pgn business presentation - public expose (28 nov 2012)

8/10/2019 PGN Business Presentation - Public Expose (28 Nov 2012)

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PT Perusahaan Gas Negara (Persero) TbkInvestor Summit Presentation

November 2012 Update


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Disclaimer:

The information contained in our presentation is intended solely for your personal

reference. In addition, such information contains projections and forwardlooking

statements that reflect the Companys current views with respect to future events and

financial performance. These views are based on assumptions subject to various risk. No

assurance can be given that further events will occur, that projections will be achieved, or

that the Companys assumptions are correct. Actual results may differ materially from

those projected.

2


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OurBusinessModel

3

Producer

Transporter

Distributor GSA

GTA Off taker

Industrial,

Commercial,

Residential

Dominantplayer

in

domestic

natural

gas

transmissionanddistribution


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ShareholdingStructure

4

43.03%Public

56.96%Governmentof

Republic

Indonesia

*) Total:24,241,508,196shares

Public

Shareincludes

1,850,000

shares

of

Treasury

Stock


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SubsidiariesandAffiliates

5

Transasia

PipelineCompany 40%

60%

PetronasInternationalCorporation

Ltd.(35%)

ConocoIndonesiaHoldingLtd.(35%)

SPCIndoPipelineCo.Ltd.(15%)

TalismanTransgasindoLtd.(15%)

40%

60%PGN

Pertamina

60%

40%PGN

PTTransportasi

GasIndonesia

PT PGASTelekomunikasi Nusantara

PT PGASSolution

PTNusantara

Regas

PT SakaEnergi

Indonesia

PT GagasEnergi

Indonesia

PT PGNLNG

Indonesia

60% 100% 100% 40% 99% 99% 99%


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Minister of State Own Enterprise

To act as Government of Republic of Indonesia shareholder proxy.

Minister of Energy and Mineral ResourcesTo formulate national, implementation and technical policies in

energy and mineral resources sector.

Downstream Oil and Gas Regulator

To regulate and to supervise downstream oil and gas activities

(processing, transportation, storage and trading).

KeyStakeholders

6

KEMENTERIAN

BADANUSAHAMILIKNEGARA


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RelatedRegulations

7

Minister of Energy and Mineral Resources Decree No. 19/2009

Set the structure of natural gas trading, transmission and distribution

business and licensing. Provides special rights and licensing for dedicated downstream. Set pricing mechanism for piped natural gas:

o Residential regulated by BPH Migas.

o Special users determined by Minister of Energy.

o General users determined by the companies.

Minister of Energy and Mineral Resources Decree No. 3/2010

Upstream has a mandate to serve domestic demand by 25% of natural gas

production. Domestic gas utilization priorities for national oil and gas production,

fertilizer, electricity and industrial uses.

Exemption for existing Gas Sales & Purchase Agreements, Heads ofAgreement, Memoranda of Understanding or negotiations in progress.


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DemandforNaturalGas2012

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No Subsidy of Fuel for the Industries

Subsidies for industries revoked in 2005.

Pricing and Efficiencies

Significant price and efficiencies benefits by converting to

natural gas, as well as environmental concerns.

Conversion of Power Plants

Pentup demand from the conversion of existing dual fired

power plants pending availability of gas.

Demand from the industries

Require natural gas to compete in the era of Free Trade

Agreement.

2,411

995

813

394285 270

116

TotalDemand

:5,284MMSCFD

Source:MinistryofIndustryRepublicofIndonesia&PLN

[MM

SCFD]


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StrategytoFulfillDemand

9

Obtain access to new gas supplies

Actively seeking new gas supplies, starting from the oneslocated in the proximity of existing infrastructure. Seek to obtain more allocation from the imposed domestic

market obligations to new production and contracts, but will

require new infrastructure to be built.

Develop existing and build new infrastructure

Expand existing distribution and transmission capacity. Plan for intermode gas transportation such as CNG and LNG.

Aim for nonconventional sources

Plan and anticipate the nonconventional sources such as CoalBed Methane.


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30.68

31.51

29.26

27.79

22.21

17.89

17.71

14.04

10.38

8.45

Kerosene

Gasoline88Ron

HSD(Diesel)

MDF/IDO(Diesel)

MFO

LPG

Bulk

LPG 50Kg

LPG 12 Kg

(Subsidized)

LPG 3Kg

(Subsidized)

NaturalGas

USD/MMBtu

OpportunityinPriceAdvantage

10

PGNAverage

SellingPrice

Note:

FuelpricePertamina asof1stOctober2012

ExchangerateUSD1=IDR 9,200

10

0

5

10

15

20

25

30

35

40

[USD/MMBTU]

ComparisonBetweenHSDvs NaturalGas

HSDUnsubsidizedPrice

NaturalGasPGN'sPrice


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DistributionPricingScheme

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Minister of Energy and Mineral Resources Decree No. 19

Year 2009

Allows pricing for general users to be determined by theCompanies.

General users are nonsubsidized industries and power plants.

Pricing Considerations

Demand and Supply Dynamics

Affordability Reasonable Margin

Intended to stimulate more supplies to meet the growing

demands

Implementation

PGN has taken the effort to communicate and educate theend users market on the merit of new pricing flexibility.

Implement new pricing scheme with regionalized anddifferentiated pricing on nationwide basis from 1 April 2010.

CostofGasCostofGas

Transport&

Distribution

Costs

Transport&

Distribution

Costs

InternalCostInternalCost

Margin/

Spread

Margin/

Spread

Gas

SellingPrice

Gas

SellingPrice


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TransmissionPipelineFacilitiesand

DistributionArea

12

Duri

KALIMANTAN

Terbanggi Besar St.Pagardewa St.

Panaran St.

BojonegaraSt.

Grissik ReceivingSt.

Legend:

SouthSumatera WestJavaTransmission

Pipeline(SSWJ)

Grissik Duri transmissionpipeline

PLN Medan

Strategic

Business

Unit

(SBU)

I

StrategicBusinessUnit(SBU)II

StrategicBusinessUnit(SBU)III

Grissik Singaporetransmissionpipeline

Pagardewa CompressorSt.

Muara Bekasi St.

Labuhan Maringgai St.

Wampu -Belawan transmission pipeline


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SourcesofGas

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PertiwiNusantaraResources

(gasex

Salamander

Energy)

Inti Daya Latu Prima

(gasexJambiMerang)

Pertamina EP

RegionJawa

Pertamina EP

RegionSumatera

CorridorPSC

MedcoE&PIndonesia

South&CentralSumatra PSC

Lapindo Brantas,Inc

Brantas PSC

PHEWMO

WestMaduraOffshorePSC

Pertamina EP

FieldP.Susu

Indonesia

Pertamina TACEllipse

Jatirarangon PSC

MaduraOffshore

PSC

MedcoE&P

Lematang

Lematang PSC

HuskyOil

MaduraStraitPSC

BBG&WNE,IKD,

Sadikun(gasexTSB)

GagasEnergi

(gasexPHEWMO)

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WeServeAllSegments

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INDUSTRIES AND

POWERPLANTS

97%oftotalvolumes

1,245Customers

COMMERCIALS

&SME

2.7%oftotalvolumes

1,658Customers

HOUSEHOLDS


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43%

15%

11%

8%

6%5%

4% 4%3%

1%

PowerPlant Chemical Ceramic Food FabricatedMetal Others Paper Basic

Metal Textile Cement

Diversified Industrial Customer

Domestic industrial consumption 9M-2012

was 777 MMScfd or 97% of PGNs sales

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15


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GrowingOperationalPerformance

16

767

836

845 844

878

2009 2010 2011 9M11 9M12

792

824

795

785

801

2009 2010 2011 9M11 9M12

Transmission Distribution

(MMSCFD)

(MMSCFD)

17


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Interim Consolidated Statements of

Comprehensive Income 9M 2012

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InUSD Mio 9M

2011 9M

2012 %

Revenues 1,635.6 1,827.8 12

Cost ofRevenues 619.1 746.9 21

OperatingIncome 698.2 768.8 10

EBITDA 846.1 904.3 7

NetIncome 533.8 621.3 16

17

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Interim Consolidated Statements of

Financial Position

InUSDMio Jan1,2011/Dec

31,2010 Dec31,2011 30 Sep,2012

CurrentAssets

NonCurrentAssets1,5421,998

1,5071,893

1,7261,886

TotalAssets 3,540 3,400 3,612

CurrentLiabilities

NonCurrent

Liabilities

TotalEquity

449

1,4401,651

274

1,2471,879

330

1,2022,080

TotalLiabilitiesAndShareholdersEquity 3,540 3,400 3,612

Key Ratios 9M 11 9M 12

DebttoEquityRatio(x) 0.58 0.49

Netdebt/Equity(x)

EBITDA/Interestexpense(x) 38.7 54.9

Returnon

Investment

(%) 24.9 25.1

18

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DebtCompositionasof9M2012

19

JPY

72.2%

USD

27.8%

Fixed

82%

Float

18%

Longtermdebtamountingto

USD867 million

Mostlylong

dated/maturity

loans

fromDevelopmentalBanks

EffectiveCostof

DebtofAround 1.9%


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RecentUpdates

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Event Detail of Event

October 17, 2012

Amendmentandrestatement

agreementwithHoegh andRekayasaIndonesia

Strengthening the sinergy between PGN and Hoegh Rekayasa Industri to

follow up the relocation of FSRF in Medan to Lampung

August 30, 2012

Price increase of gas supply from major

suppliers

Application of two phases price increase for upstream supply

Starting September 1, 2012 :

ConocoPhillips increased its selling price from $ 1.85/mmbtu to $ 4.36/mmbtu

Pertamina increased its selling price from $ 2.2/mmtu to $ 4.42/mmbtu

Starting April 1, 2013 :

ConocoPhillips selling price will go up from $ 4.36/mmtu to $ 5.44/mmbtu

Pertaminas selling price will go up from $ 4.42/mmbtu to $ 5.33/mmbtu

June 28, 2012

Price adjustment of PGNs gas selling

price to customers

PGN will increase its selling price by 50% to customers in West Java

The increase will be implemented in stages: 35% starting September 2012

and 15% starting April 2013

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PlanforNewLNGInfrastructure

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Donggi

Senoro

Block

Mahakam

Block Tangguh

Block

Masela

Block

ExistingLNGLiquefactionPlant

ExistingLNG

Receiving

Terminal

Existingtransmissionpipelines(PGNinvolvement)

(planned)

(planned)

Arun

Block

PlannedLNGLiquefactionPlant

PlannedLNG

Receiving

Terminal

(PGNInvolvement)

(PGNInvolvement)

(Revitalisation)


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FloatingLNGTerminalOverview

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LNGReceivingTerminals

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West Java Lampung

Location JakartaBay LabuhanMaringgai

Capacity(MTPA) 3MTPA 23 MTPA

Customers Power plants,industry

Owner PGN(40%)Pertamina (60%) PGN

Scope FSRU, jetty, subseaand

overland

pipelines


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FSRUProject WestJava

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FSRUProjects RecentDevelopment

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West Java:

Gas has been source with Mahakam PSC to the ammount of

11.75 MT of LNG supply over 11 years and back

to

back HoA withPLN as the offtaker.

FSRU Nusantara Regas1 has been positioning at Jakarta Bay andoperating starting June 2012.

LNG supplies is coming from Bontang.

Lampung:

Advance survey and Environment Impact Analysis Document. Target of project completion in 2014. Principal permit from local authority for project location. Amendment and restatement agreement with Hoegh on October

17, 2012.


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Thank You

Contact:

Investor Relations

PT Perusahaan Gas Negara (Persero) Tbk

Jl. K H Zainul Arifin No. 20, Jakarta-11140,

Indonesia

Ph: +62 21 6334838 Fax: +62 21 6331632

http://www.pgn.co.id

Thank You

Contact:

Investor Relations

PT Perusahaan Gas Negara (Persero) Tbk

Jl. K H Zainul Arifin No. 20, Jakarta-11140,

Indonesia

Ph: +62 21 6334838 Fax: +62 21 6331632

http://www.pgn.co.id

pgn business presentation - public expose (28 nov 2012)

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