Abu Dhabi National Energy Company (PJSC) TAQA Financial Results 19 March 2009

Transcription

1 Abu Dhabi National Energy Company (PJSC) TAQA 28 Financial Results 19 March 29

2 Disclaimer These materials have been prepared by the Abu Dhabi National Energy Company - TAQA ( Company ). These materials are for information purposes only and do not constitute a prospectus, offering memorandum or offering circular or an offer to sell any securities and are not intended to provide the basis for any credit or any third party evaluation of any securities or any offering of them and should not be considered as a recommendation that any investor should subscribe for or purchase any securities. The information contained herein is preliminary as of the date hereof, supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered. Any investor who subsequently acquires any securities must rely solely on any final offering memorandum published in connection with such securities, on the basis of which alone purchases of or subscription for any securities may be made. In addition, investors should pay particular attention to any sections of any such final offering memorandum describing any risk factors. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No person shall have any right of action (except in case of fraud) against the Company or any other person in relation to the accuracy or completeness of the information contained herein. The merits or suitability of any securities to any investor's particular situation should be independently determined by such investor. Any such determination should involve inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of any securities. No person is authorized to give any information or to make any representation not contained in and not consistent with these materials and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Company. These materials are confidential and are being submitted to selected recipients only. They may not be taken away, reproduced (in whole or in part), distributed or transmitted to any other person without the prior written consent of the Company. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials are not intended for distribution, except (i) to accredited investors as defined under applicable Canadian securities laws, (ii) within the United States to persons that are qualified institutional buyers under Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act") and (iii) outside the United States to persons that are not U.S. persons (as defined in Regulation S under the Securities Act) in offshore transactions in compliance with Regulation S. These materials contain, or may be deemed to contain, "forward-looking statements" (as defined under applicable Canadian securities laws and in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forwardlooking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of the Company may vary from the results expressed in, or implied by, the following forward looking statements, possibly to a material degree. Any investment in securities is subject to various risks, such risks should be carefully considered by prospective investors before they make any investment decisions.

3 TAQA FY 28 Highlights As at December 31 28, total assets were AED 86 billion compared with AED 69 billion at the end of December 31, 27 Net profit grew by 76% to AED 1.8 billion Earnings-per-share increased to AED.36 versus AED.25 in 27 Turbulent year in global energy markets, but TAQA s results show the benefits of diversification strategy partially offsetting the effect of lower oil and gas prices in Q4 Continued expansion of mid and downstream activities Creation of TAQA Gen X to focus on US downstream opportunities with RBS Sempra Commodities and first investment in tolling agreement for Red Oak power plant MOU signed with Gazprom as one of a consortium of suppliers of cushion gas for Bergermeer Gas Storage facility Upstream portfolio bolstered Close of PrimeWest acquisition by TAQA North in January Completed acquisition of North Sea oil fields in December Well financed with extensive credit facilities, and no short term refinancing needs AED 8.4 billion of available credit facilities AED 4.2 billion of bank balances and cash Bond buyback programme totalling AED 1. billion face value

4 Upstream & Midstream Performance Revenue of AED 8bn in FY 28, an increase of 459% Revenue of AED 1.4bn in Q4 28, an increase of 6% from Q4 27 Q4 28 revenues were impacted by the fall in the oil price relative to the highs earlier in the year Q4 28 average net realized prices: Crude oil TAQA North US$43.48 /bbl TAQA Bratani US$54.8 /bbl TAQA Energy US$41.4 /bbl Natural gas TAQA North US$5.93 /mcf TAQA Bratani US$7.2 /mcf TAQA Energy US$11.95 /mcf boe/day Average Daily Oil & Gas Production 14, 12, 1, 8, 6, 4, 2, Q4 27 Q4 28 FY 27 FY 28 TAQA North TAQA Bratani TAQA Energy mmboe TAQA Reserves TAQA North TAQA Bratani TAQA Energy Total 27 28

5 Downstream Performance FY 28 revenue AED 5.5bn excluding supplemental fuel AED 8.5bn including supplemental fuel Q4 28 revenue of AED 1.5 billion up 18% from Q4 27 TAQA s global generation capacity (gross) is 1,514 Mw Creation of TAQA Gen X Acquisition of Red Oak toll in US Technical availability of the power generation businesses in 28 averaged 93% Average domestic availability of 94% Average international availability of 91% Gwh 5, 4, 3, 2, 1, 25, Electricity Generation Q4 27 Q4 28 FY 27 FY 28 International Domestic Water Desalination 15% Current Generation Capacity 1,514 Mw MIG 2, 15, 1, 5, 85% Q4 27 Q4 28 FY 27 FY 28 Domestic International

6 Financial Highlights

7 Financing Activities in 28 Proactive management of financial position Convertible Debenture Fully subscribed with proceeds totaling AED 4.15 billion Bond Offering Completed US $1. billion, 6.6% senior notes due in August 213 US $5 million of 7.25% senior notes due in August 218 Revolving Credit Facility Refinanced TAQA s 364 day US $3.15 billion credit facility into a three-year facility Bond buyback programme totalling AED 1. billion face value At 31 December 28, TAQA had AED 8.4 billion of undrawn credit facilities Cash and cash equivalents of AED 4.1 billion as at 31 December 28

8 Debt summary US$ Millions 5, Secure debt position refinancing not required until July 21 4,5 4, 3,5 3, 2,5 2, 1,5 1, Revolving Credit Facilities Outstanding Bonds

9 Q4 28 Financial Comparison Significant year-on-year revenue growth, driven by acquisition integration and benefiting from a diversified energy portfolio Revenue Breakdown (AED millions) 4, 3,5 3, 2,5 2, 1,5 1, 5 Total Sales Revenue Q4 26 Q4 27 Q4 28 (AED millions) 2, 1,5 1, 5 EBITDA Q4 26 Q4 27 Q % 9% Q % (AED millions) Decrease in net income due to decline in oil price in Q3 & Q4 Net Income Q4 26 Q4 27 Q % Upstream Downstream* Midstream *Excludes supplemental fuel Q4 28 4% 51%

10 FY 28 Financial Comparison Year-on-year, revenue increased by 12% from 27 to 28. TAQA now derives revenues throughout the energy value chain, mitigating volatility Revenue Breakdown (AED millions) 2, 15, 1, 5, Total Sales Revenue (AED millions) 12, 1, 8, 6, 4, 2, EBITDA 5% FY 27 2% FY 26 FY 27 FY 28 FY 26 FY 27 FY 28 75% Income increased 76% year-on-year, after minority interest, asset base now stands at AED 86 billion from AED 68 billion at the end of 27 (AED millions) 2, 1,5 1, 5 Net Income FY 26 FY 27 FY 28 (AED billions) Total Assets FY 26 FY 27 FY 28 4% Upstream Downstream* Midstream Other *Excludes supplemental fuel FY 28 56% 4%

11 Key Ratios Q4 28 Q4 27 FY 28 FY 27 Gross Margin 36% 41% 42% 41% EBIT Margin 29% 46% 41% 46% EBITDA/Interest Net Debt/EBITDA Return on Equity 16% 39% 31% 16% Net Debt/Equity Net Debt/Capital

12 Delivering Solid Returns Q4 28 Q4 27 FY 28 FY 27 Earnings Per Share (AED) Revenue Per Share (AED) Price/Earnings Ratio Earnings Per Share 3. Sales Revenue per Share (AED/share) (AED/share) Q4 27 Q4 28 FY 27 FY 28. Q4 27 Q4 28 FY 27 FY 28

13 TAQA s Key Competitive Advantages Government Ownership & Support Attractive UAE Power Market Solid Investment Grade & Financial Position Experienced Management Prudent Growth Strategy Operational Integration Focus

14 Questions & Answers For further enquiries: Ms. Tanis Thacker Mr. Mohammed Mubaideen Head of Investor Relations Investor Relations Manager O: O: M: M: E: Tanis.Thacker@taqaglobal.com E: Mohammed.Mubaideen@taqa.ae

15 Appendix

16 Upstream Realized Prices Fourth Quarter Full Year TAQA North US $ US $ US $ US $ Crude Oil ($/bbl) Natural Gas Liquids ($/bbl) Natural Gas ($/mcf) Average ($/boe) TAQA Bratani Crude Oil ($/bbl) Natural Gas Liquids ($/bbl) Natural Gas ($/mcf) Average ($/boe) TAQA Energy Crude Oil ($/bbl) Natural Gas ($/mcf) Average ($/boe) Boe converted at 6:1

17 Upstream Average Production TAQA North Fourth Quarter Full Year Crude Oil (mbbl/day) Natural Gas Liquids (mbbl/day) Natural Gas (mmcf/day) Total (mboe/day) TAQA Bratani Crude Oil (mbbl/day) Natural Gas Liquids (mbbl/day) Natural Gas (mmcf/day) Total (mboe/day) TAQA Energy Crude Oil (mbbl/day) Natural Gas (mmcf/day) Total (mboe/day) Boe converted at 6:1

18 Upstream Netback Analysis Crude oil equivalent (US $ per boe) Fourth Quarter Full Year TAQA North US $ US $ US $ US $ Gross Price Royalties Net Sales Price Operating Costs Operating Netback TAQA Bratani Gross Price Royalties Net Sales Price Operating Costs Operating Netback TAQA Energy Gross Price Royalties Net Sales Price Operating Costs Operating Netback Boe converted at 6:1

19 Upstream 28 Reserves TAQA North Year End Reserves 28 Crude Oil (mmbbl) 135 Natural Gas Liquids (mmbbl) 4 Natural Gas (mmcf) 1,677 Total (mmboe) 455 TAQA Bratani Crude Oil (mmbbl) 14 Natural Gas Liquids (mmbbl) 1 Natural Gas (mmcf) 89 Total (mmboe) 156 TAQA Energy Crude Oil (mmbbl) 1 Natural Gas (mmcf) 56 Total (mmboe) 11 Boe converted at 6:1