Infratil Limited · NZX:IFT
Infratil — Energy Developments — H1 FY2004 Earnings Presentation
31 slides from Infratil's earnings presentation, Feb 25, 2004
Slide 1: December 2003 Financial Results and Business Update
ENE December 2003 Financial Results and Business Update 25 February 2004 Supplement to ASX Release Appendix 4D Page 1 1
Slide 2: Contents
Energy Developments Contents • December 2003 Financial Results • SWERF® Partner Search • Deutz Engine Issues • Development Activities • Closing Comments Page 2 2
Slide 3: December 2003 Financial Results
December 2003 Financial Results Page 3 3
Slide 4: Earnings
December 2003 Financial Results Earnings • Loss after Significant Items and tax attributable to members - $15.1 million. (Dec 2002: Loss $46.4 million) Normalised Results • Profit before tax $14.7 million* (Dec 2002: $13.9 million*) • Profit after tax of $10.3 million* (Dec 2002: $10.7 million*) • B
Slide 5: Revenue & EBIT
December 2003 Financial Results Revenue & EBIT • Revenue for the half year (including share of net profit in associates) of $62.6 million (Dec 2002: $62.9 million) • Earnings before interest, tax and depreciation (EBITDA) of $37.1 million* (Dec 2002: $36.2 million*) • Earnings before interest and ta
Slide 6: Earnings: Reconciliation of Normalised Earnings
December 2003 Financial Results Earnings Reconciliation of Normalised Earnings A$M • Profit after tax before Significant Items 10.3 • Significant items after tax: – Asset Impairment – U.S. LFG projects using Deutz engines(16.4) – Reversal of U.S. tax benefits previously recognised (4.8) – Redundancy
Slide 7: Historical Half Year Trends
December 2003 Financial Results Historical Half Year Trends Revenue EBITDA 70 70 60 60 50 50 A$ million A$ million 40 40 30 30 20 20 10 10 0 0 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 99 00 01 02 03 99 00 01 02 03 Note: Dec 03 and Dec 02 results exclude significant items Page 7 7
Slide 8: Historical Half Year Trends
December 2003 Financial Results Historical Half Year Trends EBIT Profit Before Tax 25 25 20 20 A$ million A$ million 15 15 10 10 5 5 0 0 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 99 00 01 02 03 99 00 01 02 03 Note: Dec 03 and Dec 02 results exclude significant items Page 8 8
Slide 9: Historical Half Year Trends
December 2003 Financial Results Historical Half Year Trends Profit After Tax Generating Capacity 12 450 400 10 350 8 300 A $ m illio n 250 6 MW 200 4 150 100 2 50 0 0 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Note: Dec 03 and Dec 02 results exclude significant items Page
Slide 10: Cash and Funding
December 2003 Financial Results Cash and Funding • Cash at 31 Dec $ 83.2 m (30 Jun $29.9m) • Total net debt 31 Dec $209.0 m (30 Jun $235.9m) • Gearing ratio 31 Dec 42% (30 Jun 46%) Debt Australian refinancing executed Dec 2003: • Refinanced $210 m of mature Australian project/corporate debt • Added
Slide 11: Cash and Funding
December 2003 Financial Results Cash and Funding Equity • Institutional placement Sep 2003 $39.7 million • Share purchase plan Dec 2003 $ 6.5 million Application of Funds • ENE in position to prudently exploit pipeline opportunities in LFG and Remote Power over next 12-18 months. Opportunities Inclu
Slide 12: Segment Results - H1 FY04
December 2003 Financial Results Segment Results - H1 FY04 Australia/Asia (A$) – Revenue $46.8 million (2002 $45.3 million ) – EBITDA $32.8 million* (2002 $27.9 million*) – EBIT $22.8 million* (2002 $18.2 million*) • Stable performance from CSM and Remote Power. 12MW Cannington mine expansion on line
Slide 13: NSW Greenhouse Gas Abatement (NGAC) Scheme
December 2003 Financial Results NSW Greenhouse Gas Abatement (NGAC) Scheme • NSW Government quasi carbon emissions trading scheme. • NGAC scheme interlinks with existing MRET scheme for baselines. • All significant ENE LFG sites accredited – ability to create NGACs dependant on site category. • ENE
Slide 14: Segment Results - H1 FY04
December 2003 Financial Results Segment Results - H1 FY04 United Kingdom/Europe (France, Greece) (A$) – Revenue $ 8.5 million (2002 $10.2 million ) – EBITDA $ 3.2 million* (2002 $ 6.3 million*) – EBIT $ 1.4 million* (2002 $ 3.9 million*) • Performance of all regions affected by Deutz engine reliabil
Slide 15: Segment Results - H1 FY04
December 2003 Financial Results Segment Results - H1 FY04 United States (A$) – Revenue $7.3 million (2002 $ 7.3 million ) – EBITDA $1.0 million* (2002 $ 2.0 million*) – EBIT $1.3 million loss* (2002 $0.03 million loss*) • Significant repair costs/revenue losses due to engine reliability/performance
Slide 16: FY2003/04 Profit Outlook
December 2003 Financial Results FY2003/04 Profit Outlook • ENE remains comfortable with the broad market NPAT estimates of $18-21 million after tax, before significant items. Page 16 16
Slide 17: SWERF Partner Search
SWERF® Partner Search Page 17 17
Slide 18: SWERF Partner Search
December 2003 Financial Results SWERF® Partner Search • Global partner search conducted with assistance of KPMG Corporate Finance. • Discussions continue with a number of international and domestic parties. • Expect to complete partner search and make final decision on SWERF® by 31 March. • Whytes G
Slide 19: Deutz Engine Issues
Deutz Engine Issues Page 19 19
Slide 20: Deutz Engine Issues: Overview
December 2003 Financial Results Deutz Engine Issues Overview • Previously announced key performance issues with Deutz reciprocating engine fleet used in majority of overseas LFG projects. • Remediation program underway to address the following: – Exhaust valve recession leading to shortened cylinder
Slide 21: Deutz Engine Issues: Remediation Status
December 2003 Financial Results Deutz Engine Issues Remediation Status • Remediation program - to be largely complete in US and UK by 30 Jun 04. • Program delayed by logistical issues – sourcing alternative parts and phasing into operating fleet. • US remediation program has been Country Engines Eng
Slide 22: Deutz Engine Issues: Results to Date
December 2003 Financial Results Deutz Engine Issues Results to Date • Good results in 1500 RPM fleet (UK, France and Australia) remediated to date with performance/availability stabilised at around rated capacity. • Early results from the 2 UK projects using Deutz engines - Rainham (10 units) and Mu
Slide 23: Deutz Engine Issues: Findings
December 2003 Financial Results Deutz Engine Issues Findings • Remediation program has had positive impact on generation. UK Rainham Site 12.5MW August 2003 - December 2003 7,500 10,000 9,000 6,000 8,000 Gas 7,000 Consumption (m3/h @ 50% CH4) 4,500 6,000 kWs m3h 5,000 3,000 4,000 Average Export kWs
Slide 24: Deutz Engine Issues: Findings - United States
December 2003 Financial Results Deutz Engine Issues Findings – United States • Remediation has improved engine performance off a low base. • Detailed technical review of progress, highlights that 1800rpm engine is unlikely to meet original expectations of rated output (1358kW), without lower availab
Slide 25: Deutz Engine Issues: Potential Legal Action
December 2003 Financial Results Deutz Engine Issues Potential Legal Action • Company has received counsel’s advice supporting legal action against the engine manufacturer, Deutz AG. • Statement of claim expected to be lodged in Federal Court in near future. Page 25 25
Slide 26: Development Activities
Development Activities Page 26 26
Slide 27: Development Activities
December 2003 Financial Results Development Activities Highlights • H1 2004 19MW of new generation (ENE share) bringing combined total to 408MW. • Successful commissioning of 12MW Cannington Remote Power expansion in November – full contribution in H2. • Taylor County, Roberts Road projects (combine
Slide 28: Remote Power: West Kimberley Power Project Update
December 2003 Financial Results Remote Power West Kimberley Power Project Update • Project Scope - Natural gas supply - LNG Plant at Karratha - LNG Road Transport to remote towns • Gasfield Power - Broome, Derby, Camballin Looma, Fitzroy Stations at Crossing and Halls Creek. • Capacity - Initial 46,
Slide 29: Coal Mine Waste Methane: German Creek Project
December 2003 Financial Results Coal Mine Waste Methane German Creek Project - Anglo Coal • Capacity 32 MW (nominal) • Likely Project Funding GGAP funding and new construction line • Project Revenue: Power sales and NGAC revenue • GGAP Grant: Up to $15.4m subject to further commercial assessment • T
Slide 30: Closing Comments
Closing Comments Page 30 30
Slide 31: Closing Comments
December 2003 Financial Results Closing Comments • Bottom line disappointing however underlying performance has and will continue to improve. • Process of restructuring continues. • Financial position strengthened with equity/debt activities. • After some delays the Deutz remediation program is now
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