Perusahaan Gas Negara

Transcription

1 Perusahaan Gas Negara Presentation to the investors

2 The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. 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 Our Transformation Journey 3 PGN is on the track to achieve its vision Re-gaining Investors Confidence A leading publicly listed Natural Gas Company 2009 ~792 ~$ 1.8B To Become A WorldClass Company in Natural Gas Utilization To implement differential pricing model for end customers To start constructing LNG Regassifications facility ~$ 0.9B Delivering the growth amids crisis in earlier part of year Lay foundations of PGN as a worldclass company in natural gas utilization Completion of SSWJ on schedule Start to address the power sector Anticipates the impact of global financial crisis Securing additional supply of gas Establish strategy for future growth Gain market confidence Distribution Volume (Daily Average/MMscfd) Revenues

4 Led by Committed Management 4 Chairman/President id Dr. Tengku Nathan Machmud Appointed din 2007 Commissioners PhD (Leiden University), Sloane MBA (MIT) Ex Country Head of BP/Arco Indonesia CEO/President Hendi Prio Santoso Appointed in 2008 Director University of Houston, University of Texas Austin (Economic & Finance) Ex Director of JPMorgan Indonesia, Bahana and Citibank COO/Commercial Director CFO/Finance Director Director of Development Michael Baskoro Appointed in 2007 Universitas Indonesia (MBA, Gas & Petrochem Engineering) Ex Director of Transgasindo Mochtar Riza Pahlevi Tabrani Appointed in 2008 University of Cleveland (MBA), Universitas Trisakti (Geological Engineering) Ex Investment Banker (Bahana) Bambang Banyudoyo Appointed in 2007 MSc (University of Salford UK) Ex General Manager of PGN (SBU West Java)

5 Key Delivery 5 Strategic Aspects Operational Aspects Completion of SSWJ Transmission Pipelines Key enabler for the delivery of high volume and low cost natural gas supplies to primary market Initial success of Establish customer focused and results oriented Transformation organization Reposition natural gas in national agenda Grow trading/distribution volume Maintain transmission volume Engage policy makers on the importance of natural gas for domestic economies Distribution volume doubled from 323 MMscfd in 2006 to 792 MMscfd in 2009 Transmission volume grew from 681 MMscfd in 2006 to 763 MMscfd in 2009 Financial Aspects Revenues Grew from Rp6.6T in 2006 to Rp18.0T in 2009 EBITDA Grew from Rp2.9T in 2006 to Rp9.3T in 2009 Operating Profits Grew from Rp2.4T in 2006 to Rp7.7T in 2009 Dbtt Debt structuringt Lowering cost of debt dbt We are back on track and regain market confidence

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

7 Growing Revenues, Expanding EBITDA 7 Revenue 20,000 EBITDA and EBIT 18, ,624 16,000 10,000 60% llion IDR bil 14,000 12,000 10, ,000 6,000 4,000 2,000 1,101 5,531 1,208 7,594 1,519 11,275 16,380 IDR billion 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 44% 2, ,393 47% 4,094 3,082 50% 6,375 4,657 52% 9,303 7,676 40% 20% * * % Distribution Transmission Fiber Optic EBITDA EBIT EBITDA Margin *note: as restated

8 Financial Statements (FY2009) 8 IDR billion FX Gain/Loss 20,000 1,500 1,245 18,000 16,000 14,000 12,000 10, ,024 8,000 IDR billion 1, (500) (1,000) (1,500) (2,000) (2,500) (3,000) (2,508) 6,000 4,000 2,000 12,794 9,303 7,676 6,229 6,375 4,657 2,909 3, Revenue EBITDA Operating Operating Inc. Net Income Exp Exchange Rate 31 December 2008 USD 1 = IDR 10,950 & JPY 1 = IDR December 2009 USD 1 = IDR 9,400 & JPY 1 = IDR

9 9 Our Sound Balance Sheet (IDR billion) Dec 31, 2008 Dec 31, 2009 % Current Assets 5,197 9, Non Current Assets 20,354 19,407 (5) Total Assets 25,551 28, Current Liabilities i 3,298 3, Non Current Liabilities Minority Interest In Net Assets of a Subsidiary 14, ,163 1,046 (14) 8 Government Project Funds Total Equity 28 7,075 11, Total Liabilities And Shareholders Equity 25,551 28, 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)

10 DEBT COMPOSITION (as of Dec 31, 2009) 10 Long-term debt amounting to USD billion Mostly long dated/maturity loans from Developmental Banks USD 58.4% JPY 41.6% Float 52.2% Fixed 47.8% Effective Cost of Debt of Around 2.6%

11 Opportunity : Unmet Demand for Natural Gas 11 Power Sector 2500 PLN gas demand was 1.8 BSCFD in for existing dual fired power plants growing to 2.1 BSCFD in Source : PLN Primary Energy Unit Demand Supply Gap PLN contracted for 1 BSCFD in Major suppliers: PGN, Pertamina, CNOOC. Unmet demand of 0.8 BSCFD Additionali demandd of 0.1 BSCFD from IPP Industry Non Power Sector 3,000 2,500 2,000 1,500 1, Source : Ministry of Industry 20 May 2009 Fertilizers Petrochem Paper Metal Ceramics Others Total Ministry of Industry cited major gas shortage for industry Firm unmet demand from industry of 0.4 BSCFD

12 Customers Profile 12 As of December 31, 2009, sales volume of industrial customers was 779 MMSCFD or equal to 98% of PGN s sales 39.00% 16.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 0.61% 0.03% Power Chemical Ceramic Basic Food Glass Paper Fabricated Textile Others Cement Wood Plant Metal Metal

13 Opportunity : Price Advantages 13 Lower gas price compares to other fuels Industrial Prices are set on B to B basis PGN Gas Price and HSD Price HSD Unsubsidized Price (USD/MMBTU) 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 LPG 50 kg /1/2005 7/14/ /26/2007 4/9/2009 4/1/2010 LPG Bulk Kerosene Note: Fuel price Pertamina Exchange rate +IDR 10,000/USD USD/MMBtu

14 Our Business Model 14 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

15 Our Network & Facilities 15 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)

16 Our Sources of Gas 16 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, Mu si 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

17 Opportunity : Future Gas Supplies 17 Indonesia has proven gas reserves TCF (P1+P2) (planned) (planned) LNG Liquefaction Plant Planned LNG Receiving Terminal Source: Director General of Oil and Gas (2009) Reserves P1+P2 P Existing transmission pipelines

18 Recent Developments 18 Agreement on the adjustment of gas sales price, the application of surcharge and guarantee of payment Signing on statutes of incorporation PT Nusantara Regas, Average selling price equivalent to approximately USD6.37/MMBTU (USD1 = Rp9,400) Application of surcharge amounting to 300% for the volume exceeding maximum contract Payment guarantee to cover 2 months worth of gas usage for all customers Joint Venture Company Floating Storage and Regasification Terminal (FSRT) Shareholder composition: Pertamina 60% and PGN 40% Capital structure: authorized capital Rp2 trillion and paid in capital Rp500 billion

19 Floating LNG Terminal Overview 19

20 Floating LNG Terminals 20 Teesside Northeast Gateway Dubai Livorno Gulf Gateway Kuwait Medan Pecem W. Java Operational Under Development Guanabara Bay Mossel Bay Bahía Blanca

21 LNG Receiving Terminals 21 WEST JAVA NORTH SUMATRA Location Jakarta Bay Belawan, Medan Capacity (MTPA) Customers Power plants, industry Potential ti lsupply Bontang and others Domestic and international sources Owner PGN, Pertamina PGN Scope FSRU, jetty, subsea and overland pipelines

22 22 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 EIAConsultant in evaluation process Commercial aspects: LNG SPA being negotiated JV preparing key terms of GSPA with PLN

23 23 North Sumatera FSRU Recent Developments 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

24 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 Gassupply fromsouth Sumatra Scheduled for completion in 2011 Project funded by World Bank and PGN

25 25 Recently Issued Regulations Government Decree 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 mechanism for 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, Memoranda of Understanding or negotiations in progress

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

27 27 THANK YOU Contact: Investor Relations PT Perusahaan Gas Negara (Persero) Tbk Jl. K H Zainul Arifin No. 20, Jakarta 11140, Indonesia Ph: Fax: