presentation 1q12 for web€¦ · 18/05/2012 · gcc, nkcc, scc, gyg 2%, 33 mb et 2%, 26 mb roi-et...
TRANSCRIPT
Corporate PresentationFinancial Results for the Three-Month Period ended 31 March 2012
18 May 2012
1
This presentation was made from the analysis of reliable information in order to assist investment
community to better understand the company's financial status and operation. It also supports the
"Good Corporate Governance Project" of the Securities and Exchange Commission (SEC).
However, the information within this presentation has been derived from the existing factors in the
present time. Therefore, the forward-looking information on this presentation may not occur in
the future if the aforementioned factors or situations are changed. Investors are, however,
required to use their own discretion regarding the use of information contained in this presentation
for any purpose. For further information, please contact Investor Relations Section of the
Electricity Generating Public Company Limited (EGCO) at Tel: (662) 998-5145-8 or Email:
Disclaimer
2
Agenda
� Highlights
� EGCO Group’s Overview
� 1Q12 Financial Results
3
4
Highlights
Significant Events in 2011
� EGCO acquired a 12.50% stake in Xayaburi Power Company Limited (“XPCL”).
� EGCO acquired an additional stake of 26.125% in Quezon Power (Philippines)
Limited Co. (“Quezon”), bringing EGCO’s ownership of Quezon up to 52.125%.
� EGCO acquired 100% of Covanta Philippines Operating Inc. (“CPOI”), which has
renewed registered name to Pearl Energy Philippines Operating Inc. (“PEPOI”).
� Quezon refinanced its project debt enabling the company to pay a closing
dividend of 1,587 million baht (equivalent).
Highlights
Acquired 99.99% stake in SPP4 Company Limited (“SPP4”)
Acquired 90.00% stake in Theppana Wind Farm Co., Ltd. (“Theppana”)
- Type: Wind Power Plant
- Contracted capacity: 2 x 6.9 MW
- Location: Chaiyaphum
- SCOD: March 2013
- Type: Solar Power Plant
- Contracted capacity: 6 MW
- Location: Si Sa Ket/ Ubon Ratchatani
- COD: 24 January 2012
Jan
ua
ry
18
23
In 1Q12, EGCO acquired 5 new renewable power plants with total contracted
capacity of 111 MW.
5
Highlights
Acquired 99.99% stake in SPP3 Company Limited (“SPP3”)
- Type: Solar Power Plant
- Contracted capacity: 6 x 9.5 MW
- Location: Nakhon Pathom/Suphan Buri
- SCOD: December 2013
- Type: Solar Power Plant
- Contracted capacity: 8 MW
- Location: Si Sa Ket
- COD: 21 February 2012
Feb
rua
ry
27
29
Acquired 49% stake in Yanhee EGCO Holding Co., Ltd. (“Yanhee”)
6
Highlights
- Type: Solar Power Plant
- Contracted capacity: 4 x 6.5 MW- Location: Nakhon Sawan (Phase 1-2)
Chai Nat (Phase 3)
Phetchabun (Phase 4)
- COD: Phase 1 - 1 Mar 2012
Phase 2 - 2 Mar 2012
Phase 3 - 5 Mar 2012
- SCOD: Phase 4 - December 2012
Ma
rch
23 Acquired 60% stake in G-Power Source Company Limited (“GPS”)
7
Highlights
� In May 2012, EGCO acquired 45.875% additional stake in Quezon and 100%
in IMS in the Philippines, and 50% stake in a bio diesel plant in Thailand.
Highlights EGCO Group’s Overview 1Q12 Financial Results
Ma
y
11 Signed PSA to acquire 45.875% stake in Quezon, bringing EGCO’s ownership in Quezon to 98%.
Acquired 100% stake in InterGen Management Services (Philippines),
Ltd. (“IMS”).
IMS is a management services company, providing management and
administrative services for all aspects of Quezon.
- Type: Coal Fired Power Plant
- Contracted capacity: 460 MW
- Location: Luzon Island, the Philippines
- COD: 30 May 2000
8
Highlights
Acquired 50% stake in Absolute Power P Co., Ltd. (“Absolute”)
Ma
y
15
- Type: Bio Diesel Plant
- Capacity: 300,000 litre per day
(100,000 ton per year)
- Location: Rojana Industrial Park, Rayong
- COD: October 2011
9
AgendaHighlights EGCO Group’s Overview 1Q12 Financial Results
� Highlights
� EGCO Group’s Overview
� 1Q12 Financial Results
10
EGCO’s Shareholders & Management
BOD
EGAT
4 seats
TEPDIA
4 seats
Independent
Directors
6 seats
President
1 seat
EGAT
25.41%
TEPDIA
23.94%
Thai Investors
19.35%
Foreign Investors
20.87%
NVDR 10.43%
TEPCO
50%
Mitsu-
bishi
50%
Shareholding Structure Board of Directors
Note: As of 16 March 2012 11
Rayong 1,232 NED (Phase 2-4) 15
KEGCO 749 SPP4 6
BLCP 717 SPP3 8
GEC-GPG (KK2) 755 GPS (Phase 1-3) 12
EGCO COGEN 94
GEC-GCC 55
GEC-NKCC 63
GEC-SCC 63
ROI-ET GREEN 7
GEC-GYG 12
QUEZON 262
CONAL-WMPC 19
CONAL-SPPC 10
NTPC (NT2) 380
NED (Phase 1) 3
As of 31 Dec 2011 4,420 Jan-Mar 2012 41
EGCO Group’s Power Plants Portfolio
� As of 18 May 2012, EGCO Group’s portfolio comprises 18 operating power plants
with 3 under development projects of the existing plants and 6 under development
power plants, brining EGCO’s total MW equity of the portfolio to 5,275 MW.
As of 18 May 2012,
EGCO Group has operating
MW equity of 4,461 MW
Unit: MW
12
Highlights EGCO Group’s Overview 1Q12 Financial Results
EGCO Group’s Power Plants Portfolio
Quezon (45.875%) 231
NED (Expansion) 3
GPS (Phase 4) 4
Theppana 13
Yanhee 28
TJ Cogen 125
TP Cogen 125
SK Cogen 125
XPCL 161
Total 814
As of 18 May 2012,
EGCO Group has
under development
MW equity of 814 MW
Unit: MW
13
Highlights EGCO Group’s Overview 1Q12 Financial Results
Investment Strategy
EGCO’s Investment Strategy can be categorized into 3 stages:
Short-Term
- Develop/ acquire renewable
energy projects up to 300 MW
in 2015
- Develop/ acquire power plants
in Thailand and ASEAN region
- Explore opportunities in related
energy business i.e. bio-diesel
and coal mining
Medium-Term
- Negotiate to extend Rayong and
KEGCO’s PPAs
- Prepare for next round of IPP
bidding
- Develop/ jointly invest in IPP
and SPP in Thailand and
ASEAN region
- Expand O&M and engineering
business
Long-Term
- Focus on domestic investment
and neighboring power plants
that sell electricity back to
Thailand
- Develop related energy
business in order to enhance
competitive advantage
Highlights EGCO Group’s Overview 1Q12 Financial Results
14
AgendaHighlights EGCO Group’s Overview 1Q12 Financial Results
� Highlights
� EGCO Group’s Overview
� 1Q12 Financial Results
15
1Q11 VS 1Q12 Net Profit
234
1,456
1Q12
117
1,107
1Q11
+ 466 or 38%
Net Profit
EGCO & Sub JV
Baht Million
1,224
1,690
1,800
1,600
1,400
1,200
1,000
800
600
400
200
16
Highlights EGCO Group’s Overview 1Q12 Financial Results
1Q11 VS 1Q12 Net Profit before FX
135
1,352
1Q12
104
1,109
1Q11
+ 274 or 23%
Net Profit before FX
EGCO & Sub JV
Baht Million
1,213
1,487
1,800
1,600
1,400
1,200
1,000
800
600
400
200
17
Highlights EGCO Group’s Overview 1Q12 Financial Results
1Q11 VS 1Q12 Net Profit before FX
1,109
1,352
JV
104 135
EGCO & Sub1Q11 1Q12
Baht Million
1,800
1,600
1,400
1,200
1,000
800
600
400
200
1,213
1,487
Total
274 or 23%
31 or 30%
Rayong 109
ESCO 39
KEGCO (34)
EGCO Cogen (78)
GPG 324
NTPC 90
NED 32
BLCP (178)
GEC (35)
18
243 or 22%
Highlights EGCO Group’s Overview 1Q12 Financial Results
1Q12 Net Profit before FX by Company
Unit: Baht Million
BLCP 24%, 383 MB
GPG (KK2) 30%, 484 MB
NT2 16%, 263 MB
QUEZON 9%, 143 MB
RAYONG 7%, 118 MB
KEGCO 3%, 54 MB
GCC, NKCC, SCC, GYG 2%, 33 MB
ET 2%, 26 MB
ROI-ET GREEN 2%, 37 MB
ESCO 2%, 33 MB
NED 2%, 28 MB
CONAL 1%, 17 MBPEPOI 1%, 14 MB 19
Highlights EGCO Group’s Overview 1Q12 Financial Results
1Q11 1Q12
Beginning Balance of Cash and Cash Equivalents 7,748 8,402
Net Cash Received from (Payments in) Operating Activities
Profit before corporate income tax 1,326 1,745
Share of profit from interest in JVs (1,109) (1,539)
Others 251 468 61 267
Net Cash Received from (Payments in) Investing Activities
Dividend Received from subsidiaires & JVs 882 1,738
Investment in subsidiaries & JVs (6,277) (1,168)
Others 1 (5,394) (40) 530
Net Cash Received from (Payments in) Financing Activities
Payments on long-term loans and debentures 3,043 (125)
Interest Paid (76) (88)
Others (116) 2,851 (1) (214)
Ending Balance of Cash and Cash Equivalent 5,673 8,985
Cash Flow Summary
20
Unit: Baht Million
Highlights EGCO Group’s Overview 1Q12 Financial Results
Debt/Equity
Unit: Baht Million
0.220.21 0.21
0.250.26 0.25 0.25 0.25
0.27
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
1Q10 2Q10 3Q10 2010 1Q11 2Q11 3Q11 2011 1Q12
Debt
15,936
Equity
59,743
Times (X)
21
Highlights EGCO Group’s Overview 1Q12 Financial Results
Total Outstanding
As of 31 Mar 2012
USD 109 M
Baht 9,897 M
JPY 420 M
EGCO & Subsidiaries’ Loan Structures
Total Outstanding
(Baht Equivalent)Baht 13,424 M
Loan Structures
(Baht Equivalent)
THB USD YEN
74%25%
1%
22
Highlights EGCO Group’s Overview 1Q12 Financial Results
Historical Dividend Payment
Baht/Share
1.00 1.25 1.25 1.50 1.50 2.00 2.25 2.50 2.50 2.50 2.50
1.25 1.25 1.50
1.50 1.75
2.00
2.50 2.50 2.75 2.75 2.75
-
1.00
2.00
3.00
4.00
5.00
6.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2.252.50
2.753.00
3.25
4.00
4.755.00
5.25 5.25 5.25
EGCO has a policy to pay dividend at approximately 40% of the consolidated
net profit after tax, or to increase the dividend amount in a steady manner.23
Highlights EGCO Group’s Overview 1Q12 Financial Results
26
Key Financial Data: FX Variance MD&A
1Q11 1Q12 +/-EGCO (0.78) 79.25 80.03
RAYONG POWER PLANT 0.18 0 (0.18)
KEGCO (0.28) 0 0.28
EGCO COGEN (1.42) 7.46 8.87
ROI-ET GREEN 1.90 11.84 9.94
ESCO 12.99 (0.48) (13.47)
TOTAL SUBs FX 12.60 98.08 85.48
BLCP (9.01) 122.47 131.48
GPG (14.97) 76.90 91.87
GCC, NKCC, SCC, GYG (6.03) 26.91 32.94
CONAL (1.43) 1.57 3.00
NTPC 29.35 (127.23) (156.57)
QUEZON 0.37 3.59 3.22
NED (0.62) 0 0.62
TOTAL JVEs FX (2.34) 104.22 106.56
GRAND TOTAL 10.26 202.32 192.04
Key Financial Data: Financial Ratio Highlights
* FX gains/losses from Income Statements including financial cost from foreign currency loans (EGCO & Subs) and JVs 27
1Q11 1Q12
Debt to Equity (Time) 0.26 0.27
Net Debt to Equity (Time) 0.10 0.04
Net Profit before FX* (Million Baht) 1,213 1,487
EPS (Baht) 2.32 3.21
Operating Cash Flow / share (Baht) 0.89 0.51
BV share (Baht) 105.96 113.48
ROE (%) 2.23 2.87
P/E – Local (Time) 40.11 28.98
P/E – Foreign (Time) 40.97 29.29
28
Key Financial Data:Segmental Operating Results, Ended March 31, 2011
Subsidiaries Joint Ventures Grand
Power Generation Others Total Power Generation Total
EGCORayong power plant
KEGCOEGCO Cogen
Roi-Et Green
ESCO ET PEPOI SPP4 SPP3
EGCO& Subs
BLCP GPG
GCC, NKCC, SCC, GYG
NED CONAL NTPC QPL
Sales of Electricity - 565 565 493 63 - - - - - 1,685 - - - - - - - - 1,685
- Capacity Payment - 552 547 60 10 - - - - - 1,169 - - - - - - - - 1,1 69
- Energy Payment - 13 18 432 53 - - - - - 516 - - - - - - - - 516
Sales of Water - - - - - - 68 - - - 68 - - - - - - - - 68
Service Income - - - - - 53 - - - - 53 - - - - - - - - 53
Cost of Sales (0) 505 337 421 35 - - - - - 1,297 - - - - - - - - 1,297
Cost of Services - - - - - 41 19 - - - 60 - - - - - - - - 60
Gross Profit 0 60 229 72 28 12 49 - - - 449 - - - - - - - - 449
EBITDA 31 292 405 102 27 (1) 47 - - - 903 979 490 194 (4) 75 533 271 2,537 3,440
EBIT 18 13 164 60 21 (6) 40 - - - 310 726 283 123 (4) 45 417 232 1,821 2,131
Net Profit before FX (72) 9 88 40 19 (6) 26 - - - 104 561 160 68 (4) 22 173 129 1,109 1,213
Net Profit (72) 9 88 38 21 7 26 - - - 117 552 145 63 (5) 21 202 129 1,107 1,224
3M2011
Total-JVEs
Holding
29
Key Financial Data:Segmental Operating Results, Ended March 31, 2012
Subsidiaries Joint Ventures Grand
Power Generation Others Total Power Generation Total
EGCORayong power plant
KEGCOEGCO Cogen
Roi-Et Green
ESCO ET PEPOI SPP4 SPP3
EGCO& Subs
BLCP GPG
GCC, NKCC, SCC, GYG
NED CONAL NTPC QPL
Sales of Electricity - 536 459 423 97 - - - 23 15 1,553 - - - - - - - - 1,553
- Capacity Payment - 505 442 36 13 - - - - - 996 - - - - - - - - 996
- Energy Payment - 31 17 387 84 - - - 23 15 557 - - - - - - - - 557
Sales of Water - - - - - - 69 - - - 69 - - - - - - - - 69
Service Income - - - - - 185 - 97 - - 282 - - - - - - - - 282
Cost of Sales - 367 333 453 38 - 21 - 7 4 1,223 - - - - - - - - 1,223
Cost of Services - - - - - 123 - 70 - - 192 - - - - - - - - 192
Gross Profit - 170 126 (31) 59 63 49 27 16 10 489 - - - - - - - - 489
EBITDA 17 402 290 13 48 47 46 19 5 (2) 885 810 808 142 56 83 608 437 2,943 3,828
EBIT 4 122 59 (24) 44 42 40 19 5 (2) 309 549 589 70 43 40 501 347 2,140 2,448
Net Profit before FX (99) 118 54 (38) 37 33 26 14 (2) (7) 135 383 484 33 28 17 263 143 1,352 1,487
Net Profit (21) 118 54 (31) 49 33 26 14 (2) (7) 234 506 561 59 28 19 136 147 1,456 1,690
3M2012
Total-JVEs
Holding
22,586 22,568 22,045
24,010
23,900
22,251
23,554
24,571 24,882
25,178 25,551
25,682
20,000
21,000
22,000
23,000
24,000
25,000
26,000
27,000
� In 2012, Peak Demand hit the record high on 23 Mar at 24,464 MW.
� It also made the new high for another six times with the highest of 26,121 MW on 26 Apr.
� EGAT expected power demand growth of approximately 5-6% in 2012 .
Highlights
1st High: 24,464 MW
Record High: 26,121 MW
Highlights EGCO Group’s Overview 1Q12 Financial Results
30
Peak Demand Comparison
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
27,000
28,000
January February March April May June July August September October NovemberDecember
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Peak Demand 23,900.21 MW (May 24, 2011)
2012
31
Highlights EGCO Group’s Overview 1Q12 Financial Results
Record High: 26,121 MW
Net Generation
GWh
Electricity Sales
MM Baht
Rayong Power Plant BLCP KK 2 KEGCO
(Block I)
(Block I)
NT 2
• REGCO and KEGCO receive the capacity payment (Rayong Power Plant) or availability payment (KEGCO) for maintaining the availability of the power plants, regardless of whether the electric power will be supplied to EGAT or not.
• EGAT is the sole offtaker for electricity produced by Rayong Power Plant and KEGCO under long term cost-plus based Power Purchase Agreements (PPAs). 32
3,895
2,249 2,952
4,783
2,127
6,006 5,577 5,643 5,476 5,816
9,723 10,175 10,018 10,036 10,617
3,397
8,960 9,329 9,857 8,813
- - -
4,976
6,361
2007 2008 2009 2010 2011
3,574 3,894 3,722 2,535 2,258
4,237 3,212 2,319 2,788 2,170
20,104 20,255
17,909 17,706 17,868
7,164
20,741 22,506 22,750 22,655
- - -
6,317 7,672
2007 2008 2009 2010 2011
Operating Performance (IPPs) :Annual Net Generation & Electricity Sales for the Year 2007-2011
(9 Month)
(9 Month)
Operating Performance (IPPs) :
Million Baht
Major Maintenance Expenses for the Year 2011
33
Quarter Total
Actual Actual Actual Actual
Spare Parts 52.75 15.01 0.88 71.08 139.72
Service Charge 82.17 44.15 8.65 61.06 196.02
Total 134.92 59.16 9.53 132.13 335.74
Quarter Total
Actual Actual Actual Actual
Spare Parts 11.79 26.95 34.00 14.68 87.41
Service Charge 11.87 78.36 6.51 12.39 109.13
Total 23.66 105.31 40.51 27.06 196.55
Rayong Power Plant
1 2 3 4
KEGCO
1 2 3 4
Quarter Total
Actual Actual Actual Actual
Spare Parts 52.75 15.01 0.88 71.08 139.72
Service Charge 82.17 44.15 8.65 61.06 196.02
Total 134.92 59.16 9.53 132.13 335.74
Quarter Total
Actual Actual Actual Actual
Spare Parts 11.79 26.95 34.00 14.68 87.41
Service Charge 11.87 78.36 6.51 12.39 109.13
Total 23.66 105.31 40.51 27.06 196.55
Rayong Power Plant
1 2 3 4
KEGCO
1 2 3 4
Operating Performance (IPPs) :Major Maintenance Expenses for the Year 2012
Million Baht
34
Quarter Total
Actual Budget Budget Budget
Spare Parts 0.92 22.01 41.20 30.81 94.94
Service Charge 8.18 33.36 65.31 75.66 182.50
Total 9.10 55.37 106.51 106.47 277.44
Quarter Total
Actual Budget Budget Budget
Spare Parts 13.08 45.24 86.17 59.03 203.52
Service Charge 16.07 19.60 95.17 18.70 149.54
Total 29.15 64.84 181.34 77.72 353.06
Rayong Power plant
1 2 3 4
KEGCO
1 2 3 4
Operating Performance (IPPs) : Operating Performance Equivalent Availability Factor
35
Rayong Power Plant
Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%)
CCGT #1 64.89 68.69 85.72 90.35 97.56 99.40 95.02 97.60
CCGT #2 88.22 92.73 95.87 98.94 97.72 99.44 68.62 73.43
CCGT #3 97.66 99.30 78.40 84.42 96.57 98.95 96.36 97.61
CCGT #4 87.43 93.06 96.51 98.38 96.97 99.43 95.07 97.52
Rayong Power Plant
Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actual EAF (%)
CCGT #1 99.00 99.95 97.14 - 98.91 - 88.16 -
CCGT #2 98.88 99.95 97.89 - 90.76 - 97.16 -
CCGT #3 98.38 99.35 79.21 - 98.91 - 97.28 -
CCGT #4 99.44 99.87 98.26 - 77.72 - 69.10 -
KEGCO
Target EAF (%) Actual EAF (%) Target EAF (%) Actual EA F (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actu al EAF (%)
Barge #1 93.00 88.94 89.27 98.12 - - - -
Barge #2 42.47 46.15 79.00 86.97 91.00 94.01 90.49 100.00
CCGT #3 96.00 99.51 88.27 93.47 96.00 95.15 86.14 94.55
KEGCO
Target EAF (%) Actual EAF (%) Target EAF (%) Actual EA F (%) Target EAF (%) Actual EAF (%) Target EAF (%) Actu al EAF (%)
Barge #2 91.00 98.76 91.00 - 91.00 - 90.85 -
CCGT #3 81.82 86.77 88.60 - 88.60 - 86.35 -
2011
Plant Type1Q12 2Q11 3Q11 4Q11
2012
Plant Type1Q12 2Q12 3Q12 4Q12
2011
Plant Type1Q11 2Q11 3Q11 4Q11
2012
Plant Type1Q12 2Q12 3Q13 4Q12
Operating Performance (IPPs) :Net Generation and Fuel Consumption
36
Rayong Power Plant 2012CCGT #1- 4 1Q11 2Q11 3Q11 4Q11 1Q12
Net Generation
- By Natural Gas (GWh) 474 592 402 658 1,138
- By Secondary Fuel (GWh) 0.05 0.14 - - 0.16
Fuel Consumption
- By Natural Gas (MMBTU) 4,149,687 5,179,906 3,504,009 5,728,762 9,823,707
- By Secondary Fuel (Million Litre) 0.01 0.03 - - 0.04
KEGCO 2012Barge # 2 1Q11 2Q11 3Q11 4Q11 1Q12
Net Generation
- By Natural Gas (GWh) 178 237 140 139 141
- By Secondary Fuel (GWh) - 1.38 - - -
Fuel Consumption
- By Natural Gas (MMBTU) 2,183,284 2,933,950 1,773,602 1,753,549 1,775,680
- By Secondary Fuel (Million Litre) 0.01 0.22 - - -
CCGT # 3 1Q11 2Q11 3Q11 4Q11 1Q12
Net Generation
- By Natural Gas (GWh) 1,296 1,202 1,349 1,274 1,192
- By Secondary Fuel (GWh) - - - - -
Fuel Consumption
- By Natural Gas (MMBTU) 10,450,500 9,812,045 10,887,245 10,261,359 9,604,779
- By Secondary Fuel (Million Litre) - 0.01 - 0.02 -
2011
2011