4Q 2019 TGI Results Presentation 1 March 4, 2020
Disclaimer This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E 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’ 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”, “should” 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 or to reflect the occurrence of unanticipated events. 2
Agenda 01 Key Updates 02 Financial and Operational Performance 03 Investment Projects 04 Questions and Answers 3
01 Key Updates 4
1 Key Updates Financial Performance Higher revenue (+ 6,1%) during 2019 compared to 2018 due to: change of charges to 100% fixed in a contract, rate indexation, and decrease of suspensions due to scheduled maintenance and/or force majeure events during 2019 Adoption of IFRS 16 from January 1, 2019 Increase in bad debt allowance by methodology established in IFRS 9 EBITDA growth of 9,6% during 2019 to USD$360,4 mm and increase in EBITDA margin in 2,4 pp from 74,5% to 76,9% Capitalization of Contugas for USD$21,7 mm and recognition of loss by participation method for USD$22,9 mm July 16: bond rating ratified by Moody's Investor Services at Baa3, stable October 7: ratification of the corporate and bond rating by Fitch Ratings on BBB, stable December 13: ratification of the corporate rating by S&P at BBB-, stable 5.8% increase in revenues in 4Q 2019 vs. 4Q 2018 EBITDA margin 4Q 2019 grew 1,5 pp to 71,1% Second dividend payment of USD$39,8 mm 5
1 Key Updates Strategic Performance A vehicle use restriction exemption for gas vehicles was announced (1Q 2019) Internal approval by TGI of new agreements to promote the use of CGVs for the period between August 2019 and November 2021 These agreements were signed with Vanti, EPM, GDO, Efigas, Gases del Llano and Alcanos de Colombia (2Q 2019) Transmilenio: entry into operation of 140 CGV units out of a total of 741 scheduled (2Q 2019) Relationship and diagnosis of indigenous communities in the area of influence of the Ballena sector, Guajira (1Q 2019) Subscription of contract for the first project of Works for Taxes for COP$8.500 mm for the construction and optimization of the networks of the aqueduct system in the urban center of La Paz, Cesar (2Q 2019) Renewal of Cusiana - Sabana and Ballena Barrancabermeja contracts for an estimated value of USD$40 mm (3Q 2019) TGI, ACP and commercialization agents networking round: 2nd workshop addressing commercial and infrastructure issues for connection and development of new fields (3Q 2019) TGI Forum: issues on the future of gas in South America, perspectives of gas in Colombia and its potential in the Colombian market (4Q 2019) 6
1 Key Updates Operational Performance Delivery of exit points Floresta (Boyacá) and Paratebueno (Cundinamarca) during 1Q 2019 Start of operations of the realignment for the Gualanday - Dina gas pipeline (1Q 2019) Completion of adaptation works in Vasconia – Miraflores – Puente Guillermo stations (3Q 2019) With information provided by TGI, CREG opened a file to determine the efficient value of investment and AO&M for 4 IPAT projects (3Q 2019) Replacement of branches: entry into operation of the Yarigüíes - Puerto Wilches branch on November 30 and of the Pompeya branch on December 12 Cusiana Phase IV: Loop Puerto Romero – Vasconia (46 Mpcd). Mechanical completion: December 21 IFIAT index at 0,3 for 2019 against proposed maximum of 1,08, highlighting 5th consecutive year with 0 fatalities 7
02 Financial and Operational Performance 8
2 Stable andpredictable cash flow generation TGI presents stable revenue during 2019 Revenue 2019: USD$468,8 mm (+ 6,1%) USD$ Million ▪ Annual revenue 2019 of USD$468,8 mm (+ 6,1%) vs. 2018 due to: ✓ Change of charges to 100% fixed in a specific contract ✓ Fewer suspensions due to maintenance and/or force majeure ✓ 2019 price indexation ✓ Higher transported average volumes ▪ Distribution, Refinery, Thermal and Vehicle sectors led demand during 2019 (96,1% in 4Q 2019) ▪ 4Q 2019 vs. 4Q 2018: revenue grew USD$6,4 mm (+ 5,8%): ✓ Tariff indexation ✓ Increased detours and hiring ✓ Fewer suspensions Revenue Breakdown Revenue by Industry Revenue by Charge Revenue by Currency 9
2 TGI Financial Performance EBITDA & EBITDA Margin Sustainable and profitable results ▪ EBITDA: USD$ Million ✓ 2019 vs. 2018: USD$360,4 mm (+ 9,6%) and 76,9% margin ✓ 4Q 2019 vs. 4Q 2018: USD$83,5 mm (+ 8,0%) and 71,1% margin ▪ Operating income: ✓ 2019 vs. 2018: USD$269,4 mm (+ 8,0%) ✓ 4Q 2019 vs. 4Q 2018: USD$63,0 mm (+ 12,3%) ▪ Net income: ✓ 2019 vs. 2018: USD$125,9 mm (- 7,4%) and 26,8% margin ✓ 4Q 2019 vs. 4Q 2018: USD$16,2 mm (- 74,3%) and 13,8% margin Operating Income Net Income USD$ Million USD$ Million 10
2 TGI Financial Performance Cash and Equivalents Capital structure USD$ Million ▪ Moody's: ratification of Baa3 bond rating with stable outlook (July, 2019) ▪ Fitch: corporate and bond credit rating ratified at BBB with stable outlook (October, 2019) ▪ S&P: corporate rating ratification BBB-, stable (December, 2019) ▪ Payment of IELAH debt in August 2019 (due to maturity) ▪ Improvement of indebtedness ratios: ✓ Total gross debt/EBITDA at 3,1x (3,5x in 2018) ✓ EBITDA/Financial expenses at 5,2x (3,8x in 2018) PPE Liabilities | Equity USD$ Billion USD$ Billion 11 Equity Liabilities
2 TGI Financial Performance Debt Profile Gross Total Debt / EBITDA Total Gross Debt USD$ 1,1 billion 4.0 (1) LTM Net Total Debt / EBITDA EBITDA / Financial Expenses 3.0 (1) 12 LTM LTM (1) Reasonable indebtedness limit
2 Operational Performance Gas pipeline Length Transported Volume (Km) Average – Mscfd Of the total volume transported in the nationwide pipeline The total length of TGI’ s pipeline system is approximately 3.994 network, TGI had a volume transported of 483,6 Mpcd, of Km, of which 3.844 km are the property of and operated by TGI; which greater use was made of the fixed portion by dispatchers the remaining 150 Km, even though they are under control and and there was an increase in detours. Compared to 4Q 2018, supervision of TGI are operated by the contractor. volume shows an increase close to 5.2%. 13
2 Operational Performance Firm Contracted Capacity (1) Total Capacity (Mscfd) Average – Mscfd Use Factor 14 (1) The tendency 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 same for its own use
03 Investment Projects 15
Recommend
More recommend
