H UPDATE. PT Perusahaan Gas Negara (Persero) Tbk

Transcription

1 H UPDATE PT Perusahaan Gas Negara (Persero) Tbk

2 Disclaimer: The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-looking statements that reflect the Company s current views with respect to future events and financial performance. These views are based on assumptions subject to various risk. No assurance can be given that further events will occur, that projections will be achieved, or that the Company s assumptions are correct. Actual results may differ materially from those projected.

3 Background & Overview

4 INDONESIAN GAS MARKET OVERVIEW Indonesia has proven gas reserves TCF (P1+P2) Underserved Domestic Gas Demand (Geographical Constraints) Source: Director General of Oil and Gas (2009) 1

5 INDONESIA GAS DEMAND PLN GAS DEMAND 2500 PLNdemandforgasis1,856MMScfdin 2009 and 2,126 MMSCFD in Demand Supply Gap PLN can secure contract for 996 MMSCFD in Major suppliers are PGN, Medco, Pertamina and BP West Java Supply shortages will worsen unless new supplies can be obtained Source : PLN Primary Energy Unit INDUSTRY (non power) GAS DEMAND 3,000 2,500 2,000 1,500 1, Source : Ministry of Industry 20 May 2009 Fertilizers Petrochem Paper Metal Ceramics Others Total Ministry of Industry cited a major shortage of gas supply for industries Considers natural gas to be a strategic and non renewable resource that must be optimized to meet domestic demand Cll Calls for the construction of an LNG terminal in North Sumatera to resolve the gas shortage 2

6 POTENTIAL SHIFT FROM OIL TO GAS Competitive gas price relative to High Speed Diesel (HSD) Demand for gas exceeds supply PGN Gas Price and HSD Price US$/MMBTU Crude Oil Price Pi US$/barrel HSD Unsubsidized Price (USD/MMBTU) PGN Average Sales Price (USD/MMBTU) Crude Oil (USD/Barrel) /1/ /22/2006 6/13/2008 8/18/2009 3

7 RECENTLY ISSUED REGULATIONS Government Decree No 30/2009 States: the prices of fuel and natural gas are to be dt determined d and/or regulated ltdby the Government. t Supersedes article 72 of the Government Decree or Peraturan Pemerintah number 36 Year 2004 on Downstream Oil and Gas Commercial Activity. Ministerial Decree No 21/2008 Determination of the selling price of fuel and natural gas Clarification of fuel into two categories: Specific Fuel widely used fuels which, for reasons related to type and users, require government subsidy. General Fuel fuels not in the Specific Fuel category and, therefore not subsidized. 4

8 PGN AT A GLANCE A leader in the transmission and distribution of natural gas in Indonesia Operates more than 5,600 km transmission and distribution pipelines pp Delivered more than 1,500 MMScf of natural gas per day in 6M 2009 The only integrated transmission and distribution pipeline operator Blue chip in Market capitalization of more than IDR79.7 trillion (4 Sept 09) Indonesia s capital market Marketcapitalization of more thanidr79 7 trillion (4 Sept 09) Top 6 market capitalization in Indonesia s Stock Exchange (4 Sept 09) 5

9 SHAREHOLDER COMPOSITION 56.5% owned by the Government of Indonesia, 43.5% owned by public investors (mostly foreign institutional investors) Public GOI 43.5% 56.5%* Note: *including golden/dwiwarna share Remaining Government Project Fund of IDR 28.2 billion will be converted to equity pending governmental decree 6

10 CORPORATE STRUCTURE PT Perusahaan Gas Negara (Persero) Tbk Distribution Transmission SBU I (Western Part of Java and South Sumatera) SBU Transmission SSWJ SBU II (EasternPart of Java) SBU III (Northern Part of Sumatera) PT Transgasindo* Grissik Duri and Grissik Singapore *Shareholders composition: - PGN 60% - Transasia 40% (Petronas, ConocoPhillips, SPC and Talisman) 7

11 Operational Review & Performance

12 BUSINESS MODEL Strong market position in natural gas distribution and transmission Upstrea am Gas Purchase Gas Transportation PGN Distribution PGN Transmission Gas Sales Agreement (Sales price) Gas Transportation Agreement (Toll fee) Industry Commercial Household Off taker 8

13 OUR TRANSMISSION NETWORK Completion of the SSWJ Gas Transmission Pipeline enables PGN to operate transmission pipelines with a total length of 2,157 km PLN Medan Capacity = 80 MMSCFD Grissik Singapore Capacity = 364 MMSCFD Medan Duri Grissik Pagardewa Labuhan Maringgai Muara Bekasi Rawamaju (SSWJ II) Capacity = 440 MMSCFD KALIMANTAN Grissik Duri Capacity = 425 MMSCFD Grissik Pagardewa Jakarta JAWA SULAWESI PAPUA Pagardewa Labuhan Maringgai Cilegon (SSWJ I) Capacity = 530 MMSCFD 9

14 OUR TRANSMISSION BUSINESS Gas Transportation Agreement (GTA) % Long term contract (USD) Minimum ship or pay volumes Tarif regulated based on 12% IRR and 80% utilization rate Grissik Duri USD0.62/ MMBTU Grissik Singapore USD0.69/ MMBTU % 88% 86% 84% 82% 80% M06 03M07 06M07 09M07 12M07 03M08 06M08 09M08 12M08 03M09 06M09 78% 76% 74% 72% Volume (MMScfd) Utilization Rate 10

15 OUR DISTRIBUTION NETWORK Extensive distribution network covering 13 cities in Indonesia with capacity of 1005 MMSCFD The network and facilities are managed by three SBUs West Java (SBU I), East Java (SBU II) and Sumatra (SBU III) Medan SBU III Capacity = 46 MMSCFD Batam SBU III Capacity = 75 MMSCFD Pekanbaru SBU III Capacity = 65 MMSCFD Palembang SBU I Capacity = 4 MMSCFD KALIMANTAN SULAWESI Surabaya & Surrounding SBU II Capacity = 230 MMSCFD PAPUA Jakarta, Bogor, Banten, Bekasi & Kerawang SBU I Capacity = 577 MMSCFD JAWA Cirebon SBU I Capacity = 8 MMSCFD 11

16 OUR DISTRIBUTION BUSINESS Distribution Sale of Gas to End User Gas Sales Agreements (GSA) Minimum pay volumes Price in US$ & IDR % 70% 60% Selling Price (per MMBTU) Industry/Commercial USD5.49 Household USD6.62 6M09 Customer Consumption 1.51% % 40% 30% 20% 98.23% 0.26% M06 03M07 06M07 09M07 12M07 03M08 06M08 09M08 12M08 03M09 06M09 10% 0% Household Commercial Industry Volume (MMScfd) UtilizationRate 12

17 STRONG DISTRIBUTION CUSTOMER BASE As of June 30, 2009, sales volume of industrial customers was 743 MMScfd or equal to 98% of PGN s sales 40.00% 35.00% 38.61% H H % 25.00% 21.60% 20.00% 16.54% 16.63% 15.00% 13.24% 10.00% 5.00% 0.00% 9.54% 8.11% 7.05% 9.03% 8.43% 8.63% 6.03% 6.49% 5.20% 5.02% 5.14% 3.85% 3.06% 3.99% 1.96% 1.19% 0.13% 0.51% 0.03% 13

18 Financial Review & Performance

19 6M09 RESULTS (YOY COMPARISON) Consolidated Revenues IDR9.01 T 54.6% Consolidated EBITDA IDR4.76 T 59.3% Consolidated Net Profit IDR3.19 T 135% Transmission Flow 763 MMSCFD 2.7% Distribution Flow 756 MMSCFD 37.2% 14

20 IDR billion Revenue 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1,101 5,531 1,208 7,594 FINANCIAL HIGHLIGHTS 1,519 11, ,122 IDR billion EBITDA and EBIT 7,000 6,000 5,000 4,000 44% 47% 50% 51% 53% 6,375 3,000 4, ,988 2,929 4,657 2, ,082 1,000 2,393 2,305 8, * M08* 6M09 Distribution ib ti Transmission i Fiber Optic ID DR billion Net Income 3,200 2,800 2,400 2,000 1,600 1, , * M08* 6M09 EBITDA EBIT EBITDA Margin 1,893 1, ,355 60% 40% 20% 3,930 0% 3, * M08* 6M09 *note: as restated 20% 15

21 10,000 INCOME STATEMENT (six month ended June 30, 2009) FX Gain/Loss 900 9,000 lion 600 8,000 IDR bill ,000 6, M08* 6M09 IDR billion 5,000 4,000 3,000 5,826 2,000 1,000 9,005 4,760 2,988 2,305 1,137 1,411 3,930 3,186 1,355 Revenue EBITDA Operating Exp. Operating Inc. Net Income 6M08* 6M09 note: as restated Exchange rate: 30 June 2008 USD 1 = IDR 9,225 & JPY 1 = IDR June 2009 USD 1 = IDR 10,225 & JPY 1 = IDR

22 CONSOLIDATED BALANCE SHEET (as of June 30, 2009) (IDR billion) Jun 30, 2008* Jun 30, 2009 % Current Assets 5,209 9, Non Current Assets 16,984 18,525 Total Assets 22,193 28, Current Liabilities 3,493 4, Non Current Liabilities Minority Interest In Net Assets of a Subsidiary Government Project Funds 10, ,218 1, (78) Total Equity 6,990 8, Total Liabilities And Shareholders Equity 22,193 28, Financial ratios as June 30, 2009: EBITDA/Interest expense = 16x Net Debt/Equity = 0.8x Gross Debt/Equity = 1.4x 9 note: as restated 17

23 DEBT COMPOSITION (as of June 30, 2009) Long-term debt amounting to USD billion Mostly long dated/maturity loans from Developmental Banks JPY 40.1% Float 29 2% 29.2% USD 59 9% 59.9% Fixed 70.8% Effective Cost of Debt of Around 4.22% 18

24 Outlook & Recent Update

25 RECENT UPDATE Government Project Fund Grissik Singapore Transmission pipeline Dividend iid d Convertionof Rp. 99 billion Government Project Fund into common stock outstanding (May 2009) Improvement 23 km pipeline at Kuala Tungkal Panaran section (June 2009) Declaration ofcash dividend to shareholders ofrp. 1 trillion (June 2009) Establishment of subsidiary in engineering service (August PT PGAS Solution 2009) GTA PLN Belawan MOU Signing with EEES Transportation of gas from Kambuna field to PLN Belawan for 8 years (August 2009) LNG supply from Sengkang with amount of MTPA for 5 years (September 2009) 19

26 PLN CONTRACTS PLN Muara Tawar Volume 50 MMScfd g on Julyy 2007 Contract signed Contract length of 5 years PLN Muara Tawar Volume 150 MMScfd (firm) Volume 100 MMScfd (interruptible) Contract C signed i d on April A il 2008 Contract length of 3 years PLN Tanjung Priok Volume 30 MMScfd Contract signed on September 2008 Contract length of 3 years PLN Cilegon Volume 30 MMScfd Contract signed on September 2008 Contract length of 10 years 20

27 WEST JAVA DISTRIBUTION EXPANSION The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005 The project aims to distribute the gas from SSWJ and is expected to reach significant milestone by 2010 Palembang Lampung Banten Bogor Bekasi Karawang Cirebon PGN is expanding its distribution network in Jakarta, Bekasi, Cikampek, Bogor, Banten and the surrounding areas. The expansion started t in 2005 and is scheduled to reach completion in The Project will expand the distribution network in West Java by 463 km in line with increasing gas volume transported from South Sumatra. After completion of West Java Distribution expansion PGN total distribution capacity will reach +1,500 MMScfd. The project is funded by World Bank via IBRD (USD 80 million) and PGN s internal cash flow. 21

28 GUIDANCE FOR 2009 Gas flow projection Transmission: flat Distribution: MMScfd Capex Commitment tin 2009: $ million Unpaid settlement / carry over from 2008: $ million 22

29 FUTURE PROJECTS LNG Receiving Terminal Pilotproject CNG Pondok Ungu Integrated CBM development with pipeline network Other utilizationof of natural gas 23

30 THANK YOU Contact: Investor Relations PT Perusahaan Gas Negara (Persero) Tbk Jl. K H Zainul Arifin No. 20, Jakarta Ph: Fax: