Semirara Mining & Power Corp. · PSE:SCC

Semirara Mining & Power — H1 2016 Earnings Presentation

28 slides from Semirara Mining & Power's earnings presentation, Aug 12, 2016

  1. Slide 1: H1 2016 Briefing

    H1 2016 Briefing 12 August 2016

  2. Slide 2: Consolidated Financial Highlights

    CONSOLIDATED FINANCIAL HIGHLIGHTS In million Php, except ratios Q1 2015 Q2 2015 H1 2015 Q1 2016 Q2 2016 H1 2016 Variance Revenues 7,245 6,472 13,717 6,470 10,088 16,559 21% Coal 3,752 2,773 6,526 3,940 5,077 9,017 38% Power 3,492 3,699 7,191 2,530 5,011 7,541 5% Depreciation 565 524 1,089 664 666 1,

  3. Slide 3: Segment Financial Highlights

    SEGMENT FINANCIAL HIGHLIGHTS Operating businesses Coal SCPC SLPGC H1 2015 H1 2016 Variance H1 2015 H1 2016 Variance H1 2015 H1 2016 Variance Revenues (In M Php) 9,235 10,939 18% 7,191 4,522 -37% - 3,151 Ave. Price 2,182 1,663 -24% 3.46 3.25 -6% - 4.16 Cost of Sales - MT/Kwhr 1,191 720 -40% 1.79 2.16

  4. Slide 4: H1 2016 Volume Sold vs Cost of Sales

    H1 2016 VOLUME SOLD vs COST OF SALES COAL SCPC SLPGC 7,000 3,500 3,500 2.70 1,200 2.00 6,000 3,000 3,000 2.16 1.80 2.20 1,000 1.60 5,000 2,500 2,500 1.29 1.40 800 4,000 2,000 2,000 1.70 1.20 6,576 4,734 600 1.00 3,000 1,500 1,500 1.20 757 3,004 0.80 2,000 1,000 1,000 400 720 0.60 1,390 979 0.70 0.40

  5. Slide 5: Consolidated Revenues and NIAT

    CONSOLIDATED REVENUES AND NIAT H1 2015 vs H1 2016 Gross Revenues NIAT 18 7 16 21% 35% 6 3.02 14 2.26 5 12 4.52 4 10 7.19 1.31 3 3.29 8 2 6 2.80 4 9.02 1 1.45 6.53 2 - (0.03) - (1) H1 2015 H1 2016 H1 2015 H1 2016 Coal SCPC SLPGC 21%  in revenues, 35%  in NIAT. SLPGC significantly contributed to pro

  6. Slide 6: Cash Generation & Utilization - Consolidated

    CASH GENERATION & UTILIZATION - CONSOLIDATED H1 2016 Proceed – Stock Issuance 20.0 Php0.01 Cash Dividend Php4.3 Debt Availment 15.0 Php9.9 In Billion PHP Debt Repayment Php9.5 10.0 Cash Generation Php6.5 Capex 5.0 Php3.0 Cash Beginning Cash End Php4.7 Php4.4 - GENERATION UTIIZATION

  7. Slide 7: Consolidated Assets, Liabilities, & Equity

    CONSOLIDATED ASSETS, LIABILITIES, & EQUITY H1 2015 vs 2016 (Audited) 6% 4% 8% ASSETS LIABILITIES EQUITY 70 60 0 0 50 24 22 40 0 0 30 0 21 0 2 20 14 13 9 5 20 4 6 10 18 22 15 16 12 12 - (0) (10) 12.31.15 06.30.16 12.31.15 06.30.16 12.31.15 06.30.16 Coal SCPC SLPGC Others

  8. Slide 8: Coal Production

    COAL PRODUCTION H1 2015 vs H1 2016 Materials Moved Coal Production 80.0 7.0 70.0 S/R S/R 6.0 11.4 6.6 60.0 5.0 2.2 50.0 36.5 4.0 2.5 40.0 27.8 3.0 30.0 20.0 2.0 3.7 26.3 30.8 2.7 10.0 1.0 - - 2015 2016 2015 2016 Q1 Q2 Q1 Q2 24%  in materials moved, 14%  in coal production. Increase in materials mo

  9. Slide 9: Coal Sales

    COAL SALES H1 2015 vs H1 2016 12 10 REVENUE (billion pesos) / VOLUME (million MT) 8 ASP ASP 3.2 2,182 6.6 1,663 6 0.6 1.2 3.9 4 0.4 1.6 0.7 0.2 0.1 2 4.2 0.5 0.3 3.3 1.9 2.2 0 Rev 2015 Vol 2015 Rev 2016 Vol 2016 Php9.2 B 4.2M MT Php10.9 B 6.6 M MT POWER CEMENT OTHERS EXPORT 55%  in volume sold, 24%

  10. Slide 10: Coal Sales Mix

    COAL SALES MIX H1 2015 vs H1 2016 H1 2015 H1 2016 38% 45% 60% 33% 12% 5% 5% 2% 4.23 MTs 6.58 M MT 35% 61% 30% 46% 13% 6% 6% 3% Php 9.23 B Php 10.94 B Power Cement Others Export  off-take of cement & other plants,  exports . SCPC’s offtake decreased by 39% due to extended maintenance shutdown of Un

  11. Slide 11: SCPC Power Plants' Performance

    SCPC POWER PLANTS’ PERFORMANCE H1 2015 vs H1 2016 Gross Gen, Total Plant Ave. Capacity, Total Plant 2,500 2,165 44% 600 16% 2,000 500 951 259 1,500 400 1,212 184 1,000 300 709 200 500 1,214 292 279 503 100 - - 2015 2016 2015 2016 Unit 2 Unit 1 *Unit 1 Ideal Norm for Capacity Utilization Capacity Fac

  12. Slide 12: SCPC Power Plants' Availability & Outages

    SCPC POWER PLANTS’ AVAILABILITY & OUTAGES H1 2015 vs H1 2016 Availability 9,000 TP 90% 8,000 28% 7,000 6,000 84% TP 64% Planned Outage, Hrs 2015 2016 Variance 5,000 4,000 Unit I 360 - 100% 88% 3,000 Unit II - - -0% 2,000 95% Total Plant 360 - 100% 1,000 41% - Unplanned Outage, Hrs 2015 2016 Variance

  13. Slide 13: SCPC Energy Sales

    SCPC ENERGY SALES H1 2015 vs H1 2016 2015 2016 Variance BCQ Revenue in Pesos, Net 6,475 4,423 -32% BCQ Volume Sold (GWh) 1,934 1,376 -29% BCQ, Ave Price 3.35 3.21 -4% Spot Sale in Pesos 716 99 -86% Spot Volume Sold (GWh) 144 14 -90% Spot Sales, Ave Price 4.96 7.18 45% Total Revenue in Pesos 7,191 4,

  14. Slide 14: SCPC Energy Sales Mix

    SCPC ENERGY SALES MIX H1 2015 vs H1 2016 2015 2016 4% 9% 7% 1% 6% 2% 1% 1% 79% 91% 2,078 GWH 1,390 GWH 10% 1% 2% 2% 1% 10% 5% 4% 75% 89% PHP 7.19 B PHP 4.52 B Meralco Batelec I Trans Asia Spot Others Meralco remains to be the single biggest customer of the Company, accounting for 91% of sales volume

  15. Slide 15: SLPGC Power Plants' Commissioning

    SLPGC POWER PLANTS’ COMMISSIONING H1 2015 vs H1 2016 Gross Gen, Total Plant Ave. Capacity, Total Plant 800 754 700 300 600 315 250 500 200 118 400 150 300 200 439 100 50 131 100 - - 0 2015 2016 2015 2016 Unit 4 Unit 3 Capacity Factor, Total Plant 0.7 0.6 0.5 0.4 0.3 58% 0.2 0.1 0 2015 2016

  16. Slide 16: SLPGC Power Plants' Availability & Outages

    SLPGC POWER PLANTS’ AVAILABILITY & OUTAGES H1 2015 vs H1 2016 Availability 7,000 TP 69% 6,000 5,000 61% 4,000 Planned Outage, Hrs 2015 2016 Unit 3 - - 3,000 Unit 4 - - 2,000 77% Total Plant - - 1,000 - Unplanned Outage, Hrs 2015 2016 2015 2016 Unit 3 - 1,720 Unit 3 - 2,673 Unit 4 - 3,346 Unit 4 - 1,

  17. Slide 17: SLPGC Energy Sales

    SLPGC ENERGY SALES H1 2015 vs H1 2016 2015 2016 BCQ Revenue in Pesos, Net - 2,795 BCQ Volume Sold (GWh) - 621 BCQ, Ave Price - 4.50 Spot Sale in Pesos - 356 Spot Volume Sold (GWh) - 136 Spot Sales, Ave Price - 2.62 Total Revenue in Pesos - 3,151 Total Volume Sold (GWh) - 757 Composite Ave. Price - 4

  18. Slide 18: SLPGC Energy Sales Mix

    SLPGC ENERGY SALES MIX H1 2016 757 GWH PHP 3.18 B 10% 7% 18% 23% 11% 27% 28% 28% 21% 27% VECO GN Power MPower Spot SCPC 10% of the total generated energy is sold to SCPC as replacement power for its contracts.

  19. Slide 19: Key Takeaways

    KEY TAKEAWAYS • Approved ECC amendment on 29 April to increase mining capacity from 12 million tons to 16 million tons • Molave BOI-registration approved 24 February, entitling revenues from production to ITH • Completion of improvement of shipyard facilities; one of the three shiploaders can now ac

  20. Slide 20: Appendix

    APPENDIX

  21. Slide 21: Comparative Statements of Comprehensive Income - Coal

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - COAL For the period ending June (in million Php) Q1 2015 Q2 2015 H1 2015 Q1 2016 Q2 2016 H1 2016 Variance Revenue 5,446 3,829 9,275 4,647 6,297 10,944 1,669 18% Costs of Sales 2,906 2,132 5,038 1,897 2,837 4,734 (304) -6% Gross Margin 2,540 1,697 4,23

  22. Slide 22: Comparative Statements of Comprehensive Income - SCPC

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SCPC For the period ending June (in million Php) Q1 2015 Q2 2015 H1 2015 Q1 2016 Q2 2016 H1 2016 Variance Revenue 3,519 3,730 7,249 1,676 2,888 4,564 (2,685) -37% Contracted Energy 3,084 3,400 6,484 1,630 2,801 4,431 (2,053) -32% Spot Sales 413 303 71

  23. Slide 23: Comparative Statements of Comprehensive Income - SLPGC

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SLPGC For the period ending June (in million Php) Q1 2015 Q2 2015 H1 2015 Q1 2016 Q2 2016 H1 2016 Variance Variance Revenue - - - 260 2,145 2,404 2,404 Contracted Energy - - - 253 1,882 2,136 2,136 Spot Sales - - - - 261 261 261 PPD - - - (2) (10) (12

  24. Slide 24: Comparative Statements of Comprehensive Income - Consolidated

    COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - CONSOLIDATED For the period ending June (in million Php) SMC SCPC SLPGC 2015 SMC SCPC SLPGC 2016 Coal 6,526 - - 6,526 9,017 - - 9,017 Power - 7,191 - 7,191 - 4,522 2,404 6,927 Power Commissioning Income 615 615 REVENUE 6,526 7,191 13,717 9,017 4,522 3

  25. Slide 25: Comparative Statements of Financial Position - Consolidated (Assets)

    COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of June 2016 vs December 2015 (Audited) – In million pesos SMCSCPC SLPGC SBPG SRPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 100% 100% 100% 100% 100% PARENT 06.30.2016 12.31.2015 DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT INDIRECT DIR

  26. Slide 26: Comparative Statements of Financial Position - Consolidated (Liabilities)

    COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of June 2016 vs December 2015 (Audited)– In million pesos SMC SCPC SLPGC SBPG SRPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 100% 100% 100% 100%INDI PARENT 100% DIRECT 06.30.2016 12.31.2015 DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT R

  27. Slide 27: Consolidated Loan Profile

    CONSOLIDATED LOAN PROFILE In Millions Business Dec Jan-Jun Jun Segment 2015 Availment Payment 2016 Coal (USD) 87.2 68.1 85.1 70.1 Coal (PHP Equivalent) 4,101 3,701 4,470 3,285 Coal (PHP) 2,107 2,100 2,107 2,100 Total Coal (PHP) 6,209 5,801 6,577 5,385 SCPC (PHP) 2,300 4,100 2,048 4,355 SLPGC (PHP) 1

  28. Slide 28: Disclaimer

    DISCLAIMER •Semirara Mining and Power Corporation (the “Company”) and its advisors assumes no responsibility or liability regarding actions or decision that may be taken regarding any information resulting from unintentional errors or omissions contained in this document. •In addition, this document

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