2Q 2019 TGI Results Presentation 1 August 20, 2019 Disclaimer - - PowerPoint PPT Presentation
2Q 2019 TGI Results Presentation 1 August 20, 2019 Disclaimer - - PowerPoint PPT Presentation
2Q 2019 TGI Results Presentation 1 August 20, 2019 Disclaimer This presentation contains statements that are forward looking within the meaning of Section 27 A of the Securities Act of 1933, as amended, (the Securities Act) ; and Section
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Disclaimer
This presentation contains statements that are forward looking within the meaning of Section 27 A of the Securities Act of 1933, as amended, (the “Securities Act”); and Section 21 E of the Securities Exchange Act of 1934, as amended. Such forward looking statements are only predictions and are not guarantees of future performance. All statements other than statements of historical fact are, or may be deemed to be, forward looking statements. Forward looking statements include, among other things, statements concerning the potential exposure of TGI, its consolidated subsidiaries and related companies 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” and similar terms and phrases. 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. Although TGI believes that the expectations and assumptions reflected in such forward looking statements are reasonable based on information currently available to TGI’s management, such expectations and assumptions are necessarily speculative and subject to substantial uncertainty, and as a result, TGI cannot guarantee future results or events. TGI does not undertake any obligation to update any forward looking statement or other information to reflect events or circumstances occurring after the date of this presentation
- r to reflect the occurrence of unanticipated events.
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Agenda
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Investment Projects
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Key Updates
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Financial and Operational Performance
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Questions and Answers
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Key Updates
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Key Updates
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Increase of transported volume due to higher consumption from Barrancabermeja’s refinery, despite of maintenance works in the production plant
- f Cupiagua
Increase in revenue of 9,0% in 2Q 2019 vs. 2Q 2018
Operational Performance Financial Performance
EBITDA Margin grew 6,3pp to 78,4% in 2Q 2019 Subscription of contract for the first project of Works through Taxes by COP$8.500 mm for the construction and optimization of the aqueduct´s networks in the urban area of La Paz, Cesar Internal approval by TGI of new agreements to promote NGV for the period between August 2019 through November 2021. These agreements were subscribed with Vanti, EPM, GDO, Efigas, Gases del Llano and Alcanos de Colombia
Strategic Performance
Credit rating of the bond was confirmed at Baa3 by Moody’s (stable perspective) Obtention of modification license and start of Loop Puente Guillermo – La Belleza’s works contract Transmilenio: start of operations of 140 units, that work with CGV, out of a programed total of 741 units Subscription of 4 substitution agreements from coal to gas, equivalent to 6.200 Kscfd, of which 1.200 Kscfd correspond to interruptible contracts (valid during 2019) and 5.000 Kscfd to firm transportation (valid until 2024).
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Financial and Operational Performance
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Revenue Breakdown
Stable and Predictable Cash Flow Generation
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TGI presents stable revenue during YTD19
Revenue by Industry Revenue by Customer
USD$ in millions
Quarterly Revenue
▪ TGI’s revenue is highly regulated ▪ The company has an excellent quality of contracts:
✓ 93% of firm contracts, with an average remaining life of 7
years
✓ Firm contracts - 90% fixed charges ✓ During 2Q 2019, main TGI’s clients represented 90,2% of
total revenue and most relevant sectors represented 99%
- f such entry
▪ Revenue composition:
✓ 68,1% indexed to USD ✓ 31,9% denominated in COP
108,1 112,7 111,0 118,0 117,8 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 66,1% 13,2% 9,0% 7,3% 3,8% 0,6% 65,0% 13,4% 9,8% 8,0% 2,3% 1,6% Distribuitor Refinery Thermal Vehicle Commercial Other 2Q 2019 2Q 2018 32,0% 19,2% 15,0% 8,8% 5,0% 5,4% 4,8% 9,8% 31,1% 19,7% 15,0% 9,3% 4,3% 4,3% 4,9% 11,4% Vanti Gases de Occidente Ecopetrol EPM Isagen Efigas Alcanos Other 2Q 2019 2Q 2018
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Operating Income EBITDA & EBITDA Margin Costs | Operating Expenses Net Income
TGI Financial Performance
3-month figures / USD$ in millions
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51,4 52,6 55,0 45,4 50,5 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 58,7 63,8 56,1 74,6 67,5 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 77,9 82,1 77,3 96,1 92,3 72,1% 72,9% 69,6% 81,4% 78,4% 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 37,7 12,5 63,2 31,9 42,0 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 USD$ in millions USD$ in millions USD$ in millions USD$ in millions
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227,7 79,5 46,8 81,6 2016 2017 2018 June - 2019
Cash and Equivalents
2,22 2,2 2,2 2,2 2016 2017 2018 June - 2019 2,8 2,5 2,5 2,5 2016 2017 2018 June - 2019
(USD$ in billions) (USD$ in billions) (USD$ in billions)
Liabilities | Equity PPE Total Assets
(USD$ in billions)
TGI Financial Performance
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Liabilities Equity 2,0 1,7 1,6 1,7 0,8 0,8 0,8 0,8 2016 2017 2018 June - 2019
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Bond 63,7% Intercompany 31,4% IELAH 3,4% Leasing & Renting 0,8% Financial Asset NIIF 16 0,7% 3,2 3,5 3,4 3,2 2016 2017 2018 June - 2019 4,4 3,8 3,8 4,0 2016 2017 2018 June - 2019 4,0 3,7 3,5 3,4 2016 2017 2018 June - 2019
TGI Financial Performance
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Total Gross Debt / EBITDA Total Net Debt / EBITDA EBITDA / Financial expenses Debt Profile
UDM LTM LTM 4.0(1) (1) Reasonable indebtedness limit 3.0(1) Total gross debt USD$ 1,2 billions
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Gas Pipeline Length
(Km)
Transported Volume
Average – Mscfd
The total length of the TGI pipeline system is approximately 3.994 Km, of which 3.844 Km are owned and operated by TGI; the remaining 150 Km, although under the control and supervision of TGI, are operated by the contractor. From the total transported volume in the national gas pipeline network, TGI slightly increased its transported volume to 470 Mscfd, compared to 1Q 2019, despite the maintenance works in the production plant of Cupiagua. Compared to 2Q 2018, there is a growth of approx. 7%
Operational Performance
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3.994 3.994 3.994 3.994 3.994 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 440 460 460 466 470 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019
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Total Capacity Firm Contracted Capacity(1) Use Factor
(Mscfd) Average – Mscfd
(1) The trend line refers to the ratio: Firm Contracted Capacity / Available Capacity. The Available Capacity differs from the Total Capacity because TGI requires a percentage of the capacity for its own use.
Operational Performance
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785 785 792 792 792 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 716 719 713 712 712 91% 92% 90% 90% 90% 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 50,8% 52,3% 51,9% 52,9% 51,6% 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019
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Investment Projects
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TGI Perspectives
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New opportunities under evaluation Gas Pipeline Network(1)
The following IPAT projects are subject to being executed by TGI, according to the following resolutions in force:
- Mariquita – Gualanday Loop
- Yumbo – Mariquita Bidirectionality
- Compressor Project: Jamundí– Aguas Abajo (Pradera
Node) Branch. TGI is waiting for the release of the final terms of reference for the following project to decide on its participation:
- Regasification Plant – Buenaventura
- Buenaventura – Yumbo Gas Pipeline
Estimated date for start of operations of the Plant: end of 2023 Estimated date for start of operations of the Gas Pipeline: end of 2025
Cartagena Refinery Barrancabermeja Refinery
Bucaramanga Bogotá Neiva Cali Medellin
2.27 tcf
0,49 tcf
Eastern Producers: Ecopetrol Equion High Magdalena Valley Middle Magdalena Lower Magdalena Northern Producers Chevron Ecopetrol
0,71 tcf
Guajira
Cusiana-Cupiagua
References TGI Gas Pipelines Natural Gas Reserves City Field Refinery Third-party Gas Pipelines
Reserves in other regions 0.42 tcf
Total reserves 3.89 tcf (2017)*
Pacific Ocean Caribbean Sea
VENEZUELA
(1) Has access to the three main gas production fields, Guajira and Cusiana. * Total reserves 2018 were 3,78 tcf. Disaggregated figures by department are not available.
Source: National Mining and Energy Planning Unit – National Hydrocarbons Agency
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Project Description Total Project Investment Status
Increase natural gas transportation capacity by 58 Mscfd between Cusiana and Vasconia:
- Construction of 38,5 Km of 30” diameter
loops.
- Expansion
- f
the Gas Compression Station of Puente Guillermo
- Modifications to the Gas Compression
Stations of Miraflores and Vasconia ~$ 92,3 mm
- Total Capex executed to date – USD$38,4 million
- Total Capex executed 2Q 2019 – USD$5,3 million
- Physical Work Progress – 62,5%
- Start of operations:
- Puerto Guillermo Station: 17 Mscfd – 2Q 2018
- Loop Puerto Romero – Vasconia: 48 Mscfd – 1Q 2020
- Loop Puente Guillermo – La Belleza: 8 Mscfd – 2Q 2020
- Loop El Porvenir – Miraflores: 2 Mscfd – 3Q 2020
Cusiana Phase IV Branches Replacement
Replacement of 5 branches due to reach of their regulatory lifespan in accordance with resolution CREG 126 of 2016 ~$ 11,6 mm
- Total Capex executed to date – USD$3,6 million
- Total Capex executed 1Q 2019 – USD$1,4 million
- Physical Work Progress – 45,5%
- Start of operations:
- Yarigüíes – Puerto Wilches Branch: 4Q 2019
- Cantagallo Industrial Z. – Cantagallo Branch: 4Q 2019
- Cantagallo – San Pablo Branch: 1Q 2020
- Galán – Casabe – Yondó Branch: 1Q 2020
- Pompeya Branch: 4Q 2019
❖ Yarigüíes - Puerto Wilches Branch ❖ Z. Industrial Cantagallo – Cantagallo Branch ❖ Cantagallo – San Pablo Branch ❖ Galán – Casabe – Yondó Branch ❖ Pompeya Branch
Investment Projects in Execution
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Questions and Answers
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Investor Relations
For further information about TGI, please contact any of Investor Relations team members.
Julio Alarcón
Financial Vice-president (E) - TGI jalarcon@geb.com.co +57 (1) 3138400
Valeria Marconi
Investor Relations Manager - GEB +57 (1) 326 8000 Ext 1536
Sandra Jimenez
Investor Relations Advisor - GEB +57 (1) 326 8000 Ext 1827 vmarconi@geb.com.co sjimenezv@geb.com.co
www.tgi.com.co www.grupoenergiabogota.com/en/investors
Mauro Cáceres
Investor Relations Advisor - GEB +57 (1) 326 8000 Ext 1395 mfcaceres@geb.com.co
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