Aksa Enerji Uretim A.s. · BIST:AKSEN
Aksa Enerji Uretim A.s — H1 2018 Earnings Presentation
39 slides from Aksa Enerji Uretim A.s's earnings presentation, Mar 18, 2019
Slide 1: Transforming into a Global Energy Player - 1H2018 Earnings Presentation
TRANSFORMING INTO A GLOBAL ENERGY PLAYER... 1H2018 EARNINGS PRESENTATION 18 MARCH 2019 – REVISED AND AUDITED RESULTS P O W E R B E Y O N D B O R D E R S
Slide 2: Turkish Market
TURKISH MARKET
Slide 3: Market Highlights: 1H2018 Key Figures
MARKET HIGHLIGHTS 1H2018 – Key Figures GENERATION BY FUEL TYPE Generation via natural gas 3% 1% Fuel-Oil decreased by 5 ppts YoY mostly 6% due to the increase in natural gas Lignite & Coal prices and the low spark spread. 37% Natural gas 23% Hydro On the other hand, generation Wind from coal & ligni
Slide 4: Installed Capacity Changes by Fuel Type
MARKET HIGHLIGHTS Installed Capacity Changes by Fuel Type 1H2018 – 1H2017 CAPACITY CHANGES When new and decommissioned capacities are Fossil Renewable netted off, there is an increase MW 3.815 of 1.447 MW in coal & lignite, 4.000 125 MW in natural gas, 673 MW 3.000 1.447 in hydro, 462 MW in wind and
Slide 5: Generation & Consumption
MARKET HIGHLIGHTS Generation & Consumption Electricity generation increased by 2% and consumption by 3% YoY in 1H2018. GENERATION (GWh) CONSUMPTION (GWh) 138.423 141.842 141.903 138.252 1H2017 1H2018 1H2017 1H2018 3
Slide 6: Prices
MARKET HIGHLIGHTS Prices WEIGHTED AVERAGE PRICE (TRY) Weighted average spot price in 280 277* 1H18 was TRY 181, 12% higher 210 230 195 than TRY 162 in 1H17. 185 178 181 187 180 161 188 178 180 177 184 178 130 168 158 Due to the sharp increase in spot 148 148 156 151 prices after the reporting period
Slide 7: Natural Gas Prices
MARKET HIGHLIGHTS Natural Gas Prices Weighted average monthly BOTAŞ NATURAL GAS TARIFF (TRY) energy prices in the spot market 1400 1.312 300 increased by 31% MoM from TRY 1300 210 to TRY 277. 277 250 1200 200 1100 210 195 187 However there is a 50% price 1000 185 178 161 181 150 878 878 878 878 corr
Slide 8: 2018 Developments
2018 DEVELOPMENTS
Slide 9: International Operations
“INTERNATIONAL : “OPERATIONS | - ¥
Slide 10: Ghana HFO Power Plant
Ghana HFO Power Plant 223,5 MW guaranteed capacity working since August 2017. To provide such guaranteed capacity, 280 MW capacity is installed. Additional engines to take the capacity to 370 MW and thus the guaranteed capacity to 330 MW are ready as of 1st of August. ECG and Gridco are invited to s
Slide 11: Madagascar HFO Power Plant
Madagascar HFO Power Plant 66 MW installed, 60MW guaranteed capacity up and running since August 2017. Political instability and increased public tension since March 2018. Presidential elections will take place on November 2018. Madagascar has a new strategy of activating its existing sleeping asset
Slide 12: Mali HFO Power Plant
Mali HFO Power Plant 40 MW installed, 30MW guaranteed capacity up and running since September 2017. Negotiations to extend the duration and the capacity are ongoing. The process has been delayed due to presidential elections in Mali but negotiations are expected to resume in the last quarter of the
Slide 13: New Business Opportunity
NEW BUSINESS OPPORTUNITY We are in continuous discussions with at least 10 countries for similar type of contracts In one of these countries, we are one of the two short runners announced by the Ministry of Energy. The final decision may take awhile, which eventually may or may not turn into a contr
Slide 14: Turkish Operations
TURKISH TURKISHOPERATIONS OPERATIONS
Slide 15: Turkish Operations
Turkish Operations Recent gas price increase has been offset by a similar level of spot price increase, keeping the spark spread intact for our gas fired PPs. The gas price is pegged to USD ($270/tcm), therefore, further increases are expected inline with the devaluation. Spot market prices are high
Slide 16: Financial & Operational Highlights 1H 2018
FINANCIAL & OPERATIONAL HIGHLIGHTS 1H 2018
Slide 17: 1H 2018 Results: Sales Breakdown (Turkey+N.Cyprus)
FINANCIAL HIGHLIGHTS 1H 2018 Results Sales Breakdown (Turkey+N.Cyprus) 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 1H 2017 1H 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh Northern Cyprus 176 388 176,615 380 175,897 431 175,664 467 176,518 560 356 383 352,182 5
Slide 18: 1H 2018 Results Snap Shot
FINANCIAL HIGHLIGHTS 1H 2018 Results Snap Shot 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 QoQ Change 1H 2017 1H 2018 YoY Change Installed Capacity 2,211 MW 2,377 MW 2,236 MW 2,221 MW 2,221 MW 0 MW 2,426 MW 2,221 MW -205 MW Sales Volume (GWh)* 3,764 4,204 4,310 3,778 3,226 -15% 8,440 7,004 -17% Net Sale
Slide 19: Rapid Improvement in Net Financial Debt/EBITDA Ratio
FINANCIAL HIGHLIGHTS 1H 2018 Results Rapid improvement in Net Financial Debt/EBITDA ratio EBITDA NET FINANCIAL DEBT/EBITDA TRY mn No renewable Limited No contribution 10 renewable renewable but full Africa contribution contribution but full but full Africa 8,6 250 Renewable Africa 233 8,3 contributi
Slide 20: 1H 2018 Results: Sales Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Sales Breakdown 3Q 2017 4Q 2017 1Q 2018 2Q 2018 MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh MWh TRY/MWh TURKISH MARKET 4,204,334 174 4,309,588 173 3,778,091 187 3,226,329 226 (Including N. Cyprus) AFRICAN MARKET 591,853 661 371,979 757 432,862 732 255,996 1,125 TOTAL 4,7
Slide 21: Regional EBITDA Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Regional EBITDA Breakdown REVENUES (TRY mn) Although 70% of the revenues 605 are generated from Turkey and TRNC, African power plants generated 75% of the EBITDA in 1.435 1H18 due to their high margin FX based sales. TURKEY+N.CYPRUS AFRICA EBITDA (TRY mn) 112 338
Slide 22: EBITDA Breakdown by Currency & Fuel
FINANCIAL HIGHLIGHTS 1H 2018 Results EBITDA Breakdown by Currency & Fuel EBITDA BY FX RATE Hard currency portion of the EBITDA constitutes 88% of Aksa 12% Energy’s EBITDA in 1H18. DOLLAR BASED Out of the 12% pure Turkish TRY BASED operations, EBITDA derived 88% from natural gas is only 7% EBITDA BY
Slide 23: Regional Breakdown
FINANCIAL HIGHLIGHTS 1H 2018 Results Regional Breakdown EBITDA (TRY mn) YoY regional comparison is not meaningful for 2Q18 as there was only a very small 170 revenue contribution from Ghana PP in 168 1Q17 and no positive contribution at the EBITDA level. Mali and Madagascar PPs were not operational
Slide 24: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 Consolidated Income Statement NET SALES & EBITDA (TRY MN) EBITDA Margin EBITDA Margin 2Q17: 10.9% 1H17: 9.8% 2Q18: 22.5% 2.058 1H18: 21.9% 1.613 1.036 875 450 233 157 96 Net Sales EBITDA Net Sales EBITDA 2Q2017 2Q2018 1H2017 1H2018 OPERATING INCOME &
Slide 25: Net Financial Debt & Repayment Schedule
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 Net Financial Debt & Repayment Schedule NET FINANCIAL DEBT (TRY mn) 3.500 86% 90% 89% 88% 100% 90% 3.000 76% 80% 2.500 62% 62% 62% 63% 70% 2.000 60% 3.086 3.299 3.096 2.984 2.777 3.251 50% 2.742 2.859 1.500 40% 1.781 1.000 30% 20% 500 10% 0 0% 2014 2
Slide 26: FX Rate Movements Effects on Financials
FINANCIAL HIGHLIGHTS Financial Highlights 1H 2018 FX Rate Movements Effects on Financials Net FX Gain From USD/TRY Closing USD/TRY 6M Avg. FX Gain Booked in USD/EURO 3,7719 4,0848 EBITDA Receivables/Payables (USD/TL Closing 4,5607) 31/12/2017 30/06/2018 30/06/2018 555.734.113 TL 604.767.563 TL 63.25
Slide 27: Consolidated Income Statement
FINANCIAL HIGHLIGHTS Consolidated Income Statement (TRY mn) 31.12.2015 31.12.2016 31.12.2017 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 Net sales 2,306.7 3,178.2 3,599.3 738.4 874.6 952.4 1,033.9 1,022.1 1,036.1 Cost of sales -1,979.5 -2,907.2 -3,284.0 -714.7 -824.1 -814.4 -930.8 -883.1 -888.6 Gross
Slide 28: Consolidated Balance Sheet
FINANCIAL HIGHLIGHTS Consolidated Balance Sheet Assets (TRY mn) 31.12.2016 31.12.2017 31.03.2018 30.06.2018 Cash and cash equivalents 219.364.855 59.577.791 36.898.264 18.972.149 Trade receivables net 219.696.945 759.563.092 989.145.792 1.212.602.744 Due from related parties and shareholders 59.937.
Slide 29: Consolidated Statement of Cash Flow
FINANCIAL HIGHLIGHTS Consolidated Statement of Cash Flow (TRY mn) 31.12.2015 31.12.2016 31.12.2017 30.03.2018 30.06.2018 Net income (loss) before tax -221.078.812 -367.623.980 290.120.538 48.309.727 84.701.220 Depreciation and amortisation 146.593.311 191.172.113 225.000.265 90.998.271 194.798.741 O
Slide 30: 2018 Guidance
2018 GUIDANCE
Slide 31: 2018 Guidance
FINANCIAL HIGHLIGHTS 2018 GUIDANCE 2018 EBITDA BREAKDOWN 2018 EBITDA GUIDANCE (TRY) • SALES: 11.3 TWh • REVENUES: TRY 3.4 bn TURKEY+ N.CYPRUS • CAPEX*: TRY 120 mn 24% • EBITDA**: TRY 840 mn 840 642 AFRICA 76% 198 TURKEY+N.CYPRUS AFRICA TOTAL * Includes maintenance CAPEX in Turkey and Africa and the
Slide 32: 2018 Guidance: EBITDA Distribution
FINANCIAL HIGHLIGHTS 2018 GUIDANCE In YE2018, Aksa Energy is EBITDA DISTRIBUTION (%) expected to generate 76% of its EBITDA from its African power plants while 24% from Turkey 24% 18% and Northern Cyprus (TRNC). As TRNC agreement is also a PPA in USD, 82% of 76% 82% Aksa Energy’s EBITDA is expected
Slide 33: Appendix
APPENDIX
Slide 34: Current Total 1,835 MW: Turkey and Northern Cyprus
5 assets under operation CURRENT across Turkey and Northern Cyprus TOTAL Bolu-Göynük 270 MW 1,835 MW Natural Gas (3 plants) 1,412 MW 77% Fuel-Oil (1 plant) 153 MW 8% Lignite (1 plant) Manisa 270 MW 15% 115 MW Şanlıurfa Antalya 147 MW 1,150 MW Northern Cyprus 153 MW 26
Slide 35: Current Total 386 MW: Africa
3 assets under operation CURRENT across Africa TOTAL Aksa Energy’s installed 386 MW capacity in Africa will reach 530 MW once the power plants reach full capacity. Ghana HFO Power Plant became operational at the end of March with 192.5 MW and reached 280 MW at the beginning of August. Mali 40 MW Mal
Slide 36: Operational Assets
Operational Assets Power Plant License Owner Fuel Type Installed Capacity (MW) % Northern Cyprus Aksa Cyprus Fuel-oil 153 Ghana Aksa Energy Fuel-oil 280 Mali Aksa Energy Fuel-oil 40 Madagascar Aksa Energy Fuel-oil 66 Total Fuel-Oil Fired Power Plants 539 24% Antalya NGCC Aksa Energy Natural Gas 1.15
Slide 37: Ongoing Investments
Ongoing Investments Power Plant Investment License Owner Fuel Type Capacity (MW) Completion Year Ghana Greenfield Aksa-Ghana HFO 90 2018 Madagascar Greenfield Aksaf Power HFO 54 2019 Total 144 The above projects are utilising mostly existing equipments from Şırnak, Hakkari, Mardin 1, Mardin 2, Samsu
Slide 38: Contact Investor Relations
Contact Investor Relations Özlem McCann Director Investor Relations and Corporate Communications Ozlem.McCann@aksa.com.tr +90 216 681 1053 Rüzgarlıbahçe Mah. Özalp Çıkmazı No:10 Kavacık / Beykoz, Istanbul
Slide 39: Disclaimer
Disclaimer Aksa Energy has prepared this presentation for the sole purpose of providing information, which contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these s
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