 PTT s NGV Mother Stations in Thailand were built by SCN More than 50 % market share of EPC of NGV Stations More than 50% market share of contract maintenance of NGV stations The revenue in Q1/2017 is slightly higher than Q1/2016 due to completion of CO2 related system Since the company s core value is focused on CNG, the realized profit from Q1/2017 is not as high as the profit realized in Q1/2016. However, in the remainder of 2017, there are some EPC backlog already acquired and due to the new NGV policy and regulation, the company is expected to obtain more CNG related EPC contract from the end users. The revenue target basis for EPC is approximately 500 million Baht per year 21

22 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 22

23 THB M THB M Auto Dealer & Installation of NGV/LPG Revenue Q Q12017 Showroom Service and Maintenance Centre Auto Dealer Business Q Q Body Repair and Paintwork Service Centre Installation of NGV & LPG The revenue of auto sales in Q1/2017 dropped dramatically when compared to Q1/2016 and caused the net profit to realized less profit In Q1/2016 Mitsubishi Motors Thailand introduced their new flagship model, the Pajero Sport and caused the sales to grow significantly in that quarter In Q1/2017, no new model has been introduced However, auto dealership is not the main focus of the company 23

24 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 24

25 THB M 6 Solar Power Plant Solar Power Plant Scan Inter Public Company Limited has collaborated with Satribangpasri cooperative to create a solar project with distribution capacity at 5 MW. The site is located at Bangpasri district, Banglen, Nakornpathom. COD December 28, Q Q Solar Power Plant 25

26 Gas Related Business Overview 3 5 Auto Dealer LNG (8%) Regasification NGV Services 1 NGV Service Stations Natural Gas Quality Improvement Conventional Station Myanmar Import (19%) 7 Associated Gas Distribution Pipeline Private Mother Station (PMS) Natural Gas Transportation (TPL) Daughter Stations Car, Bus and Truck Installation of NGV and LPG Conversion System in Vehicles Domestic Supply (73%) 2 Auto Dealer icng 4 EPC Testing Center 6 Industrial Compressed Natural Gas icng Pressure Reducing System PRS Industrial Manufacturing of CNG/NGV Compressor and Related Equipment Solar Power Plant EPC & Maintenance NGV Stations and Related Gas System 5 MW at nakornpathom Power Grid 26

27 Associated Gas 15 km WBEXT 2 WBEXT 3 Signed the rental agreement with nearby gas stations due to preparing NGV station s construction SCN is now on processing for construct the NGV receiving point and NGV station which have the production capacity approximately 27,000 km/day Available within 2017 In 2017, SCN has one more NGV station as 17 th stations 27

28 Associated Gas Associated Gas Eco Orient Energy (Thailand) Ltd. Location Flow Rate (scfd) NG Ton/D Co2 25% Total WBEXT 3 500, WBEXT 2 200, Total 700,

29 International Market After 5 years of extensive research, we are ready to launch our new innovative product, the Type 4 cylinder, N4. This cylinder is focused to be used in the logistic network of CNG to reduce the weight of the trailer when compared to the traditional Type 1 steel cylinders, thus reducing the transportation route and significantly reduces the transportation cost for the CNG logistic providers. SCN agree with Sojitz Corporation Co., Ltd. to be a partner. Sojitz is wideranging general trading company which ranked 2nd of the biggest company in Japan due to seeking the marketing and trading the related products both CNG and NGV for the worldwide needs of NGV consumption 29

30 II Financial Overview 30

31 THB M Net Profit Strong Growth in Net Profit Net Profit Q Q12017 Provision of slow moving stock valued more than 7 million THB. There were repairing works from the delivered work that were in the warranty period from The price of icng is based on oil price dating back to the previous 3 months. From the world crude oil price data, it can be seen that during OctoberDecember 2016, oil prices have fallen, affecting the decline in icng earnings. The domestic automobile market is slowing down including Mitsubishi itself has not released a new car affecting the car dealership business. The Company's financial cost increased from the expansion of the business especially NGV stations that under construction. The company focuses on bringing its existing resources to be used to generate recurring income in the future, in accordance with the company's business plan, the Company cannot recognize revenue from construction and maintenance works that generate high profit Note: The figures are not including discontinued business, Special Project and Solar Plant

32 THB M THB M Strong Consolidated Revenue Strong Growth in Revenue Total Revenue Total Revenue Structure 3, , , , , , , , , Q Q , , , , , , , Q Q12017 Gas related Business Auto Dealer Business Other Income 32 Note: The figures are not including discontinued business, Special Project and Solar Plant

33 THB M THB M Gas Related Business Overview SCN s Core Business Healthy Growth Revenue Gas Related Business Gross Profit vs GPM Gas Related Business 2, , , , , , , , , Q Q % 29.2% 29.0% 30.0% 25.5% 26.9% 25.0% 20.0% % 15.0% 10.0% 5.0% % Q Q Gross Profit (LHS) GPM (RHS) 33

34 THB M Recurring Revenue Creating Sustainable Income with Recurring Revenue & Solid Gross Margin of Recurring Revenue Recurring Revenue Recurring Gross Profit and Margin 1, , , Q Q % 30% 33% 27% 28% Q Q % 30% 25% 20% 15% 10% 5% 0% R&M Conrtact PMS TPL NGV Retail icng Gross Profit Gross Profit Margin 34

35 Revenue Structure Diversified Source of Revenue, Focusing on Gas Related Business Total Revenue Structure Auto Dealer Business 34% Other Business 6% Gas Related Business 60% Construction & MA 15% Autogas 1% Q : MMTHB NGV Service Stations 21% icng 5% PMS 12% TPL 6% Auto Dealer Business 20% Solar Power Plant 2% Other Business 8% Gas Related Business 70% Construction & MA 25% Autogas 2% Q : MMTHB icng 10% PMS 10% NGV Service Stations 18% TPL 5% 35

36 Surging of Return & Sound Capital Structure ROE & ROA D/E Ratio vs. IBD/E Ratio Q Q Q12017 ROE (Exclude IPO) ROE ROA D/E Ratio IBD/E Note: (1) annualized figure, excluding profit from disposing solar power plant 36

37 Q&A 37

38 SCN 38