engro powergen qadirpur limited september 11, 2014...deal summary offerors engro corporation limited...
TRANSCRIPT
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Engro Powergen Qadirpur Limited
September 11, 2014
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Deal Summary
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EPQL Ownership Structure
84%
10%
5% 1%
Existing Structure
Engro Powergen Limited
Engro Corp
IFC
Employees
69%
25%
5% 1%
New Structure Engro Powergen Limited
Institutional Investors & General Public
IFC
Employees
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Deal Summary
Engro Corporation Limited & Engro Powergen Limited Offerors
Ordinary Shares of the Engro Powergen Qadirpur Limited (“EPQL” / “Company”) Security
40.475 mn Ordinary Shares of the Company (12.5% of the total paid-up capital) Public Offer
22nd to 24th September 2014 Subscription Date
Issue Breakdown Private Placement - 40.475 mn Shares / Public Portion – 40.475 mn Shares
PKR 30.02 per share Price
Advisor & Arrangers Habib Bank Limited and Bank Alfalah Limited
Karachi Stock Exchange Limited Listing Avenue
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161 Million
MMBTU
29 Million Barrels
of Oil $3*
Billion
Before Engro Powergen Qadirpur Limited…
…this flame had been burning gas for more than 15 years!
All this was being wasted!
*Based on current price of oil
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Key Milestones
Sep 2006
Feasibility approved by
PPIB
Feb 2007
Tariff Determined by NEPRA
Jul 2007
Generation License
issued by NEPRA
Oct 2007
PPA & IA signed
Apr 2008
GSA signed
Oct 2008
Loan disbursement
27th March 2010
COD Achieved
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Achieved Commercial
Operations Date three months ahead of target.
Unmatched completion in the
power sector
First project on foreign financing under 2002 policy
Debt = 75% Equity = 25%
Total Project Cost $194 Mn
Gross Capacity = 224.8 MW
Plant Configuration = 1GT + 1HRSG + 1ST
GSA with SNPGL and 25 Years
PPA with NTDC
Avg Billable Availability Factor =
99%*
Avg Load Factor = 90%*
*Excluding Rotor Event
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VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Use of permeate gas which was previously flared
• Significantly lower risk of gas curtailment
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VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team • Gas based projects are one of
the cheapest sources of power
• High in NEPRA’s dispatch merit order (ranked 15th out of 76 - FY13)
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VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team • 15% return pegged to US Dollar
• Indexation provides hedging
against Interest rate & Inflation
• Variation in fuel price is pass through
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VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Last 4 years average dividend of PKR 3.53 per share
• Equity returns will increase in
line with depreciation of PKR/US$
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VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Hired top tier talent from the Industry
• Successfully conducted rotor repair on site, well within expected time
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Financial Information
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2.86 3.55
6.17
1.54
CY10* CY11 CY12 CY13 1H14
922 1,149
1,998
499
CY10 CY11 CY12 CY13 1H14
1,111
1,786 2,101
1,458 1,088
CY10 CY11 CY12 CY13 1H14
Total Dividend – PKR Mn
Dividend Per Share – PKR
Net Income – PKR Mn
Financial Highlights – PKR Million
Earnings Per Share – PKR
* CY10 was the first year of Operations
3.47
5.58 6.49
4.5
3.36
CY10 CY11 CY12 CY13 1H14
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Questions and Answers