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ENGIE ENERGÍA PERU S.A.
Results 4Q 2019
Within the framework of COP25 held
in Madrid, in December, it was
announced an important step in our
zero carbon transition: the closure of
our coal power plan Ilo 21 (135 MW)
by 2022.
2
KEY MESSAGES
Improving results despite the still challenging environment
- Total energy generation (SEIN) grew 4.2% in 4Q 2019 compared to 4Q 2018. As of December, EEP
maintained a leading position in the sector, accounting for 19.8% of the total capacity.
- Number of free clients in 4Q 2019 increased by 17.6%, to a total of 79 free clients compared to 4Q 2018.
- 479MW of new contracts and existing expansions signed as of December 2019.
4
The market
Financial results
(1) FY = Full Year
(2) Total Net Debt = Financial Debt + IFRS16 - Cash
- The announcement of the closure of Ilo21 by 2022 implied an impairment of the assets by 25.7MUSD,
which is the main variation of our results.
- FY(1) 2019 EBITDA reached 250.5MUSD, a 10% decrease compared to FY 2018, while Net Result reached
104.2MUSD, a 4% decrease compared to FY 2018. Not considering non recurring events, EBITDA was
270.4 MUSD (+3% vs 2018) and Net Result was 119.1 MUSD (+27% vs 2018).
- 4Q 2019 EBITDA reached 33.3MUSD, a 53% decrease compared to 4Q 2018, while Net Result in this
quarter reached 9.3MUSD, a 65% decrease compared to 4Q 2018
- Financial debt decreased to 612MUSD a reduction of 16.2% versus December 2018
- Total Net Debt(2) / EBITDA (FY): 2.1x @ Dec/2019
73 72 63 71 81 70 6633
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2018 2019
EBITDA 4Q Net Result 4Q Financial Debt
731612
4Q 4Q
2018 2019
-16%
30 30 22 26 36 30 299
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2018 2019
MUSDMUSD MUSD
Total Net Debt / EBITDA (FY)
2.4x 2.1x
4Q 4Q
2018 2019
-12%
-53%
-65%
279 251
FY FY
2018 2019
EBITDA FY Net Result FY
108 104
FY FY
2018 2019
MUSD MUSD
-10% -4%
5
GWh∆ 4Q
2019 vs 20182019 vs 2018
Yuncán HPP 232 11% 239 11% -3% 891 10% 890 10% 0%
Quitaracsa HPP 140 6% 138 6% 2% 556 6% 519 6% 7%
Chilca1 CCGT 1,401 64% 1,208 56% 16% 4,593 53% 3,404 40% 35%
Chilca2 CCGT 95 4% 148 7% -36% 413 5% 370 4% 12%
Ilo21 (Coal) 9 0% 0 0% n.a. 36 0% 43 1% -16%
Ilo31 (Cold Reserve) 0 0% 0 0% 3% 6 0% 3 0% 78%
Ilo41 (Nodo) 1 0% 0 0% 125% 4 0% 18 0% -80%
Intipampa 33 0% 33 2% -1% 106 1% 87 1% 21%
Auxiliaries and losses -59 -3% -40 -2% 47% -136 -2% -144 -2% -5%
NET GENERATION 1,853 84% 1,726 81% 7% 6,468 75% 5,190 61% 25%
COES: NET 341 16% 414 19% -18% 2,133 25% 3,333 39% -36%
CLIENTS DEMAND 2,194 100% 2,140 100% 3% 8,600 100% 8,523 100% 1%
4Q 2019 20194Q 2018 2018
Higher Thermal generation in 4Q 2019 compared to 4Q 2018 and net buyer position in
the spot market
H Hydro T Thermal S Solar
6
H
H
T
T
T
T
T
S
* Restatement by application of IFRS** Does not include commercial penalty fees and impairment of assets*** Total Debt = Financial Debt + IFRS16
7
Results for 2019 presented strong growth compared to 2018 if we don't consider non
recurrent events: +27% in terms of Net Results
(MUSD) 4Q 2019 4Q 2018* ∆ 4Q FY 2019 FY 2018* ∆ FY
Revenues 134.7 136.1 -1.0% 536.4 520.9 3.0%
EBITDA 33.3 70.6 -52.8% 250.5 278.7 -10.1%
Net Result 9.3 26.5 -64.7% 104.2 108.3 -3.7%
Recurrent EBITDA** 59.0 61.0 -3.2% 270.4 261.5 3.4%
Recurrent Net Result** 27.5 18.8 46.3% 119.1 93.5 27.4%
Financial Debt 612.4 730.6 -16.2% 612.4 730.6 -16.2%
Total Debt*** 629.6 751.8 -16.3% 629.6 751.8 -16.3%
Total Net Debt 537.7 677.2 -20.6% 537.7 677.2 -20.6%
Total Net Debt / EBITDA 12m 2.1x 2.4x -11.7% 2.1x 2.4x -11.7%
EBITDA 2019 Net Result 2019
+5.8MUSD +3.3MUSD
-25.7MUSD -18.1MUSD
-19.9MUSD -14.8MUSD
As a result of these non-recurrent events, 2019 recurrent EBITDA reached 270.4MUSD
and Net recurrent Result attained 119.1MUSD
1. Non-core inventory and assets sale
8
Total non recurrent events
2. Impairment of inventory and assets
Ilo21
FINANCIAL UPDATE
EBITDA 2019 vs. 2018: -28.2 MUSD (+9.0 MUSD recurrent)
10
OPEX,
SG&A,
otherSufficiency
capacity
costsAverage
realized
monomic
prices (net)Renegotiations
fuel prices
other
Other
operating
income
Average
Energy
purchase
price
+278.7 -17.3
+261.5+8.6 +0.1 +0.3 +270.4 -19.9
+250.5
EBITDA
2018Recurrent
EBITDA
2019
EBITDA
2019
Recurrent
EBITDA
2018
- 10.1%
Marginal cost
reduction mainly by
Positive impact by
NG unavailability in
2018
By effectIn MUSD
Other Income/
ExpensesEnergy MarginNon-Recurrent
Events2018: i) negative
effect mainly due
to commercial
dispute resolution
and reversal of
provisions
(‐17.3MUSD)
+3.4%
Non-Recurrent
Events2019: i) negative
effect explained
by impairment of
Ilo21 and ii)
positive effect
mainly due to
sales of inventory
and non-core
assets
EBITDA decrease mainly explained by non-recurrent events in 2018 and 2019, including impairment
of Ilo21
EBITDA decreased mainly explained by non-recurrent events in 2018 and 2019,
including impairment of Ilo21
NET RESULT 2019 vs. 2018: -4.1 MUSD (+25.6 MUSD recurrent)
11
OPEX,
SG&A,
otherSufficiency
capacity
costsAverage
realized
monomic
prices (net)Renegotiations
fuel prices
other
Other
operating
income
Average
Energy
purchase
price
+108.3 -14.8
+93.5
+9.0+7.3
+8.2+3.6 -2.5 +119.1 -14.8
+104.2
Net Result
2018
Recurrent
Net Result
2019
Net Result
2019Recurrent
Net Result
2018
- 3.7%
By effectIn MUSD
+27.4%
Taxeffect mainly
explained by
higher recurrent
EBT
Depreciation
&
Amortizationuseful life
change
Net Financial
ExpensesLower
outstanding debt
Foreign
Exchange
Non-
Recurrent
Events2018: i)
EBITDA
(‐17.3MUSD)
and ii) Tax
related to non
recurrent
events
(+2.4MUSD)
EBITDA
Non-
Recurrent
Events2019: i)
EBITDA
(‐19.9MUSD)
and ii) Tax
related to non
recurrent
events
(+5.1MUSD)
2019 Net Result with a strong increase compared to 2018 if we don’t consider non recurrent events
EBITDA 4Q 2019 vs. 2018: -37.3 MUSD (-2.0 MUSD recurrent)
12
OPEX,
SG&A,
otherSufficiency
capacity
costsAverage
realized
monomic
prices (net)Renegotiations
fuel prices
other
Other
operating
income
Average
Energy
purchase
price
+70.6 -9.6
+61.0 -1.7 -4.4 +4.1 +59.0 -25.7
+33.3
EBITDA
4Q 2018Recurrent
EBITDA
4Q 2019
EBITDA
4Q 2019
Recurrent
EBITDA
4Q 2018
-52.8%
By effectIn MUSD
Non-Recurrent
Events
4Q 2018: effect
mainly due to
commercial
dispute resolution
and reversal of
provisions
(‐9.6MUSD)
-3.2%
Marginal cost
reduction impact by NG
unavailability in
October 2019
Other Income/
ExpensesEnergy Margin
Non-Recurrent
Events4Q 2019:
negative effect
explained by
impairment of
Ilo21
(‐25.7MUSD)
EBITDA decrease mainly explained by Impairment of Ilo21 in 2019 and non-recurrent events of 2018
NET RESULT 4Q 2019 vs. 2018: -17.2 MUSD (+8.7 MUSD recurrent)
13
By effectIn MUSD
OPEX,
SG&A,
otherSufficiency
capacity
costsAverage
realized
monomic
prices (net)Renegotiations
fuel prices
other
Other
operating
income
Average
Energy
purchase
price
+26.5 -7.7
+18.8 -2.0+3.2 -0.7
+4.0
+4.1 +27.5 -18.1
+9.3
Net Result
4Q 2018
Recurrent
Net Result
4Q 2019
Net Result
4Q 2019
Recurrent
Net Result
4Q 2018
-64.7%
+46.3%
Non-
Recurrent
Events2018: i)
EBITDA
(‐9.6MUSD)
and ii) Tax
related to non
recurrent
events
(+1.9MUSD)
EBITDA
Taxeffect mainly
explained by
adjustment of
previous yearDepreciation
&
Amortizationuseful life
change
Net Financial
Expenses
Foreign
Exchange
Non-
Recurrent
Events2019
impairment and
tax of Ilo21
Non-Recurrent events are the major variation for 4Q 2019 Net Result
SOLID FINANCIAL DISCIPLINE
14
OPTIMIZING COSTS, DIVERSIFYING FINANCIAL SOURCES & LIMITING RISKS
612 MUSD
Financial Net Debt / EBITDA Financial Debt Breakdown - As of December 2019
Credit Rating – Nov 2019
AAA.pe
Stable25/11/2019
AAA.pe
Stable27/11/2019
Local capital market as an important partner
• First program for up to 400MUSD started in 2007 with total issuances of
~150MUSD (outstanding ~75MUSD)
• Third program for up to 500MUSD started in 2015:
• 2016 → 1st issuance of 250MPEN @ 7.125% (10 yr)
• 2017 → 2nd issuance of 79MPEN @ 6.0% (7 yr)
• 2017 → 3rd issuance of 251MPEN @ 6.53% (10 yr)
• 2018 → 4th issuance of 230MPEN @ 6.7188% (10 yr)
28%
48%
24%
By Source
Financial Lease Bonds
Corporate Loans
50%50%
By Currency
USD PEN + XCSY
2.4x 2.5x 2.6x2.8x 2.7x
2.4x2.1x 2.2x
1.9x 2.1x
792 800 763 729 711 656 612 617 551 521
327 325 290 256 258 279 287 285 288 251
0
0
0
0
0
0
0
0
0
0
-
1
2
3
4
5
6
3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19
Net Debt/EBITDA Financial Net Debt EBITDA LTM
DEBT PROFILE
15
90 80
1 24
76 76 69 50
99
13
25
10
103
80
51
99
24 25
76 76 79
-
50
100
150
200
2020 2021 2022 2023 2024 2025 2026 2027 2028
MUSD Outstanding debt repayment
Financial leases Bonds 3rd Program Corporate Loans Bonds 1st Program
Constantly reviewing optimization of current debt
SHAREHOLDER RETURN
16
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
80859095
100105110115120125
Indice S&P_BGC Indice S&P_BVL EEP
SHARE PRICE EVOLUTION
13 12 15 20 20 24 31 33
18
11 13 16
18 22
30 19 16 46
24 2531
3842
5449 49
64
30%
30% 31% 30% 31% 30% 38%38%
59%
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018
-
10
20
30
40
50
60
70
80
1st Half 2nd Half Payout
DIVIDENDS PAID
In MUSD
December 31, 2019
EEP: S/ 7,85
1,602
1,187
1,759
2,005 2,075
1,427 1,611
1,351
1,042
1,426
1.5%
2.1% 1.8% 1.9% 2.0%
3.8%
3.1%
3.6%
6.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-
500
1,000
1,500
2,000
Market Cap Dividend Yield %
MARKET CAP & DIVIDEND YIELD
In MUSD
December 31, 2018
EEP: S/ 5,84
Source: Bloomberg
FINANCIAL MARKET DATA – DECEMBER 2019
Number of shares issued 601,307,011
Share price (PEN) – 31/12/2019 7.85
VWAP (3m) – (PEN) 7.62
52 week – high – (PEN) 8.10
52 week – low – (PEN) 5.47
Market Cap (MUSD) 1,426
Enterprise Value (EV) (MUSD) 1,946
EV / EBITDA 7.8x
Price to Book Value (P/B) 1.3x
Price / Earnings ratio (P/E) 13.7x
Daily avg. trading volume (Msh) 0.10
EV: Market Cap + Net Debt
P/B: Market Cap / Book Value of Equity
Credicorp Larrain Kallpa Inteligo Seminario Consensus
Target price 8.1 8.1 8.7 8.5 7.8 8.2
Recommendation Maintain Maintain Buy Buy Buy
Date October
2019
January
2020
October
2019
October
2019
October
2019
EQUITY ANALYST VIEW
17
PE
N /
Sh
are
7.3
7.8
8.3
6.8
2019 Dec
Consensus
5.1%
Upside
BuySell Mantain
8.8
Price as of
December 31th
7.85
18
22 years operating in the country & listed
since 2005
Low Co2 generation base
2nd largest player in the country
Diversified & decentralized portfolio of generation
sources
292.5 km of transmission lines
Natural Gas; 963;
39%
Hydro; 248; 10%
Dual fuel; 1110; 44%
Coal; 135; 5%
Solar; 40; 2%
2,496MW
Chilca Complex
• ChilcaUno – (2006 – 2012)
852MW - Natural Gas
• ChilcaDos – (2016)
111MW - Natural Gas
Ilo Complex
• Ilo41 (2016, Nodo)
610MW - Dual Fuel
• Ilo31 (2013, Cold Reserve)
500MW - Dual Fuel
• Ilo21 (2000)
135MW - Coal
Intipampa (2018)
• Solar 40MW
Yuncán (2005)
• Hydro 134MW
Quitaracsa
(2015)
• Hydro 114MW
Value added customer solutions
Sponsored by a global leader, ENGIE* S.A.
*www.engie.com
ENGIE Energia Peru Overview
19
THANKSThis presentation may contain certain forward-looking statements and information relating to ENGIE Energía Perú S.A. (“Engie Energía Perú” or the “Company”) that reflect the
current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking statements include, without limitation, any statement
that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe”, “anticipate”, “expect”, “envisage”, “will likely
result”, or any other words or phrases of similar meaning. Such statements are subject to a number of significant risks, uncertainties and assumptions. We caution that a number
of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In any event,
neither the Company nor any of its affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business
decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. The Company
does not intend to provide eventual holders of shares with any revised forward-looking statements of analysis of the differences between any forward-looking statements and
actual results. There can be no assurance that the estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be
materially different from such estimates.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without ENGIE
Energía Perú prior written consent.
FOR MORE INFORMATION ABOUT ENGIE ENERGIA PERUTicker: ENGIEC1
+51 1 616 79 79 [email protected]
Marcelo Soares, Chief Financial Officer
Adriana Burneo, Head of Corporate Finance & Investor Relations
Av. República de Panamá 3490, Lima 27, Perú www.engie-energia.pe
Guillermo Diaz, Investor Relations
engie.com