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GRUPO ENERGÍA DE BOGOTA First Quarter 2014 Results

GRUPO ENERGÍA DE BOGOTA First Quarter 2014 Results. May 14th, 2014. Disclaimer.

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GRUPO ENERGÍA DE BOGOTA First Quarter 2014 Results

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  1. GRUPO ENERGÍA DE BOGOTA FirstQuarter 2014 Results May 14th, 2014

  2. Disclaimer The information provided herein is for informational and illustrative purposes only and is not, and does not seek to be, a source of legal or financial advice on any subject. This information does not constitute an offer of any sort and is subject to change without notice. EEB expressly disclaims any responsibility for actions taken or not taken based on this information. EEB does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. EEB is not responsible for any content that may originate with third parties. EEB may have provided, or might provide in the future, information that is inconsistent with the information herein presented.

  3. Table of contents • EEB Overview and Key Updates – 1Q 2014 • Expansion Projects Review • TGI 31.92% stake acquisition • Financial Review – 1Q 2014 • Questions and Answers

  4. EEB OverviewTransportation and distribution of energy with involvement in other areas in the energy sector Electricity Generation 51.5% 2.5% Services Transmission 40.0% 1.8% 40.0% 95.7%* 100%* 100%* 99.9%* Distribution 16.2% 51.5% 51.0%* 82.0%* Transport Gas Natural 68.1%* EEB Movilidad Distribution 15.6% 25.0% 60.0%* 75.0%* * Controlledby EEB

  5. Key Updates • Acquisition of 57.6% of ISAGEN • On February 27th 2014, the BoD confirmed its interest of participating in the bid to acquire 57.6% of Isagen shares offered by the National Government • EEB participation will seek to acquire control.  • EEB is waiting SIC’s decision to the appealing made on February 21. • On March 27th EEB has prequalified to participate in the process • The process is standstill pending on the high courts decision. • Dividends Decreed: • On March 27th, EEB Shareholders’ Meeting approved payment of dividends of COP 590,530 million (USD 300.4 mm), equivalent to 70% of profits generated during 2013. • COP 64.32 per share, three installments: May 27th / June 26th / November 27th • Contugasinaguratedthe ICA regional pipeline • Before the deadline, Contugas, jointly with the Ministry of Energy and Mines and Enbridge Technology Inc., an international inspector, on April 30th, signedthe final act of testing. This is a requirement for the Commercial Operation set forth in concession contract, which certifies that the infrastructure has met the applicable standards. • At the closing of March 2014, the company has over 14,700 customers presently receiving gas (Of the 26,158 total sales in households). • At the end of February 2014, the first large user of natural gas was enabled (Textiles del Valle). Subsequently, a GNV station has been enabled as well as a Paper mill. At the beginning of 2Q 2014, some fishing companies and 2 steelmakers will be connected and serviced (among other large customers).

  6. Key Updates • Sogamoso - Norte - Nueva Esperanza Project • EEB was awarded the Sogamoso-Norte-Nueva Esperanza transmission project whose revenues have a NPV amounting USD 171 mm. • The project includes the construction, operation and maintenance of the Norte substation (500kW) and the transmission line Sogamoso-Norte-Nueva Esperanza (500 kv). • This project is part of the Expansion Plan UPME 2013-2027 • Acquisition of 23.6% of TGI • On December 11th 2013, EEB’s Board of Directors decided to exercise EEB’s Right of First Offer (ROFO) under the Shareholder’s Agreement for the acquisition of a 31.92% stake in TGI, after the end of the lock-up period (3 years). • Offer was submitted on March 25th 2014 • The offer, for a value of USD 880 million, was accepted by The Rohatyn Group (formerly CVCI) on April 3rd 2014, • This transaction, which is part of EEB’s USD 7.5 billion 2013-2017 investment plan will generate positive value for EEB´s shareholders. • Mobility Projects (Electric transportation projects) • On December 11th 2013, EEB’s Board of Directors authorized the Company to participate in electric transportation projects that incorporate an important electrical component , once profitability and convenience are assessed. • On April 14th Empresa de Movilidad de Bogotá SAS ESP was established with the following objectives: • Generation, distribution and sale of electric energy to massive transportation systems of passengers, freight and other modalities. • Planning, preparation of studies and designs, supply, construction, installation, supervision, operation and maintenance of electric and gas infrastructure. • Manage the electrical component and gas projects of massive transportation systems.

  7. 2. ExpansionProjectsReview

  8. Expansion ProjectsControlled Subsidiaries • UnderConstruction1Q 14: • Armenia – 54.9% • Tesalia – 77% • Chivor II Norte – 22% • SVC Tunal – 38.5% Colombia • Natural Gas Transportation • CAPEX Exec. 1T2014: USD 8.75 mm • Construction: Sabana Station: 48.8% • Planification: Regional Syst. (4Q 14) • ElectricityTransmission • CAPEX :Executed 2014: USD 8.88 mm • Total Investment: USD 308 mm • Natural Gas Transportation and Distribution • CAPEX: Executed 2014: USD 25.02 mm • Total inverstmet: USD 358 mm • Under construction:1Q 14: 92%. • Full operation 2Q 14 • Natural Gas Distribution • CAPEX Exec. 1T2014:USD 16.24 mm • Total investment: USD 500 mm • By the end of 2016 it is expected to have 455,000 customers connected. CAPEX Executed 1Q 2014 Controlled Subsidiaries USD 74.49 Millions Perú Guatemala • Electricity Transmission • CAPEX Exec. 1T2014:USD 11.02 mm • Total Investment: USD 376 mm • Started operation (partially): 4Q13 • Under construction:1Q 14: 67%. • Delivered 2015 • Engineering and Services • CAPEX:Executed 2014: USD 0.51 mm • Sugarmills Investment: USD 44 mm • Under construction IQ 14: 34% • Full operation 2014-15

  9. Expansion ProjectsNon Controlled Subsidiaries Colombia • Electricity Distribution • CAPEX Exec. 2014: USD 20.5 mm • Projects executed: • New and existing demand • Quality service and continuity • Control operational risk • Electricity Generation • CAPEX Exec. 2014: USD 102.12 mm • Quimbo Project (400 MW) • Total investment: USD 1,093 mm • Exec 2013: USD 279 mm • Accum. Exec: USD 564.8mm • Execution 1Q 14: 64.8% • Natural Gas Transportation and Distribution • CAPEX Exec. 2014: USD 13.98 mm • Total investment:USD 137 mm • LiquefactionPlant: Invest. USD 34 mm • Pipeline Mamonal – Sincelejo: USD 70 mm • Natural Gas Distribution • CAPEX Exec. 2014: USD 1.66 mm CAPEX Executed 2014 Non Controlled Subsidiaries USD 176.9 Millions Perú • Electricity Transmission • CAPEX Exec. 2014: USD 24.27 mm • Extensions and new concessions; 2013- 2014 • Electricity Transmission • CAPEX Exec 2014: USD 14.38 mm • Extensions and new concessions; 2013 - 2014

  10. 3. TGI’s Stake Acquisition

  11. Acquisition of 23.6% of TGI Phase 1 • Total offer amount: USD 880 million Local Short-termDebt/ Cash on Balance EEB S.A. ESP USD 264* MM Equity USD 264* MM Colombia Spain USD 880 MM** IELAH Inversiones en Energía Latinoamérica Holding S.L. Banks 2019 SPV 1/ Trust USD 616* MM Debt Phase 2 Phase 3 Spain Colombia TGI S.A. ESP IELAH Inversiones en Energía Latinoamérica Holding S.L. SPV 2 TGI SPV 2 SPV 1 * Bank charges and reserve funds are not included. ** Transactionpaymentwill be done to IELAH Luxembourg

  12. Key Updates –Credit Metrics Impacts Total Debt(1)/ EBITDA Total Net Debt(1)/ EBITDA (x) (x) Ratings Threshold: 4.0: 1.0 Cash available will allow to reduce total debt Source: Company information. Note: Ratios calculated in local currency Total Debt Includes MM USD 616 associated to EEB Financed Acquisition • Following EEB's announcement to increase its majority stake on TGI, the actions taken by the rating agencies are as follows: • Banks offers for funding the transaction were already received this week.

  13. 4. FinancialReview– 1Q 2014

  14. Consistent Financial PerformanceConsolidated Results - Operational Operating Profit (+26.8%): Operational costs and expenses showed a moderate increase due to: • TGI operational costs and expenses decreased by 12.1%, mainly due to a decrease in personnel services and general services and fuel gas costs. • Contugas and Cálidda show increases mainly in costs related to fees, maintenance activities in the gas network and the cost of internal installations by third parties Operating Revenues (+20.6%): Growth is explained mainly by increase of revenues in natural gas business: • Calidda: new connections (Residential and Commercial) and higher volume distributed • TGI: tariff scheme in force and CusianaPhase II

  15. EBITDA EvolutionConsolidatedResults At the end of 1Q 2014 operational Profits from controlled subsidiaries participate with 51% of the total adjusted EBITDA, compared to 15% of participation in 2006. Dividends from non-controlled companies participates with the remaining 49% Normalized Dividends: *2010 excludes dividends declared based on an early close of Gas Natural’s, Emgesa’s and Codensa’s financial statements. These figures are included in 2011, when such dividends would normally have been declared.** Anticipated dividends declared by Codensa on first half 2011, were included in 2012.

  16. Consistent Financial PerformanceConsolidated Results – Non Operational Dividends: Increase of COP 47,715 million in terms of decreed dividends in favor of EEB, particularly those from Emgesa, Codensa and Gas Natural. Non Operating Expenses: Financial Expenses: Increase in COP 10,098 million, due to increase in financial debt in 2013 • Calidda: USD 320 mm bond • Contugas: USD 280 mm syndicated loan (USD 65 mm net) • EEB: USD 139 mm, reopening bond 2021. Foreign Exchange Account: The revaluation of COP had a positive impact on the foreign exchange account, as a result of updating financial obligations of the Group denominated in USD, which is only for accounting purposes and does not correspond to cash expenditures. Net Income : Increase in 11.2% * EMSA, ISA, ISAGEN, REP-CTM, Others

  17. Debt IndicatorsConsolidated Results ConsolidatedDebtComposition– USD MM ConsolidatedCurrentDebtMaturityProfile – USD MM Indebtedness in USD increased as a result of new debt issuance in 2013.

  18. EEB Share Performance 1Q 2014 • Ticker EEB:CB • As at May 13th, 2014 EEB’ market capitalization was USD 7.7 Billion • Trading volume tripled after the Equity Offering Nov 2011. • The stock is part of COLCAP, COL20, and COLEQTY • Average Target Price: COP 1,711 (USD 0.87) • Dividend Payout Ratio 2013: 70% Avg 2008 - 2013: 79% • Dividend Yield 2013: 3.5% Avg 2008 - 2013: 3.3%

  19. Questions and Answers • Conference Dial-In Numbers: • Conference ID 45689144 • Participant Toll-Free Dial-In Number: +1 (877) 359-9508 • Participant International Dial-In Number: +1 (224) 357-2393 • Participant ITFS Dial-In Numbers: • Chile: 12300206168 • Colombia: 018005180165 • Perú: 080052957 • United Kingdom: 08000288438

  20. Investor Relations For more information about GrupoEnergía de Bogotá contact our Investor Relations team: Antonio Angarita Investor RelationsOfficer GEB +57 (1) 3268000 - ext 1546 aangarita@eeb.com.co Fabian Sánchez Aldana Investor RelationsAdvisor GEB +57 (1) 3268000 – ext 1827 fsanchez@eeb.com.co Rafael Andres Salamanca Investor RelationsAdvisor GEB +57 (1) 3268000 – ext 1675 rsalamanca@eeb.com.co http://www.eeb.com.co http://www.grupoenergiadebogota.com/en/investors

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