Calidda’s Q3 2019 Results November 13 th , 2019 1
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, investment or financial advice on any subject. This presentation does not purport to address any specific investment objectives, financial situation or particular needs of any recipient. It should not be regarded by recipients as a substitute for the exercise of their own judgment. This information does not constitute an offer of any sort and is subject to change without notice. Calidda is no obligation to update or keep current the information contained herein. Calidda expressly disclaims any responsibility for actions taken or not taken based on this information. Calidda does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. Calidda is not responsible for any content that May originate with third parties. Calidda May have provided, or might provide in the future, information that is inconsistent with the information herein presented. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. 2
Table of Contents 01 Key Updates and Results 02 Commercial Performance 03 Operational Performance 04 Financial Performance 05 Conclusions 06 Q&A 3
01 Key Updates and Results 4
1 Calidda at a Glance Key Updates In September 6 th , Calidda issued for second time a PEN 342MM (approx. USD 100.6MM) 10 year bullet bond. ◼ Calidda’s client base and invoiced volume both increased during the Q3 2019 by 28% and 1%, respectively, compared to Q3 2018’s ◼ figures, achieving more than 900 thousand clients. ◼ Our network length was extended by 1,504 km, whereby the distribution system reached a total of 10,792 km of underground pipelines. Calidda’s Revenues, Adjusted Revenues and EBITDA increased by 11%, 13% and 8%, respectively, driven by a higher distribution tariff ◼ since Aug-19 (7% Increase in distribution rate), higher invoiced volume (+9.8 MMCFD) and larger number of connections and related services (+197k customers). Calidda’s corporate credit and senior unsecured international ratings as of Q3 2019 is BBB / Baa2 / BBB- (Fitch / Moody’s / S&P), ◼ outlook stable. Key Operational Results Q3 2019 Q3 2018 Var % Key Financial Results Q3 2019 Q3 2018 Var % Accumulated Clients 904,424 706,865 28% Revenues (USD MM) 529 475 11% Invoiced Volume (MMCFD) 1 784 774 1% Adj. Revenues 4 (USD MM) 223 197 13% Network Lenght (km) 10,792 9,288 16% EBITDA 5 (USD MM) 128 119 8% Potential Clients 2 1,047,862 927,220 13% Adjusted EBITDA Margin 6 57% 61% - Network Penetration 3 86% 76% - Net Income (USD MM) 62 54 15% Interest Coverage 7 (x) 8.5x 8.7x - 1) MMCFD = Million cubic feet per day. 2) Number of clients which are located in front of the existing distribution network of Calidda. 3) Network Penetration = Accumulated clients / Potential clients 4) Adjusted Revenues = Revenues less pass-through concepts, such as natural gas, transport of natural gas and IFRIC 12 (investments in the distribution network). 5) EBITDA without extraordinary expenses related to arbitration results. 6) Adjusted EBITDA Margin = EBITDA / Adjusted Revenues 7) Interest Coverage = EBITDA / Interests from debt 5
02 Commercial Performance 6
2 Solid Base of Clients with upward trend Segment Evolution (# of clients) Highlights 27 23 22 18 17 Power Generation 2015 2016 2017 2018 Q3 2019 651 626 577 535 507 Industrial 2015 2016 2017 2018 Q3 2019 275 278 257 240 NGV Stations 232 Active vehicles as of Set-19: 191,488. 2015 2016 2017 2018 Q3 2019 903 760 During the last 4 years, the number of Residential and 576 438 344 clients from the Residential & Commercial Commercial segment has increased at a (thousands) rate of 30% per year. 2015 2016 2017 2018 Q3 2019 7
2 Upward Trend of Invoiced Volume (Amounts expressed in MMCFD) 784 779 763 739 ◼ 79% of the invoiced volume 699 9% 9% 8% 8% comes from Take-or-Pay long 9% term contract’s with 16 clients. 16% 16% 16% 15% Residential and 15% ◼ Contract’s average remaining Commercial life is 15 years, and amount 619 NGV Stations MMCFD. Power Generation Industrial 74% 73% 73% 575 MMCFD 75% 75% Power Generation Industrial 44 MMCFD 2015 2016 2017 2018 Q3 2019 ◼ As of Q3 2019, invoiced volume has increased 1% against 2018 mainly due to the lower demand from the Residential and Commercial Segment. 8
2 Historic Invoiced Volume per Client Segment (Amounts expressed in MMCFD) Residential & Commercial Industrial 17 129 14 128 121 112 108 12 10 8 2015 2016 2017 2018 Q3 2019 2015 2016 2017 2018 Q3 2019 NGV Stations Power Generation 568 569 569 555 68 68 521 63 62 62 2015 2016 2017 2018 Q3 2019 2015 2016 2017 2018 Q3 2019 9
03 Operational Performance 10
Large Distribution System with Improving 3 Penetration Index Distribution System (km) ◼ As of Q3 2019, Calidda’s distribution system has 10.792 9.691 almost doubled in size when compared to 2015 ’s 8.347 7.425 figures, and consists of 10,792 km of under ground 10.191 5.988 9.104 pipelines. 7.807 6.928 ◼ During Q3 2019, Calidda built 1,101 km, out of which km 5.531 1,087 km were low pressure polyethylene pipelines, 588 601 458 496 540 while the remaining were steel high pressure network. 2015 2016 2017 2018 Q3 2019 Total Polyethylene Network Steel Network Clients progress and penetration ratio 1 ◼ The network penetration ratio has greatly increased by 2.000 100% 86% 79% 90% more than 25% during the past two years up to 86% by 70% 80% 1.500 the end of Q3 2019. This is explained by Calidda’s 59% 57% 70% Thousands 1.048 60% 960 customer focused energetic solution, which benefits 904 828 1.000 50% 761 747 from the government subsidies, and secures the 609 40% 577 438 30% 345 sustained savings from the use of natural gas against 500 20% alternative fuels. 10% 0 0% 2015 2016 2017 2018 Q3 2019 1) Penetration Rate = Total Clients / Potential Clients * Potential Clients* Total Clients Penetration rate (*) Clients who are adjacent to Calidda's distribution network. 11
Natural Gas Distribution and Transportation 3 Capacity Clients are divided in two groups: (i) Independent Clients, which consume more than 1 MMCFD and sign separated contracts of natural gas (NG) supply, transportation and distribution services, and (ii) Regulated Clients, which consume less than 1 MMCFD and only sign a contract with Calidda, who then provides NG distribution service and acts as an intermediary to supply NG and transportation services. Calidda’s capacity : 420MMCFD ◼ During Q3 2019, both Regulated and Independent clients consumed 292 MMCFD, equivalent to 70% of our natural gas distribution capacity (Lurín-Ventanilla). 450 420 Distributed (MMCFD): 300 MMCFD 161 [Reg] + 131 [Ind] = 292 Invoiced (MMCFD): 150 161 [Reg] + 184 [Ind] = 345 - Jan/2018 Apr/2018 Jul/2018 Oct/2018 Jan/2019 Apr/2019 Jul/2019 Regulated Clients Independent Clients Cálidda's Capacity ◼ Over the same period, Regulated clients consumed around 161 MMCFD, equivalent to Calidda’s 70% of the total contracted supply volume and 68% of the transportation volume of City Gate natural gas 1 . Residential 235 250 228 Independent clients (Power 200 Industrial Generation): 150 Distributed: 283 MMCFD MMCFD Mainly network Invoiced: 439 MMCFD 100 Power Generator 50 - Jan/2018 Apr/2018 Jul/2018 Oct/2018 Jan/2019 Apr/2019 Jul/2019 1/ Contracted volume takes into consideration fixed (Take-or-Pay) Regulated Clients Transportation - TgP Gas - Pluspetrol 12 and non-fixed (interruptible) contracted capacity.
04 Financial Performance 13
Diversified Revenues’ Source by Client 4 Segment Distribution Revenues Invoiced Volume Adjusted Revenues 1 2,1% 16,0% 9,4% 16,7% 29,4 % 27,6 22,5% 8,7% 46,7% % 37.7% 14,2 72,4% % 10,1 14,8% % 9,3% 3 2 ◼ Even though the Residential and Commercial segment represents only 2.1% of the invoiced volume, it concentrates 16% of our distribution revenues. More over, if we take into consideration the revenues from installation services, this segment represents 37.7% of our Adjusted Revenues. ◼ On the other hand, the Power Generation segment represents 72.4% of the invoiced volume, 46.7% of the distribution revenues, and 29.4% of the Adjusted Revenues. 1) Adjusted Revenues = Revenues less pass-through concepts, such as natural gas, transport of natural gas and IFRIC 12 (investments in the distribution network). 2/ Installation Services Revenues include revenues from the client’s facilities, connection fees and financing. 3/ Others: mainly derived from network relocation and other non recurrent services. 14
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