CK POWER PUBLIC COMPANY LIMITED. Corporate Presentation August 2014

Transcription

1 CK POWER PUBLIC COMPANY LIMITED 0 Corporate Presentation August 2014

2 Business Overview : Comprehensive Capability & Synergy Power Shareholder Strengths Developer Capability (Engineering, EPC) Financial Strength Corporate Governance Check & Balance Ch. Karnchang Public Company Limited (CK) 15.15% 19.04% Bangkok TTW Public Expressway Company Limited Public Company (TTW) Limited (BECL) Public 23.22% 25.00% Holding Strengths Funding Capability Investment Channels Diversified Portfolio 31.78% CKP 20.00% Hydro Cogeneration Solar Subsidiaries Strengths Long - Term Revenue Capability Professional O&M Capability Technical Expertise 56% 65% SouthEast Asia Energy Company Limited (SEAN) Bangpa-in Cogeneration Company Limited (BIC) 100% Bangkhenchai Company Limited 75% Nam Ngum 2 Company Limited (NN2) 30% 30% Nakorn Ratchasima Solar Company Limited (NRS Chiangrai Solar Company Limited (CRS) 1 1

3 Business Overview : Well Diversified Portfolio Nam Ngum2 (NN2) Bangpa-In Cogeneration 1 (BIC 1) Technology Hydro Power Cogeneration Power Location Lao PDR Ayudthaya, Thailand Commercial Operation started Power Purchase Agreement Generation Capacity IOD: March 2011 COD: January Years with EGAT 1/ Bangpa-In Cogeneration 2 (BIC 2) Cogeneration Power Ayudthaya, Thailand June 2013 June 2017 (Scheduled COD) 25 Years with EGAT 1/ 615 MW MW Steam 19.6 Ton/hr. 25 Years with EGAT 1/ 120 MW Steam 20 Ton/hr. Bangkhenchai Solar (BKC) Nakorn Ratchasima Solar (NRS) Chiangrai Solar (CRS) Solar Power Solar Power Solar Power Nakorn Ratchasima, Thailand Nakorn Ratchasima, Thailand Chiangrai, Thailand August 2012 March 2012 January automatic every 5 years with PEA 2/ 5+automatic every 5 years with PEA 2/ 5+automatic every 5 years with PEA 2/ 8 MW 6 MW 8 MW CKP s Shares 75% by SEAN 3/ 65% 65% 100% 30% 30% Other Shareholders 25% EDL GEN GPSC (PTT Group) 25%, Other 10% GPSC (PTT Group) 25%, Other 10% - Sonnedix Group 70% Sonnedix Group 70% 2 Remark : 1/ EGAT = Electricity Generating Authority of Thailand 2/ PEA = Provincial Electricity Authority 3/ CKP owns 56% in SEAN, other shareholders are Ratchburi Electricity Generating Holding Plc. (RATCH) 33% and others 11% 2

4 Business Overview : Leading AEC Player, First Thai Holding with Overseas Core Asset Hydro Power NN2 Solar Power BKC NRS CRS Nam Bak Xayaburi Cogeneration BIC 1 & 2 3 3

5 Business Overview : Development & Operational Excellence COD and PPA Signed MOU CA, Construction, Acquisition and PPA submission Construction Period Financial cost reduction 1. NN2 Mar CA 2006 CK Power embodies the expertise of the CK Group with its strong track record of power project development, acquisition, construction and operation Nov PPA signed Construction Period Dec Construction Completion Mar IOD Jan COD Nov Interest Rate Reduction 2014 Hydro Solar Co- Generation 2. XPCL 3. NB 4. BKC 5. NRS 6. CRS 7. BIC 1 May MOU (Feasibility Study) Apr MOU (Feasibility Study) Aug PPA Application Submission Nov MOU (Detailed Feasibility Study) PPA Finalization Jul PPA Signed (8 MW) PPA Signed (6 MW) Partnership with PTT International, EGCO and BECL CK Acquisition Acquisition of BKC by CKP Construction Period Mar Mar Jun PPA Finalization COD Acquisition by CKP Construction Period Dec PPA Finalization 8. BIC 2 PPA Application CK Group has demonstrated a very Submission 9. New SPPs active timeline over the past several years Dec MOU Dec Dec PPA Signed (8 MW) Nov PPA signed July Tariff MOU Sep Mar Mar PPA Submission to Lao PDR May CK Acquisition of NRS Jun CK Acquisition of CRS Sep PPA signed Mar Construction Start Construction Period Jun Aug COD Acquisition by CKP Construction Period Dec BIC Acquisition by CKP Construction Period Project Development Agreement (PDA) Jan COD Apr Jun COD Nov Interest Rate Reduction (Partnership with an industrial estate) April Interest Rate Reduction July MOU (Partnership with an industrial estate) 4 4

6 Financial Performance: 1H2014 Profit before fx grew by 330 % YoY MB 2,500 2,000 1,500 1, Sales increased by 62% yoy 2,021 MB Cash Profit Margin 90% 3,269 MB 80% 70% 60% 50% 40% 30% 20% 10% 0% NN2 BKC BIC Cash Profit Margin Cash Profit is EBITDA adjusted by profit sharing and gain/loss on exchange rate 3% 12% 3% Cost components 1H/2014 1H/2013 Change Cost of Sales ,161 IA Amortization SG&A (12) Financial (28) Unit: Million Baht 49% Fuel costs Depreciation expenses Royalty fee Main contributor for sales growth is BIC 1 Change in fuel mix led to new benchmark for cash profit margin 33% Operation and Maintenance Other costs 5 5

7 Financial Performance: Healthy Capital Structure with low gearing Leverage Opportunity MB 60,000 Outstanding Loan (MB), As of June 30, ,000 40,000 30,000 20,000 10,000-2,183 21,832 25,730 Conso ,328 Separate Current Liabilities Non-Current Liabilities Equity CKP 490 SEAN 18,230 BIC 4,028 BKC 597 Total 23,345 Avg cost of debt: 5.03% DE Ratio 0.93 times 0.05 times 6 6

8 CKP Outlooks : Growth Roadmap Solid Project Pipeline and Strong Growth Plan with 27% CAGR growth in Total MW Capacity during Onward Target : 4,280 MW Additional : 1,000 MW from Cross Border 960 MW from 8 Cogeneration Projects 2019 Target : 2,320 MW Additional : 160 MW from Nam Bak 1,285 MW from Xayaburi Operating : 755 MW 2017 Target : 875 MW Additional : 120 MW from BIC 2 Upsides from Domestic Renewables (Target 100 MW) 7

9 CKP Outlooks : Developing Projects Project Location Capacity SCOD Progress Remarks Hydro Power Nam Bak (NB) Lao PDR 160 MW Y.2018 Obtained Project Development Agreement Preparing Power Purchase Agreement and Concession Agreement Xayaburi (XPCL) Lao PDR 1,285 MW Y.2019 Construction work as of June 2014 more than 40 % On schedule New Cross-Border Project Cross- Border Target 1,000 MW Y.2020 onward Preliminary Studies High potentials CKP strong position Cogeneration Bangpa-in Cogeneration Project 2 (BIC 2) Thailand 120 MW Y.2017 EPC Contract within Q4/2014 Cost saving from common facilities and long-term shared O&M New 8 Cogeneration Power Plants Thailand 120 x8 MW Total 960 MW Y.2020 onward Identified locations and 2 MOUs signed with Industrial Estates Awaiting the solicitation announcement Renewable Solar and Wind Power Thailand Target 100 MW Y.2014 onward Identified locations and preparing proposals Monitor for M&A opportunities Tariff is under reviewing New Thailand Power Development Plan to emphasize on renewables 8 8

10 CKP Outlooks : Domestic Outlooks Forecasted Thailand Electricity Demand during (PDP 2010 Rev.3) Thailand s Installed Capacity will grow more than 40% in the next decade MW 70,000 60,000 60,477 Power Development Plan (PDP) indicates the new additional capacity for each year Electricity Authority of Thailand (EGAT) is the major off-taker from Private Power Companies 50,000 40,000 30,000 20,000 10,000 43,157 30,231 44, Political Situation has no negative impact on Power Industry Installed Capacity Demand Source: Thailand PDP 2010 Revision 3 No change in Power Industry Structure and existing Power Purchase Agreement (PPA) Resolutions on pending issues such as Renewable Power Tariff are expected New PDP is being prepared with the tendency of increasing Renewable Energy portion 9 9

11 CKP Outlooks : Thailand Power Development Plan According to the current PDP, the 21,651 MW will be allocated to Private Power Companies during CKP s BIC 2 and Xayaburi already secure Power Purchase Agreement Preparing for each segment expansion during Additional Capacity during CKP s Plan for each segment during IPP 1/ : 7,540 MW Monitor the next IPP Bidding EGAT : 10,308 MW Private : 21,651MW Cogeneration: 4,320 MW BIC 2 received PPA, COD on 2017 Prepare for new 8 projects total 960 MW Renewable : 4,939 MW Target 100 MW Renewable, Solar and Wind Prepare for new Tariff Structure Cross-Border Purchasing : 4,852 MW XPCL received PPA, COD on 2019 Target 1,000MW for Cross-Border and selling to neighboring countries Source: Thailand PDP 2010 Revision / IPP = Independent Power Producer with over 100 MW contracted capacity 10

12 CKP Outlooks : Neighboring Countries, the Region of Growth 2013 Electrification Ratio (%) Population (million) GDP 2013 (billion US$) Forecasted 2015 Power Generation Output (GWh) Forecasted 2020 Power Generation Output (GWh) Forecasted 2035 Power Generation Output (GWh) Forecasted 20 Years Growth Thailand , , ,700 89% Vietnam , , , % Myanmar ,300 26, , % Cambodia ,900 4,600 14, % Laos ,100 24,100 28,700 42% Source: Energy Outlook for Asia and the Pacific, ADB 11 11

13 CKP Outlooks : Lao PDR Over 13,000 MW Hydro Power Potentials and CKP s proven track record in project development Potentials in transmitting to Thailand River basin Hydropower Project In Operation Capacity (MW) Construction Planned 1. Nam Tha Nam Tha Nam Ou Nam Ou 2,5,7 540 Nam Ou 1,3,4, Nam Ngum Nam Ngum Nam Ngum Nam Ngum 3,4 511 Nam Ngum Nam Lik 100 Nam Mung 3 40 Nam Leuk Nam Ngiep Nam Ngiep Nam Ngiep Nam Theun Nam Theun Nam Theun 2 1,075 Theun Hinboun 440 Nam Hai Xedon Xexet 1, Xekong Xekong Xekong 4,5 550 Xepian- Xenamnoy 319 Houay Ho 155 Xekaman 1,3 540 Xekaman 2, Mekong Xayaburi 1,285 Others (8) 8,769 Total 2,986 2,545 13,384 Source: Mekong River Commission, EDL 12

14 CKP Outlooks : Myanmar Over 40,000 MW Hydro Power Potential identified by ADB 20,000 MW Hydro Power Potentials in Salween River Alone Strength in Natural Gas Supply Potentials in transmitting to Thailand River Basin No. Hydropower Project Capacity (MW) In Operation Construction Planned 1 Upper Thanlwin 2,400 Salween 2 Nawngpha 1,000 3 Ta Sang or 7,110 Mong Tong (7,000) 4 Ywathit 4,000 5 Wei Gyi Dam (Mae Sarieng 1) *4,800 6 Daywin (Mae Sarieng 2) *600 7 Hay Gyi 1,360 Myitnge 8 Yeywa , Shweli 9 Dapein 10 Shweli Shweli Shweli Dapein I 168 Dapein II 240 In Operation Planned Source* : EGAT International Company Limited

15 The Status of the Asian Power Grid Project (Indochina Peninsula) Project 1) P.Malaysia - Singapore (New) ) Thailand - P.Malaysia Earliest COD Sadao - Bukit Keteri Existing Khlong Ngae - Gurun Existing Su Ngai Kolok - Rantau Panjang 2015 Khlong Ngae Gurun (2 nd Phase, 300MW) ) Batam - Singapore ) Thailand - Lao PDR Roi Et 2 - Nam Theun 2 Existing Sakon Nakhon 2 Thakhek Then Hinboun (Exp.) Existing Udon Thani 3- Nabong Nam Ngum 2 Existing Mae Moh 3 - Nan - Hong Sa 2015 Ubon Ratchathani 3 Pakse Xe Pian Xe Namnoy 2018 Khon Kaen 4 Loei 2 Xayaburi 2019 Thailand Lao PDR (New) ) Lao PDR - Vietnam ) Thailand - Myanmar ) Vietnam - Cambodia (New) ) Lao PDR - Cambodia ) Thailand - Cambodia (New) Source : EGAT 14

16 Key Takeaways CK Power is the flagship power development company of CK Group: Diversified portfolio AEC Player Stable stream of income Experienced management with development and operational excellence Solid project pipeline High growth company CKP has unique competitive advantage : Comprehensive capability from development to EPC to Operation Synergy Power 15 15

17 Appendix 16 16

18 Nam Ngum 2 Hydro Power Plant Off Taker: Electricity Generating Authority of Thailand (EGAT), 25 years Stable revenue stream with Annual Target, Take -or -Pay basis, and the Energy Account for the over-target electricity No fuel cost and low O&M cost lead to higher margin, average 60% of gross profit and 80% of EBITDA margin Low operation risk NN2 Tariff Structure: Annual Target - Primary Energy (PE) 2,218 million kwh / yr Secondary Energy (SE) 92 million kwh / yr NN2 may sell Excess Energy (EE) at EE rate during Excess Energy Month, which is when reservoir water level is over 374.5m ASL. NN2 may also sell energy as PE/ SE account after NN2 reaches its annual target and use PE/ SE account as credit in subsequent shortage years. This mechanism enhances NN2 revenue stability. Tariff Structure: Year USD / kwh PE Tariff THB / kwh SE Tariff EE Tariff THB / kwh THB / kwh IOD period COD Date + 6 years after COD Thereafter IOD period = Mar 26, 2011 to Deb 31, 2012 COD Date = Jan 1,

19 June 2014 Operation Nam Ngum 2 18 Month Declaration (MWh) 2014 Reservoir Level Energy Account (MWh) PE* SE** EE*** (m.asl) PE SE JAN 185, FEB 174, MAR 188, APR 188, MAY 159, JUN 105, JUL AUG SEP OCT NOV DEC Account Drawdown Total Month Declaration (MWh) 2013 Reservoir Level Energy Account (MWh) PE* SE** EE*** (m.asl) PE SE JAN 193, FEB 184, MAR 189, APR 189, MAY 187, JUN 193, JUL 169, AUG 220,000 15, Account Drawdown SEP 238,000 49, , OCT 220,000 30, ,206 NOV 200, DEC 128, , Total 2,313,916 95,206 * Primary Energy with Annual Target at 2,218,000 MWh ** Secondary Energy with Annual Target at 92,000 MWh *** Excess Energy Please find the details of Nam Ngum 2 Tariff Structure in the Appendix 18

20 June 2014 Operation Nam Ngum 2 NN2 s Operation decreased month-on-month from seasonal factor and decrease year-on-year due to less water inflow in 2014 However, NN2 water level as of July 30, 2014 picked up to the planned level As of June 2014, the PE and SE account was 196,211 and 8,770 MWh respectively Stable revenue stream with Annual Target, Take -or -Pay basis, and the Energy Account for the overtarget electricity 19 MWh 350, , , , , ,000 50,000 0 Electricity Production (MWh) and Reservoir Level (m.asl) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2014 Electricity 2013 Electricity 2014 Resorvoir Level 2013 Resorvoir Level 2012 Resorvoir Level2 (m.asl)

21 Bang Pa-in Cogeneration Project 1 Off Taker: EGAT and Industrial Users (IUs) Stable revenue stream with minimum Take-or-Pay Basis Energy Payment and IUs adjustable tariff mitigate fuel cost fluctuation Steam Revenue is upside BIC 1 Tariff Structure Capacity Payment EGAT Tariff Availability payment of contracted capacity with monthly FX adjustment. Average Portion 15% Energy Payment For the fuel cost with monthly Gas Price adjustment 75% Fuel Saving Payment For the efficiency of electricity and steam generation. 10% Off-takers Contracted Period Started date EGAT 90.0 MW 25 yrs. June 2013 APCB Electronics (Thailand) Co.,Ltd MW 15 yrs. June 2013 Nippon Super Precision Co.,Ltd. 4.2 MW 15 yrs. June 2013 MMC Tools (Thailand) Co.,Ltd. 3.0 MW 15 yrs. December 2013 Takei Plastic (Thailand) Co.,Ltd. 1.5 MW 15 yrs. December 2013 Quality Construction Products Plc. (Steam) 19.6 ton/hr. 15 yrs. October 2013 Industrial Users Tariff Refer to the Standard Industrial Tariff with some discount Monthly adjustment due to the changes in the Standard Industrial Tariff Steam Tariff Refer to natural gas price with monthly adjustment

22 June 2014 Operation Bang Pa-in Cogeneration 1 BIC1 s Operation increased month-on-month, no unplanned maintenance schedule during June Stable revenue stream with minimum Take-or-Pay Basis MWh 70,000 Electricity Production (MWh) and Steam Production (Ton) Ton 9,000 52,500 6,750 35,000 4,500 17,500 2,250 0 NOV'13 DEC'13 JAN'14 FEB'14 MAR'14 APR'14 MAY'14 JUN'14 EGAT Industrial Users - Electricity Industrial User - Steam

23 June 2014 Operation Bang Pa-in Cogeneration 1 22 Electricity Customers PPA (MW) JAN 14 FEB 14 MAR 14 APR 14 MAY 14 JUN 14 Electricity Produced (MWh) EGAT ,918 49,978 57,154 50,858 51,967 54,784 APCB Electronic Thailand Co., Ltd ,052 4,799 5,468 4,605 4,645 4,974 Nippon Super Precision Co.,Ltd ,743 1,724 1,946 1,556 1,447 1,498 MMC Tools (Thailand) Co.,Ltd. (started Dec 1, 2013) 3.0 1,026 1,206 1,494 1,505 1,597 1,554 Takei Plastic (Thailand) Co.,Ltd. (started Dec 8, 2013) Heat Rate (BTU/KWh) 7,751 7,758 7,665 7,849 7,781 7,768 Steam Customer Quality Construction Products Plc. (Q-CON) Contracted Capacity (Ton/Hr.) JAN 13 FEB 14 MAR 14 APR 14 MAY 14 JUN 14 Steam Produced (Ton) ,159 8,649 8,693 6,089 7,649 7,560 22

24 Bangkenchai Solar Power Plant Off Taker: Provincial Electricity Authority (PEA), 5 years with automatic renewal every 5 years Highest Tariff in CKP s Portfolio, no fuel cost and low O&M cost lead to high margin, average 80% of gross profit and 90% of EBITDA margin Strong performance in-line with solar irradiation BKC Tariff Structure Non-firm PPA, under which PEA agrees to purchase electricity at the specified capacity without obligation for the power producer to maintain minimum availability for dispatch PPA contract has term of 5 years with automatic renewal of 5 years while the power producer has sole discretion to terminate the PPA or termination is reached when either party breach the contract Standard tariff rates throughout the PPA period of 25 years (with adder for the first 10 years) Tariff Structure: Year TOU rate Base Tariff Ft rate Adder 1 10 Announced by EGAT 8 THB / kwh 11 onwards Announced by EGAT

25 June 2014 Operation Bangkhenchai Solar 2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total Year 2013 Energy production (MWh) 1, , , , , , , , , , , ,010.8 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Energy production (MWh) 1, , , ,178 1, , Total Year 2014 MWh 1, Electricity Production and Irradiation 200 kwh/m2 1, , , , , Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Electricity 2013 Electricity 2014 Solar Irradiation 2013 Solar Irradiation