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TRANSCRIPT
Analyst Presentation
9M 2012 Financial Results
November 12th, 2012
www.gasplus.it
INDEX
1 1
INDEX
MARKET SCENARIO
HIGHLIGHTS
FINANCIAL RESULTS
MARKET SCENARIO
Euro – Us Dollar Exchange rate
2
Market
TTF Gas Price
Brent Price Eni Gas Release Price
HIGHLIGHTS
3 3
Fin. Overview
Best 9 months EBITDA and EBIT performance achieved since 2006 IPO
Positive performances (E&P - Ebitda +19,3%) and progress of the
development projects
Gas Production lower than expected, mainly due to interruption of two
Third Parties facilities
Strong Net Financial Position reduction due to working capital
reduction and the cash flow generated by all the business units
Expected 2012 EBITDA target in line with outlook
FINANCIAL RESULTS
4 4
Fin. Overview
9 M 2012 Economic results
Total revenue decrease driven by the new strategy of the Group that reduced the gas portfolio to leverage
more on the equity gas and long term transit contract (supply side) and focus on the more profitable
segments (sales side)
All the economic margins grew strongly thanks to positive contribution of all Group Business Units
EBITDA +147.8% vs. 9 M 2011. This enhancement is mainly attributable to the positive contribution of the
BU E&P and to the redefinition of the activities of the Commercial Gas Asset (with a smaller but more
profitable portfolio)
9 M 2012 – Group P&L
Group (M€) 9M 12 9M 11 % Change
Total Revenues 200.9 559.1 -64.1%
Operating costs 150.6 538.8 -72.0%
EBITDA 50.3 20.3 147.8%
EBIT 32.1 1.5 2,040.0%
EBT 21.1 (8.1) 360.5%
Net Result 11.8 (10.4) 213.5%
EPS (€) 0.3 (0.2) 213.5%
30.0 0.7
- 1.5
- 7.0
9M11 EBITDA D&A Financialcharges
Taxes 9M12
7.6
- 0.4
22.3 0.5
9M11 E&P Network Commercialgas area
Other 9M12
E&P Network Commercial gas area Other
4.4
47.0
39.4
4.0
-1.1
-22.4 -0.6 -0.1
5
FINANCIAL RESULTS Fin. Overview
Net Profit evolution (M€)
9M 2012 Consolidated results
EBITDA breakdown by BU (M€)
20.3 50.3
20.3
50.3
Group EBITDA evolution (M€)
-10.4
11,8
9M11 9M12
Best 9M EBITDA achieved since 2006 IPO
Net profit increase driven by the positive
EBITDA performance
FINANCIAL RESULTS
6
Fin. Overview
September 30, 2012 – Group Balance Sheet
Further reduction of Net Financial Debt due to a reduction of working capital financing requirements and
cash flow generated by the Group.
Improvement and significant reduction of D/E ratio (0.68) due to reduction of NFD and positive 9 M result
Group (M€)
September 30,
2012
December 31,
2011
%
Change
Inventories 35.0 24.5 42.8%
Receivables 51.5 130.7 -60.6%
Payables (32.7) (50.8) 35.6%
Other working Credits/Debits (9.8) 3.6 na
Non current Assets 507.1 513.5 -1.3%
Taxes, Abandonment, Severance and Other provision (212.0) (215.8) 1.8%
Net invested capital 339.1 405.8 -16.4%
Net Financial Debt 138.1 212.9 -35.1%
of which long term 139.2 142.8 -47.4%
of which short term -1.1 70.0 -92.9%
Equity 201.0 193.0 4.2%
Total Sources 339.1 405.8 -16.4%
FINANCIAL RESULTS
7
Fin. Overview
Breakdown of NFP (M€)
Breakdown of acquisition financing by duration (M€) Breakdown of working capital financing by duration (M€)
* includes interests; **includes a quota of the IRS fair value
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
31 Dec 2010 31 Dec 2011 30 Sep 2012
Vendor Loan 2017*
ML Term Loan - Baloon 2016**
ML Term Loan - Amortizing2012-2016**
USFIN financing (31 Dec 2013)
Bridge loan 2011
-20,0
-10,0
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
Revolving 2011 -2016
Revolving 2011
Self liquidating credit line
Overdraft and others
-50,0
-
50,0
100,0
150,0
200,0
250,0
300,0
31 Dec 2010 31 Dec 2011 30 Sep 2012
Acquisition financing Working capital financing
31 Dec 2010 31 Dec 2011 30 Sep 2012
250.6
212.9
138.1
175.2
145.7 146.4
75.4
67.2
-8.2
75.4
67.2
-8.2
175.2 145.2 146.4
150.0
25.2
26.1 26.7
35.0 35.0
40.5 41.0
44.1 43.7
44.0 35.0
31.1 29.7
4.9 0.3 2.5
-13.1
8 8
FINANCIAL RESULTS: E&P E&P
9M 2012 P&L - E&P contribution
Positive EBITDA performance (+19.3% over prior year) due to a favorable price scenario
Gas production decline due to:
• Natural depletion
• Extraordinary issues regarding a pipeline and a gas treatment plant operated by Third Parties
It is important to highlight that about 40% of the total Group hydrocarbon reserves are related to fields that
are going to be developed
Colle San Giovanni (Gas Plus Italiana 50%, ENI operator) production started in July
Romanian activities:
• Studies for the development of Ana/Doina are underway
• 2012 exploration program consists in drilling two wells: Ioana-1 in the Midia Block and Eugenia-1 in the Pelican Block
• Ioana-1, drilled in October, reported results below expectations in our view due to the well positioning and drilling activities but
confirms the exploration potential of the Midia Block
• Further important perspectives due to a relevant discovery in a close area explored by ExxonMobil/OMV Petrom JV.
E&P (M€) 9M12 9M11 % Change
Hydrocarbon Production (MScme) 185.1 210.7 -12.1%
Exploration Capex 1.5 1.7 -11.8%
Development Capex 8.9 6.5 36.9%
EBITDA 47.0 39.4 19.3%
9 9
FINANCIAL RESULTS: Commercial Gas Asset Commercial
Gas Asset
9 M 2012 P&L - Commercial Gas Asset Contribution
9 9
Retail (M€) 9M12 9M11 % Change
Sales (MScm) 159.8 443.5 -64.0%
Residential 69.5 70.8 -1.8%
Small Business/Multipod 31.5 86.8 -63.8%
Industrial 58.8 285.9 -79.4%
EBITDA 1.0 0.4 +150%
S&S (M€) 9M12 9M11 % Change
Supply (MScm) 476.4 1,812.5 -73.7%
Sales (MScm) 446.9 1,861.9 -76.0%
Captive retail 163.1 440.2 -62.9%
Third retail 181.0 592,6 -69.5%
Balancing / Trading* 102.8 829.1 -87.6%
EBITDA (1.0) (22.8) +96%
*Trading activity has been performed until the end of Gas year 2010/11
S&S EBITDA reflected the typical business seasonal trend, but in any case demonstrated the significant
improvement achieved in portfolio restructuring and commodities risk monitoring; expectation of positive
results on 2012 yearly basis
BU Retail achieved positive gross margin results although the captive segments are not adequately
profitable compared to capital needs and not captive segments need to reach a better trade-off between
margin and costs
10 10
FINANCIAL RESULTS: N&T and Storage
9 M 2012 P&L – N&T Contribution
San Benedetto (AP)
(49% GPS)
Sinarca (CB)
(60% GPS)
Poggiofiorito (CH)
(100% GPS)
Network
Higher distributed volumes (+4.1%)
Current tariff model will be extended to 2013.
Constant monitoring and evaluation of the new ATEM
tenders with the goal, at least, to maintain the same
perimeter of activities and the same level of
profitability
Transportation
6.33 MScm transported
42 km fully owned transportation network
SAN BENEDETTO (49% GPS - Operator): EIA
and NOF procedure (Law334/99) ongoing
POGGIOFIORITO (100%GPS): EIA and NOF
procedure (Law 334/99) ongoing
SINARCA PROJECT (60% GPS - Operator):
Final authorization and technical assessment
Storage projects:
Network and
Transportation Storage
N&T (M€) 9M12 9M11 % Change
Distributed Volumes (MScm) 132.3 127.1 4.1%
Direct end users (#K) 89.5 89.2 0.3%
Pipeline (Km) 1,476.2 1,470.0 0.4%
EBITDA 4.0 4.4 -9,0%
COMPANY PROFILE
11 11
Annex
Shareholding as at 30 Sep 2012 Share information
N. of share: 44,909,620
Share price as of 30/09/2012: € 4.81
Share price as of 09/11/2012: € 4.886
Mkt cap 09/11/2012 : € 219.4 million
Italian Stock Exchange – segment MTA
Own shares as of 30/09/2012: 1,375,155
Share price performance
Group structure Management
Cinzia Triunfo
Achille Capelli
Sandro Mezzi
Davide Usberti
Germano Rossi
Bruno de Vinck
Chief Executive Officer
Chief Financial Officer
Director of Network Business Unit
Planning, Development & General Affairs Director,
CEO of Padana Energia
Director of International E&P Branch
Regulated activity - Network
Director of Italian E&P Branch
Fabio Guastella Head of Supply & Sales Business Unit
100% 100% 100%
Società
Padana
Energia SpA
Gas Plus S.p.A.
Gas Plus
Italiana Srl
Gas Plus
Vendite Srl
Retail E&P S&S
Gas Plus
International
BV
100%
Reggente
SpA
81,5%
100% 100%
100% 97%
85%
Gas Plus
Storage Srl
Gas Plus
Reti Srl
Gas Plus
Energia Srl
Gas Plus
Salso Srl
Gas Plus
Trasporto Srl
Other Storage Network and
Transportation
BU Commercial Asset
Business
Unit
Legal
Entities
Gianmaria Viscardi Network Chief Executive Officer
Giovanni Dell’Orto Chairman of International E&P Branch
12 12
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.