1 / 16

ESA - Americas

ESA - Americas. 2001 Operating & Strategic Plan. Enron South America 2001 Operating & Strategic Plan ESA Earnings Reconciliation. EBIT before Elektro, per Skilling Presentation. $128.7. Less: ESA Asset group EBIT. (88.4). Add: Total ESA Plan G&A, net. $59.2.

malachi-sanford
Download Presentation

ESA - Americas

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ESA - Americas 2001 Operating & Strategic Plan

  2. Enron South America2001 Operating & Strategic PlanESA Earnings Reconciliation EBIT before Elektro, per Skilling Presentation $128.7 Less: ESA Asset group EBIT (88.4) Add: Total ESA Plan G&A, net $59.2 Less: Asset G&A included in $88 EBIT (7.4) 51.8 Adjusted Margin 92.2 Less: Adjusted G&A, excluding G&P (51.8) ESA EBIT as adjusted 40.4 Add: Overview to revised EBIT target 15.0 Adjusted ESA EBIT Target 55.4 G&A to be covered 30.4 Margin Target $ 85.8

  3. Enron South America2001 Operating & Strategic PlanMajor Assumptions Commercial Origination Eletrobolt: • Includes only accrual earnings • Assumes buyout of West LB off balance sheet structure in 4Q with an equity and subdebt investment of $148mm. • Assumes permanent financing in 4Q • Assumes Eletrobolt is a merchant asset (aka, non-strategic). • Assumes 4Q sale of 75% of economic interest, with proceeds of $120mm ($35.6mm equity & $66.8mm sub debt), which • represent book basis • Assumes cash distributions of $13.6 mm in 4Q related to floor payment • WLB structure unwinds in (approx.) June 2002, however, operating plan assumes structure is unwound • prior to equity sale in 4Q Others: • Includes MTM on renegotiations of Cuiaba Gas Contract - Division of "Pain and Gain" with Global Assets needs to be addressed • Includes Arcor (consolidated asset) • Includes G&A for Commercial and Argentina Trading/Risk Management • Includes Eletrobolt Call value, assumptions for TGS capacity and South America Gas • Includes G&A for Trading/Risk Management Headquarters • Includes all G&A, other than Trading/Risk Management, Commercial and Argentina, as noted above. • Includes 100% of the overview

  4. Enron South America2001 Operating & Strategic PlanIncome

  5. Enron South America2001 Operating & Strategic PlanSources of Overview/Hot List *Deal included in income budget as identified source of earnings.

  6. Enron South America2001 Operating & Strategic PlanCash Flow Matrix

  7. Enron South America2001 Operating & Strategic PlanIncome Matrix

  8. Enron South America2001 Operating & Strategic PlanG&A Budget

  9. Enron South America2001 Operating & Strategic PlanDeferred Development Costs • Project AmountPlan to Address • Cuiaba II $ 8.7mm • Possible allocation to 150MW peaker and purchase of turbines. • Riogen $ 6.4mm • Possible allocation to purchase price of turbines. • Puerto Suarez $ .6mm • Inactive. Needs to be expensed. • Petrobras $ 2.1mm • Contractually entitled to receive reimbursement. Will Total $17.8mm work with Petrobras to recover.

  10. Enron South America2001 Operating & Strategic PlanMTM Earnings Recap(millions of USD) Other Exposures: VAT issue $(11.0), 1/5yr disconnect on gas make-up provisions.

  11. Enron South America2001 Operating & Strategic PlanMajorGoals and Objectives • Commercial Originations: • Construction of Eletrobolt (commercial ops. by 10/1/01) • Equity selldown (achieve sale at book basis) • Renegotiation of Cuiaba Gas Contract ($30mm EBIT) • Renegotiation of Arcor gas supply package ($1.90 bundled to $1.70 by 7/31/01) • Place two MHI turbines in high value added projects. • Definitive plan to manage Elektro short position • Advance additional peaking project (150 MW) • Finance: • Non or limited recourse debt ($146mm, by 12/31/01) • Additional monetization to better align EBIT and Cashflow ($20mm)

  12. Enron South America2001 Operating & Strategic PlanMajor Goals and Objectives • Trading/Risk Management: • Trade Brazilian and Argentine power through EOL (110,000Mwh, with minimum of 20 distinct trades) • Avoid writedown on existing Cuiaba MTM exposure • Headquarters: • Complete reorganization/transition period by end of 1qtr (excluding Gas Unit) • Monetization of COPEL shares position without significant loss ($135mm) • Manage deferred cost snowball ($18mm, worst case)

  13. Enron South America2001 Operating & Strategic PlanReorganization Costs Payment US$ Houston Brazil Argentina Total Termination 4,350,664 221,384 159,356 4,731,404 Transition 122,665 2,038,647 1,119,191 5,332,283 Redeployed 470,588 - - 470,588 Legal indemnity 159,927 179,487 428,604 768,018 Relocation 25,000 60,000 - 85,000 Total Cost of Terminations 5,128,844 2,499,518 1,707,151 9,335,513 Note that these costs are not included in the presented budget.

  14. Enron South America2001 Operating & Strategic PlanESA Organization Co-Presidents J. Kishkill O. Gonzalez Legal Finance/Tax Trading and Risk Commercial Argentina Commercial Government Affairs Chief of Staff Britaldo Soares Management Origination Michael Guerriero (T) Regulatory Miguel Padron John Novak Remi Collonges Brett Wiggs Sérgio Assad Randy Young (T) José Bestard (T) Price Info/Book Government Affairs Human Resources Commodities Trading Regulatory Administration Risk Management Public Relations Accounting Treasury Information Technology (T) Denotes employees in transition

  15. Enron South America2001 Operating & Strategic PlanCommercial Origination Headcount

  16. Enron South America2001 Operating & Strategic PlanTrading/Risk Management

More Related