andean conference larraín vial · i. company profile gasco s.a. is one of the eldest companies in...
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ANDEAN CONFERENCELarraín VialMarch 2011March 2011
I. Company Profile
II. Snapshot: Chile´s Gas Industry
III Company OperationIII. Company Operation
IV. Financial Profile
V. Perspectives
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I. Company Profile
Gasco S.A. is one of the eldestcompanies in Chile, with over 154 years ofexperience in the Gas industry, operating:
LPG: distribution in Chile and Colombia
NG: distribution in Chile and NW of Argentina
A t G di t ib ti i Chil
3,5%
M í F il
Almería Group
Ownership Structure Auto Gasco: distribution in Chile
Through subsidiaries operates:
56 6%
12,7%
3,8%
CGE
Pérez Cruz Family
Marín FamilyCGE Holders 76%
Through subsidiaries operates:
LPG loading marine terminal LNG marine terminal
18,0%
5,5%56,6%
0% 20% 40% 60%
Others
Ch Pension Funds LNG marine terminal Transnational NG Pipes (Chile/Argentina)
3
0% 20% 40% 60%
I. Company Profile
CGE is a main player in the electrical distribution business with over 3 million customers
ElectricityDistribution customersIn Chile
ElectricityDistribution Gas
43%
Electricity & Others57%In Argentina
ElectricityT i i
619 US$ millionEBITDA
43%57%
Transmission
Electricity GasElectricityGeneration
Services &
TOTALASSETS
32%Electricity & Others68%
Other Investments
G
8.038 US$ million
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GasApproximate Figures as of December 2010
G M i B i U it
I. Company ProfileG RA
LS ER
Gasco - Main Business Units
LP
NAT
UR
GA
S
OTH
E
Gasco GLP: 100% Campanario:20%Metrogas: 52%Gasmar: 51% Inv. GLP (Colombia): 70% Gasco Magallanes (B.U.)
Campanario:20%El Raulí:10% Polpaico:41%
gGas Sur: 70%AutoGasco: 100%Gasnor (Arg.): 50% Innergy: 30%Gasoducto Pacífico: 30%
Divestiture:Dec 2010Gasoducto Pacífico: 30%
Gasco Magallanes (B.U.) US$116mm
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II. Chilean Gas Industry
LPG
• Chile is the 6th largest LPG market in S.America:1,2Mtons aprox.
• Per capita consumption is around 70kg, above region average of 50kg*
• Demand: 80% from res comm
Purvin & Gertz
• Demand: 80% from res-comm
• Imports account for aprox. 70% total consumed
8.700
7.700 8.000
9.000
10.000 Ths Tonnes per Year• Mature and very competitive market
• Distribution Format: 70% cylinders
3.200 3.000
4.000
5.000
6.000
7.000 • Distribution Format: 70% cylinders (14 million) and 30% tanks (95 ths)
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1.900 1.400 1.200 1.100 1.000
650 390
1.350
‐
1.000
2.000
3.000
Mexico Brazil Venezuela Caribean Argentina Chile Peru Ecuador Colombia Bolivia Others
* Source:Purvin & Gertz
II. Chilean Gas Industry
NG
• 1995: Chile signs NG Integration Protocol with Argentina
GNL Mejillones5,5 MMm3/day
• 1999: first transnational pipes (4) start delivering NG GNL Quintero
10 MMm3/day
• 2004: supply problems from Argentina start arising; get worse by 2006
Argentinean Imports
500Mm3/day
19,3MMm3/day
• 2009: 2 GNL plants start operating
• Chile NG industry autonomous and marginally dependant from Argentinean NG
Domestic Production
3,3MMm3/day
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II. Chilean Gas Industry
Chilean Energy Matrix
Y 1998
43%11%
15%
Year 1998 Year 2009
Year 2006 47%14%
15%
14%17%
Consumption: 264.754 Teracal. Consumption: 345.048 Teracal.
34%30%
12%12%
47%
9%15%
Consumption: 264.754 Teracal. Consumption: 345.048 Teracal.
Consumption: 338.278 Teracal.
12%
Energy consumption increases 30% in the latest 11 years• Energy consumption increases 30% in the latest 11 years
• Petroleum der. & NG gain relevance by 2006
• NG supply problems dramatically reduce share in Energy Matrix following years
• With supply reestablished in 2009, from Nov 2010 to Jan 2011 NG accounts 23% of power generated in SIC ( i t i t t d t l)
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power generated in SIC (sistema interconectado central)
Source: Comisión Nacional de Energía (CNE), Bice Inversiones
III. Company Operation
LPG Business in Chile
• GASCO GLP:GASCO GLP:• Distribution of LPG in 13 of 15 regions of Chile• 5 Plants and 20 Distribution Centers• Formats: Cylinders (5 11 15 & 45kg) and TanksFormats: Cylinders (5,11,15 & 45kg) and Tanks• #1 Market Share in Metropolitan Region• 293.000 tons commercialized in 2010• 2010: EBITDA US$64mm Net Profit US$31mm• 2010: EBITDA US$64mm, Net Profit US$31mm
Metropolitan Region National
Abastible37%
Gasco40% Abastible
36%
Gasco28%
Metropolitan Region (50% of National Market)
National ( Market Share)
Lipigas23%
Lipigas36%
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All approximate figures as of Dec 2010
III. Company Operation
LPG Business in Chile• GASMAR:
• Ownership: 51% Gasco, 29% Abastible, 20% Navieras Ultragas• Largest private LPG marine terminal in Chile
4 storage tanks with 85 000m3 capacity (propane and butane)• 4 storage tanks with 85.000m3 capacity (propane and butane)• Proven security in LPG supply from around the globe• Operated 55% of total Chile LPG demand in 2010• 2010: EBITDA US$30mm, Net Profit US$23mm
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III. Company Operation
LPG Business in Colombia• Industry:
• LPG industry size: 600.000 tons aprox. G dust y s e 600 000 to s ap o• Many small players, atomized market share• 2009 Regulatory Changes: new Safety and Service standards• Investments and consolidation ahead: alliances appear as optionInvestments and consolidation ahead: alliances appear as option
• Gasco: first international player to seize opportunityA i iti f 3 di t ib ti i (70%) i F b 2010 US$17• Acquisition of 3 distribution companies (70%) in Feb 2010: US$17mm
• Geographic Coverage: 15 of 32 departments throughout the country• VIDAGAS brand launched: consolidate all operations• US$20mm investment: cylinders and 81 distribution trucks
• 2010: 79.000 tons commercialized, 11% market share • 2011: acquisition (70%) of UNIGAS for US$18mm, adding 6% market shareq ( ) , g
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III. Company Operation
Natural Gas customers Natural Gas sales
Natural Gas0 4 21 52 48
7
520
537
544
634 661 696 729 765 807 857 909 941 964
57%
Chil 997
038
063
127
031
1.01
6
776
651
774 .036
2.618 2.594 2.577 2.638 2.631 2.809 2.561 2.444 2.497 2.792
37%
(thousands)(million m3)
01 02 03 04 05 06 07 08 09 0
318
321
326
335
344
355
371
390
403
420
316
340
370
394
42 45 4 5
43%
Chile
1 2 3 4 5 6 7 8 9 0
1.62
1
1.55
6
1.51
4
1.51
1
1.60
0
1.79
3
1.78
5
1793
1.72
3
1.75
6
9 1.0
1.0
1.1
1.0 1 7 6 7 1 37%
63%Argentina
200
200
200
200
200
200
200
200
200
201
200
200 2
2003
2004
2005
2006
2007
2008
2009
2010
• GASNOR: • 1992 acquisition of 50% of NG distribution company in NW of Argentina• Operation in Argentina allows Gasco to learn about NG market, experience
that would be used in the second half of the ’90s to establish NG companies in Chile
• 2010: 420.000 customers, 1.700MMm3 volumeNG i f i 2001 li ibl h fl di id d t G
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• NG prices frozen since 2001, negligible cash flow: no dividends to Gasco
III. Company Operation
Natural Gas• GASCO MAGALLANES:GASCO MAGALLANES:
• Regulated distribution business in XII region• 2010: 1.300km pipe network, 50.000 customers, 360 MMm3 volume• Movigas incorporated in 2010: 61 NG buses for public transport• Movigas incorporated in 2010: 61 NG buses for public transport
• GAS SUR:O hi 70% G 30% S k E (C d )• Ownership: 70% Gasco, 30% Sask Energy (Canada)
• Distribution to res-comm customers in VIII region• Operation affected by Feb 2010 earthquake. Mid-2010 operation reestablished
2010 38 000 t 25MM 3 l EBITDA US$7• 2010: 38.000 customers, 25MMm3 volume, EBITDA: US$7mm
• INNERGY:• Distribution to industrial customers in VIII region• Operation affected by Argentinean NG supply• 2010: 132MMm3 volume, EBITDA: US$5mm
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III. Company Operation
Natural Gas• METROGAS:
O hi 51 84% G 39 83% C 8 33% T i• Ownership: 51,84% Gasco, 39,83% Copec, 8,33% Trigas• Distribution to res-comm & industrial customers in RM and VI region• 2005-2009: faced shortage of NG from Argentina• 2009: part of consortium to build LNG terminal in Quintero• 2010: LNG terminal positively impacts operation: 66% volume growth• 2010: 5.000 km pipe network, 456.000 customers, 648MMm3 volume
900
Total Volume (MMm3)
• EBITDA: US$155mm, Net Profit: US$76mm
80.000
EBITDA (MM$CLP)
400
500
600
700
800
40.000
50.000
60.000
70.000
‐
100
200
300
400
‐
10.000
20.000
30.000
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
III. Company Operation
Shareholders
LNG Quintero Terminal
BG Group (40%) Metrogas (20%) ENAP (20%)
Endesa (20%) Endesa (20%)
Total Investment: US$1.300 million Total Investment: US$1.300 million
Start of Operation: July 2009
Storage Capacity: 3 tanks, 335.000m3
Current Regasification Capacity: 10MMm3/dayg p y y
Potential Regasification Capacity: 20MMm3/day
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BG supplies LNG
III. Company Operation
AutoGasco
• Distribution of NG and LPG for vehiclesDistribution of NG and LPG for vehicles• Re-launched in 2009 after Argentinean NG supply shortage• Clean and Efficient fuel at a convenient cost (versus gasoline)
C tl f d i bli t t ti t i d b• Currently focused in public transportation: taxis and buses• Chile´s Taxi Fleet: aprox. 100.000 cars => potential customers• 5 Stations, 25 corners throughout Chileg
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III. Company Operation
Supply Demand• Chile• #1 supplier Gasmar, mainly through imports• Geographic diversification: Argentina, UK, Norway, Saudi Arabia, etc.
• Hedge Program in place to mitigate price fluctuations LPG
• Chile & Colombia• Basic Need Product: very stable consumption
Diversified and atomized customer basefluctuations
• Colombia• # 1 supplier Ecopetrol (national oil company)• 100% domestic production
LPG • Diversified and atomized customer base• High % of sales in cash: very low % of uncollectables
• Chile• # 1 suppliers are LNG Terminal and ENAP (XII Region)
• Geographic diversification: BG has sources in
• Chile• Res-Comm: stable demand ,Basic Need Product• Industry: strong demand growth driven by
i / i t l• Geographic diversification: BG has sources in more than 20 countries
• Hedge Program in place to mitigate price fluctuations
• Argentina
NG price/environmental concern• Diversified and atomized customer base• Very low % of uncollectables
• Argentina• Stable consumption• Diverse pool of local suppliers
• 100% domestic NG production• Stable consumption• Diversified and atomized customer base
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IV. Financial Profile
EBITDA December 2009167 US$ million Consolidated EBITDA
247300
LPG
111129
154
188 195 182
121
167
247
150
200
250
USD
MM
NG50%
50%
EBITDA December 2010247 US$ million
43
95 99 111
0
50
100
U
NG
Figures as December of each year
01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201064%
LPG 36%
EBITDA affected by Natural Gas shortages from Argentina (2007 - 2009)
With LNG terminal service, NG subsidiaries able to recover operation:, p
EBITDA in 2010 is 47% higher than in 2009 EBITDA composition changes importantly: NG recovers importance
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p g p y p
IV. Financial Profile
EBIT Net Income
177
160180200
100100
120
69 74 7996
109
137 134117
97
80100120140160
USD
MM
3746 48
6251
75
60
80
100
USD
MM
28
55
0204060
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2737
2313
30
50
20
40
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Results decline in 2008 are due to NG
Ratios
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
7 307 00
8,00esu ts dec e 008 a e due to G
shortages4,90
5,90 5,705,10
4,404,10
4 30
7,30
5,19
4 60
4,805,20
4,604,30
4,00
5,00
6,00
7,00
* Figures as December of each year
3,60 3,60
4,30
3,403,90
4,60
3,60 3,303,80 4,10
2,90 3,16
1,00
2,00
3,00
,
19
0,001999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Debt / EBITDA EBITDA / Interest Expenses
IV. Financial Profile
Total Assets December 20102.340 US$ million
IFRS
1 221,40
1,60
2 000
2.500
$1,22
1,14
0,80
1,00
1,20
1 000
1.500
2.000
NG64%
LPG 29%
-
0,20
0,40
0,60
0
500
1.000
Other
Main Financial CovenantFinancial Debt US$ million
01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Liabilities Minority Interest Equity Leverage
7%
IFRSLeverage < 1,53
Leverage December 2010 = 1,14
$
66623 667 684
776879 865 838
700800900
1000
Aprox. US$450mm of Extra Debt capacity
207
562 566 561 562
200300400500600
20
* Figures as December of each year
0100200
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
IV. Financial Profile
CapexUS$ million as of 31 December 2010
232
200
250
118
150
200
90
6676 85 80
63
11899
7094
50
100
‐
50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
LPG Natural Gas Other Investments
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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IV. Financial Profile
Financial Debt Profile
Rate Structure: aim to CLP/UF 94%Fixed 87% Rate Structure: aim to
maintain 80-90% fixed
Well diversified debt
Fixed 87%
Interest Rate Structure Currency Structure
USD 6%
Variable 13% Debt currency aligned
to businesses purpose
Bonds 64% Banks 36%Long Term Debt Maturity Profile
to businesses purposeHolding37%
Maturity Profile
Estado 30%
NG 45%
LPG 18%
* Fi f D b 2010
Debt by InstrumentDebt by BusinessBBVA 21%
30%
Chile 6%
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* Figures as of December 2010
Corpbanca 21%
Santander 2%
BCI 6%
Scotiabank 12%Otros 1%
IV. Financial Profile250
200
250
Long Debt MaturityDuration: 6 years
Financial Debt Structure
150
Gasmar
IAC‐IGLP
Gas Sur
G GLP
Long Debt Maturityy
100
Gasco GLP
Metrogas
Gasco
50
Equivalent International Domestic
02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
BBB - Fitch Ratings
A+
Rating*Rating
23 BBB Humphreys
AA-
* Gasco doesn’t have a formal international rating
IV. Financial Profile
Market Cap (US$mm)1 800
1.376
1.643
1.407 1.439 1 400
1.600
1.800
1.176
3 6
1.244
1.139
9601.031
1.109
1 000
1.200
1.400
598
875 960
565600
800
1.000
565
200
400
600
-
200
Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010
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CLP/USD: constant
IV. Financial Profile
Financial Strengths
Steady cash flows from LPG Business Enough to cover all financial obligations of the company
Very Strong cash flow projections from NG Business Strong commercial basis / supply from all over the world Strong commercial basis / supply from all over the world
Facility to access domestic financial markets
Long debt maturity, according to extended development of energy projectsenergy projects
Ample capacity to comply financial covenants
25
p p y p y
V. Perspectives…..
NG business has overcome Argentinean supply shortages and has a strong outlook with LNG terminalhas a strong outlook with LNG terminal
LPG Chile business has provided a steady cash flow to the P i f t f LPG C l bicompany. Promissory future of LPG Colombia
Company focused in core business. Divestiture of non-core p yassets (US$116mm Polpaico) will be destined LPG and NG business
Gasco has a strong commitment with the atmosphere, developing processes and products environmentally friendly, specially by replacing contaminating energiesspecially by replacing contaminating energies
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V. Perspectives…..next steps
LPG• GASCO GLP: improve market share, strengthen operations in regions. Lead industry
by coverage, service and innovationy g• INV. GLP: become the leading LPG distributor in Colombia aiming 35-40%
market share• GASMAR: maintain leadership in LPG import through high level of operating
efficiency, supplier diversification and service excellence
NATURAL GAS
y, pp
METROGAS: consolidate operation Increase importantly NG commercialized after• METROGAS: consolidate operation. Increase importantly NG commercialized after supply shortage period
• GASNOR: maintain efficiencies awaiting Argentinean Government price revision• GAS SUR: recover momentum after 2010 earthquake effect in operations
GASCO MAG ti i ll th h ffi i d
AUTOGASCO
• GASCO MAG: continue service excellence through coverage, efficiency and innovation
Become the Leading and Reference company for clean and efficient energy (NG and LPG) for public and private transport in Chile
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For further information please contact:For further information, please contact:
Pablo Sobarzo Alejandro [email protected] 2 6944350
Mngt. Control & [email protected] 2 6944350
Sebastian Moraga Paulina UgartegDeputy [email protected] 2 6944350
Paulina UgarteManagement [email protected] 2 694435056 2 6944350 56 2 6944350
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This presentation contains forward-looking opinions including the intent, belief or current expectations of the Company and its managementits management.
Investors are cautioned that any such forward-looking opinions are not guarantee of future performance and involveopinions are not guarantee of future performance and involve a number of risks and uncertainties including, but not limited to, the risks detailed in the company’s financial statements.
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