Gulf Energy Development Public Company Limited POST-EARNINGS RELEASE PRESENTATION Q / FY2017

Transcription

1 Gulf Energy Development Public Company Limited POST-EARNINGS RELEASE PRESENTATION Q / FY2017

2 Disclaimer This document is for information and reference only and does not constitute or form part of and should not be construed as, an offer to sell or issue or subscription of, or the solicitation of an offer to buy or acquire any securities of Gulf Energy Development Public Company Limited (the Company ) in any jurisdiction or an inducement to enter into investment activity. The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, reliability, accuracy, completeness or correctness of the information or the opinions contained herein. This document should not be regarded by recipients as a substitute for the exercise of their own judgment. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments which may occur after the date of the document. None of the Company or any of its affiliates, directors, officers, employees, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any damages or loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to rely on such forward-looking statements. Neither the Company nor any of its respective affiliates, agents, employees, advisors or representatives intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document. This document contains data sourced from and the views of independent third parties. In such data being replicated in this document, the Company does not make any representation, whether express or implied, as to the accuracy of such data. The replication of any views in this document should be not treated as an indication that the Company agrees with or concurs with such views. 2

3 Key Highlights Section 1 3

4 GULF : Thai Private Power Producer * in the industry (19 in operation) Note: Frost & Sullivan, October

5 Key Events in

6 Company Overview Section 2 6

7 Background and Key Milestones 7

8 Investment Portfolio: Conventional Business 8

9 Investment Portfolio: Conventional Business (cont d) 9

10 Investment Portfolio: Renewable Business 10

11 Investment Portfolio: Renewable Business (cont d) 11

12 Investment Portfolio: Other Investment 12

13 Investment Portfolio: Other Investment (cont d) 13

14 Overview of Power Projects Gross Installed Capacity (MW) 12,000 10,000 8,000 6,000 4,000 2,000-11,126 5,028 8,706 3,406 2,394 1,622 Total IPP SPP (Gas) In operation + In pipeline SPP (Biomass) In operation VSPP (Solar) Equity Installed Capacity (MW) SPP IPP VSPP Gas Solar Biomass In operation Under construction Under development 7,000 6,000 5,000 4,000 3,000 2,000 1,000-6,329 2,120 5,072 1,362 1, Total IPP SPP (Gas) In operation + In pipeline SPP (Biomass) In operation VSPP (Solar) 14

15 Power Generating Capacity with Secured PPAs Gross Installed Capacity (MW): 12,000 10,000 8,000 6,000 4,000 2, ,485 4,238 4,238 4,773 5, Mar 1, ,126 9,801 8,476 7,151 5,801 5, F 2020F 2021F 2022F 2023F 2024F Equity Installed Capacity (MW): GJP GMP IPD GCG VSPP 7,000 6,000 5,000 4,000 3,000 2,000 1, * 982 * * 1,683 1,683 1,964 2, Mar 1, 2018 * 6,329 5,402 4,474 3,547 2,594 2, F 2020F 2021F 2022F 2023F 2024F GJP GMP IPD GCG VSPP Note: Gulf's equity stake in GJP was 10% until August 15, 2016 when the stake was increased to 40%; equity installed capacities for are based on the pro-forma 40% stake for comparison purposes 15

16 Projects under Construction and Development Section 3 16

17 GMP 12 SPPs Construction Progress on Track PPA: Signed with EGAT GVTP COD 16 May 2017 GTS1 COD 8 Jul 2017 GTS2 COD 1 Sep 2017 GSA: BOI approval: Signed with PTT Obtained EIA approval: Obtained Land: Purchased EPC: Signed GTS3 COD 1 Nov 2017 GTS4 COD 1 Jan 2018 GNC COD 1 Mar 2018 COD Overall status: 6 projects in operation 6 projects under construction GBL GBP GNLL2 84.7% completed % completed % completed 1 GNPM GNRV1 GNRV2 66.1% completed % completed % completed 1 Note: 1 As of January,

18 IPD 2 IPPs (5,000 MW) GSRC Project (2,500 MW IPP) 2 : PPA: GSA: BOI approval: EIA approval: Land: Signed with EGAT Signed with PTT Obtained Obtained Purchased EPC 3 and LTSA 4 : Executed EPC contract on 8 Feb 2018 SCOD 1 Unit 1&2: 2021 Unit 3&4: 2022 Overall status: Financing close progress: Overwhelming feedback from potential lenders 5 times credit line offering Expect to reach financing close by Q Notes: 1 Stands for "Scheduled Commercial Operation Date" 2 EGAT contracted capacity 3 Sino-Thai Engineering & Construction Public Company Limited and MHPS Project (Thailand) Company Limited were selected as the EPC contractors and Mitsubishi Hitachi Power Systems, Ltd. was selected as the EPC supplier for GSRC and GPD 4 MHPS Project (Thailand) Company Limited, a company within the group of Mitsubishi Hitachi Power Systems, Ltd., was selected as long term service provider 18

19 IPD 2 IPPs (5,000 MW) GPD Project (2,500 MW IPP)2: PPA: GSA: BOI approval: EIA approval: Land: Signed with EGAT Signed with PTT Obtained Obtained Purchased EPC 3 and LTSA 4 : Executed EPC contract on 8 Feb 2018 Financing close: Expected in 2020 SCOD 1 Unit 1&2: 2023 Unit 3&4: 2024 Overall status: Under development Notes: 1 Stands for "Scheduled Commercial Operation Date" 2 EGAT contracted capacity 3 Sino-Thai Engineering & Construction Public Company Limited and MHPS Project (Thailand) Company Limited were selected as the EPC contractors and Mitsubishi Hitachi Power Systems, Ltd. was selected as the EPC supplier for GSRC and GPD 4 MHPS Project (Thailand) Company Limited, a company within the group of Mitsubishi Hitachi Power Systems, Ltd., was selected as long term service provider 19

20 GCG Biomass Power Project (20.6 MW) GCG Biomass Power Project: PPA: Signed with EGAT in Jan 2018 BOI approval: Obtained in Oct 2017 EIA approval: Obtained in Nov 2017 Land: Purchased EPC: Signed EPC contract on 16 Feb 2018 CFA: Signed CFA on 16 Feb 2018 First Drawdown: COD Mar 2020 Overall status: Mar 2018 in accordance with EPC 1 st milestone Preparing for construction 20

21 Gulf WHA MT Natural Gas Distribution Location: Capacity: Customer: GSA EIA approval Land Hemaraj Eastern Seaboard Industrial Estate 2 2,000,000 mmbtu/year 500,000 mmbtu/year Signed with PTT Obtained Purchased SCOD: Sep 2018 Overall status: Under construction Location: Capacity: Customer: GSA EIA approval Land Hemaraj Eastern Seaboard Industrial Estate 4 2,000,000 mmbtu/year 500,000 mmbtu/year Signed with PTT Obtained Purchased SCOD: Apr 2019 Overall status: Preparing for construction 21

22 Operating Performance Section 3 22

23 Availability and Heat Rate Availability (%) Heat Rate (MMBTU) GNS GUT Average of GJP s 2IPPs 98% 95% 97% 97% 6,991 6,989 GJP s 7SPPs Average of GJP s 7SPPs 97% 98% 99% 97% 99% 99% 99% 99% 99% 94% 93% 94% 95% 83% 7,745 7,700 GKP1 GKP2 GTLC GNNK GNLL GCRN GNK2 GMP s 4SPPs Average of GMP s 4SPPs COD GVTP May 2017 GTS1 Jul 2017 GTS2 Sep 2017 GTS3 Nov % 98% 100% 98% GVTP GTS1 GTS2 GTS3 N.A. 7,

24 Maintenance Types A B C 1 days 3 days 10 days 18 days 18 days 35 / 22 days 22 days Year COD Type A Type B Type C Machine SIEMENS (7SPPs and 9 out of 12 SPPs) MHPS (GNS and GUT) GE (3 out of 12 SPPs GNC, GRV1 and GRV2) Equivalent operating hours Equivalent operating hours Equivalent operating hours 10,000 (A) 30,000 (B) 60,000 (C) 12,500 (CI) 25,000 (TI) 50,000 (MI) 8,000 (CI) 25,000 (HGPI) 50,000 (MO) 24

25 Maintenance Schedule Group Project Type COD Quarter 1 Quarter Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 GKP1 SPP A A GKP2 SPP A A GTLC SPP A A GNNK SPP 2013 A A GJP GNLL SPP A A GCRN SPP A A GNK2 SPP A GNS IPP 2014 B B GUT IPP 2015 A GVTP SPP A GMP GTS1 GTS2 SPP SPP 2017 A A GTS3 SPP A A B C SIEMENS A (3 days) B (18 days) C (22 days) MHPS CI (10 days) TI (18 days) MI (35 days) GE CI (1 days) HGPI (18 days) MO (22 days) 25

26 Financial Performance Section 4 26

27 GULF s Consolidated Revenues Revenues increased by over Bt 4,000m primarily from the COD of GMP s SPPs Sales Volume COD 2017 Gas-fired SPP Power sold (GWh) GVTP 16-May GTS1 8-Jul GTS2 1-Sep GTS3 1-Nov Total 1,317.5 Breakdown by customer Power sold to EGAT GWh 1,048.3 % 79.6% Power sold to IU GWh % 20.4% Steam sold (Tons) GVTP 16-May-17 8,469 GTS1 8-Jul-17 67,764 GTS2 1-Sep-17 41,356 GTS3 1-Nov-17 2,690 Total 120,279 Revenues Unit: Million Baht 21% 4, , , ,050 1,110 1, Q17 4Q Power sales to EGAT and PEA Steam sales 2% +890 QoQ 6% +4,109 YoY Power sales to IU Management fee Power sales to EGAT contributed around 70% of GULF s total revenue in % 27

28 GJP s performance (non-tfric 4) Net profit improved by around 12.5% due to overall increase in power sales GJP s Sales Volume Power sold (GWh) IPP - GNS (COD in 2014) 4, ,208.5 IPP - GUT (COD in 2015) 4, , SPPs (COD in 2013) 5, ,459.3 Total 14, ,807.4 Breakdown by customer Power sold to EGAT GWh 13, ,869.7 % 93.6% 94.1% Power sold to IU GWh % 6.4% 5.9% 7 SPPs (COD in 2013) Steam sold (Tons) 257, ,850 Chilled water sold ('000 RT) 24,785 29,039 GJP s Revenues (excl. gain from FX) Unit: Million Baht +2.7% YoY 46,304 47, % YoY -1.2% QoQ 45,933 47,043 10,699 12,351 12,206 10,607 12,241 12,116 4Q16 3Q17 4Q Sales revenue Others Total GJP s Profit before FX Unit: Million Baht +12.5% YoY 3.4% YoY -8.5% QoQ 6,274 9,979 2,173 2,113 5,858 6, ,353 1,528 1,398 4Q16 3Q17 4Q Profit before FX FX gain/loss Net profit Note: GJP s financial information excluded adjustment for the application of TFRIC 4 28

29 GULF s Consolidated Net Profit Fully diluted earnings per share was Bt 1.62 in 2017 Net Profit in 2017 Unit: Million Baht ,656 1, ,907 3,451 Basic earnings per share 1 : Bt 3.18 Earnings per fully diluted shares 2 : Bt 1.62 EBITDA D&A Interest expenses FX gain/loss Corporate tax Net profit Minorities Net profit to GULF's owners Note: 1/ Weighted average number of shares outstanding : 1,084.9 million 2/ Fully diluted number of shares outstanding : 2,133.3 million 29

30 Capital Structure and Debt Profile D/E ratio improved from 4.8x in Sep to 1.6x after the IPO in Dec Capital Structure Long-Term Debt Profile (as of 31 December 2017) 31-Dec Sep Dec-17 D/E (x) Due date GULF THB m IPD THB m GMP THB m GMP USD m Gulf Solar THB m ID/E 1 (x) In 1 year - 1, Net ID/E 2 (x) years 7, , , Interest bearing debts (M. Baht) 53,386 19,445 33,941 62,545 56,930 15,920 6,972 46,625 49,958 Over 5 years , Total 7, , , Dec Sep Dec-17 Holding company level Project level (project financing) Project level 88% 12% Holding company level Equity (M. Baht) 39,348 13,811 3, Dec Sep Dec-17 At project level, capital structure is mostly project financing, using debt to equity ratio of 3:1 At holding company level, principal sources of liquidity are borrowings and equity contribution by shareholders Note: 1/ Interest-bearing debt (ID) includes loans, debentures and bills of exchange 2/ Net interest-bearing debt is debt minus cash and cash equivalents and deposits at a financial institution used as collateral 30

31 Dividend Payment GULF s Board of Director approved dividend payment of Bt 0.4 per share Dividend Policy At least 30.0% of the Company s separate net profit (after taxes), subject to meeting the level reserve requirement under the Public Limited Companies Act and contractual obligations under relevant financing agreements. Payout for the Performance Period Ended December 31, 2017 Separate net profit in 2017 (million baht) 1,730.3 Declared dividend* (million baht) Payout ratio 49.3% Note: Subject to the Company s shareholder approval in the Annual General Meeting to be held on April 23,

32 Appendixes 32

33 Corporate Shareholding Structure 40.00% 60.00% 70.00% 30.00% 70.00% 30.00% 74.99% 25.01% GJP GMP IPD Gulf Solar Gulf HK GNS COD: 2014 GUT COD: 2015 GKP1 GKP2 GTLC GNNK GCRN 74.99% GNC GNRV1 GNRV2 GNPM GNLL % 74.99% 74.99% 74.99% 74.99% GVTP 2 GTS1 2 GTS2 2 GTS3 2 GTS4 2 GSRC COD: GPD COD: Gulf Solar BV Gulf Solar KKS Gulf Solar TS1 Gulf Solar TS2 COD: % 0.46% SPCG EDL-Gen GCG (Biomass) Gulf Pattani Green 4 SBY Biomass 4 Thepha Clean Energy % Kolpos Gulf WHA MT 5 Gulf International Holding WHA NGD2 WHA NGD4 GNK % GBL 3 Operating Projects Under Construction Under Development 74.99% GNLL 1 GJP: 4,237 MW / 1,682 MW 75.00% GBP 3 COD: 2013 COD: GMP: 1,563 MW / 911 MW IPD: 5,300 MW / 3,710 MW Investment Other Businesses or Dormant Entities IPP SPP VSPP Blue Text: Gross installed capacity Red Text: Equity installed capacity Notes: Information as of 1 March, / WHA Energy, a subsidiary of WHAUP, holds a 25.01% equity interest in GNLL 2/ WHA Energy, a subsidiary of WHAUP, holds 25.01% equity interests in GVTP, GTS1, GTS2, GTS3, GTS4 and GNLL2 3/ Thai Industrial Estate Corp., Ltd. holds 25.00% equity interests in GBL and GBP 4/ Gulf Pattani Green, SBY Biomass, Thepha Clean Energy, Kolpos and Gulf International Holding Pte. Ltd. are dormant companies 5/ WHAUP and MITG hold 35.00% and 30.00% respectively in Gulf WHA MT. In addition, Gulf WHA MT has two wholly-owned subsidiaries, WHA NGD2 and WHA NGD4 33

34 Power Projects in Operations Project Category Location Type Power (MW) Installed Capacity Steam (TPH) Chilled Water (RT) Equity Stake Equity Installed Capacity Power (MW) Steam (TPH) Chilled Water (RT) GKP1 SPP Saraburi Gas-fired (CG) % Jan 5, GKP2 SPP Saraburi Gas-fired (CG) % Feb 1, GTLC SPP Saraburi Gas-fired (CG) % Mar 1, GNNK SPP Chachoengsao Gas-fired (CG) , % ,280.0 Apr 1, GNLL SPP Rayong Gas-fired (CG) , % ,379.8 May 1, GCRN SPP Pathumthani Gas-fired (CG) % July 1, GNK2 SPP Saraburi Gas-fired (CG) % Oct 1, GVTP SPP Rayong Gas-fired (CG) % May 16, GTS1 SPP Rayong Gas-fired (CG) % Jul 8, GTS2 SPP Rayong Gas-fired (CG) % Sep 1, GTS3 SPP Rayong Gas-fired (CG) % Nov 1, GTS4 SPP Rayong Gas-fired (CG) % Jan GNC SPP Prachinburi Gas-fired (CG) % Mar Subtotal 1, , ,659.8 GNS IPP Saraburi GUT IPP Ayutthaya Gas-fired (CCGT) Gas-fired (CCGT) 1, % , % Subtotal 3, ,362.3 COD Unit 1: Jun 1, 2014 Unit 2: Dec 1, 2014 Unit 1: Jun 1, 2015 Unit 2: Dec 1, 2015 Gulf Solar BV VSPP Chonburi Solar Rooftop % Jun 23, Gulf Solar TS1 VSPP Rayong Solar Rooftop % Aug 27, Gulf Solar KKS VSPP Chonburi Solar Rooftop % Dec 26, Gulf Solar TS2 VSPP Rayong Solar Rooftop % Jan 8, Subtotal Total 4, , , ,659.8 PPA Awarded Year Note: As of 1 March

35 Power Projects Projects under Construction and Development Project Category Location Type Power (MW) Installed Capacity Steam (TPH) Chilled Water (RT) Equity Stake Equity Installed Capacity Power (MW) Steam (TPH) Chilled Water (RT) GBL SPP Ayutthaya Gas-fired (CG) % Sep GBP SPP Ayutthaya Gas-fired (CG) % Nov GNLL2 SPP Rayong Gas-fired (CG) % Jan GNPM SPP Saraburi Gas-fired (CG) % Mar GNRV1 GNRV2 SPP SPP Nakorn Ratchasima Nakorn Ratchasima SCOD PPA Awarded Year Gas-fired (CG) % May Gas-fired (CG) % Jul GCG SPP Songkhla Biomass GSRC IPP Chonburi GPD IPP Rayong Gas-fired (CCGT) Gas-fired (CCGT) 2, % 1, , % 1, Total 6, , Units 1 and 2: 2021 / Units 3 and 4: 2022 Units 1 and 2: 2023 / Units 3 and 4: NGD Projects Project Location Installed Capacity (mmbtu per year) Equity Stake Equity Installed Capacity (mmbtu per year) SCOD WHA NGD2 Rayong 2,000, % 700,000 Sep 2018 WHA NGD4 Rayong 2,000, % 700,000 Apr 2019 Total 4,000,000 1,400,000 Note: As of 1 March

36 Glossary BOI COD EDL-Gen EGAT EIA EPC GBL GBP GCG GCRN GJP GKP1 GKP2 GMP GNK 2 GNLL GNLL2 GNNK GNPM GNRV1 GNRV2 GNS The Board of Investment of Thailand Commercial Operation Date EDL-Generation Public Company The Electricity Generating Authority of Thailand Environmental Impact Assessment Engineering, Procurement and Construction Gulf BL Co., Ltd. Gulf BP Co., Ltd. Gulf Chana Green Co., Ltd. Gulf JP CRN Co., Ltd. Gulf JP Company Limited Gulf JP KP1 Co., Ltd. Gulf JP KP2 Co., Ltd. Gulf MP Company Limited Gulf JP NK2 Co., Ltd. Gulf JP NLL Co., Ltd. Gulf NLL2 Co., Ltd. Gulf JP NNK Co., Ltd. Gulf NPM Co., Ltd. Gulf NRV1 Co., Ltd. Gulf NRV2 Co., Ltd. Gulf JP NS Co., Ltd. 36

37 Glossary (cont d) GSA Gas Sales Agreement GTLC Gulf JP TLC Co., Ltd. GTS1 Gulf TS1 Co., Ltd. GTS2 Gulf TS2 Co., Ltd. GTS3 Gulf TS3 Co., Ltd. Gulf WHA MT Gulf WHA MT Natural Gas Distribution Co., Ltd. GUT Gulf JP UT Co., Ltd. GVTP Gulf VTP Co., Ltd. HESIE 2 Hemaraj Eastern Seaboard Industrial Estate 2 HESIE 4 Hemaraj Eastern Seaboard Industrial Estate 4 IPD Independent Power Development Company Limited IPP Independent Power Producer LTSA Long Term Service Agreement NGD Natural Gas Distribution PPA Power Purchase Agreement PTT PTT Public Company Limited SCOD Scheduled Commercial Operation Date SPCG SPCG Public Company Limited SPP Small Power Producer TFRIC4 Thai Financial Reporting Interpretation Committee 4; Determining Whether An Arrangement Contains a Lease VSPP Very Small Power Producer WHA NGD 2 WHA Eastern Seaboard NGD2 WHA NGD 4 WHA Eastern Seaboard NGD4 37