TRC C Cor orporat ate Pr Prese sent ntation ion he 2 nd nd - - PowerPoint PPT Presentation
TRC C Cor orporat ate Pr Prese sent ntation ion he 2 nd nd Quar The uarter 2018 8 Op Operat ating P Performan mance 7 7 Septe tember 201 2018 T - Transparency, Ethics & Integrity -
T - Transparency, Ethics & Integrity - ซื่อสัตย์ โปร่งใส ใส่ใจจริยธรรม R - Respect & Trust - เคารพกันและกัน เชื่อมั่นไว้ใจ C - Commitment - มุ่งมั่นสู่คุณภาพ ปลอดภัยทุกเวลา รักษาสิ่งแวดล้อม รับผิดชอบต่อสังคม
IR Contact: Investor Relations Department Email: ir_trc@trc-con.com/ ounruen@trc-con.com
Fax +66 2022 7778
Information disclosed on this presentation includes forward looking information of TRC determined by TRC based on information available at the time, as well as information about risks and factors of uncertainty related to economic trends, intensified competition in the industry, market demand, exchange rates, applicable laws and regulations. Operating results and other information published in the future may vary due to these factors. TRC is in no way responsible for any damage incurred due to the use of information disclosed on this presentation. Further, no obligation to revise and/or publish forward-looking information
The information disclosed on this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for securities in TRC in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
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2015
Extension (28” Recoating Section)
Expansion 2016
Processing Plant & Facilities from APOT 2017
Extension
Pracharuamjai Road Mitmaitri Road
2005
Cross Country Gas Pipeline (JV with China Petroleum Pipeline (“CPP”), China)
2006
2007
2008
2009
Oman
No.1 Project (Consortium with Siemens) 2010-2011
Gas Pipeline 2011
Multiproduct Pipeline 2012
2012 & 2015-2016
Chaiyaphum Plc. (“APOT”) 2013
Gas Transmission Pipeline
Transmission Pipeline, Saraburi to Nakhorn Ratchasrima (JV with Sinopec from China) 2014
Biodiesel Plant – Phase II
From “Small Business” to “International Thai Multi-Million Company”
Bidding with many competitors with lower margin
EPC Contractor
Providing Engineering, Procurement & Construction services with fewer competitors and higher margin
become the “ONE STOP SERVICE” for the clients
and undertake large scale projects
For stable recurring income
Innovative Project Solutions
2018
& facility station of the 5th Transmission Pipeline Project
Distribution Center& installation Automated Storage and Retrieval System (AS&RS)
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TRC
: Baht 911.2 million
PTT Public Company Limited
Service Corporation, China
EPCC and Start-up of the 14 block valve & facility stations under the Fifth Transmission Pipeline Project Phase 1
Baht 755.23 million
33 months
Subcontractor of 14 block valve & facility stations under the Fifth Transmission Pipeline Project, Phase 1 BCM Naphtha and Pygas Pipeline (2 Projects)
SCG Chemicals Company Limited
Option 1 RTC Area: Baht 74.5 million Option 2 Interconnecting Pipeline: Baht 80 million
Baht 154.50 million
8 months
The Construction of Highway Route No. 4
Bureau of road construction 1 (The Department of Highways)
The Construction of Highway Route
between Km.803+000.00 to Km.813+300.00
Baht 347.38 million
600 days
SKW
: Baht 347.4 million
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The construction of overpass bridge, Na Ranong Intersection Improvement of Samwa Road
Scope of Works Construction of overpass bridge, Na Ranong Intersection Expansion of the existing road and utility system Project Location Na Ranong Intersection, Klong Toey, Bangkok Samwa Road, Minburi, Bangkok Contract Value Baht 1,257.08 million Baht 171.54 million Construction Period 900 days 360 days Tentative Contract Signing Date Within September-October 2018 Within September 2018
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Class Rights to buy bidding Road Bridge Value of project (Baht) Special Class All All No limit 1st Class 1-5, special
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3,487 3,786 2,480 4,635 2,064*
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2,616 1,200 2,077 2,106
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
TRC SKW
+ 2 new projects in Sep
3,611 6,402
(MB)
3,680 5,599 6,712
30,476
2 New Projects from BMA
1,429
30 Jun 18, 4,170
* The Early Works II Project, work value of Baht 2,311 million and Preparation and Refurbishment of Existing Decline Project, remaining work value of Baht 62.13 million was cut off from backlog due to the delay in the development of APOT's projects. The Company has not yet been able to sign the EPCC contract with APOT. Therefore, the remaining work value of APOT project of Baht 226 million is included in the backlog.
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Scope of Works
Remaining Value (MB) Pipeline System 7 1,476 Civil Work 7 2,316 Processing Plant 2 378 Total 16 4,170
Company
Remaining Value (MB) TRC 9 2,064 SKW 7 2,106 Total 16 4,170
TRC
51%
SKW
49% Processing Plant 9% Pipeline System 35% Civil Work 56%
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Contract Value (MB) Remaining Value (MB) TRC Projects: 755.23 709.91 1st Transmission Pipeline Life Extension 3,237.76 504.56 RDCC Catalyst Cooler 492.00 377.56 711.36 226.07 BV4.19 PIG Launcher and Receiver Installation 229.28 123.47 74.50 74.50 BCM Naphtha and Pygas Pipeline (Option 1 RTC Area) 80.00 36.23 Revamp LPG Transfer Pump to Domestic BRP 208.50 10.70 RGC # Sales Gas GSP6 Mixing Header 28.15 0.87 Total TRC Projects 5,816.77 2,063.87 SKW Projects: 1,257.08 1,257.08 Improvement of Pracharuamjai Road – Mitmaitri Road 990.84 914.29 The Kanlapaphruek Road Extenstion 849.72 759.35 Highway Route No. 4 A. Takua Pa, Phang Nga Province 347.38 346.65 171.54 171.54 855.23 16.68 Other 3 projects (@ < 100 MB) 161.26 69.23 Total SKW Projects 4,633.06 3,534.83 Total TRC Group Projects 10,449.83 5,598.69 2021 New Project: Expansion of existing road and utility system, Samya Road, Minburi, Bangkok 2018 2019 2020 The 5th Transmission Pipeline, Phase 1 (Subcontractor from Sinopec) 2015 New Project: Construction of overpass bridge, Na Ranong Intersection Construction, Improvement and Expansion of Waterworks, Koh Samui 2017 LNTP for Turnkey Delivery of APOT Project Surface Processing and Facilities BCM Naphtha and Pygas Pipeline (Option 2 Interconnecting Pipeline) 2016
2H 2018 12
Completed 98.1% Remaining 1.9%
PTT’s 1st Transmission Pipeline Life Extension (3,238 MB) by TRC Provincial Waterworks Authority’s Construction, Improvement and Expansion of Waterworks, Koh Samui (855 MB) by Hydrotek Sahakarn JV
Completed 84.4% Remaining 15.6%
Project period: Feb 15 - Aug 19 Project period: Aug15 - Sep 18 PTT’s Revamp LPG Transfer Pump to Domestic BRP (209 MB) by TRC
Completed 94.9% Remaining 5.1%
Project period: Apr 17 - Aug 18 13
Completion 23.3%
Remaining 76.7%
Project period: Sep 17 - Jun 19 RDCC Catalyst Cooler Project Part 2 Back Pressure Steam Turbine and Utilities System (492 MB) by TRC
PTT’s the Fifth Transmission Pipeline Project, Phase 1, Subcontractor for The 14 block valve & facility stations from Sinopec (755 MB) by TRC
Completion 6.0%
Remaining 94.0%
Project period: Feb 18 - Oct 20 14
Department of Highway’s Extension Kalapapruek Road (850 MB) by SKW
Completed 10.6% Remaining 89.4%
Project period: Mar 17 - Aug 19
Improvement of Pracharuamjai Road – Mitmaitri Road (991 MB) by SKW
Project period: Sep 17 - Sep 19
Completion 0.2% Remaining 99.8%
Project period: Feb 18 - Oct 19
Highway Route No. 4 A. Takua Pa – A. Thai Mueang between Km.803+000.00 to Km.813+300.00 (347 MB) by SKW
Completed 7.8% Remaining 92.2%
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Project period: May 16 - Dec 19 APOT’s Package 2 – 1st Limited Notice to Proceed Early Works of Surface Processing Plant & Facilities Project (711 MB) by TRC
Completed 68.2% Remaining 31.8%
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Project Name Approximate TRC Group’s Work Value (Million Baht) Estimated Bidding Period
A.1 Pipeline for Floating Storage and Regasification Unit (FSRU) Project from EGAT 3,500 Early of 2019 A.2 The 5th Transmission Pipeline Phase 3 from PTT 1,500 Early of 2019 A.3 New distribution pipeline and modify/reroute pipeline from PTT 100-150 Q4 2018
B.1 Clean Fuel Project (CFP) from Thai Oil
(TRC submitted bid as subcontractor.)
2,000 Q1 2018 B.2 Acrylic Resin Plant 300 Sep 2018
Infrastructure Government Projects (i.e. Double Track Railway Projects, Road Improvement & Expansion) 3,000 2H 2018
2,000 Q4 2018-Q2 2019 20
Floating Storage and Regasification Unit (FRSU)
โครงการท่อส่งก๊าซธรรมชาติจากสถานี เก็บรักษาและแปรสภาพก๊าซธรรมชาติจาก ของเหลวเป็นก๊าซแบบลอยนํ้า (FRSU) ไปยังโรงไฟฟ้าพระนครใต้ ระยะทาง 58 กม.
TOP’s EGM held on 27 August 2018 resolved to approve the investment in the Clean Fuel Project with the project value of approximately USD 4,825 or approximately Baht 160,279
2023. 21 FSRU’s 3 Pilot Projects, 2-year cooperation between EGAT and PTT
supply
EGAT’s power plant
TOT Public Company Limited CAT Telecom Public Company Limited Metropolitan Electricity Authority Mass Rapid Transit Authority of Thailand
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Company Limited (PTTOR)
Installation Automated Storage and Retrieval System (AS&RS)
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References:
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Business 2018 2019 2020 2021 2022 Total % Natural gas 3,854 2,463 1,759 1,676 1,040 10,792 3% Natural gas transmission pipeline 26,049 17,841 5,819 6,437 755 56,901 17% Oil and international trading 14,169 71 6 6 6 12,258 3% Petrochemical & Refining 21,033 4 4 4 5 21,050 7% Head office and others 7,038 3,532 4,142 4,259 3,789 22,760 6% Joint investment and investment in PTT wholly-
176,470 21,969 10,771 8,987 4 218,201 64% Total 246,613 45,880 22,501 21,369 5,599 341,962 100%
(Unit: Million Baht)
* PTT’s board of directors meeting held on June 18, 2018 has reviewed investment plan to reflect the operation and current circumstances as well as effective budgeting by reducing the 2018 investment plan from Baht 246,613 million to Baht 221,294
Reducing10.27%
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Source: Ministry of Industry’s presentation of “Eastern Economic Corridor Development Project” Driving Forward …. dated 15 February 2017
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471 482 1,394 954 Q1/2018 Q2/2018 1H/2017 1H/2018 2% QoQ 32% YoY
Unit : MB
Revenue 1H/2017 1H/2018
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123 43 Q1/2018 Q2/2018 1H/2017 1H/2018 9
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Q1/2018 Q2/2018 1H/2017 1H/2018
65% YoY 122% QoQ
EBITDA
164% QoQ 217% YoY 16.4 20.3 21.5 19.0 17.2 7.7 7.8 3.8 2.2
5.0 15.0 25.0 2015 2016 2017 1H/ 2017 1H/ 2018
Gross Profit Margin Net Profit (Loss) Margin
Gross Profit Margin & Net Profit Margin
%
Profit (loss) for the period
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Gross Profit
Q1 2018
117 MB 25.1%
Q2 2018
45 MB 9.5%
6-M 2018
162 MB 17.2% Net Profit
Q1 2018
9 MB 1.9%
Q2 2018
6-M 2018
Service Income 1,388 942
32% YoY
1,796 1,075 782 538 1,159 345 237 166 742 950 369 238
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
2016 2017 1H/2017 1H/2018 Civil Work Processing Plant Pipeline System
3,697 2,370 1,388 942
Unit : MB
18% 57% 25%
369 237 782 238 166 538 Civil Work Processing Plant Pipeline System
Construction Services Income Comparison with last year (MB)
1H/2017 1H/2018
1st Half Comparison 29
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2014 2015 2016 2017 2018 Q1 726 774 1,104 952 465 Q2 687 927 434 436 477 Q3 802 871 1,170 452 Q4 880 1,308 989 530 Year End 3,095 3,880 3,697 2,370
726 774 1,104 952 465 687 927 434 436 477 802 871 1,170 452 880 1,308 989 530 3,095 3,880 3,697 2,370
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
2018 (F) 2,500-2,800
(MB)
6-M 2018 942
2014 2015 2016 2017 6-Month 2017 6-Month 2018 % Operating Profit 8.21 7.87 10.65 7.11 5.19
% Net Profit 6.94 7.89 7.86 3.92 2.24
0.00 4.00 8.00 12.00
2014 2015 2016 2017 6-M 2017 6-M 2018 Operating Profit (Loss) (MB) 254.15 305.39 393.82 168.63 72.02 (4.79) Net Profit (Loss) (MB) 214.92 305.96 290.76 92.79 31.13 (36.50)
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% to services income & sales
726 685 645 1,331 1,266 1,256 72 48 50 2,874 2,599 2,698
2,000 3,000 4,000 5,000 31 Dec 16 31 Dec 17 30 Jun 18
Assets
Current assets Other non-current assets Investment in associate and Investment in joint ventures Property, plant and equipment
5,003 4,598 4,649
(MB)
2,684 2,756 2,706 1,838 1,367 1,321 404 400 546 77 75 76
2,000 3,000 4,000 5,000 31 Dec 16 31 Dec 17 30 Jun 18
Liabilities and Shareholders' Equity
Non-current liabilities Loans and debentures Current liabilities Shareholders' equity
5,003 4,598 4,649
(MB)
(APOT: 1,259) (APOT: 1,234) (APOT: 1,328)
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58% 1% 27% 14% 2% 12% 28% 58%
8 Jul 2015
(2 years)
10 Mar 2016
(2 Years)
12 Jul 2017
(1 year)
15 Mar 2018
(2 years&2 days)
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370 259 88 396
14 37 Sources of Cash Uses of Cash 472 692
Change in Cash (220 MB)
Increase in translation adjustment (0.73 MB)
Ending Cash 115 MB Beginning Cash 336 MB
S-T loan received & debenture issuance Cash from operation Withholding tax refund Change in working capital (376 MB) & income tax paid (20 MB) Debt service repayment & dividend paid (12 MB) Investment in equipment (22 MB) and capital increase in SH Crossing by SKW (15 MB)
6-Month 2018 Sources and Uses of Cash (MB)
Financing Activities: + 111 MB
Operating Activities: (294 MB)
Investment Activities: (37 MB)
Net CF: (220 MB)
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TRC Group Industry Group (Construction Services)
0.89 0.86 0.67 0.95 0.72 2.46 2.34 2.47
2.40
2.58 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2015 2016 2017 30 Jun 17 30 Jun 18
15.99 11.28 3.38 12.31 0.92 12.26 7.09 2.56 9.05 3.43
0.00 5.00 10.00 15.00 20.00 2015 2016 2017 30 Jun 17 30 Jun 18
(%)
Time(s)
Return on Equity Debt to Equity Ratio
0.06 0.16 0.15 0.20 0.00 0.05 0.10 0.15 0.20 0.25 31 Dec 15 31 Dec 16 31 Dec 17 30 Jun 18
Time(s)
104.12 26.88 16.28 11.96 0.00 20.00 40.00 60.00 80.00 100.00 120.00 2015 2016 2017 30 Jun 2018
EBITDA to Interest
Time(s)
TRC TRC
Interest Bearing Debt to Equity
Covenant: > = 4 times Covenant: < = 2 times
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If you have any question please feel fee to contact Investor Relations Department Email: ir_trc@trc-con.com or ounruen@trc-con.com
Fax +66 2022 7778