Transcript Second Quarter Results January – March 2014 WELCOME Change in Organizational Structure Promigas is a corporation of services with enterprises in specific.

Second Quarter Results
January – March 2014
WELCOME
Change in Organizational Structure
Promigas is a corporation of services with enterprises in specific segments of
the energy chain.
• Promigas has framed its strategy under a new organizational structure based
on Strategic Business Groups (SBGs), which will allow it to continue to grow
and strengthen in the areas where it has a presence.
• It has migrated from an intervention model from boards of directors to one
lead by SBGs, where spaces were created so that through the transfer of
knowledge and skills they focus the efforts on achieving the target growth.
The boards will continue their approval and monitoring functions.
Summary of the change in Transmission
Intervention:
Board of Directors
Company / Region
Previous Configuration
Intervention:
Corporation/SBG Transmission
Companies
New Configuration
Promioriente
Transport of GN
Services for Third-parties
Energy Services
Distributed Generation
Promisol and
subsidiaries
New Business
Promigas
Compression and
Dehydration
O&M Third parties
Transmetano
Transoccidente
UENs
Oil pipelines and
Polipipelines
LNG
Summary of the change in Distribution
Intervention:
Board of Directors
Company / Region
Previous Configuration
Gases de Occidente
Intervention:
Corporation/SBG Distribution
Companies
New Configuration
UEN’s
Distribution of NG and
EE
Residential
Non-bank Financing
Surtigas
Gases del Caribe and
subsidiaries
Cálidda
Gases del Pacifico
CEO
Mobility
Corporate Energy
Optimization Third Party
Assets
PROMIGAS: overview of relevant SBGdata
SBG TRANSMISSION
Natural Gas
Transmission
SBG DISTRIBUTION
Natural Gas
Distribution*
Distribution of
Electrical
Energy
Connected users: 2.97MN
Total users: 307,000
Compression capacity: 55.2 khp
Communities serviced: 537
(63% of the country)
Energy demand: 499 GWh
Transmission Capacity: 771 MCFD
Network: 42,349 kms
Transported volume: 508 MCFD
Sale of gas: 7,993 MNm3
Gas Pipeline: 2,900 kilometers
45%
43%
EBITDA 2013: $584.887MN
17 companies; 2 countries; 2,962 employees**
*Includes Calidda (Peru), Efigas and Gases de La Guajira/ **Does not include contractors
Losses: 16.28%
Network: 22.393km
11%
CORPORATE MILESTONES
Distribution of profits H2 2013
In the shareholders’ meeting of March 25, 2014 dividends of $207.289 million were announced
which correspond to 128% of the net profit from the second half of 2013. The dividends come from
the net profit of H2 2013, less the 10% legal reserve ($145,770 million), plus the liberation of the
reserve for future expansions (for $61,519 million); which will be distributed as follows:
₋
Special dividends paid as shares: 1 share for each 85 shares in circulation for $4,770 pesos each
($61,658 MN).
₋
Cash dividends $131.00 pesos per share for the shares in circulation, as follows:
₋
•
Ordinary: $84.00 pesos per share ($93,382 MM) (payable in 6 monthly installments of
$14.00 pesos per share from April 2014).
•
Special: $47.00 pesos per share ($52,249 MN) (payable in a single payment in April 2014).
Total shares in circulation before the shareholders’ meeting: 1,098,761,980
(+) Dividends issue in shares:
1,296,242
Total shares in circulation: 1,111,688,222
•
a
CORPORATE MILESTONES
Type of share without dividends expires
According to the newsletter for brokers No. 079 of March 21, 2014 issued by the
Colombian Stock Exchange (BVC), the last payment of cash dividends declared by
Promigas in the shareholders’ meetings in April and September 2013 was
completed. For this reason the mnemonic assigned for ordinary shares entitled to
a lower dividend (MDPROMIGAS), will not be allowed to be traded as of March
25, 2014.
As a result all the ordinary shares in circulation will have the same characteristics,
and must be traded under the mnemonic assigned to PROMIGAS.
CORPORATE MILESTONES
Acknowledgements
•
As part of its XVII Congress, Naturgas praised Promigas for its first 40 years, which it will
celebrate in December 2014, for its leadership in the development of the gas industry in
Colombia, its contribution to improving the quality of life of many Colombians and for
energy
competitiveness
of
the
country.
•
The Research Group of the Promigas Foundation was recognized by Colciencias in the last
Research, Technological Development and/or Innovation Groups survey carried out in the
country, in which 14,760 groups registered in Colombia were present, where only 4,219
groups were recognized, becoming the first corporate foundation to receive this type of
recognition.
International Quality Qualification for Internal Audits
•
Promigas received the Certification of Internal Audit Processes from The Institute of
Internal Auditors (IIA), certifying that the processes, procedures, structures and policies of
the Internal Audit meet international standards. This is the highest distinction a
Department of Internal Auditing can aspire to and Promigas is the first Colombian
company from the gas sector, and from the Colombian Atlantic Coast to obtain this
certification.
SBG DISTRIBUTION
Relevent Results
RELEVANT RESULTS SBG DISTRIBUTION
• Actualmente se espera el anuncio de CREG respecto a los nuevos retornos
regulados para las empresas distribuidoras de gas, mientras tanto, las
empresas preparan sus expedientes de solicitud tarifaria para el nuevo
período.
Regulatory Aspects
• The CREG announcement regarding the new regulated returns for gas
distribution companies is expected soon, as the companies prepare their
dossiers for tariff requests for the new period.
RELEVANT EVENTS SBG DISTRIBUTION
Relevant Events Portfolio
• Up to March 2014, through the distributors in which Promigas has a stake, 17 new
communities in Colombia were benefitted with access to the natural gas service;
42,395 new users were connected to the gas service and 730 million m3 were sold.
Meanwhile, Calidda in Peru connected 22,124 new users and sold 1,220 million m3 of
natural gas.
• The AAA rating was reaffirmed for Surtigas and GDO, which represents the highest
rating assigned by Fitch Colombia in its scale of domestic ratings. This score is
assigned to the best issuers with respect to credit quality relative to other issuers or
issues
in
the
country.
• Gases de Occidente was ranked by the Great Place to Work institute Colombia as the
Best Company to Work for in Latin America 2014 out of 2,094 participating
companies, with an index of job satisfaction of 99.4 %. The company had already
been recognized as the best company to work for in Colombia in December 2013 .
RELEVANT RESULTS SBG DISTRIBUTION
Relevant Events Portfolio
• Gases del Caribe began construction of the Bosconia-Tucurinca, Bosconia-Valledupar
and Pueblo Nuevo-Bosconia-Cuatro Vientos gas pipelines, with a length of 260 km in
steel and 90 km in polyethylene. The cost of the project is $101,500 million and will
be implemented by Promigas in association with Montecz. This infrastructure, which
is expected to be completed in the first quarter of 2015, will service 34,000 users
leveraging gas from the fields located in the area including El Difícil and Maracas
among others, taking maximum advantage of the gas in the zone. This gas pipeline is
built by the Montecz-Promigas Consortium.
• The Compañía Energética de Occidente continues to execute its plan to reduce
losses, currently standing at 15.8%; at present it serves 310,396 users in the
department of Cauca.
• Gases del Pacífico in Peru (the concession for natural gas distribution in 4
departments in the country) advances in the implementation of the commercial
operation according to the stipulated schedule.
RELEVANT RESULTS SBG DISTRIBUTION
Relevant Events FNB - Brilla
• Placement of $51.347mn in loans to March 2014, for an accumulated total of
$990.397mn and a loan portfolio of $308,494mn.
• Users who benefitted from January to March 2014: 54,201.
• Users accumulated to March 2014: 1,101,655 (Housing level 1: 30%, Housing
level 2: 43%, Housing level 3: 21%, Others: 6%)
• The EBITDA of Brilla represented 10.4% of the consolidated EBITDA of the
natural gas distributors in 2013.
• Brilla was recently selected as one of the 7 finalists, out of 234 applications
from 62 countries, in the Inclusive Business category of the “Financial
Times/IFC Transformational Business Awards”. The awards will be held in
London on June 12.
SBG TRANSMISSION
Relevant Results
RELEVANT RESULTS SBG TRANSMISSION
Regulatory Aspects
• The CREG issued Resolution 45/2014, which approves new regulated
transmission charges for the Gibraltar-Toledo-B/manga gas pipeline, a 12%
increase compared to the previous tariff, by recognizing investments made
during the period 2007-2012 and the updated projection of the AOM costs
of said section.
• Res 47/2014 - The CREG published the methodology bases for the
remuneration of gas transportation charges for the next tariff period.
RELEVANT RESULTS SBG TRANSMISSION
Relevant Events Portfolio
•
During the first quarter of 2014 Promigas has delivered 364 MCFD to its customers
and has a contracted capacity of 575 MCFD after the increase in capacity from
Reficar of 16-90 MPCD from January 15.
• In Promioriente a restructuring of syndicated loans held for $240,000 million was
negotiated resulting in better conditions in both the term and interest rate. This
negotiation was achieved taking into account the consolidation of the operations of
the company, especially with respect to the transmission of natural gas in the
Gibraltar-Bucaramanga pipeline.
RELEVANT RESULTS SBG TRANSMISSION
Geographic Location
Regasification Terminal LNG –SPEC
(Cartagena -Colombia)
• LNG import terminal to supply thermoelectric demand.
JETTY
• Phase I: FSRU (Floating Storage & Regasification Units)
• Phase II: Land-based Terminal (subject to negotiation with
Thermoelectric Group).
• Infrastructure:
Storage: 160,000 m3 LNG
Regasification: 400 MMCFD
Reception of tankers up to 267,500 m3 LNG
Connecting gas pipeline: 10 Km
• CAPEX: Phase I: USD137 million, Phase II: USD500 million
• Environmental license, port concession
(territorial zoning plan) pending.
and
POT
• Financial Advisor: Sumitomo-Mitsui Banking Corporation.
• Consumption: Tebsa 176.7 MCFD, Celsia 100 MCFD,
Termocandelaria 82 MCFD, Others 41.3 MCFD.
REGASIFICATION
UNITS
Project Timeline
STORAGE
TANK LNG
160 mil m3 LNG
RELEVANT RESULTS SBG TRANSMISSION
Advances in the construction of the LNG Microplant (Arenosa station–Barranquilla)
• The project aims to address and stimulate demand for natural gas in Colombia in
remote areas of the SNT ( National Transmission System ) .
• Liquefaction capacity 78,000 gl/day, equivalent to 6 MCFD .
• 4 cryogenic tanks with total storage capacity of 928 m3 , equivalent to 3 days of LNG
production.
• The investment is for USD $ 37.6 million of which a "turnkey" contract or EPC was
signed worth USD 35.3 million with international contractors specialized in the field.
• Estimated to enter into operation in January 2016.
Foto de Referencia
RELEVANT RESULTS SBG TRANSMISSION
Construction of the Palomino-La Mami Gas Pipeline Loop : Phase I
• Consists in the construction of a gas pipeline that is 6.8 km long and 24” in
diameter, increasing the capacity of the gas pipeline in 30 MCFD.
• Investment of USD$ 8.1 mn with a construction time of 5 months.
• The project is located between the departments of La Guajira and Magdalena,
near the communities of Palomino and Buritaca.
• The gas pipeline entered into operation on April 5, 2014.
• The additional capacity will allow the demand to be met after the increase in
capacity contracted by Reficar from January 2014 of 16 to 90 MCFD.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS PROMIGAS
RESUMEN BALANCE GENERAL
Cifras en Millones de Pesos
Caja e Inversiones
Otros Activos Corrientes
PP&E
Otros Activos
Total Activos
Pasivos Corrientes
Pasivo Largo Plazo
Total Pasivos
Patrimonio
Total Pasivos + Patrimonio
•
•
•
Dic-13
112.250
170.074
502.134
2.003.443
2.787.901
243.301
936.841
1.180.142
1.607.758
2.787.901
Mar-14
43.580
279.661
523.591
1.993.554
2.840.387
293.667
994.505
1.288.172
1.552.215
2.840.387
Var %
-61%
64%
4%
0%
2%
21%
6%
9%
-3%
2%
3.000.000
2.500.000
2.000.000
1.500.000
1.000.000
500.000
0
Saldo Final
Activos
Pasivos
Dic-13
Patrimonio
Mar-14
Assets: reduction in cash and investments due to payment of special dividends in January, together
with the increase in other current assets due to dividends of the companies declared in March, and
the advance registration of the steel gas pipeline construction contract in Bosconia for Gases del
Caribe.
Liabilities: increase due to the dividends declared in the shareholders' assembly of March, and
financial obligations contracted in January for investment projects in gas pipelines.
Equity: decrease due to ordinary and special dividends declared at the shareholders' meeting on
March 25, 2014.
PROFIT AND LOSS STATEMENT PROMIGAS
RESUMEN ESTADO DE PERDIDAS Y GANANCIAS
•
•
•
•
Cifras en Millones de Pesos
Mar-13
Mar-14
Var %
Ingresos Operacionales
Costos y Gastos
Utilidad Operacional
69.925
38.621
31.303
80.407
37.161
43.246
15%
-4%
38%
#¡DIV/0!
EBITDA
Dividendos
Metodo de Participacion
Ingresos Financieros
Gastos Financieros
Otros, Neto
Utilidad Antes de Impuesto
Impuesto de Renta
Utilidad Neta
37.226
17.014
39.752
139.695
15.751
(1.425)
210.589
25.570
185.018
49.168
19.183
42.606
735
13.195
496
93.071
7.781
85.290
32%
13%
7%
-99%
-16%
-135%
-56%
-70%
-54%
Income: higher transportation revenues as in 2014 Ecopetrol-Reficar started to be billed for the increase of the
contracted capacity from 16 to 90 MCFD.
Costs and Expenses: The price of gas in 2014 (US$4.75/BTU) has been below the price of 2013(U.S.$5.97/BTU),
which when added to less hours required for compression, have caused a decrease in the consumption of gas as
fuel in the Palomino station.
Financial income: in 2013 profit from the strategic sale of Promitel for $ 136,852mn was registered.
Income tax: in 2013 the income tax on the strategic sale of Promitel was recorded.
CONSOLIDATED PROFIT AND LOSS STATEMENT
RESUMEN ESTADO DE PERDIDAS Y GANANCIAS
Cifras en Millones de Pesos
Mar-13
Mar-14
Var %
Ingresos Operacionales
Costos y Gastos
Utilidad Operacional
445.755
333.384
112.371
466.750
337.463
129.287
5%
1%
15%
#¡DIV/0!
EBITDA
Dividendos
Ingresos Financieros
Gastos Financieros
Otros, Neto
Utilidad Antes de Impuesto
Impuesto de Renta
Interes Minoritario
Utilidad Neta
136.171
18.405
144.093
38.398
(1.591)
234.880
48.300
3.289
183.290
152.175
19.759
6.125
38.421
(914)
115.836
30.128
3.536
82.171
12%
7%
-96%
0%
-43%
-51%
-38%
7%
-55%
• Income: increase vs. 2013 due to the increase of contracted capacity to Ecopetrol-Reficar
in Promigas, and in Surtigas due to more profits in the commercialization and distribution
of gas and greater profit due to connection rights.
• Financial Income: decrease in profit in Promigas in 2013 due to the strategic sale of
Promitel, and the sale of the minority stake in Transgastol.
•
Income tax: in 2013 the income tax on the strategic sale of Promitel was recorded.