K-Electric Ltd. · PSX:KEL
K-Electric — Investor Presentation (March 2021)
41 slides from K-Electric's investor presentation, March 2021
Slide 1: Corporate Briefing March 2021
Corporate Briefing March 2021
Slide 2: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 3: Introduction
Introduction FY 2020 proved to be challenging for the country on account of outbreak of COVID-19 and lockdown situation, power sector was no exception to it, however, first half of FY 2021 has shown improvements with improved economic activity Introduction • In FY 2020, with the outbreak of COVID-19
Slide 4: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 5: Operational Performance
Operational Performance KE continued towards its growth trajectory, with improvements in all major operational areas. COVID scenario impacted our growth trajectory in FY 20, which is now showing improvement in FY21 Operational Performance Sent-out (GWh) T&D (%) CAGR of 2.4% for FY 17 to FY 20 21.7%
Slide 6: Improvements after Impact of COVID-19
Improvements after Impact of COVID-19 First half of FY 21 has shown improvement in majority of the key areas, which is expected to continue in remaining FY 21 on the back of improved macroeconomic environment Improvements in key operational indicators Sent-out Growth T&D Loss Recovery Ratio (GWh) (%
Slide 7: Financial Performance
Financial Performance COVID-19 outbreak resulted in decreased financial performance in FY 20, however, subsequently with the recovery in the economic condition in the country, first half of FY 21 has shown significant improvement in key financials Financial Highlights EBITDA Net Profit / (Loss) Retu
Slide 8: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Key Challenges / Issues Positive Developments in Power Sector Conclusion
Slide 9: Business Update
Business Update Over the last four years, various initiatives were undertaken across the energy value chain to enhance capacity, improve reliability of the network along with targeted loss reduction Business Update & Operational Improvements Capex (PKR Bn) Operational Improvements 194 FY 17 to FY 20
Slide 10: Future Plans & Initiatives
Future Plans & Initiatives Planned initiatives of over PKR 260 Billion across the value chain in FY 21 to FY 23, subject to regulatory approvals – would enable KE to unlock key value drivers under the MYT along with benefitting consumers and the economy at large Initiatives across the value chain Ge
Slide 11: Demand-Supply Outlook
Demand-Supply Outlook With the planned initiatives, KE would enter into a power surplus situation by FY 2022 in its service area Outlook in KE’s Network (FY 2021 – FY 2023) • Due to factors beyond KE’s control, KE’s planned projects including 900 Demand-Supply MW and 700 MW coal plant were delayed M
Slide 12: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 13: 900 MW BQPS III RLNG Project
900 MW BQPS III RLNG Project To manage the projected growth in power demand, KE is pursuing its 900 MW RLNG project on fast-track basis with Unit 1 to be energized in summer 2021 Status Update • Civil structure of critical systems like Main Power building, Central Control Building etc. has been comp
Slide 14: 900 MW BQPS III RLNG Project
900 MW BQPS III RLNG Project 14
Slide 15: Renewable Energy Landscape
Renewable Energy Landscape KE with the objective of diversifying its fuel & power mix, plans to off-take power from various renewable projects having installed capacity of 350 MW Key Updates – Renewables Renewables Projects – 350 MW to be added by 2023 150 MW Solar Projects – Vinder, Uthal & Bela •
Slide 16: Diversification
Diversification The company has taken initiatives to diversify to new revenue streams in the different businesses Diversifying into Distributed Generation & Electric Vehicles Market K-Solar: KE’s Distributed Generation Company Electric Vehicles (EV) Market • Distributed Generation Company has been i
Slide 17: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 18: Transmission
Transmission Targeted investments in the Transmission Network towards capacity enhancement and improved grid reliability Planned Projects for FY 21 to FY 23 Planned Projects Transmission Capacity (MVAs)1 TP – 1000 Project 7,611 7,511 • Project is over 90% completed 7,391 • Remaining works to be comp
Slide 19: Additional 450 MW through Existing Interconnections
Additional 450 MW through Existing Interconnections Feasibility study for cross-trip scheme has been approved by NTDC and rehabilitation works on 220kV KDA-Jamshoro circuits are being undertaken by NTDC – KE is in active engagements for the same Update on 450 MW through Existing Interconnections Tec
Slide 20: Additional Supply of 1,400 MW from National Grid
Additional Supply of 1,400 MW from National Grid Construction works on 220kV Dhabeji Grid and Transmission lines have started and finalization of contractual arrangements for off- take of additional 1,400 MW from National Grid is in advanced stages Additional Supply from National Grid through 220kV
Slide 21: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 22: Distribution
Distribution Continued and targeted investments planned across the distribution segment to achieve increased sent-out growth, reduced T&D losses and improved recovery levels from all consumer segments Planned Capex & Initiatives Loss Reduction Safety & Protection Total: c. PKR 75 Billion • Targeted
Slide 23: Project Sarbulandi & Loss Reduction
Project Sarbulandi & Loss Reduction KE is focused on continuous improvements – representing focus and commitment towards the city and its people to provide uninterrupted electricity by implementation of loss reduction initiatives Key Achievements & Planned Initiatives Project Sarbulandi Planned Addi
Slide 24: Key Safety & Technology Initiatives
Key Safety & Technology Initiatives Focused on bringing technological brilliance & safety to its network, targeted technology improvements and safety initiatives are planned for the future Recovery & Safety Initiatives • Project serves to build reliability and resilience across Distribution network
Slide 25: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 26: Key Financing Initiatives
Key Financing Initiatives Investors and lenders have shown continued trust and confidence in the company’s fundamentals, enabling KE to make the planned investments on accelerated basis and further the positive trajectory of operational improvements Key Financing Initiatives Issuances of Islamic Com
Slide 27: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility KE is committed on its social responsibility and community engagement initiatives are carried out in underprivileged communities through installation of ABC and low-cost subsidized meter connections Social Investment Program & Roshni Baji Project – Uplifting & Outreac
Slide 29: Community Uplift and Environmental Initiatives
Community Uplift and Environmental Initiatives Community development and uplift is an integral part of KE’s community transformation efforts Key Community & Environmental Initiatives Collaboration Schools Clean-up Eye-care Healthcare Water Reclaiming Sports with community renovations drive camps cam
Slide 30: Community Outreach
Community Outreach KE remains committed to its community – bringing in change through its community outreach program Community Outreach Initiatives (Jul 2020 to Jan 2021) Baldia Primary School, Landhi B.F. Cabral School, Lyari Pir Ji Achan Park, Liaquatabad Football Ground, Orangi BEFORE AFTER 30
Slide 31: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 32: Positive Developments in Pakistan Power Sector
Positive Developments in Pakistan Power Sector Policy reforms are underway to address key power sector issues including circular debt and other structural weaknesses – improvement of ecosystem and system performance will definitely fuel economic growth led by domestic and export-led businesses Chall
Slide 33: Potential for Further Value Improvement through a Strategic Investor
Potential for Further Value Improvement through a Strategic Investor In addition to KE’s robust investment plan of over PKR 260 Billion across the energy value chain, an aggressive, strategic investor, Capex plan would further improve Karachi’s power infrastructure Strategic Investment – Potential I
Slide 34: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 35: Key Challenges & Issues
Key Challenges & Issues Though KE is a private company, there is interdependency with other stakeholders for execution of planned initiatives and operational performance Key Challenges / Issues • Payment of dues including Tariff • Tariff setting Differential Claims (TDC) • Regulatory approvals / det
Slide 36: Key Regulatory Challenges / Issues
Key Regulatory Challenges / Issues KE remains in close coordination with the regulator for timely and effective resolution of KE’s outstanding issues including mid-term review request under the determined MYT, pending tariff variations and write-off claims Mid-term Review mechanism under the Determi
Slide 37: Receivables from Govt Entities & Departments
Receivables from Govt Entities & Departments Delays in release of payments from relevant authorities and growing receivables from government entities impacts the working capital position of the company for which continuous engagement with relevant stakeholders is being done Receivables & Payables –
Slide 38: Agenda
Introduction Operational & Financial Performance Business and Key Projects Update • Business Update & Future Outlook • Generation • Transmission • Distribution Financing Update Corporate Social Responsibility Positive Developments in Power Sector Key Challenges / Issues Conclusion
Slide 39: The Journey Continues
The Journey Continues With the ongoing developments / investments in KE’s network and necessary support from the government entities, KE is confident in serving its customers in a reliable and efficient way Moving Forward Economic Prosperity through Enhanced Safety Industrial growth & through Public
Slide 40: Thank You
Thank You
Slide 41: Disclaimer
Disclaimer The information contained in this results. Nothing contained herein should be sale or subscription of, or solicitation of any presentation is given without any liability deemed to be a prediction or projection of offer to purchase or subscribe. Any such whatsoever by K-Electric Ltd or the