GEB Earnings Results 2Q 2018 1 September 13/2018
Disclaimer The information provided herein is for informational and illustrative purposes This presentation may contain statements that are forward-looking within only and is not, and does not seek to be, a source of legal, investment or the meaning of Section 27A of the Securities Act and Section 21E of the U.S. financial advice on any subject. This presentation does not purport to address Securities Exchange Act of 1934. Such forward-looking statements are based any specific investment objectives, financial situation or particular needs of on current expectations, projections and assumptions about future events any recipient. It should not be regarded by recipients as a substitute for the and trends that may affect GEB and are not guarantees of future exercise of their own judgment. This information does not constitute an offer performance. of any sort and is subject to change without notice. GEB is no obligation to update or keep current the information contained herein. The shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any U.S. State securities GEB expressly disclaims any responsibility for actions taken or not taken laws. Accordingly, the shares are being offered and sold in the United States based on this information. GEB does not accept any responsibility for losses only to qualified institutional buyers as defined under Rule 144A under the that might result from the execution of the proposals or recommendations Securities Act, and outside the United States in accordance with Regulation S presented. GEB is not responsible for any content that may originate with of the Securities Act. third parties. GEB may have provided, or might provide in the future, information that is inconsistent with the information herein presented. No We converted some amounts from Colombian pesos into U.S. dollars solely representation or warranty, either express or implied, is provided in relation for the convenience of the reader at the TRM published by the SFC as of each to the accuracy, completeness or reliability of the information contained period. These convenience translations are not in accordance with U.S. GAAP herein. and have not been audited. These translations should not be construed as a representation that the Colombian peso amounts were, have been or could be converted into U.S. dollars at those or any other rates. 2
1. GEB Overview 2. Key Updates 3. Expansion Projects 4. Financial Performance 5. Q&A 3
1 GEB Overview 4
1.1 GEB at a Glance GEB is a leading energy company in LatAm, composed by a diversified portfolio of Power and Natural Gas companies, classified in three strategic business lines: Power Power Natural Gas Natural Gas Power Distribution Distribution Transmission Transportation Generation 3,467 MW in Installed Capacity 3.8 mm clients in Power Distribution 13,580 km of Transmission Lines 14,765 GWh in Power Generation 2.9 mm clients in Natural Gas Distribution 4,200 km of Gas Pipelines USD$579 mm YTD USD$569mm YTD USD$6.3bn ~USD$157 mm Consolidated Revenues Consolidated EBITDA Market Cap. CAPEX 2Q 2018 2Q 2018 2Q 2018 June 30, 2018 Approved a profit distribution of over 5.6% 11.7% 10.9% COP$1.055.835 mm Dividend Yield 2Q 2017 – 2Q 2018 2Q 2017 – 2Q 2018 GEB will pay its shareholders a record Avg. 2011 – 2Q 2018 dividend of COP$115 per share 5
Leading Participant in Relevant Energy Markets GEB’s subsidiaries have market leading participations across the energy chain in Colombia, Peru and Guatemala Colombia Guatemala Natural Gas # 1 Colombia (8) Transportation Colombia Power Transmission # 1 Guatemala (1) Market Share 54% (8) Market Share % National Network (Private Company) 20.90% (1) Guatemala (km) 3,994 km % Revenues NTS Trans. Network Transmission Network (10) 867 km Power Distribution # 1 Colombia (4) Peru Market Share 24.7% (4) % Subscriptions Clients 3.4mm (10) Peru Power Transmission # 1 Peru (2) Market Share 65.9% (2) Power Transmission % Revenues NTS # 2 Colombia (5) Trans. Network (13) ~10,994 km Market Share 17.8% (5) % Revenues NTS Natural Gas Dist. / Transp. Trans. Network 1,503 km (10) # 1 Peru (3) Market Share Brazil 73.53% (3) % Distributed Volume Power Generation #1 Colombia (6) Clients (11) 600K Market Share 20.7% (6) % Power Generated Brazil Generation ‘17 14,835 GWh (12) Power Transmission Natural Gas Distribution # 2 Colombia (7) Market Share Market Share 0.77% (9) 32.6% (7) % Network NTS (km) % Connected Users Transmission Network 1,100 km (10 ) 2.1mm (10) Clients • Source: GEB. • Notes: (1) AMM, November 2017 (http://www.amm.org.gt//ite.php?fecha=09-2017&anio=2017); (2) COES, September 2017 (http://www.coes.org.pe/portal/); (3) Perupetro, September 2017 (http://www.minem.gob.pe/_estadisticaSector.php?idSector=5); (4) SSPD, December 2017 (http://reportes.sui.gov.co/fabricaReportes/frameSet.jsp?idreporte=ele_com_094); (5) XM, December 2017P (http://www.xm.com.co); (6) XM, December 2017 (http://www.xm.com.co); (7) Minminas, September 2017 (Natural Gas Coverage Report as of 3Q 2017); (8) Market share of TGI as of December 2016 (Promigas – Natural Gas Sector Report 2017) and excluding Promigas; (9) MME/ANEEL/ONS, September 2017 (http://www.mme.gov.br/web/guest/secretarias/energia-eletrica/publicacoes/boletim-de-monitoramento-do-sistema-eletrico/boletins-2017 ); (10) GEB corporate presentation; (11) GEB 3Q17 6 earnings release pages 8 and page 10; (12) XM, December 2017 (http://www.xm.com.co) (13) 3Q17 ISA REP-CTM corporate presentation page 3.
2 Key Updates 7
2.1 Key Updates 2Q 2018 – GEB 2Q 2018 – Corporate Highlights Highest Dividends in History • Cálidda reported an increase of residential clients in an additional 148 thousand. • Cálidda decreed dividends in USD$52.7 million. • Capitalization to Trecsa in USD$11.9 million and to Contugas together with TGI in the 2018 cumulative in USD$41 million. • On June 28, 2018 the first dividend payment was made corresponding to 50% of the amount decreed on the value of the 2017 profit (COP $ 527,917 million). The second payment will be on October 25 and in total $ 115 / share will be paid. • On July 4, a notice of offer for the second stage of democratization was published. • On July 23, the results for the award of the second stage of democratization were presented. • On July 31, the second stage of democratization was completed with the recording in the disposed shares account. • On August 1, GEB informs of changes in its share composition. • Gas Natural S.A. E.S.P. informed that on June 1, 2018, Gamper Acquireco S.A.S. acquired a stake of 43.71% in the Company (16.137.037 shares), which added to the stake of Gamper AcquireCo II S.A.S. (one of its affiliates and also part of Brookfield Infrastructure Group), equals 11.22% of the Company (4.142.772 shares), and gives Gamper Acquireco S.A.S and Gamper AcquireCo II S.A.S joint control in the Company with a stake of 54.93% in the Company (20.279.809 shares). • The arbitration claims initiated by Consorcio Graña & Montero (CG&M) – Conciviles against Contugas, were for an initial amount of USD 80 million. Nevertheless, after the evidentiary hearing and the allegations of the parties, the tribunal decided that the only amount in favor of CG&M was for USD 38.4 million, and also deciding that CG&M was to pay to Contugas the replacement of some valves; thus, the final amount to be paid from Contugas was approximately USD 30 million. 8
2.2 Key Updates 2Q 2018 – TGI 2Q 2018 – Corporate Highlights • TGI continues to have control and operate the largest gas pipeline network in Colombia: ✓ Gas pipeline: 3,994 km, Capacity: 784.9 MMscfd ✓ Average of firm hired capacity: 716.3 MMscfd ✓ Covers 54% of the Colombian market • On march 11 early payment was made on the syndicated loan acquired through the merger with IELAH in the amount of USD$44 million, leaving a remaining balance of USD$40 million. • Commissioning of the Cusiana – Apiay project, which increases capacity from 33 Mscfd to 64.2 Mscfd, and of the Apiay – Villavicencio – Ocoa section, from 17.2 Mscfd to 22 Mscfd, including completion of construction of two compression stations (Paratebueno and Pompeya). • Capitalization in Contugas for USD$13.2 million in May. • A payment of dividends to GEB was made in an amount of COP$150,038 million; the remaining will be paid in October 2018, considering that the total declared was COP$300,077 million. • June 1 – The Cusiana Phase IV project came into operation with its compression unit No. 8, located at the gas station of Puente Guillermo (Puente Nacional - Santander) and with an additional transportation capacity of 17 Mmpcd. At the close of the period, firm transportation contracts with Natural Gas were signed (15 Mmpcd for the period from June 2018 until December 2024) as well as contracts with authorized future funding with: Gases de Occidente, Emgesa, Organizacion Terpel, Alcanos de Colombia and Cogasen. • June 9 – The Subfluvial Crossing of the Magdalena River (La Dorada – Caldas and Guaduas – Cundinamarca) came into operation, eliminating the shortage risk for 84 municipalities and 8 departments in the south-western part of the country. • June 14 – The Loop Armenia came into operation with 37 Km of length and a capacity of 8.3 Mmpcd, supplying 8 municipalities of Quindio, 2 municipalities of Valle del Cauca and distribution companies in the region. 9
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