Full Year 2017 Financial Results Analyst Presentation. Abu Dhabi National Energy Company PJSC (TAQA) Abu Dhabi, 22 March 2018

Transcription

1 Full Year 2017 Financial Results Analyst Presentation Abu Dhabi National Energy Company PJSC (TAQA) Abu Dhabi, 22 March 2018

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herein is preliminary as of the date hereof, supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered.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, forward-looking 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. 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 1

3 Full Year Results Summary Increase in total revenues to AED 16.7 bn for full year % YOY growth - Primarily driven by higher commodity prices Stable underlying operations - Steady performance in Power & Water - First payments received for Iraq oil deliveries - Oil & Gas production impacted by combination of natural decline, prior capex cuts and North Sea maintenance programme - Net Income of AED 160mn for full year Total liquidity stands at AED 15.4 bn - Total debt reduced by AED 1.9 bn in the year Note: Net Income refers to Profit attributable to common shareholders 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 2

4 Power & Water Stable operational and financial performance continues Continued strong operational performance - Total power generation 89,846GWh - Technical availability at 92.1% - Water volumes stable 249,469 MIG Stable underlying financials driven by long-term contracted nature of business - Revenues stable at AED 11.2bn - EBITDA stable at AED 6.7bn Power generation (GWh) 100,000 80,000 60,000 40,000 20,000 0 Water desalination (MIG) 300, , , , ,000 50,000 0 FY 2015 FY 2016 FY 2017 UAE International FY 2015 FY 2016 FY /22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 3

5 Commodity price environment Improving oil prices, continued volatility in the Canadian gas market TAQA realised oil price up 27% vs 2016 TAQA realised gas price up 25% vs 2016 Oil prices ($/bbl) Gas prices ($/mmbtu) Brent WTI Henry Hub AECO NBP 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 4

6 Oil & Gas Efficiencies sustained Continued efficiency improvements from Oil & Gas - Revenues up 12% to AED 5.5bn; EBITDA up 24% to AED 2.3bn - Operating netbacks per barrel increased in North America and Europe compared to FY 2016 Unit operating costs ($/boe) Continued payments received in line with schedule for production at Atrush in Iraq - Gross project capacity: 30,000 bbl/d - Production ramped up to capacity by end of 2017 FY 2015 FY 2016 FY 2017 Europe North America Average production (mboe/d) Global production at 126,200 boed - Production declined 8% YOY impacted by combination of factors - North America at 77,800 boed; Europe at 46,500 boed; Iraq at 1,800 boed FY 2015 FY 2016 FY 2017 Europe North America Iraq 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 5

7 Capital expenditure Increased investment focused on core operations 2017 Capex up 24% to AED 1.4bn - Increase in capex in line with commodity price recovery, to protect and sustain the value of global assets - Follows several years of deep cuts - Self-funded by cash generated by the business Capex (AED billion) 2018 targeted capital expenditure of AED 2.1bn FY 2015 FY 2016 FY /22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 6

8 Financial performance Strong cash flow and EBITDA growth Revenues (AED billion) EBITDA (AED billion) FY FY FY FY Net Income/(Loss) (AED billion)* Free cash flow** (AED billion) FY FY FY FY *Profit attributable to common shareholders **Free Cash Flows represents Operating less Investing Cash Flows 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 7

9 Liquidity and key ratios Strong liquidity levels and continued debt reduction Robust liquidity position - Cash and cash equivalents of AED 4.2bn - Undrawn credit facilities of AED 11.2bn Improving ratios - Recovering ratios following improved financial performance - AED 1.9bn reduction in total debt - AED 324m reduction in cash interest paid Corporate Debt Maturity Profile ($ million) 3,500 3,000 2,500 2,000 1,500 1, Key ratios JPY Loan Undrawn RCF Undrawn Bridge Loan Drawn RCF *as at 31 December Net debt / net capital 85% 85% EBITDA/Interest 2.2x 2.5x Net Debt/EBITDA 8.0x 7.3x 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 8

10 Concluding remarks Efficiencies sustainably embedded across organization Increasing investment in core assets to maximise cash flow Steady progress on deleveraging Well positioned as commodity prices rise 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 9

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12 Appendix

13 Operational Data Power & Water KPIs UAE domestic plants Power generation (GWh) 66,652 64,064 Water desalination (MIG) 257, ,469 Technical availability (%) International plants* Power generation (GWh) 26,594 25,782 Technical availability (%) * Includes power generation numbers from all international plants 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 12

14 Operational Data Oil & Gas Production North America Crude oil (mbbls/day) Natural gas (mmcf/day) Natural gas liquids (mboe/day) Average (mboe/day) Europe Crude oil (mbbls/day) Natural gas (mmcf/day) Natural gas liquids (mboe/day) Average (mboe/day) Iraq Crude oil (mbbls/day) Natural gas (mmcf/day) - - Natural gas liquids (mboe/day) - - Average (mboe/day) Total Production Crude Oil (mbbls/day) Natural Gas (mmcf/day) Natural Gas Liquids (mboe/day) Average (mboe/day) /22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 13

15 Operational Data Oil & Gas Pricing North America Crude oil ($/bbl) Natural gas ($/mcf) Natural gas liquids ($/boe) Average ($/boe) Europe Crude oil ($/bbl) Natural gas ($/mcf) Natural gas liquids ($/boe) Average ($/boe) Iraq Crude oil ($/bbl) Natural gas ($/mcf) - - Natural gas liquids ($/boe) - - Average ($/boe) /22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 14

16 Operational Data Oil & Gas Netbacks North America Gross price ($/boe) Royalties ($/boe) Net sales price ($/boe) Operating costs ($/boe) Operating netback ($/boe) Europe* Gross price ($/boe) Royalties ($/boe) - - Net sales price ($/boe) Operating costs ($/boe) Operating netback ($/boe) * Includes upstream data only 3/22/2018 Abu Dhabi National Energy Company PJSC (TAQA) 15