9M 2010 Financial Results

Transcription

1 9M 2010 Financial Results Milan, 15 th November

2 Market Scenario General Brent Price Eni Gas Release Price Euro Us Dollar Exchange rate TTF Gas Price 1

3 9M10 Results Highlights Revenues M (+12.8% vs. 9M09), EBITDA 19.1 M (-28.7% vs. 9M09), EBIT 4.0 M (-69.9% vs. 9M09), Net Profit 0.3 M (-96.5% vs. 9M09). Increase in volumes sold (+32.3%); decrease in gas produced (-5.5%) and in selling prices (-13.6%) EBITDA decrease due to lower E&P results and S&S profitability because of contingent situation in the gas market. Net Financial Debt (39.7M) improved vs 1H10 in spite of acquisition down payment Italian+Int. E&P Domestic Production: MSmc (-5.5% vs. 9M09) due to normal production decrease (-5.5%); lower selling price than 9M09 (-9.8%) Oct 19, 2010: acquisition of Società Padana Energia SpA from ENI, company with a mining portfolio of 11 exploitation concession, 2 concession requests and 1 research permission. Storage Sinarca: in 4Q10, expected closing of the application for the issue of the Authorization of Feasibilty (L334/99); San Benedetto: Sept 2010, approval of VIA and first Conferenza dei Servizi. Sales 1,088.7 MScm (+32.3% vs 9M09); S&S Retail Negative operating profitability, due to contingent market situation generating higher purchase than selling prices especially in 3Q10 Volume of gas sold : MScm (+53.9% vs 9M09), due to increase in industrial customers and colder winter temperatures; Ebitda increase due to sale formula revision and higher tariff for residential customers Transport Network Distributed volumes: MSmc (+12.8% vs 9M09); Increase of Ebitda (+7.9% vs. 9M09) due to new tariff mechanism (act 159/08); Expected reclassification of additional 11Km of own transport network. 2

4 9M10 Results Fin. Overview (Euro M) % % % change 9M10 on sales 9M09 on sales Total Revenues 312,4 276,9 12,8% Operating Costs 293,4 93,9% 250,2 90,4% 17,2% EBITDA 19,1 6,1% 26,7 9,6% (28,7%) EBIT 4,0 1,3% 13,0 4,7% (68,8%) Profit before Tax 2,5 0,8% 14,6 5,3% (82,7%) Net Profit 0,3 0,1% 8,3 3,0% (96,5%) EPS 0,01 0, Net Debt 39,7 6,4 Equity 214,0 216,8 Fixed assets 238,1 230,5 3

5 9M10 Financial Data Fin. Overview EBITDA by Business Unit EBIT by Business Unit 9M09 9M10 9M09 9M10 Balance Sheet Net Debt and Cash Flow 30 September December 2009 Change Inventories ,0% Receivables ,1% Payables (79.493) (52.334) 51,9% Other working credits/debts (28.298) (6.108) 363,3% Net working capital (18,8%) Non current assets ,2% Tax, Abandonment, Severance and other provisions (59.528) (62.001) (4,0%) Net Invested Capital (2,9%) Net financial Debt ,3% Equity (3,5%) Total Sources (2,9%) 4

6 E&P newly acquired Padana Energia E&P PADANA ENERGIA + GAS PLUS ITALIANA Società Padana Energia S.p.A. acquired from ENI the 19 th October 2010 for a fixed price of M Acquisition financed through bridge loan (150M ) and Vendor Loan (25M ); bridge loan to be refinanced through Senior Corporate Loan (100M ) and proceeds from capital increase (50M ) Cash flows generated in 2010 will be charged to the buyer, profit & loss from Oct 19 The mining portfolio of Padana includes 11 exploitation concessions, 2 concessions requests and 1 research permission; The amount of 2P reserves are of nearby 3.2 billion of Smce as per ENI 12/31/2009. The existing E&P business of Gas Plus has corresponding reserves for 2.7 billion of 5

7 E&P E&P Padana (*) 9M10 9M10 existing E&P business 9M09 % Gas Gross Production (MScme) 74,4 147,3 155,7-5,4% Exploration Capex Italy (M ) - 3,2 1, ,9% Exploration Capex International (M ) - 2,2 1,2 + 83,3% Development Capex Italy (M ) 3,2 8,6 9,3-7,5% EBITDA (M ) 10,3 21,5 26,6-19,2% (*) source: ENI Padana Geographical and operational Integration with the existing E&P activity Development Projects addressed to large-sized : - Estimated Time to market: Capex Plan estimated in 90M - Additional estimate production over Smce/d (vs actual production Smce/d) Exploration potential and possible conversion into storage fields 6 Existing E&P business Low decrease in production ( - 5,4 %) compared with the reduction of the domestic exploration capex plan as effect of the new acquisition. Lower selling price compared to the previous year ( - 10%) but in recovery in 4 Q. 10. Optimization of Opex and G&A after Padana integration. Further domestic capex focused on selected developments on existing fields and best exploration projects. Further exploration opportunities in Romania licenses, but delays in development.. Unsuccessful drilling of Monkwell (UK North sea)

8 International Activities E&P UK Block P001-Monkwell unsuccessful in IIQ10. The partners decided to relinquish the licence NL 3D seismic on Blocks E15c, E13, D9 made in 3Q10. Poland Approved request of 3D seismic on Block 106, planned in 4Q10 Romania (15% ) Resolution by Sterling (op) of FIA with Melrose (dev op). Gross resources of approx 1.4 BSmc. Expected delays in development Romania 7

9 Storage Storage SINARCA PROJECT (60% GPS) SAN BENEDETTO (49% GPS) In 4Q10, expected closing of the application for the issue of the Authorization of Feasibility (L. 334/99) Assignment of EPIC underway Gas Plus is operator in all the projects San Benedetto (49% GPS) Working Gas : 522 MSmc Poggiofiorito (100% GPS) Working Gas : 157 MSmc Sinarca (60% GPS) Working Gas : 324 MSmc Approval of VIA and first Conferenza dei Servizi in September Total Working Gas 1,003 MSmc Total Gas Plus Share 607 MSmc Forecasted in the 4Q10 the first meeting of the VIA Commission Projects Schedule POGGIOFIORITO (100%GPS) Sinarca Ongoing the setting up of the EIA study. San Benedetto Poggiofiorto

10 Supply & Sales - Retail S&S - Retail S&S 9M10 9M09 % Supply (MSmc) 1.148,6 896,0 + 28,2% Sales (MSmc) 1.088,7 822,9 + 32,3% Captive 382,7 251,6 + 52,1% Third retail 348,1 171, ,4% Trading 357,9 399,3-10,4% EBITDA (M ) (6,0) (1,1) + 445,5% Retail 9M10 9M09 % Sales (MSmc) 378,8 246, ,9% Residential 83,4 80,8 + 3,2% Small Business/Multipod 75,4 47,8 + 57,7% Industrial 220,0 117,6 + 87,1% EBITDA (M ) 1,1 (0,8) n.a. The BU increased the overall portfolio over summer, in order to be able to handle larger quantities of production gas and an higher winter demand on next gas year of the Retail BU. Losses on forward sales made in summer to optimize transportation rights and storage use, with an average selling price lower than purchase price, caused mainly by the price increase related with Transitgas interruption. Expected margin improvement in 4Q10 and 1Q11, due to lower seasonal spot price also before the restart of Transitgas. Increase in volumes and number of customers for other than residential customers (sb/multipod/industrial) Positive gross margin in all segments, due to the revised price formulas, despite of the strong competition New billing system fully operational for all segments of customers Conservative provisions for bad debt due to the negative macroeconomic situation All spot indexed contracts allow for price fixing 9

11 Network & Transport Network and Transport 9M10 9M09 % Distributed volumes (MSmc) 142,5 126,3 + 12,8% Direct end users (#k) 88,1 90,2-2,3% Pipeline (km) 1452,0 1500,0-3,2% EBITDA (M ) 4,1 3,8 + 7,9% Increase of Revenues and Ebitda due to new tariff system (act AEEG #159/08) and colder than average winter temperature Definitive tariffs issued at the end of July 10 Continuous contacts with the municipalities, referring to the expiring concessions: succesful bid for 12y renewal of Vigolzone (PC) concession, unsuccesful for S.Agostino (FE); temporary renewal for other two expiring concessions Fair value agreed with some municipalities confirms Gas Plus industrial recovery value approach: reached agreements with Leno (BS) and Offanengo (CR), for a fair value higher than RAB (Regulatory Asset Based) Increase in Gas Plus transportation own network (11 km of pipelines ) in Vigolzone (PC) and Ponte dell Olio (PC), previously included in distribution network, expected in 4Q10 10

12 Company Profile Annex Shareholding Share information Share price performance N. of share: 44,909,620 Price as of 11/10/10: 4.64 per share Mkt capitalization: 208M Italian Stock Exchange segment MTA Own shares as of 11/10/2010: 1,375,155 Group structure Management Davide Usberti Paolo Tedesco Cinzia Triunfo Sandro Mezzi * Davide Cornaggia Achille Capelli Others groups executive Giovanni Dell Orto Gianmaria Viscardi Chief Executive Officer Chief Financial Officer and Investor Relator Director General Affairs, Responsible Storage Business Unit and CEO of Padana Energia Director Exploration & Production Business Unit Director of Supply & Sales and Retail Business Units Director of Network Business Unit Chairman International Exploration & Production Network Chief Executive Officer 11 * ad interim

13 Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gas Plus. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Gas Plus to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Gas Plus and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this presentation. Neither Gas Plus nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated,implied or inferred from the forward-looking statements contained in this presentation. 12