QUARTERLY RESULTS. March 2018

Transcription

1 QUARTERLY RESULTS March 2018

2 CORPORATE ASPECTS

3 General Results Relevant information by SBG (Figures as of March 2018) SBG Transportation SBG Distribution * Gas pipeline: 3,089 kilometers Regasification capacity : 400 MPCD Users: 4,07 MM 8% (38% country) connections Communities served: 791 6% Accumulated users : % Sale of Energy: 146 GWh -6% Transport capacity : 975,1 MPCD Transported volume : 534,2 MPCD Installed networks: kms 3% Sale of gas: MM m3-7% Brilla Users: 2,51 MM 19% Portfolio: MM 14% Losses: 15,63% Installed networks: kms 2% %Revenues %EBITDA 36% 54% 10% 53% 41% 6% CONSOLIDATED REVENUES MARCH 2018: $ MM 8% (Exec. 93%) CONSOLIDATED EBITDA ADJUSTED MARCH 2018: $ MM 0,1% (Exec. 118%) NET INCOME MARCH 2018: $ MM 5% (Exec. 135%) (18 companies; 2 countries; employees** ) * Includes Gases del Caribe, Cálidda, Efigas and Gases de La Guajira / ** Contractors not included

4 Promigas SBG Transportation Results

5 Promigas Transportation of Natural Gas Atlantic Coast Thermoelectric Sector: Consumption of thermal customers increases due to attacks against the Costa-Interior interconnection lines. Industrial Sector: Increase in volumes due to the commercialization of gas to thermals by larger shipments. At the end of the third quarter of the year, Promigas reached: Pipeline length: Km Transport Capacity: 738,3 Mpcd (92% Contracted) Compression Capacity: 47,8 Khp Volumen Transportado por Sectores (MPCD) Ene - Mar Ene - Mar Var % Termoeléctrico 143,1 172,2 20% Industrial 128,3 140,9 10% Distribuidor 46,0 46,7 2% GNCV 12,3 10,8-13% TOTAL 329,7 370,6 12% Portfolio PROMIORIENTE Var % Ene - Mar Ene - Mar Volumen Tranportado (MPCD) 66,0 61,3-7,1% LaThe diminution decreasedel ofvolume Promioriente s transported transported de Promioriente volume issedue debt to a menores lower consumption consumos de of the la Refinería Barranca de refinery, Barranca, owneddebypropiedad Ecopetrol, de Ecopetrol, becausepor of maintenance mantenimientos andyoperational aspectos operativos aspects. de la misma TRANSMETANO Var % Ene - Mar Ene - Mar Volumen Tranportado (MPCD) 50,6 50,5-0,2% Se presenta estabilidad en los consumos promedio de 2018, frente a los delthere año anterior. is stability in the average consumption of 2018, compared to the previous year. (*) Includes volumes sections Gibraltar - Bucaramanga and Bucaramanga - Payoa - Barrancabermeja

6 Promigas SBG Transportation: Relevant Results In Promigas, 2 transport agreements were signed with Canacol - An agreement of 20 Mpcd and another one of 10 Mpcd which came into operation in December / 17 and January / 18 respectively. In February 2018, there was the highest transported volume (425.1 Mpcd) since April 2010 due to interruption of the interior - Costa electric transmission lines: - February 2 to 17 Cerro Porce Circuit. - February Copey Ocaña Circuit. PROMIORIENTE: issued ordinary bonds for $ 205,000 MM, with an overdemand of resources of 1.8 times (requests for $ 369,760 million). Fitch Ratings granted long-term national rating 'AA + (col)' and short term in 'F1 + (col). PROMISOL: Began development of the construction projects for the expansion of the Promigas transportation system in 100 Mpcd from Jobo. SPEC: Regasified 40 days (2,902 Mpc), mainly due to the blasting of STN electrical interconnection lines and scheduled maintenance. Fitch Ratings maintains the BBB- (international scale) rating for 8 consecutive years for IDR issues in local and foreign currency, highlighting a strong market position, geographic diversification, low risk profile for investors, and a stable and predictable income structure. Likewise, the Promigas rating is maintained in in AAA (national scale) for 17 consecutive years with a stable outlook. SBG Transportation: Projects in progress Company Project Schedule CAPEX Promigas Canacol Pipeline (100 MPCD) Begining of operation April 2019 US$ 250 MM

7 Promigas SBG Transportation : Regulatory Aspects Tariff Methodology Promigas has submitted proposals to the tariff methodology set forth in Resolution 090 /2016, through meetings with the CREG on key issues: WACC, valuation of assets, system stamp, useful life, infrastructure development, among others, in order to guarantee a better tariff scheme for the natural gas transportation activity. The final resolution is expected for the second semester of Supply Plan- UPME Promigas presented to UPME and CREG the investment plan required for the implementation of the Bidirectional Barranquilla - Ballena project, which is classified by the planning unit as a priority project to guarantee the supply and reliability of natural gas in Colombia. Investment approval is expected in the coming months.

8 Promigas SBG Distribution Results

9 Promigas SBG Distribution: Relevant Results Colombia As of March 2018, the related distribution companies connected 36,182 new users, reaching an accumulated of 3.5 million (38% of the country). The volume of gas sold up to the first quarter of 2018 was 824 MM3. 46 new populations were benefited rom the natural gas service, reaching a total of 769 attended. During the month of March, GdO issued ordinary bonds for $ 300,000 MM, obtaining an over-demand of resources of 1.21 times. Peru Cálidda In the first quarter of the year, 35,319 new users were connected, reaching 612,132 homes served in Lima and El Callao, distributing 1,127 MM3 of natural gas as of March Quavii: 21-year concession to distribute gas in northern Peru POC (Commercial Start-up) on December 7, FIS (Supply Start Date) on April 6, 2018.

10 Promigas SBG Distribution: Regulatory Aspects Methodology of gas distribution Colombia In response to the requests made by the distributors, the Regulatory Commission published resolutions 174, 197 and 018 with transitory distribution charges applicable to Surtigas, GdO and Gases del Caribe - Promigas respectively. Peru Cálidda filed the tariff file in October OSINERGMIN presented distribution charge for the period , in analysis by the company.

11 Promigas SBG Distribution : Electrical Energy REGULATORY ASPECTS The definitive methodology for the remuneration of the distribution activity was published by CREG Resolution 015/2018. Publication of the formats for sending the tariff file is pending, for which there is a period of 90 days once published. RELEVANT FACTS As of March 2018, CEO connected 3,090 new users, reaching an accumulated of 370,348. For the first quarter of the year, the company's energy sales reached 146 GWh (Δ6%) The company continues to make great efforts to reduce energy losses, achieving an indicator of commercial losses of 15.63% as of March. The sustainable project of solar energy to Promigas is in execution: 180KWh, contributing more than 10% of the consumption of the headquarters. Begining of operations: May 2018.

12 Promigas Relevant Events FNB - Brilla Brilla reached 2.71 million credits granted to Colombian families for their good record in the payment of natural gas service. With recognitions from the World Bank, the G-20, Financial Times and IFC, BRILLA is a successful example of inclusive business with the base of the pyramid in Colombia. Placement of $ 106,121 million as of March 2018, for a historical accumulated of $ 2.47 billion and a consolidated portfolio of $ 640,000 million. 98,591 users benefited from January to March 2018, and 2,509,965 from the beginning of the program, distributed as follows: Stratum 1: 38%, Stratum 2: 38%, Stratum 3: 18%, Other: 6%; reflecting the important social benefit of this program. The portfolio continues to exhibit an adequate behavior, which ensures the sustainability of the program in the long term.

13 Corporate Facts Distribution of profits II Semester 2017 In the meeting held on March 20, 2018 dividends were decreed for $ 254,205 million, distributed as follows: Dividends in cash at the rate of $ 224 pesos per share on outstanding shares, as follows: Ordinaries: $ 17 pesos per share ($ 115,754 MM) (payable in 6 monthly installments of $ 17 pesos per share as of April 2018). Extraordinary: $ 122 pesos per share ($ 138,451 MM) (payable in one installment in April 2018). With this amount, 100% of the profit was payed after IFRS adjustments.

14 Corporate Facts Achievements and Recognitions The Promigas Foundation and its initiative Watta Ka> II was the winner of the III REDEAmérica transformers award. The Chamber of Commerce of Bogotá and the Global Compact Network Colombia awarded the OSD Recognition to Good Practices in Sustainable Development, both to Promigas (Biodiversity Care), and to the Promigas Foundation (Inclusive Quality Education). With the above, both initiatives will compete for the Regional Recognition ODS Latin America and the Caribbean Chapter. Promigas was selected as one of the "25 companies that contribute the most", an initiative organized by Semana publications and that every year seeks to identify companies that do things well, that grow and are productive without damaging the environment and providing growth opportunities to their employees and suppliers and that are correct in their relationships and obligations to the State. Promigas signed a cooperation agreement with the Royal Academy of Engineering of the United Kingdom, to jointly promote research in engineering. Research internships will be financed through the Research and Innovation Center for Energy and Gas (CIIEG) created by Promigas in In January 2018, the three winning proposals of the 2017 Innovation Initiatives contest were annouced, in which 271 employees from 7 of the portfolio companies participated. The projects start execution this year, and have as potential impacts the reduction of environmental impacts of the business, increase in transportation and distribution revenues, improvement of the competitiveness of vehicular natural gas and reduction of losses in electricity distribution systems in areas of difficult management

15 Financial Statements

16 Promigas Balance Sheet Assets Petty Cash and Investments: Increases due to payment of intercompany credit of Promioriente and Gases de Occidente and dividends received from related companies. Other current assets: increase due to higher dividends receivable from subsidiaries and associates Other assets: Decrease in payment of intercompany credit of Promioriente ($ 68,300 MM) and Gases de Occidente ($ 103,700 MM). Additionally, investments decrease due to dividends decreed by related companies.. Cifras en Millones de Pesos Dic -17 Mar-18 Var % Caja e Inversiones % Otros Activos Corrientes % PP&E % Activos Concesionados % Activo Financiero % Otros Activos % Total Activos % Pasivos Corrientes % Pasivo Largo Plazo % Total Pasivos % Patrimonio % Total Pasivos + Patrimonio % Liabilities % Current Liabilities: Increase due to higher dividends decreed in the meeting held on March % -1% Long Term Liabilities: Decrease due to transfer to current portion of outstanding bonds Activos Pasivos Patrimonio Dic-17 Mar-18

17 Promigas Income Statement Operating income : Increases due to more dispatches as a result of the of attacks on the STN (National Transmission System) and higher volumes transported due to the entry of new transport contracts with Canacol. Costs and expenses: Higher labor expenses due to an increase in the personnel plant. Equity Method: Decrease in Equity Method of Surtigas and Quavii. Depreciation and Amortization: Decreases by revision and calculation of the life of the compressors based on their use factor. Cifras en Millones de Pesos Mar-17 Mar-18 Var % Ingresos Operacionales % Costos y Gastos % Método de Participación % EBITDA % Depreciación y Amortización % Utilidad Operacional % Ingresos Activo Financiero % Ingresos Financieros % Gastos Financieros % Otros, Neto (783) (3.648) -366% Utilidad Antes de Impuesto % Impuesto de Renta % Utilidad Neta % % % % Financial Assets Income: Increase by recalculation with the real operational and macroeconomic variables. Financial income: Lower return for payment of intercompany loans of Promioriente and Gases de Occidente Financial Expenses: Decrease by lower debt rate as of March Ingresos EBITDA Utilidad Neta Other, Net: Decrease in expense due to difference in exchange of account receivable from Cálidda for dividends decreed in dollars. Mar-17 Mar-18

18 Promigas Consolidated Income Statement Cifras en Millones de Pesos Mar-17 Mar-18 Var % Ingresos Operacionales % Método de Participación % Ingresos Const. Concesiones % Costos y Gastos % Costos Const. Concesiones % EBITDA % Depreciación y Amortización % Utilidad Operacional % Activo Financiero % Ingresos Financieros % Gastos Financieros % Otros, Neto (1.227) -113% Utilidad Antes de Impuesto % Impuesto de Renta % Interés Minoritario % Utilidad Neta % % % 5% Ingresos EBITDA Utilidad Neta Mar-17 Mar-18 Revenues: Increase mainly due to more dispatches as a result of attacks to the STN (National Transmission System) and higher volumes transported by Promigas due to the entry of new Canacol capacity; increase in CEO marketing revenue; growth in rights by greater connections and internal Surtigas. Equity Method: Increase of Gases del Caribe due to an increase in the dividends and participations account of Efigas. Costs and Expenses: Higher costs were recorded during the first quarter mainly by Surtigas due to an increase in marketing costs and duties. Additionally, there were higher expenses due to portfolio provision because of changes in methodology from loss incurred to expected loss (IFRS 9). Financial Assets: Increase by recalculation with the real operating and macroeconomic variables. Financial Expenses: Lower debt rate due to a decrease in Libor, DTF and CPI. Others, Net: Decrease in expense due to difference in exchange for account receivable from Cálidda for dividends decreed in dollars.

19 Annexes

20 Cash Flow Statement - Promigas Cifras en Millones de Pesos Marzo 2018 Utilidad Neta Depreciaciones, Amortizaciones y Provisiones Método de Participacion (97.333) Dividendos Recibidos Cambios en Activos/Pasivos Flujo Operacional Inversión en Bienes de Capital Flujo de Caja Libre Desembolsos de Créditos - Amortizaciones ( ) Inversiones Permanentes - Flujo de Caja Accionistas Dividendos Pagados (57.862) Flujo de Caja Neto Saldo Inicial Saldo Final

21 Consolidated Balance Sheet Cifras en Millones de Pesos Dic-17 Mar-18 Var % Caja e Inversiones % Otros Activos Corrientes % PP&E % Activos Concesionados % Activo Financiero % Otros Activos Largo Plazo % Total Activos % Pasivo Corriente % Pasivo Largo Plazo % Total Pasivos % Patrimonio % Total Pasivos + Patrimonio % % % % Activos Pasivos Patrimonio Dic-17 Mar-18

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