PetroEnergy Resources Corporation. · PSE:PERC
PetroEnergy Resources — Q1 2017 Earnings Presentation
30 slides from PetroEnergy Resources's earnings presentation, Jun 2, 2017
Slide 1: Operational & Financial Highlights
Operational & Financial Highlights Investors and Analysts Briefing 1Q 2017 June 2, 2017
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by PetroEnergy Resources Corporation (PERC) and contains general background information about PERC's activities as of the date of this presentation. The Information provided herein is presented in summarized form merely for purpose of cl
Slide 3: Company Profile
COMPANY PROFILE VISION: To grow as a profitable energy company Diversified revenue stream Petroleum | Renewable Energy | Power Generation EBITDA US$7.89 MM Net Income EPS US$4.31 MM 71% Php0.348 327% 500% 1Q 2017 Results Investors & Analysts Briefing 1Q 2017 | June 2, 2017
Slide 4: Company Profile
COMPANY PROFILE Total dividends Building greater VISION: (2002 to 2013) long-term value To grow as a profitable company through continuous Php453 MM business expansion MISSION: Optimum value for shareholders Market Capitalization (June 1, 2017) Php2,501 MM Subscribed Shares 410,736,330 Investors & A
Slide 5: Company Profile: Milestones and Corporate Structure
MILESTONES COMPANY PROFILE CORPORATE STRUCTURE 90% STRATEGIES: Judicious selection of 40% investments & partners 65% 56% Investors & Analysts Briefing 1Q 2017 | June 2, 2017
Slide 6: Company Profile
COMPANY PROFILE Belongs to a diversified & profitable PARTNERS conglomerate Banking & Finance LENDERS Insurance ADVISERS Education & IT Has extensive network VALUES: Construction Integrity, Credibility, for resource & Passion for Growth mobilization Investors & Analysts Briefing 1Q 2017 | June 2, 20
Slide 7: Company Profile
COMPANY PROFILE Governed by Distinguished Board of Directors VALUES: Integrity, Credibility, & Passion for Growth Investors & Analysts Briefing 1Q 2017 | June 2, 2017
Slide 8: Company Profile
COMPANY PROFILE Ensures that the Company’s success translates to social VISION: benefits for our host To grow as a communities profitable energy company MISSION: Optimum value for shareholders STRATEGIES: Judicious selection of investments & partners VALUES: Integrity, Credibility, & Passion for Gro
Slide 9: Oil producing fields in Gabon, West Africa
Oil producing fields in Gabon, West Africa BACKGROUND UPDATE • International partners from • Ramped-up production to US, South Africa, maintain ~18k BOPD Switzerland, & Japan since 1995 • 400k – 600k BBLS sold to Glencore for 1Q 2017 • PERC’s participating interest (offtaker) is 2.525% • New Hydroca
Slide 10: Developing PH Oil Projects to be Drill-ready
Developing PH Oil Projects to be Drill-ready Area PERC Partners Status Interest Philodrill Corp. (Operator) Anglo-Philippine Holdings On-going re-processing and quantitative Service Contract 6A Trans-Asia Petroleum interpretation of 2013 3D seismic data, (Octon-Malajon, 16.670% Forum Energy Corp. No
Slide 11: 20MW Maibarara-1 Geothermal Power Project (MGPP)
20MW Maibarara-1 Geothermal Power Project (MGPP) Sto. Tomas, Batangas BACKGROUND UPDATE • Joint Venture of PGEC • First major preventive (65%), PHINMA Energy maintenance shutdown (25%), & PNOC RC (10%) in March 2016 resulted in increased generation and • Integrated steamfield, plant efficiency power
Slide 12: 36MW Nabas-1 Wind Power Project (NWPP)
36MW Nabas-1 Wind Power Project (NWPP) Nabas-Malay, Aklan BACKGROUND UPDATE • Joint Venture of PGEC • Thai-listed company (40%), BCPG Wind BCPG Public Company Cooperatief U.A. (40%), & Ltd. as new partner EEI Power Corp. (20%) • Approved 2016 Fit-All • Phase 1 with 18 2-MW rate will improve Transco
Slide 13: 50MW DC Tarlac-1 Solar Power Project (TSPP)
50MWDC Tarlac-1 Solar Power Project (TSPP) Central Technopark, Tarlac City BACKGROUND UPDATE • Joint Venture of PGEC (56%) • Approved 2016 Fit-All rate and EEI Power Corp. (44%) will improve Transco remittance • Situated in a 55-hectare lot inside a PEZA zone and completed in 4 mos. from 2016 Result
Slide 14: Newest Project: Puerto Princesa Solar Power Project
Newest Project : 5-10MWDC Puerto Princesa Solar Power Project BACKGROUND UPDATE • Service Contract awarded • City Council to PGEC on February 27, endorsement secured 2017 on May 10, 2017 • Energy storage option • Distribution Impact Study (DIS) on-going • In line with Palawan’s increasing energy dem
Slide 15: Financial Highlights: Assets, Liabilities, Equity
FINANCIAL HIGHLIGHTS EXPANSION IN RE DRIVES INCREASES IN ASSETS, LIABILITIES, & EQUITY Consolidated Asset Oil Distribution 14% (2016) 32% Investment in 13% Associate Geothermal 250 41% Solar 200 USD MM 150 100 50 2012 2013 2013 2014 2014 2015 2015 2016 2016 Total assets 91 116 142 237 214 Total liab
Slide 16: Financial Highlights: Revenue and EBITDA
FINANCIAL HIGHLIGHTS SUBSTANTIAL INCREASE IN REVENUE AND EBITDA DUE TO RE OPERATIONS 15% 20MW Geothermal In USD MM COD – Feb. 8, 2014 50MW Solar 40.00 COD – Feb. 10, 2016 36MW Wind 85% 35.00 COD – June 10, 2015 33.63 30.00 Electricity Sales 25.87 25.00 Oil Revenues 23.54 21.60 2016 REVENUE 20.00 ALL
Slide 17: Financial Highlights: Return on Sales from RE Units
FINANCIAL HIGHLIGHTS SIGNIFICANT RETURN ON SALES FROM RE UNITS 20MW 36MW 50MWDC METRIC GEOTHERMAL WIND SOLAR 2016 1Q 2017 2016 1Q 2017 2016 1Q 2017 Net Generation (GWh) 153.07 40.86 103.50 42.47 64.27 19.58 Capacity Factor (%) 97.91 99.56 33.49 53.38 21.03 22.96 Gross Revenue (Php MM) 784.61 209.08
Slide 18: Financial Highlights: Book Value Per Share
FINANCIAL HIGHLIGHTS RE EXPANSION REFLECTED IN INCREASING BOOK VALUE PER SHARE 1Q 2012 2013 2014 2015 2016 2017 Market Closing Price 6.10 5.42 6.20 3.50 4.15 4.01 (Php/Share) – Book value/share (Php) 6.19 6.69 8.18 8.83 7.90 8.26 Earnings per share (Php) 0.395 0.343 1.376 0.297 0.205 0.348 • Market
Slide 19: Financial Highlights: Healthy Results for 1Q
FINANCIAL HEALTHY FINANCIAL RESULTS FOR 1Q HIGHLIGHTS (Amounts in USD MM except ratios) FY 2016 1Q 2017 Variance (%) Financial Position Total assets 214.30 228.01 6.01 Total liabilities 125.02 135.03 7.41 Total equity 89.28 92.98 3.98 Book value per share (in Php) 7.90 8.26 4.37 1Q 2016 1Q 2017 Vari
Slide 20: Financial Highlights: Cash Flow
FINANCIAL HIGHLIGHTS CASH FLOW SUFFICIENT TO FUND ON-GOING OPERATIONS Net Cashflows for 1Q 2017 Amounts in USD MM Cash Balance, Dec 2016 12.91 Net Cash from Operations 4.32 Net Cash from Investing (CAPEX) -12.76 Net Cash from Financing: Loans (net of interest payment) 6.29 Equity contribution 2.47 O
Slide 21: Financial Highlights: Ratios Compliant with Loan Covenants
FINANCIAL HIGHLIGHTS RATIOS COMPLIANT WITH LOAN COVENANTS MGI PSC PWEI (Geothermal) (Solar) (Wind) Debt Service Coverage Ratio (DSCR) Threshold 1.1:1 1.1:1 1.1:1 Current - 2016 1.92:1 2.26:1 1.33:1 Debt to Equity Ratio (D/E) Threshold 2.33:1 3:1 2.33:1 Current - 2016 1.63:1 2.86:1 2.21:1 Investors &
Slide 22: Market Outlook & Business Expansion
MARKET OUTLOOK & BUSINESS EXPANSION DOE data indicate sufficient supply to meet demand until 2021 FIT-supported RE capacity still below 15% of total energy mix 30,000 Total Existing Available Capacity Wind Biomass Solar Hydro 2.3% 1.3% 1.2% Total Capacity Addition 9.4% System Peak Demand 20,000 Geot
Slide 23: Market Outlook & Project Expansion: Offtake Options
MARKET OUTLOOK & PROJECT EXPANSION Offtake Options for New RE Projects 2. Bilateral Supply Agreement/ 1. Feed-in-Tariff (FIT) Renewable Portfolio Standard (RPS) • Fixed rate • Fixed rate • Long-term (20 years) • Short to long-term (Meralco -20 years) Key Features • Priority and must-dispatch • Prior
Slide 24: Market Outlook & Project Expansion: Offtake Options
MARKET OUTLOOK & PROJECT EXPANSION Offtake Options for New RE Projects 3. Retail Electricity Supply (RES) 4. Off-Grid/SPUG Areas 5. Economic Zones • Fixed rate • Fixed rate • Fixed-rate • Short-term (2-5 years) • Long-term (20-25 years) • Short to long-term • Priority and must-dispatch • Priority an
Slide 25: 12MW Maibarara-2 Geothermal Power Project
MARKET OUTLOOK & BUSINESS EXPANSION 12MW Maibarara-2 Geothermal Power Project Target COD by 4Q 2017 Secured offtake with PHINMA Energy Total project cost of Php1.9 Billion (USD38 MM) Ceremonial Groundbreaking for M2 held on October 27, 2016 Investors & Analysts Briefing 1Q 2017 | June 2, 2017
Slide 26: 49MWDC Tarlac-2 Solar Power Project
MARKET OUTLOOK & BUSINESS EXPANSION 49MWDC Tarlac-2 Solar Power Project Target COD by 1Q 2018 • 90% of permits secured • technical studies completed • offtake proposal submitted to potential buyer Estimated project cost of Php2.4 Billion (USD48 MM) TSPP-1 (50 MWDC) (55 hectares) PROPOSED TSPP-2 (49
Slide 27: 14MW Nabas-2 Wind Power Project
MARKET OUTLOOK & BUSINESS EXPANSION 14 MW14MW Nabas-2 Wind Power Project Nabas-2 Wind Power Project Nabas-2 Location Met Mast WTG 11 • Expected higher wind speed and capacity factor • Takes advantage of existing infrastructure for Nabas-1 • 4-7 Wind Turbine Generators • Estimated project cost of Php
Slide 28: 5-10 MWDC Puerto Princesa Solar Power Project
MARKET OUTLOOK & BUSINESS EXPANSION 5-10 MWDC Puerto Princesa Solar Power Project Underground Ulugan Bay River Service Contract area Honda Bay SULU SEA Target COD by 1Q 2018 Estimated project cost of Php855 MM (USD17 MM) Puerto Princesa Investors & Analysts Briefing 1Q 2017 | June 2, 2017
Slide 29: Key Takeaways
KEY TAKEAWAYS • Growing RE revenue stream with potential medium-term upside on oil • Greater focus on renewable energy and power generation RE revenues constitute 85% of PERC ‘s total consolidated revenues PERC currently supplies 8.4 % of wind power and 7.1% of solar power capacities in the coun
Slide 30: End of Presentation
END OF PRESENTATION PetroEnergy Resources Corporation 7th floor JMT Bldg. ADB Ave., Ortigas Center, Pasig City T: (02) 637-2917 F: (02) 6346066 E: ccu@petroenergy.com.ph
PetroEnergy Resources — Q1 2017 Earnings Presentation on 6ix