december 6, 2012 - coplac-gprdkogas, as a state owned company, has grown exponentially since its...
TRANSCRIPT
December 6, 2012
CONTENTS
1
2
3
Public Policy Compliance
Business Outcomes
4
VISION 2017 5
01/16
KOGAS Overview
Overcoming Challenges
Better Energy, Better World
1. KOGAS Overview
02/16
KOGAS, as a state owned company, has grown exponentially since its establishment in 1983 - Sales per employee is 8.4million US$
Currently operating 8.3 million ㎘ of storage capacity and 3,023km of national transmission pipeline network
Participating in 26 Overseas Projects
31.3
24.8
0
5
10
15
20
25
30
35
83 85 87 89 91 93 95 97 99 01 03 05 07 09 11
Assets
Sales
Unit : bn US$, FX 1,150won/US$
Assets 31.3bn US$
Sales 24.8bn US$
Sales volume 33.6mn tons
Employees 2,920
Storage capacity 8.3mn ㎘
Pipeline network 3,023 km
Overseas projects 26 projects
Sales & Assets Business overview
2. Public Policy Compliance
03/16
1
2
3
Management Integrity
Governance Enhancement
Management Transparency
Better Energy, Better World
2-1. Management Transparency – Disclosure
Organization
Governance
Management Status and Plan
Financial Statements
Borrowings
Financial Performance
Credit rates – S&P
Bid information
Customers' Satisfaction
Information
33 33 34
109 175
616
105 97
116
'09 '10 '11
CMRD CMOD SD
Activities
CMRD: Consolidated Management Regular Disclosure CMOD: Consolidated Management Occasional Disclosure SD : Self-Disclosure
247
766
04/16
Better Energy, Better World
2. 고객만족 경영 시행 Reliable International
Credit Rates
S&P : A, Moody’s : A1, Fitch : A+
The Best Public Corp.
Services In Korea
Obtained Top Rating
For the Fifth Successive Year
Natural Gas Users
Quality of Natural Gas and Services
Social Contributions
Synthesis Satisfaction
Etc
Evaluation Indicators
2-1.Management Transparency – Customer Satisfaction
05/16
Better Energy, Better World
2-2.Management Integrity – Ethical Management
Implementation System
Practice HUB Audit
• CEO : Determines the Directions for Ethics Management and Spearheads Practices
• Education & Business Support • Monitoring & Feedback
Establishing the Direction of Ethical Management
Executive Committee (Chairman : CEO)
On-Site
Practice Committee
Ethics Leader
Ethics Officer
Anti-corruption activity/ Post de facto audit
Information for Management & investment/CSR
Transparency and Anti-corruption, PR
Ethical Business Model
06/16
Better Energy, Better World
2-2. Management Integrity – Ethical Management
Ethical standards
All Employees Management Job Functions
Ethics doctrine
Our Promise 30
Employee behavioral doctrine
Ethical doctrine for NSD
Executive job transparency contract
An executive code of conduct to lead by example
Auditor R&D Employee
Constructor Contractor
Inspector Salesperson
Integrity Evaluation Result
Division 2010 2011 Remarks
Integrity of Public Agencies. 8.89 9.05 Excellent (Rank 3)
Internal Evaluation Results 83.5 87.7 4.2 point Rise
07/16
Better Energy, Better World
2-3. Governance Enhancement – Board of Directors
Non-Standing Director [NSD] : 7 Members Standing Director [SD] : 6 Members
Feedback Annual operation Planning Do Check(monthly) Action
Composition
Planning and Strategy
Audit
Overseas business
Deliberation on the budget
• Organization, Accounting
& Financial Expert
• Media, Energy & Security Expert
• All Non-Standing
Director
• Administration/Labor- Management Relations Expert
Subcommittees of BOD
08/16
Better Energy, Better World
3. Business Outcome – Domestic Business
□ Annual Operating results
2008 2009 2010 2011
Operating Income 603 742 930 951
Sales volume (1000 ton)
26,345 24,644 31,202 33,570
(Unit : $ million)
Increased Supply Rate of City Gas Enhanced Operating Income
69.8
71.1
72.2 73.3
603
742
930
951
500
600
700
800
900
1000
68
69
70
71
72
73
74
'08 '09 '10 '11
Supply Rate of City Gas Operating Income
(Million USD) (%)
09/16
Better Energy, Better World
RasGas
Oman LNG
Yemen LNG
Prelude FLNG
GLNG
DSLNG
LNG Canada, 20%
Mozambique Area 4
Canada E&P
‘12
Reserves(million tons)
28
150
‘08
10/16
Involved in 26 projects in 16 countries
- 4 Explorations, 9 Development and productions, 6 LNG plant projects
- 7 Technical business projects
3.Business Outcome – Overseas Business
Mexico Manzanillo USA Sabine Pass
Better Energy, Better World
Duration : 20yrs (’17∼’37]
Quantity : 350Mtpa
Price : Henry Hub linked
Delivery : FOB, No Destination-
clause
- Whole volume subject to free disposal or
cancellation
- Priority will be given to Korea demand
Sabine Pass LNG Purchase (Jan. 2012)
First LNG Business in USA, Diversifying LNG Supply, LNG Trading Opportunities
11/16
[Main Practice] Overseas Business - In North America(1)
Better Energy, Better World
Location : Horn River area
Operator : Encana
Interests : KOGAS (50%), Encana (50%)
Recoverable Resources : 1.43 Tcf
Type : Shale Gas
Location : West Cutbank area
Operator : Encana
Interests : KOGAS (50%), Encana (50%)
Recoverable Resources : 1.04 Tcf
Type : Tight Gas
Unconventional Gas Development In Canada
Kiwigana Gas Field Jackpine & Noel Gas Field
12/16
[Main Practice] Overseas Business - In North America(2)
Better Energy, Better World
Project Outline
Storage tank : 150,000 ㎥ x 2
Send-out Capacity : 3.8 Mtpa
Participants
Client : Mexico CFE (Government)
Investor (Sponsor) : KOGAS(25%), Samsung C&T(37.5%), Mitsui(37.5%)
EPC Contractors : Samsung Engineering (Terminal), Toa Corp (Jetty)
Operator : KOGAS (20 years)
Project Financing : KEXIM + Commercial Bank
13/16
[Man Practice] Overseas Business - Mexico Manzanillo
Better Energy, Better World 14/16
Block: Mozambique Area 4
Location: East off-shore (Area : 12,956 km2)
Share: KOGAS (10 %), ENI (Operator 70 %), GALP (10 %), ENH (10%)
Resources : 62 ~ 70 Tcf
Outline
No. 2 Gas well discovered in 2011(IHS)
KOGAS equity : 140 million Ton of LNG
(4 years of Korea consumption)
Combined to exploration, liquefaction
and importation to Korea
Expand overseas business related to
E&P together with other plant company
[Main Practice] Overseas Business - Mozambique E&P project
Better Energy, Better World
4. Overcoming Challenges
Increased Debt Through Pricing Advance of Importing LNG and Expanding Investment
Debt to Equity Ratio : 228%(2007)→348%(2011)
Financial issues
Create Revenue from overseas business and Enhance Management Efficiency
Increase Capital from Government
Counter measures
15/16
Market Environment issues
Intensifying Competition in Energy Market (Economic Growth of China , India, etc )
Raising Global LNG Demand by Changing Energy Policy( Spreading Anti Nuclear-Power)
Completion of Vertical Integration of Gas Industry by Expanding E&P Business
Diversification of LNG resources such as shale gas, tight gas, CBM, etc
Counter Measures
Better Energy, Better World
1. 한국가스공사 소개
Global KOGAS growing together with our Customers
Enhancing Global Competency
Expanding Business Networks
Securing Energy Resources
Professional
Technology
Brand Power
Core Competencies
Trust Change Challenge Responsibility
Core Values
Vision
Better Energy, Better World Corporate Philosophy
Upgrading Management System
9% 25%
34% 60%
45% 100%
5. KOGAS Vision 2017
16/16
KOREA GAS CORPORATION