ENGIE ENERGÍA CHILE S.A. Presentation to investors Full year 2019
SNAPSHOTS 2
Supporting our clients in their zero BUSINESS LINE – CLIENT SOLUTIONS carbon roadmap Focus on 20 countries, 30 urban areas, BUSINESS LINE – RENEWABLES 500 global clients Decentralized organization: BUSINESS LINE – NETWORKS 24 business units; 4 business lines CAPEX 2019-2021: BUSINESS LINE – THERMAL € 12 bn & 9 GW in renewables Capacity breakdown Revenue breakdown EBITDA breakdown 88% low CO 2 0.2 0.2 4.5 5% 7% 7.0 37.1 5.7 1.1 6% € 60.6 bn (3) € 9.2 bn (3) 104 GW (1 ) 4.0 55% 1.8 4.6 27% 3.4 0.2 Natural gas Nuclear Other Europe North America Latin America Europe North America Latin America Renewables (2) Coal Africa & Asia GEM Other Africa & Asia GEM Other (1) At 12/31/2018, at 100% (2) Including pump storage for hydro (3) 2018 Consolidated 3 Engie Energía Chile - Presentation to Investors – FY 2019 3
Gross installed Generation capacity (MW) 2019 (GWh) Solar Hydro 11% 27% Wind 6% Wind Hydro 9% 27% Solar SEN 8% 77,382 GWh 25,206 MW 3,300 Km Thermal Thermal 59% 53% Clients Market Share (% of sales 2019) (% installed capacity Dec-19) Enel 29% Regulated Engie 42% 9% Colbún 13% 25,206 MW 10,793 MW AES Gener 14% Tamakaya 2% Unregulated Other 58% 33% Source: CNE 4 Engie Energía Chile - Presentation to Investors – FY 2019 4
RELEVANT PLAYER IN THE ENERGY CONTRACTED GROWTH UNDERWAY BUSINESS INDUSTRY Leader in northern mining 15-yr regulated PPA Capacity contracted under region, 4 th largest electricity w/distribution companies => long-term sales agreements; generation company in contracted physical sales 12 years remaining average growth in 2018 & 2019 life Chile Strong counterparties ~2.2 GW gross generation 50%-owned TEN ~US$ 0.8 capacity bn transmission project Unregulated: mining and industrial companies; began operations in 4Q17 3 rd largest transmission Regulated: distribution company companies ~US$ 1 bn new power generation capacity + port Seaport infrastructure, gas ( COD: May 16, 2019) Strong sponsorship pipeline Float 24.84% 52.76% Engie Energía Prepared to provide energy Good delivery in growth AFPs (Chilean Chile solutions to its customers strategy implementation pension funds) 22.40% 5 Engie Energía Chile - Presentation to Investors – FY 2019
Technology Chapiquiña (11MW) Coal Diesel/Fuel oil El Aguila I (2MW) 2,204 MW (*) Natural gas Pampa Camarones (6MW) Renewables Baterías - Arica (2MW) Collahuasi Diesel Arica (14MW) El Abra 2,293 kms HV + MV Chuquicamata TE Tocopilla (708MW) transmission lines. 50% share in TEN Tocopilla port Gaby Mining Operations C. Tamaya (104MW) TE Mejillones (580MW) TEN Escondida CT Andina (177MW) 2 seaports: Tocopilla Gasoducto Norandino CT Hornitos (178MW) Chile - Argentina (Salta) Andino (Mejillones) IEM (377MW) Los Loros (46MW) Gas pipelines & L.T. LNG supply agreements Andacollo (1MW) (*) Units 12 and 13 in Tocopilla (171MW combined gross capacity) were closed on June 7, 2019. The company announced the closure of Units 14 and 15 in Tocopilla (268MW combined gross capacity) by YE 2021 and CTM1 & 2 in Mejillones (334MW combined gross capacity) by YE 2024. The Los Loros & Andacollo PV plants were acquired in April 2019. Their capacity is shown in MW, which differs from the MW- 6 peak figure reported in other slides of this presentation. Engie Energía Chile - Presentation to Investors – FY 2019 . 6
NEW PPA: NEW POWER INTERCONNECTION REVENUE & EBITDA SUPPLY GROWTH Contracted revenue growth TEN : 600-km, 500 kV, IEM + Puerto Andino ~US$0.8bn , transmission • ~8,200 GWh p.a. in 2017 ~US$1 bn investment including company • ~11,000 GWh p.a. in 2019 port Operating since 24-Nov-17 More balanced portfolio Port: In operations (Unregulated/regulated) IEM: COD: May 16, 2019 Regulated & contracted revenue; • 77%/23% in 2017 ~US$80 million EBITDA p.a. IEM: 375 MWe gross capacity • 57%/43% in 2019 +2 LNG cargoes – 2018 EBITDA growth (94% 2019 vs. +1 LNG cargo – 2019 2017) TEN: 50/50 Joint Venture Power supply contracts with 85% project financed Clients’ Sales (GWh) generation companies Red EECL 2017 2018 2019 Eléctrica 50% 50% Unregulated Regulated 7 Engie Energía Chile - Presentation to Investors – FY 2019
Early steps OUR PERFORMANCE • Development of TEN project => procurement of low-carbon energy sources • Decision not to build any new coal plants PPA renegotiation with mining companies RENEGOTIATED PPAs • New tariff scheme: price reduction ~3 TWh • Decarbonization (tariff indexed to CPI rather than to coal prices starting 2021) • Contract life extension (10+ years) COAL CAPACITY DISCONNECTED IN 2019 Asset rotation plan 171 MW • Coal plant closures: 171MW in 2Q19, 268MW by YE 2021, 334MW by YE 2024 • Renewable developments: 1GW / USD1bn plan COAL CAPACITY TO BE • Long-term power supply agreement to reduce volatility during transition DISCONNECTED YE 2024 602 MW Government-private agreement to phase-out coal generation • Gradual process concerning 28 coal units/5.5 GW installed capacity: ASSET ROTATION PLAN • Binding commitment by Engie, Enel & AES to close 8 units/1GW by 2024 1GW $1bn • Chile’s challenge: To become carbon-neutral by 2050 8 Engie Energía Chile - Presentation to Investors – FY 2019
RECENT EVENTS 9
Jun. 4, 2019: Agreement with Dec. 8, 2019, COP 25: Engie to close 2 government to phase-out coal-based more coal units => 773 MW of coal generation capacity closed by YE 2024 • Binding commitment by Engie, Enel & AES • Letter of Intent signed w/ IDB Group to to close 8 units/1GW by 2024 structure US$125 million L.T. financing • Commitment to reassess feasibility of • 3 coal units w/730 MW capacity left after further closures every five years 2024 Decarbonization process OUT 773 MW COAL U12 U13 U14 U15 CTM1 CTM2 334 MW 171 MW 268 MW 2019 2020 2021 2022 2023 2024 AFTER-TAX IMPAIRMENTS: 2018: US$53 MILLION 2019: US$134 MILLION 10 Engie Energía Chile - Presentation to Investors – FY 2019
October 7, 2019: Launching of first 3 renewable projects out of 1GW/US$1bn investment plan Los Loros Calama Capricornio Tamaya Acquired in April 2019 Site mobilization 10-19 1st cargo w/solar panels on Construction to start 1Q20 US$ 35 million US$159 million CAPEX site - US$64 million CAPEX US$68 million CAPEX Green and cost-efficient project pipeline 417 MW RENEWABLES + ~600 MW TO COME IN LOS LOROS CALAMA CAPRICORNIO TAMAYA 55 MWp 151 MW 97 MWp 114 MWp 2019 2020 2021 2022 ACQUISITIONS + FIRST 3 PROJECTS 2019-2021: US$326 MILLION 11 Engie Energía Chile - Presentation to Investors – FY 2019
Jan 28, 2020: New 10 yr., 3.4%, US$500 million 144A/RegS bond to refinance US$400 million notes due Jan-2021 600.000 6% 500 500.000 Before: 4.83% 400 5% 400.000 350 300.000 4% After: 3.72% 200.000 80 3% 100.000 0.000 2% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Average debt maturity extended to 7.4 years • Average debt coupon rate lowered to 3.72% Letter of intent signed with IDBI to finance renewable projects contributing to accelerate decommissioning of coal units • Letter of intent signed at COP 25 • IDB Invest seeks to finance renewable energy projects contributing to accelerate decarbonization • ~US$125 million, 12-yr. financing, with A-Loan funded by IDB and B-Loan funded by Clean Technology Fund 12 Engie Energía Chile - Presentation to Investors – FY 2019
Dec. 2020 Dec. 2025 PEC = Adjusted upwards if Jul. 2023 • PEC = Fixed price to PEC = Adjusted upwards if PEC = Fixed price to consumers in necessary to permit full Law #21,185 (Nov-19): Electricity consumers in nominal necessary to avoid breaching CLP adjusted for inflation repayment of fund in USD price stabilization mechanism for CLP @ 1H19 levels US$1,350 million fund cap by YE 2027 regulated customers • 9.2% rise in electricity prices annulled System average • As long as stabilized price (PEC) contract price “PNP” remains below average contract price (PNP), generation Co.s will accrue an Receivable build-up account receivable (the “ Fund ”) (Fund increase) Receivable refund • (Fund decrease) As lower priced PPAs awarded in Stabilized consumer power auctions become effective price “PEC” starting 2021, PNP will fall below PEC and receivable will be repaid • Generation co’s to bear working 2019 2020 2021 2022 2023 2024 2025 2026 2027 capital cost. Monetization alternatives being studied PNP > PEC • CLP/USD FX rate: main variable Generation Co’s accrue Stabilization fund account receivable affecting fund size and recovery pace PNP > PEC (“ Stabilization fund ”) The Fund can grow until the first to The fund accrues interest The account receivable begins to from distribution Co’s . occur: July 2023 or fund reaches starting 2026. • EECL’s receivable at YE 2019 = be refunded. Consumers pay at PEC US$1,350 million cap. US$73.5 million while generators are entitled to charge PNP. 13 Engie Energía Chile - Presentation to Investors – FY 2019
Recommend
More recommend
