Colbun Sa · BCS:COLBUN
Colbun Sa — Fenix Power — Q1 2021 Earnings Presentation
21 slides from Colbun Sa's earnings presentation, 2021
Slide 1: Corporate Presentation 1Q21
CORPORATE PRESENTATION 1Q21
Slide 2: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 3: Fenix Power: a relevant & efficient CCGT in Peru
Company overview Fenix Power: a relevant & efficient CCGT in Peru THE COMPANY MARKET SHARE1 (%) Others 26% Orazul 4% Engie 12% One of the most efficient Huallaga 4% CCGT in Peru Statkraft 5% Kallpa 16% Based on Heat Rate 40 miles south of Lima 6% Electroperu Capital of Peru and largest city of the E
Slide 4: Highly experienced shareholders
Company overview Highly experienced shareholders 51% 13% 36% BLUE BOLT1 ▪ Chilean power generation company ▪ One of the largest investment ▪ Established by the Government of the funds managers in Peru Emirate of Abu Dhabi (Aa2/AA/AA) ▪ 3rd largest player in the SEN (Chile’s main grid), with 15% of m
Slide 5: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 6: Power industry dynamics in Peru
Market overview Power industry dynamics in Peru GENERATION LTM ▪ Stable regulatory framework Others 6% Hydro 59% ▪ US$ currency denominated market 49,517 ▪ Investment grade country GWh Natural Gas 35% ▪ High growth potential INSTALLED CAPACITY BY DEMAND GROWTH (12 month average %) TECHNOLOGY Thermal
Slide 7: Marginal cost & demand in Peru
Market overview Marginal cost & demand in Peru ▪ Oversupplied market in the last years has pushed down marginal costs ▪ Marginal costs are affected by take or pay schemes of gas contracts and by price declaration strategies 30 14 Marginal cost (US$/MWh) 25 75% 25 12 21 56% 55% 54% 53% 57% Power (GW)
Slide 8: COVID19 potential impacts
Market overview COVID19 potential impacts SEIN STATUS Growth m/m (%) Growth y/y (%) Marginal Cost (US$/MWh) 16.6 16.9 11.7 12.4 8.5 9.2 9.5 9.7 8.2 7.2 5.2 3.4 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar SEIN Demand growth (%) m/m (%) (23.9) 10.0 12.3 10.2 3.4 (2.1) 6.5 (1.8) 4.5 (0.6) (8.8) 11.
Slide 9: Recent developments in regulatory framework
Market overview Recent developments in regulatory framework LATEST CHANGE: Calculation of Variable Costs of Generation Units ▪ Variable costs of generation units are used to determine the marginal cost applied to spot market sales. ▪ On May-21, OSINERGMIN published the modification of the technical
Slide 10: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 11: Commercial policy
Commercial strategy Commercial policy Contracting a relevant portion of capacity Fenix maintains a relevant base of long-term PPAs 1 2 3 Solid customers base Indexation formulas Creditworthy counterparties PPAs indexed to dollar and fuel Most of Fenix PPAs are signed with the prices, in order to mit
Slide 12: Operational long-term contracts
Commercial strategy Operational long-term contracts 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1. NATURAL GAS SUPPLY ECL88 ▪ Counterparty: Camisea Consortium ▪ Expiration: December 2029 2. NATURAL GAS TRANSPORT TGP ▪ Counterparty: TGP ▪ Expiration: May 2032 3. GAS DISTRIBUTION & O&M
Slide 13: Gas Supply Agreement
Commercial Strategy Gas Supply Agreement 1 PLUSPETROL NEW CONTRACT – KEY FACTORS Previous Contract Current Contract Expiration August 2022 December 2029 45% in average Take or Pay 90% (Seasonal Take or Pay) Maintenance period stipulated 20 days 45 days 13
Slide 14: Stable cash flow profile supported by long-term PPAs
Commercial strategy Stable cash flow profile supported by long-term PPAs PPAs PROFILE ENERGY SALES LTM (%) ▪ Average life of long-term PPAs of 4 years Spot 23% ▪ US$ indexation ▪ ~76% contracted until 2023 3,290 GWh ▪ Strong AAA locally-rated off takers PPAs 77% PPAs PORTFOLIO (TWh) 1.3 1.3 1.2 0.7
Slide 15: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 16: Financial figures
Financial review Financial figures 1 2 1. OPERATING REVENUES (US$ million) 2. EBITDA (US$ million) 217 70 193 202 65 62 175 56 54 159 160 36 2016 2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020 1Q21 3. GROSS DEBT/EBITDA LTM (x) 2 4. FINANCIAL EXPENSES COVERAGE (x) 9.8x 3.8x 3.6x 6.6x 6.6x 7.1x 7.1
Slide 17: Long term debt profile
Financial review Long term debt profile 1. DEBT PROFILE 2. FENIX BOND ISSUANCE ▪ Amount outstanding: US$293 mm US$293 million - Bond ▪ Average life: 4.9 years ▪ Coupon: 4.317% US$114 million – Calidda Leasing1 ▪ Maturity: Sept-27 ▪ Format: 144A/Reg S US$13 million – CTM Leasing ▪ Repayment profile:
Slide 18: Cash Support Agreement
Financial review Cash Support Agreement ▪ Fenix’s shareholders signed a Cash Support Agreement that provides Fenix additional liquidity to meet its debt service payments. ▪ The agreement provides Fenix with a committed credit line from Colbún and the support from the remaining shareholders in case o
Slide 19: Fenix news
Fenix news Fenix joins Teleton 2020 Fenix obtains Great Place to ANIQUEM awards Fenix for its Fenix joined for the first time with a Work certification participation in the recycling contribution to the Teleton 2020, a Fenix achieved for the first time the programme fundraising event that contribute
Slide 20: Key takeaways
Key takeaways 1. Attractive long-term growth prospects: 4. Strategic investment for its shareholders: Peru's generation industry is currently affected by Strong sponsorship from highly experienced short-term factors, but continues to exhibit high shareholders, including a key power generation player
Slide 21: Corporate Presentation 1Q21
CORPORATE PRESENTATION 1Q21