Titas Gas Transmission and Distribution Company Limited

Transcription

1 Titas Gas Transmission and Distribution Company Limited Disclaimer: The contents of this presentation are entirely based on disclosures made by the company. Therefore, DSE does not assume any responsibility on the authenticity of the facts and figures presented thereof. (If there is any contrary information please communicate with DSE through Brief Overview of the Company 1. Date of Incorporation : November 20, Commencement of Business : January 21, Authorised Capital : Tk.20, mn 4. Paid up Capital : Tk. 8, mn 5. Business : Purchasing, transmitting and distributing Gas. 6. Offloading of 21,411,728 Ordinary shares of Tk. 100 each Totaling Tk. 2,141,172, (Tk. 2, mn) which is 25% of existing paid-up capital. History of Paid up Capital Year Issued, Subscribed and Paid-up Capital (million Tk.) (Capital in Million) Sources of Capital To Sponsor Shares issued against share money deposit Post Balance Sheet Date Effect (Date of EGM) Splitting of original shares from Tk. 500 to Tk. 100 each Issuance of Bonus shares from Revenue Reserve Conversion of GOB loan in local currency into Equity Issue Manager: ICB Capital Management Limited. Auditor: Khan Wahab Shafique Rahman & Co.

2 Titas Gas Transmission and Distribution Company Limited (at a glance) Titas Gas Transmission & Distribution Company Limited (TGTDCL), the premier gas marketing Company of the country was established in the year 1964 with the aim and objective to transmit natural gas from the gas fields to different areas and to distribute the same to the consumers in power, fertilizer, industrial, captive power, commercial, seasonal and domestic categories of its franchise area viz. Greater Dhaka & Mymenshingh districts and B. Baria district. After construction of the 58 miles long original 14" dia gas transmission pipeline from B. Baria to Demra the Company started its commercial activities in April 1968 supplying gas to Siddirgonj Power Station, the first gas consumer. Thereafter, the Company constructed different distribution lines in phases towards Dhaka City area, Ghorashal and Ashugonj for gas supply to all categories of customers. Till the liberation of the country in 1971, TGTDCL had been able to supply gas to two power stations, one fertilizer factory and about 2,000 customers in other categories. After liberation of the country the Company has been Nationalised under the Presidential Order No. 27/1972 and its overall activities has been placed under the supervision and control of the Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). Subsequently the Company's Board was vested with full autonomy and exercise full financial powers as per Company's Act-1994 vide the government gazette notification dated 5 November, TGTDCL since its inception has been developing day by day and at present it has a gas pipeline network of about 10, km including the addition of km during and a total customer base of about 1,239,900 nos. including the addition of 77,514 nos. during The total customers include 10 power stations of PDB, 15 private power stations and 4 fertilizer factories in the bulk category. Board of Directors Name of Director Designation Association with Other Concerns Mr. Mohammad Mohsin Chairman Secretary, Energy & Mineral Resources Division. Chairman, Bangladesh Petroleum Exploration & Production Company Ltd. (BAPEX) Chairman, Mobil Jamuna Lubricants Ltd. Chairman, Bangladesh Petroleum Institute Mr. Md. Mokhlesur Rahman Director Chairman, Bangladesh Chemical Industries Corporation (BCIC) Mr. Jalal Ahmed Do Chairman, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Chairman, Gas Transmission Co. Ltd. Chairman, Sylhet Gas Fields Ltd. Chairman, Barapukuria Coal Mining Co. Ltd. Director, Bangladesh Petroleum Exploration & Production Co. Ltd. (BAPEX) Director, Rupantarita Prakritik Gas Co. Ltd.

3 Mr. Md. Showkat Ali Do Chairman, Bangladesh Power Development Board Director, Power Grid Company of Bangladesh (PGCB) Director, Dhaka Power Distribution Company Ltd Major (Retd.) Md. Muqtadir Ali Do Director, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Director, Gas Transmission Co. Ltd. Director, Jalalabad Gas Transmission & Distribution System Ltd. Mr. Abdul Hafiz Chowdhury Do Vice-President, Metropoliton Chember of Commerce and Industires Director, Jalalabad Telecom Limited Mr. Md. Hossain Khaled Do President, Dhaka Chember of Commerce & Industry Vice Chairman, Bangladesh Finance & Investment Co. Ltd. Managing Director, In2it Interactive Ltd. Director, The City Bank Ltd. Director, City General Insurance Co. Ltd. Director, Bangladesh Services Ltd. Mr. Md. Humyun Kabir Do PS to Special Assistant to Hon ble Chief Advisor, M/O Power, Energy & Mineral Resources Engr. Md. Abdullah Managing Director Performance at a Glance: - Tk. in million Particulars Income from Gas Sales Growth 10.28% 13.45% 13.97% 12.79% Cost of sales Growth 11.35% 12.69% 13.68% 11.42% Operating Profit Growth -1.10% 22.54% 17.14% 27.43% Profit Before Tax Growth -1.09% 21.83% 27.15% 29.62% Profit after tax Growth -2.23% 32.45% 38.06% 24.75% EPS (based on face value of Tk. 500 each) Growth -2.23% 32.45% 38.06% % Diluted/ Restated EPS considering paid-up capital as on after change of denomination and bonus shares Growth -2.23% 32.45% 38.06% 24.75% Total Assets Growth 11.25% 11.81% 5.78% 11.87%

4 Net Assets Growth 15.73% 25.13% 21.78% 21.40% NAV per share (based on face value of Tk. 500 each) Growth 15.73% 25.13% 21.78% % Diluted/ Restated NAV per share considering paid-up capital as on after change of denomination and bonus shares Growth 15.73% 25.13% 21.78% 21.40% Particulars Shareholders Equity No. of Shares No. of Shares as on * ROE 25.43% 21.49% 22.74% 25.78% 26.49% ROA 4.51% 4.13% 4.90% 6.23% 7.14% Net Profit Margin 4.77% 4.23% 4.93% 5.98% 6.61% Asset Utilization 93.57% 92.75% 94.11% % % Equity Multiplier Short-term Debt Long-term Debt Total Debt Total Debt to Total Asset 82.46% 81.76% 79.58% 76.50% 74.49% STD to Total Capital 46.74% 45.87% 44.78% 39.12% 36.95% Interest Expense EBIT Time Interest Earned Ratio Face value per share (in Tk.)* * The company splitted its shares from Tk. 500 each to Tk. 100 each in an EGM dated Dividend Information Cash Dividend 38.25% 45.56% 45.24% 49.79% 36.95% Stock Dividend Further 43,100,675 number of bonus shares of Tk. 100 each has been declared at EGM dated

5 Risk Factors and Management Perceptions: No investment can be made without considering the risk. So, before taking decision on investing in shares of TGTDCL the investors should carefully analyze the following risks: a) Interest rate risk: When a concern collects its fund from outsiders is liable to pay more than its borrowing size. The excess payable is considered as interest, which impacts the profitability. So, any high rate borrowing affects adversely any concern, which has borrowed fund. The Company takes long-term loan from local and foreign sources for implementing the development projects taken by GOB under Annual Development Program (ADP) and interest rate is fixed by GOB. In the mean time, entire long-term loan in local currency from GOB has been converted into equity. As a result the borrowed fund of the Company has been reduced and company will face less risk. b) Exchange rate risk: The Company requires foreign loans for implementing development programs. So, exchange rate fluctuation can enhance the development cost of the Company. To cope with Exchange Rate Fluctuation the Company adds or deducts gain or loss with assets, which are procured with foreign currency. c) Industry risk: The Organizations namely Bakhrabad Gas Systems Ltd., Jalalabad Gas T & D System Ltd., Paschimanchal Gas Co. Ltd. and Titas Gas Transmission & Distribution Co. Ltd. are actively engaged in gas distribution business, but each of those enjoys monopoly in their franchise area. Since the Company enjoys monopoly in its franchise area and no chance of entering new organizations to its area of operation in near future. So, industry risk does not arise for the company. d) Market & Technology related risk: Technology is related to transmission, distribution, quantity measuring and maintaining of required temperature and pressure of gas. For protecting the transmission and distribution line from corrosion primer coating, tape rapping and cathodic protection are used.

6 Management of the Company is always aware of any technological changes in the field and has endeavor for adoption of new technology gradually according to a well-designed strategy. On the other hand for ensuring safety and security of pipe line and other related machinery and equipments skilled and equipped personnel are engaged. e) Potential or existing Government regulations: The business activities of the Company is fully controlled by policies, rules and regulations framed by Government that is, policies related to gas price fixation, demand & supply and distribution is fully under the control of Government. Government policies in this regard may impact business operation of TGTDCL. The Company is entrusted with the responsibility of transmitting and distributing of gas to its operational area under Government policies and also monitored by Government. So, all existing or potential government regulations are generally in favor of the gas transmitting and distributing companies. Any unfavorable rules, regulations, policies adopted by Government will equally impact the all-existing ventures of gas industry. However, the Company's Board was vested with full autonomy and exercise all financial powers as per Company's Act-1994 vide the government gazette notification no. wer vlm (cövmd-2)/m vm-2/2002 (Ask -2) 787 dated 5 November, f) Potential changes in global or national policies: The performance of the company may be affected due to unavoidable circumstances both in Bangladesh and worldwide, as such political turmoil, war, terrorism; political unrest in the country may adversely affect the economy in general. The risk due to changes in global or national policies is beyond control for any company. Yet the company is well prepared for adoption of policies and preventive measures as and when required to reduce the risk. g) Non-operating history: There is no history of non-operation in case of TGTDCL. To overcome short supply and low pressure problem of gas the Company has taken various long term and mid term measures.

7 h) Operational Risk: I) System loss: System loss is an operational problem for the Company, which impacts the profitability of the Company. In the year system loss was 5.26%, which is still beyond desired level. Various measures including a project named System Loss Reduction Plan financed by ADB have been taken to reduce system loss. In the Year the System Loss has been reduced to 5.26% compared to 6.47% of previous year and current position of system loss is about 4%. Among the measures- maintaining area wise input-output & fixing responsibilities, RMS sealing, calibration and replacement of old meters, intensive vigilance, disconnection of unauthorized gas connection by task force, speedy disposal of court cases, installation of internal pipeline above the ground of industrial, commercial customers etc. are mentionable. ii) Revenue Collection: Some customers of the Company delay in making payment of gas bill habitually and or for their financial problems. The Company has been taking continuous endeavor to overcome this situation with skill manpower. Gas connections are disconnected for three months overdue. In case of non-collection after disconnection of the gas line legal procedures are being taken.