PT Chandra Asri Pacific Tbk · IDX:TPIA
PT Chandra Asri Pacific Tbk — PT Chandra Asri Petrochemical — FY2018 Earnings Presentation
22 slides from PT Chandra Asri Pacific Tbk's earnings presentation, Apr 10, 2019
Slide 1: Analyst Meeting: FY-2018 Performance & Updates
Analyst Meeting: FY-2018 Performance & Updates Jakarta – April 10th, 2019
Slide 2: Agenda
Agenda: 1. Q4 and FY 2018 Performance 2. 2019 Outlook 3. Projects Update 4. Q & A 2
Slide 3: Q4 and FY 2018 Performance
Chandra Asrt Petrochemical Q4 and FY 2018 Performance _
Slide 4: Company Highlights FY 2018
Company Highlights FY 2018 Significant milestone of 20mn work hours without LTA. FY-2018 figures Recorded consolidated FY18 Net Revenues of US$2,543mn, +5.2%yoy (in US$mn) from US$2,419mn in 2017 mainly due to higher average sales prices of Net Revenues EBITDA 2,543 402 Ethylene, Polyethylene an
Slide 5: Product Spreads (in US$/MT)
Product Spreads (in US$/MT) FY 2018 product spreads remain healthy, despite volatile feedstock and product prices in Q4 2018 Olefins Polyolefins Others 2,250 1,500 1,500 2,000 1,250 1,250 1,750 1,000 1,500 1,000 1,250 750 750 1,000 500 500 750 500 250 250 250 0 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Operating Rates
Operating Rates Maintained high operating rates YTD for all plants except for Butadiene and Styrene Monomer plants due to scheduled maintenance and capacity expansion Ethylene Polyethylene 101% 102% 99% 100% 95% 95% 96% 95% Q3-18 Q4-18 FY 2017 FY 2018 Q3-18 Q4-18 FY 2017 FY 2018 Polypropylene Styren
Slide 7: Production and Sales Volumes
Production and Sales Volumes Ethylene Polyethylene in KT in KT Prod Sales Prod Sales 855 829 343 342 320 327 450 405 205 205 85 90 84 81 103 99 Q3-18 Q4-18 FY 2017 FY 2018 Q3-18 Q4-18 FY 2017 FY 2018 Polypropylene Styrene Monomer Butadiene in KT in KT in KT Prod Sales Prod Sales Prod Sales 526 528 3
Slide 8: Net Revenues
Net Revenues 5.2% y-o-y higher Net Revenues in FY 2018 reflecting higher average sales prices, primarily Ethylene, Polyethylene and Polypropylene, partly offset by lower sales volumes due to planned operational activities (capacity expansions, TAM) Revenue by Segment (US$m) 2543 2419 9 7 206 252 411
Slide 9: Financials (in US$m)
Financials (in US$m) Gross Profit EBITDA Adjusted EBITDA margin 16% 11% 23% 16% 545 550 391 402 107 105 45 64 Q3-18 Q4-18 FY 2017 FY 2018 Q3-18 Q4-18 FY 2017 FY 2018 Net Profit Cash flow from Operations, Capex Net Profit Margin CFO Capex 9% 1% 13% 7% 394 404 354 319 239 226 182 145 59 43 50 8 Q3-18
Slide 10: Strong Balance Sheet Supported by Financial Profile Strengthening
Strong Balance Sheet Supported by Financial Profile Strengthening Cash Balance Debt and Net Debt (US$m) (US$m) Debt Net Debt 843 727 632 618 * Net Cash * Net Cash position of position of US$210m US$109m 31-Dec-17 31-Dec-18 31-Dec-17 31-Dec-18 Adjusted EBITDA / Finance Costs Leverage Ratios (1) (x) 1
Slide 11: 2019 Outlook
Chandra Asrt Petrochemical 2019 Outlook
Slide 12: Product spreads are moderating along with uncertainties on global economy and oil price
Product spreads are moderating along with uncertainties on global economy and oil price (US$/MT) 1,500 1,250 1,000 750 500 250 - Ethylene Polyethylene Naphtha Polypropylene Note: *) Dashed line - Forecasted price shown with dash line is based on IHS 1 April 2019. 12 **) Solid line - Company’s ac
Slide 13: 2019 Key Priorities
2019 Key Priorities • New 400KTA Polyethylene Plant to start up and achieve on-spec product by Q4 2019. • 23% increase in Polypropylene capacity to 590KTA with completion of expansion programme by Q4 2019. • Complete Furnace Heater Revamping to increase Ethylene production capacity from 860KTA to 90
Slide 14: Projects Update
Chandra Asrt Petrochemical Projects Update
Slide 15: Strategic Growth via Expansion and Debottlenecking (Excluding Second Petrochemical Complex)
Strategic Growth via Expansion and Debottlenecking (Excluding Second Petrochemical Complex) PE expansion C2, C3, COMPLETED SSBR & PP MTBE and operation, BD Debotlenecking Butene-1 expansion 2016 – 2020 CAGR: 6.2% C2: ∆40KT PE: ∆400KT C3: ∆20KT SSBR: ∆120KT MTBE: ∆130KT PP: ∆110KT BD: ∆37K
Slide 16: Strategic Growth via Expansion and Debottlenecking
Strategic Growth via Expansion and Debottlenecking Increase Production Capacity Butadiene Plant Expansion New Polyethylene Plant Furnace Revamp Increase BD capacity by 100 KT/A to 137 New facility of total 400 KT/A to produce Increase cracker capacity by modifying heat KT/A LLDPE, HDPE and Met
Slide 17: Status of Key Projects
Status of Key Projects… Polypropylene Debottlenecking Project Overall progress around 49%. Target completion Q4 2019. New 400 KTA Polyethylene Project Overall progress 95%. Target completion Q4 2019. Furnace Revamping Project. Overall progress 86%. 3 out of 7 furnaces completed. Target Complet
Slide 18: Capex Spending for Key Projects
Capex Spending for Key Projects Capex Plan 2018-2020 (in US$ mn) 465 136 354 66 294 54 36 58 14 177 237 4 163 10 10 78 19 38 13 2018 2019Plan 2020F BD expansion PE expansion PP expansion Furnace Revamp Others/TAM MTBE & Butene-1 New cracker initial spend 18
Slide 19: CAP 2 Project Master Schedule
CAP 2 Project Master Schedule Gate 1: Sep ’17 Gate 3: Q2 ’20 • Budget approval for Land (partial)/ • Funding structure clarity License/ BEP/ PDP • Budget for EPC Bidding Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 1. Preliminary Cap 2 Concept 1. EPC Bidding project return 1. EPC Work 1. Complex 1. FEED
Slide 20: CAP 2 Progress Summary
CAP 2 Progress Summary Highlight of Completed Work Streams Investment license granted Completed technology selection and Basic Engineering Design Appointed Financial Advisor Appointed Independent Market Consultant and Sponsor’s legal counsel Appointed EIA consultant Work Streams in Progres
Slide 21: Q&A
Chandra Asrt Petrochemical Q&A
Slide 22: Contact
Petrochemical al . Contact: ‘ andra Asri Petrochemical Tbk ‘ Investor Relations Wisma Barito Pacific Tower A, lt. 7 jiclip investor-relations@cape JI. Let. Jend. S. Parman Kav. 62°63. e , #Tel: +62 215307950 Jakarta 11410 a ee Fax: +62 21 530 8930 Visit our website at This document was prepared sole
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