Energy World Corporation Ltd · ASX:EWC
Energy World — Shareholder Meeting (November 2022)
35 slides from Energy World's shareholder meeting presentation, Nov 24, 2022
Slide 1: Energy World Corporation Ltd Investor Presentation
Energy World Corporation Ltd Investor Presentation November 2022 (ASX: EWC) ENERGY WORLD CORPORATION LTD PG 1
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA This investor presentation (Presentation) has been prepared by Energy World Corporation Ltd (Energy World or the Company). This Presentation has been prepared in relation to a non-renounceable entitlement offer of new fully p
Slide 3: Our Business
OUR BUSINESS The development, design, construction and operation of power related infrastructure Energy World Corporation Ltd (ASX: EWC) (“Energy World” or the “Company”) is an established, integrated energy company with operations in SE Asia & Australia Our vision is to deliver clean and affordable
Slide 4: Capital Raising
CAPITAL RAISING Indicative Timetable Trading Halt Thurs, 24 Nov-22 Lodgement of Prospectus for of Entitlement Offer and Thurs, 24 Nov-22 Trading Resumes "Ex" date Fri, 25 Nov-22 Record Date Wed, 30 Nov-22 Entitlement Offer opens Fri, 2 Dec-22 Rights Issue closes Thurs, 15 Dec-22 Announce results of
Slide 5: Sources and Uses of Proceeds
Sources and Uses of Proceeds SOURCES AUD$'000 Shares USES AUD$'000 Cash Received from Shares Issued under prospectus $44,962 899,250,000 Complete Eromanga $19,105 EWI Entitlements take up (Cash) $9,538 190,750,000 Petroleum Leases $4,180 Shareholders $35,425 708,500,000 Compressors $2,488 Non-Cash I
Slide 6: Corporate Dashboard
Corporate Dashboard Board and Leadership team Key Shareholders Stewart Elliott Chairman, MD and CEO EWI/ Slipform (Entities related to Elliott family) 35.0% Brian Allen Exec Director, Finance Director Orchid Capital Investments (represented by Sean Gardiner) 21.5% Graham Elliott Exec Director & Co.S
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS New EBITDA Streams being unlocked Indicative Project Economics (US$m) EBITDA Potential (US$m) Blocks 1 & 2 Only With Steam 1 Pagbilao Power Pagbilao Power 24.7 181.7 Project being accelerated Hub (Power station client only) 15.4 28.0 = Eromanga 14.3 14.3 Gas & Power Operations
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS PRO FORMA for the Offer Arguably undervalued • i.e the company is trading significantly below its equity with significant • Net Asset Value per share is 46c (currently trading at ~4c) book values potential for revaluation of assets • Estimated value at completion of the project
Slide 9: Gas and LNG – A Step in the Green Direction
GAS AND LNG – A STEP IN THE GREEN DIRECTION Importance as a Transition Fuel (1) Demand growth and Fuel Switching a significant regional driver “Natural gas can potentially play two important roles as the • Philippines dominated by small ageing, hydrocarbon world transitions to a low-carbon energy sy
Slide 10: Our Projects
OUR PROJECTS Projects Under Development: • Eromanga Gas and Gilmore LNG • Philippines 650MW Power and LNG Hub Terminal • Sengkang 2mtpa LNG (Indonesia) Developed Projects: • Sengkang Gas & Power (Indonesia) • Alice Springs LNG and Gas Power • Cooper Basin Conventional Gas ENERGY WORLD CORPORATION LT
Slide 11: Historical Financials
HISTORICAL FINANCIALS Oil & Gas Assets, PP&E, Assets Under Construction Reported Revenue by Segment (US$’000) Gross Profit (US$’000) and Exploration & Evaluation Assets (US$’000) 180,000 100,000 1,800,000 160,000 95,000 1,600,000 140,000 90,000 1,400,000 120,000 85,000 1,200,000 100,000 80,000 1,000
Slide 12: Debt and Impact of Offer
Debt and Impact of Offer Debt (at June 22) US$'000 A$’000 (1) Effect of Offer Pro Forma (A$'000) • * EWI and Slipform are entities related to Chairman Stewart Slipform * $432,219 $645,103 $645,103 Elliott. Loans are reflected at principal amount and interest EWI * $60,158 $89,788 -$9,538 $80,251 rep
Slide 13: Pro Forma Enterprise Value and Valuation Metrics
Pro Forma Enterprise Value and Valuation Metrics A$’000 (Current PF A$’000 Enterprise Value ('EV') Calculation Price) (@ Offer Price) Shares on Issue prior to Capital Raising / M.Cap 2,608,134,691 $104,325 $130,407 Shares Issued Under Prospectus 1,100,900,000 $55,045 Total Shares Post Money / Market
Slide 14: Our Value Proposition
OUR VALUE PROPOSITION Present Book Value versus Potential Value on Completion 4,500 US$4bn+ We have developed a clear 4,000 strategy to deliver a Philippines Steam Turbine Mid-2024 significant value uplift which 3,500 Extension unlocks as we complete the On Completion Value Uplift construction of ou
Slide 15: Philippines Projects
Philippines Projects: • Pa g b i l a o L N G H u b Te r m i n a l • 6 5 0 M W Po w e r P l a n t ENERGY WORLD CORPORATION LTD PG 15
Slide 16: Pagbilao: 650MW Power Plant & Philippines' 1st LNG Hub Terminal
PAGBILAO: 650MW POWER PLANT & PHILIPPINES’ 1ST LNG HUB TERMINAL EWC are building a 12km Energy World has constructed the first We are also developing a 650MW CCGT 230kva Transmission Line to Pagbilao LNG Hub Terminal in the Philippines, power plant at this site. connect to the main grid at which wil
Slide 17: Pagbilao: The Philippines' 1st LNG Hub Terminal
PAGBILAO: THE PHILIPPINES’ 1ST LNG HUB TERMINAL A strategically important asset for Philippines’ nascent gas industry 130,000 m3 LNG EWC’s deep water Facility can handle a This will support our Hub Terminal to be run Hub Terminal is jetty and loading throughput of 3 mtpa adjacent 650 MW on a tolling
Slide 18: Pagbilao Hub – Indicative Economics
Pagbilao Hub – Indicative Economics • Alongside are indicative project economics to show the scale of the LNG Hub opportunity. Indicative Project Economics (US$m) Assumptions: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 • Revenue of US$51/t is ~US$1 /mmbtu. Tonnes of LNG Handled 400,000 800,000
Slide 19: Pagbilao: 650 MW CCGT Power Plant
PAGBILAO: 650 MW CCGT POWER PLANT • 650 MW Combined Cycle Gas Turbine Power Plant construction is substantially completed • Project developed in stages: • Block 1 - 200 MW gas turbine (85% complete) • Block 2 - 200 MW gas turbine (80% complete) • Block 3 - 250 MW steam turbine (foundations complete,
Slide 20: The Final Link – Connection Agreement Secured
THE FINAL LINK – CONNECTION AGREEMENT SECURED Main grid connection will be EWC has signed a connection via the new US$85m 500kva agreement, is completing Pagbilao Sub Station being land purchases and has constructed by the National commenced construction of Transmission Corporation the 12km transmis
Slide 21: Pagbilao Business Plan
Pagbilao Business Plan • Alongside are indicative project economics to show the scale of the Pagbilao Power opportunity. Assumptions Indicative Project Economics • After this raising, a further US$130m Capex is required to complete Year 1 Year 2 Year 3 Year 4 Year 5 the Hub, the Power Plant and inst
Slide 22: Pagbilao Business Plan: Market Prices vs Assumptions
Pagbilao Business Plan: Market Prices vs Assumptions Global Price of LNG ($/mmbtu) WESM Power Price (US$/MWh) 60.0 50.0 40.0 30.0 20.0 EWC LNG Price Assumption $125-$144 /MWh EWC LNG Price Assumption 10.0 0.0 04-17 04-18 04-19 04-20 04-21 04-22 01-17 07-17 10-17 01-18 07-18 10-18 01-19 07-19 10-19 0
Slide 23: Australian Gas – Eromanga
Australian Gas • Eromanga ENERGY WORLD CORPORATION LTD PG 23
Slide 24: Recommissioning Eromanga
Recommissioning Eromanga Recently received Established production Production capacity of Opportunity to sell gas Seven-year extensions facilities include 12tj per day (4 years directly into eastern on PLs 115, 116 and petroleum wells, Production on with states’ gas markets 117 pipeline infrastructur
Slide 25: Eromanga Business Plan
Eromanga Business Plan Indicative Project Economics AUD Year 1 Year 2 Year 3 Year 4 Production Assumptions • Capex of $13.7 to refurbish wells and Availability 85% 85% 85% 85% existing plant Condensate bbl/day 18 18 18 18 • Resource of 15.3 BCF has a life of approx. bbl/yr 5,590 5,590 5,590 5,590 4
Slide 26: Indonesian Projects
Indonesian Projects: • S e n g ka n g G a s P ro d u c t i o n S h a r i n g C o n t ra c t ( P S C ) • S e n g ka n g Po w e r S ta t i o n • S e n g ka n g L N G ENERGY WORLD CORPORATION LTD PG 26
Slide 27: Sengkang Gas Field
SENGKANG GAS FIELD The Sengkang Production Sharing Contract (PSC) is operated under a Joint Operating Agreement (JOA) with PT Energi Maju Abadi (“EMA”). EWC has a 51% interest in the JOA Prospect/Lead Gas in Place (BCF) The PSC was recently extended to 2042 and P10 P50 P90 covers 2,925 km2 in South
Slide 28: Sengkang Power Station
SENGKANG POWER STATION Aerial view of Sengkang Power Plant Block 2 Location Capacity Sengkang Block I: 135MW Block II: 180MW South Sulawesi, Total Output: 315MW Indonesia (total rated output of 357 MW) Performance Metric Completion Date Trailing 3 year Avg. Block I = 1996, Availability Factor = 86.3
Slide 29: Sengkang LNG
SENGKANG LNG The 100%-owned Construction is 80% Gas for the LNG plant Distribution Sengkang LNG Plant complete, having been will be purchased from agreements are being has a design capacity delayed since 2017 due EWC’s Sengkang gas discussed. of 2 mtpa, consisting of to land zoning claims field and
Slide 30: Sengkang Power Plant Update
Sengkang Power Plant Update PPA Status • As previously announced the PPA with PLN expired in September. Plant Status • The Plant has been shut down but is being maintained on a ready-to-operate status • There are a number of stake holders who have an interest in seeing the power plant returned to op
Slide 31: Sengkang LNG Progress Update
Sengkang LNG Progress Update • 85% Complete Plant • Capex of ~US$60m required (not included in Use of Proceeds of this Offer) • Build time approx. 12 months to first LNG, 24 months to full 2mtpa • It is important for investors to understand Indonesia considers its gas a strategic resource and owns i
Slide 32: Appendix A: Risk Factors
Appendix A: Risk Factors This section sets out some of the key risks associated with: (a) the Company and its existing business; and (b) participation in the Entitlement Offer and share ownership. The risks set out in this section are not listed in order of importance and do not constitute an exhaus
Slide 33: Risk Factors continued
Risk Factors…..continued h) Foreign exchange risk - Energy World is exposed to foreign exchange risk as fluctuations in the foreign exchange rate may affect the cost of running its overseas operations, price of capital equipment or materials. The Company is exposed to fluctuations and volatility of
Slide 34: Appendix B - International Offer Restrictions
Appendix B - International Offer Restrictions This document does not constitute an offer of new ordinary shares (Offer Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Offer Shares may not be offered
Slide 35: Delivering Clean and Green Energy to Asia Pacific
Delivering Clean and Green Energy to Asia Pacific Contact Us F o r i n v e s t o r, p a r t n e r a n d media enquiries, please contact: +852 2528 0082