Infratil Limited · NZX:IFT
Infratil — Energy Developments — H1 FY2006 Earnings Presentation
33 slides from Infratil's earnings presentation, Feb 27, 2006
Slide 1: December 2005 Financial Results and Business Update
ENE December 2005 Financial Results and Business Update 27 February 2006 Supplement to ASX Release Appendix 4D Page 1
Slide 2: Contents
Energy Developments Contents • Operating and Development Highlights • December 2005 Financial Results • Progress on Deutz Maintenance Agreements • Development Activities • Closing Comments Page 2
Slide 3: Operating & Development Highlights
December 2005 Financial Results Operating & Development Highlights Operating • ENE achieved record operating profit before and after tax of $18.1 million* and $12.4 million* respectively. • Net profit after tax and specific items (Deutz Settlement) $10.3 million. • EBITDA increased by 13% to $42.4 m
Slide 4: Operating & Development Highlights: Development
December 2005 Financial Results Operating & Development Highlights Development • Total installed operating capacity at Dec 05 – 445 MW up 19 MW from 30 June 05 reflecting completion of: - 10 MW Covel US LFG project, commissioned in Dec 05, on time and budget. - 8 MW Pitsea, UK LFG project commission
Slide 5: Operating & Development Highlights: Development
December 2005 Financial Results Operating & Development Highlights Development • Work continues on Development Agreement for adoption of high pressure direct injection natural gas technology for off road haul trucks with Westport Innovations Inc. • Significant interest in LNG/CNG opportunities, leve
Slide 6: December 2005 Financial Results
December 2005 Financial Results Page 6
Slide 7: Earnings
December 2005 Financial Results Earnings Profit before tax $18.1 million* (Dec 04: $12.4 million) 46% Increase Profit after tax of $12.4 million* (Dec 04: $ 8.3 million) 49% Increase Earnings per share of 8.6 cents* (Dec 04: 6.2 cents) 39% Increase • Interim unfranked dividend of 2.0 cps, to be paid
Slide 8: Revenue & EBIT
December 2005 Financial Results Revenue & EBIT • Revenue for the half year (including share of net profit in associates) of $79.9 million (Dec 04: $72.1 million) – 11% increase. • Earnings before interest, tax and depreciation (EBITDA) of $42.4 million* (Dec 04: $37.3 million) – 13% increase. • Earn
Slide 9: Cash and Funding
December 2005 Financial Results Cash and Funding Cash at 31 Dec $ 95.6 million (30 June: $108.6 million) Total net debt 31 Dec $184.5 million (30 June: $161.3 million) Gearing ratio 31 Dec 39 % (30 June: 37%) Undrawn Funding Lines 31 Dec $258.0 million (30 June: $ 82.9 million) Debt • Debt facilitie
Slide 10: Cash and Funding: Equity
December 2005 Financial Results Cash and Funding Equity • Equity on issue – 145.87 million ordinary shares. • Share Purchase Plan offer in October 2005 raised $9.4 million (2.19 million shares). Application of Funds • Funds to be applied to projects previously announced, including German Creek, West
Slide 11: Cash and Funding: Capital Expenditure
December 2005 Financial Results Cash and Funding Capital Expenditure • Capex in half to Dec 05 - $58 million (Dec 04 $19 million) comprised of: New Projects A$million WKPP 13.6 German Creek 5.7 Covel 11.0 Pitsea 9.9 Yulara 0.7 Gasfield expansions 1.7 Other 2.6 45.2 Stay in Business Capex Engine Over
Slide 12: Segment Results: Australia
December 2005 Financial Results Segment Results Australia – (A$) Revenue $54.8 million (Dec 04: $50.7 million) EBITDA $33.5 million (Dec 04: $30.5 million) EBIT $21.5 million (Dec 04: $19.7 million) • Benefits of engine relocations and other efficiency initiatives flowing through to increased genera
Slide 13: Segment Results: Australia LFG
December 2005 Financial Results Segment Results Australia – LFG MWh Revenue (Local Currency) 300,000 30 21% 11% 10% 250,000 25 12% 200,000 20 A$m MWh 150,000 15 100,000 10 50,000 5 0 0 2003 2004 2005 December Half Year Av. Operating Capacity 74 79 79 (MW) • Engine relocations and other operating ini
Slide 14: Segment Results: Australia Remote/CSM
December 2005 Financial Results Segment Results Australia – Remote/CSM MWh Revenue Local Currency 800,000 40 (7%) 3% 600,000 30 5% (7%) MWh A$m 400,000 20 200,000 10 0 0 2003 2004 2005 December Half Year Av. Operating Capacity (MW) 187 193 193 • Very stable and predictable revenue/returns under long
Slide 15: Green Credits – RECs / NGACs
December 2005 Financial Results Green Credits – RECs / NGACs RECs Federal MRET scheme NGACs NSW Government carbon emissions trading scheme • NGAC scheme interlinks with MRET scheme for baselines. • All significant ENE LFG sites accredited. Revenue in period: Dec 05 Dec 04 ‘000 A$M ‘000 A$M REC 116 3
Slide 16: Segment Results: United Kingdom LFG
December 2005 Financial Results Segment Results United Kingdom – LFG (A$) Revenue $14.9 million (Dec 04: $ 12.6 million) 18 % Increase EBITDA $ 7.6 million (Dec 04: $ 7.1 million) 7 % Increase EBIT $ 5.2 million (Dec 04: $ 5.1 million) 2 % Increase • Stable performance, half on half with higher exch
Slide 17: Segment Results: United Kingdom LFG
December 2005 Financial Results Segment Results United Kingdom – LFG MWh Revenue Local Currency 160,000 8 16% 39% 26% 120,000 6 40% GBPm MWh 80,000 4 40,000 2 0 0 2003 2004 2005 December Half Year Av. Operating Capacity 33 39 44 (MW) • Generation increase reflecting new projects, better management o
Slide 18: UK Green Credits – ROCs
December 2005 Financial Results UK Green Credits – ROCs • The UK widely acknowledged as one of the most attractive renewable market due to aggressive renewable energy target (15% by 2015). • Approximately 13 MW of UK generating capacity receiving ROC pricing. • ROC revenue $ 3.9 million (Dec 04 $3.4
Slide 19: Segment Results: United States
December 2005 Financial Results Segment Results United States (A$) Revenue $9.5 million (Dec 04: $7.8 million) EBITDA $0.7 million (Dec 04: $1.2 million loss) EBIT $1.0 million loss (Dec 04: $3.0 million loss) • Deutz delays in engine remediation process continued to weigh on engine performance, gen
Slide 20: Segment Results: United States LFG
December 2005 Financial Results Segment Results United States – LFG MWh Revenue Local Currency 34% 8 28% 160,000 7% 6 5% 120,000 US$m MWh 4 80,000 2 40,000 0 0 2003 2004 2005 December Half Year Av. Operating 49 51 58 Capacity (MW) • Improved generation from increased capacity and better Deutz engine
Slide 21: FY06 Earnings Outlook
December 2005 Financial Results FY06 Earnings Outlook • ENE expects to exceed previous guidance for FY06 NPAT expectations (after specific items) of $20 million. Outcome will be influenced by: - Benefits from new LFG projects at Covel, US and Pitsea, UK. - Progressive improvement in US LFG operating
Slide 22: Progress on Deutz Maintenance Agreements
December 2005 Financial Results Progress on Deutz Maintenance Agreements Update • All of ENE’s operational Deutz fleet (60) in the US, UK and Australia are on Maintenance Agreements thereby reducing EDL’s exposure to engine outages and failures. • The generation efficiency of all remediated engines
Slide 23: Development Activities
Development Activities Page 23
Slide 24: Remote Power: West Kimberley Power Project Update
December 2005 Financial Results Remote Power West Kimberley Power Project Update Power Purchase Agt - Western Power (counterparty). - Sole electricity generator for 5 West Kimberley towns. - 20 year initial operating period. - 5 year option to extend exercisable by Western Power. - Further extension
Slide 25: Remote Power: West Kimberley Power Project Update
December 2005 Financial Results Remote Power West Kimberley Power Project Update Status - PPA (signed 2 July 2004), declared unconditional on 9 August 2005. - Contracts executed or in final negotiation for supply of all major components. - Manufacture of LNG process plant, storage tanks and road tan
Slide 26: Remote Power: West Kimberley Power Project Update
December 2005 Financial Results Remote Power West Kimberley Power Project Update Commercial Operations Date Remains Unchanged at Timing - Karratha LNG Plant (160tpd) Q1 January 07 - Power Stations: Broome March/April 07 Looma April 07 Derby May 07 Fitzroy Crossing June 07 Halls Creek July 07 Page 26
Slide 27: Remote Power: West Kimberley Power Project Update
December 2005 Financial Results Remote Power West Kimberley Power Project Update Capital Cost - Including contingencies (before financing costs) $150 million. Capex incl’g commitments - At 31 December - $68 million Funding - Construction facility of up to $180 million to fund 100% of total project c
Slide 28: Coal Mine Methane: German Creek Project Update
December 2005 Financial Results Coal Mine Methane German Creek Project Update Capacity 32 MW (nominal) Project Funding GGAP funding and existing construction line/cash reserves Project Revenue Power sales and NGAC revenue GGAP Grant Up to $15.5m ($6.3 million received to Dec 05) Commissioning Comple
Slide 29: Coal Mine Methane: German Creek Project Update
December 2005 Financial Results Coal Mine Methane German Creek Project Update Capital Cost $38 million – 8% increase over initial estimates Capex incl’g commitments 31 December - $30.4 million Project Economics Recent strength in NGAC price ($15.00 for February 2007 delivery). Project at full operat
Slide 30: CNG: Yulara Project Update
December 2005 Financial Results CNG Yulara Project Update Capacity Supply of up to 250TJ per year of CNG Project Funding Equity funded Capex incl’g commitments 31 December $5.4 million Project Revenue Fixed and variable Capacity and Operating charges Project Duration 5 Year Contract Commencement Dat
Slide 31: Other Development Activities
December 2005 Financial Results Other Development Activities • 10 MW expansion of 14 MW Ano Liossia LFG project, Greece underway and due for completion in May 2006 - several months later than scheduled due to delay in landfill expansion. Funding by way of EU grant, extension of existing finance faci
Slide 32: Closing Comments
Closing Comments Page 32
Slide 33: Closing Comments
December 2005 Financial Results Closing Comments • Continued improvement in profitability and operating cashflows from asset optimisation and other efficiency initiatives. • Focus on LFG generation and stronger green credit pricing delivering increased financial returns. • Completion of Deutz remedi
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