4Q 2019 TGI Results Presentation 1 March 4, 2020 Disclaimer This - - PowerPoint PPT Presentation
4Q 2019 TGI Results Presentation 1 March 4, 2020 Disclaimer This - - PowerPoint PPT Presentation
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
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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
- bligation 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.
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Key Updates Financial and Operational Performance Investment Projects Questions and Answers
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Agenda
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Key Updates
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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 July 16: bond rating ratified by Moody's Investor Services at Baa3, stable
Key Updates
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Financial Performance
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% 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 Capitalization of Contugas for USD$21,7 mm and recognition of loss by participation method for USD$22,9 mm
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Key Updates
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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)
Strategic Performance
Renewal of Cusiana - Sabana and Ballena Barrancabermeja contracts for an estimated value of USD$40 mm (3Q 2019) Relationship and diagnosis of indigenous communities in the area of influence of the Ballena sector, Guajira (1Q 2019) TGI, ACP and commercialization agents networking round: 2nd workshop addressing commercial and infrastructure issues for connection and development of new fields (3Q 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) 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)
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Key Updates
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Operational Performance
Cusiana Phase IV: Loop Puerto Romero – Vasconia (46 Mpcd). Mechanical completion: December 21 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) 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) Replacement of branches: entry into operation of the Yarigüíes - Puerto Wilches branch on November 30 and of the Pompeya branch on December 12 IFIAT index at 0,3 for 2019 against proposed maximum of 1,08, highlighting 5th consecutive year with 0 fatalities
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Financial and Operational Performance
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Revenue Breakdown
Stable andpredictable cash flow generation
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TGI presents stable revenue during 2019
Revenue by Industry Revenue by Currency
Revenue 2019: USD$468,8 mm (+ 6,1%)
▪ 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$6,4 mm (+ 5,8%):
✓ Tariff indexation ✓ Increased detours and hiring ✓ Fewer suspensions Revenue by Charge
USD$ Million
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Operating Income Net Income
TGI Financial Performance
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USD$ Million USD$ Million USD$ Million
Sustainable and profitable results
▪ EBITDA:
✓ 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$16,2 mm (- 74,3%) and 13,8% margin
EBITDA & EBITDA Margin
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USD$ Billion
TGI Financial Performance
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Capital structure
▪ Moody's: ratification of Baa3 bond rating with stable outlook (July,
2019)
▪ Fitch: corporate and bond credit rating ratified at BBB with stable
- utlook (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 Cash and Equivalents
USD$ Billion USD$ Million Equity Liabilities
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TGI Financial Performance
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Gross Total Debt / EBITDA Net Total Debt / EBITDA EBITDA / Financial Expenses Debt Profile
LTM LTM LTM Total Gross Debt USD$ 1,1 billion 4.0(1) (1) Reasonable indebtedness limit 3.0(1)
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Gas pipeline Length
(Km)
Transported Volume
Average – Mscfd
The total length of TGI’s pipeline system is approximately 3.994 Km, of which 3.844 km are the property of and operated by TGI; the remaining 150 Km, even though they are under control and supervision of TGI are operated by the contractor. Of the total volume transported in the nationwide pipeline network, TGI had a volume transported of 483,6 Mpcd, of which greater use was made of the fixed portion by dispatchers and there was an increase in detours. Compared to 4Q 2018, volume shows an increase close to 5.2%.
Operational Performance
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Total Capacity Firm Contracted Capacity(1) Use Factor
(Mscfd) Average – Mscfd
(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
Operational Performance
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Investment Projects
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Project Description Total project investment Status
Increase the natural gas transportation capacity by 58 Mscfd between Cusiana and Vasconia.
- Construction of 38,5 Km of loops of 30”
in diameter
- 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$57,3 million
- Total CAPEX executed 4Q 2019 – USD$9,5 million
- Physical Work Progress – 80,5%
- Start of operations:
₋ Puente Guillermo Station: 17 Mpcd – 2Q 2018 ₋ Loop Puerto Romero – Vasconia: 46 Mpcd – 1Q 2020 (Mechanical finalization: 4Q 2019) ₋ Loops Puente Guillermo – La Belleza and El Porvenir – Miraflores: 12 Mpcd – 3Q 2020 *
Cusiana Phase IV Replacement of Branches
Replacement of 4 branches for reaching their regulatory useful lifespan in accordance with resolution CREG 126 of 2016 and 1 branch by mutual agreement: ~$ 11,6 mm
- Total CAPEX executed to date – USD$5,8 million
- Total CAPEX executed 4Q 2019 – USD$1,8 million
- Physical Work Progress – 73,1%
- Start of operations:
₋ Yarigüíes – Puerto Wilches Branch: 4Q 2019 ₋ Branch Pompeya: 4Q 2019 ₋
- Z. Industrial Cantagallo – Cantagallo: 1Q 2020 *
₋ Branch Cantagallo – San Pablo: 1Q 2020 ₋ Branch Galán – Casabe – Yondó: 1Q 2020
- Branch Yarigüíes - Puerto Wilches
- Branch - Pompeya
- Branch
Z. Industrial Cantagallo – Cantagallo
- Branch Cantagallo – San Pablo
- Branch Galán – Casabe – Yondó
Investment Projects in Execution
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*Estimated date of start of operations
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TGI Outlook
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New opportunities Gas pipeline network(1)
The following IPAT projects are first choice for TGI, according to current resolutions:
- Mariquita – Gualanday Loop
- Yumbo – Mariquita Bidirectionality
- Compressor Project. Jamundi Branch - Downstream
(Pradera Node)
- Barrancabermeja – Ballena Bidirectionality
TGI is waiting for the publication of the final terms of reference of the following project to determine if it will participate:
- Pacific Regasification Plant
- Buenaventura – Yumbo Gas pipeline
Estimated schedule - UPME:
- Terms of reference publication: 1Q 2020
- Reception of offers and awarding: 4Q 2020
- Start of operations of the Plant: September, 2023
- Start of operations of the Gas Pipeline: January, 2024
Cartagena Refinery Barrancabermeja Refinery
Bucaramanga Bogotá Neiva Cali Medellin
2.23 tcf
0,49 tcf
Original Producers: Ecopetrol Equion High Magdalena Valley Middle Magdalena Lower Magdalena Original
- f North:
Chevron Ecopetrol
0,62 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 3.78 tcf (2017)*
Pacific Ocean Caribbean Sea
VENEZUELA
(1) Has access to the three main gas production fields, Guajira and Cusiana-Cupiagua , Total reserves for 2018 were 3.78 tcf. Disaggregation by department is not available.
Source: National Mining and Energy Planing Unit - National Hydrocarbons Agency
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Questions and Answers
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Investor Relations
For further information about TGI, please contact any of the Investor Relations team members
Adriana Munévar
Financial Vice President - TGI adriana.munevar@tgi.com.co +57 (1) 3138400
Valeria Marconi
Investor Relations Manager GEB +57 (1) 326 8000 Ext 1536
Sandra Jimenez
GEB Investor Relations Advisor +57 (1) 326 8000 Ext 1827 vmarconi@geb.com.co sjimenezv@geb.com.co
www.tgi.com.co www.grupoenergiabogota.com/inversionistas
Mauro Cáceres
GEB Investor Relations Advisor +57 (1) 326 8000 Ext 1395 mfcaceres@geb.com.co
Juan Camilo Guayana
Financial Planning Director - TGI juan.guayana@tgi.com.co +57 (1) 3138400
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- reserved. No part of this presentation may be reproduced or used in any
manner or by any means without the express authorization of GRUPO ENERGÍA BOGOTÁ S.A ESP.