Uil Co. Ltd. · KRX:049520
Uil — Q2 2014 Earnings Presentation
19 slides from Uil's earnings presentation, Aug 6, 2014
Slide 1: 2Q '14 Earnings Presentation
2Q ‘14 Earnings 2Q ‘14 Earnings PresentationAugust 7, 2014 Exhibit 99.2
Slide 2: Note to Investors
2Q ‘14 Earnings Note to Investors Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, exp
Slide 3: 2Q & YTD '14 Earnings Summary
2Q ‘14 Earnings 2Q & YTD ‘14 Earnings Summary Excluding expenses related to the pending acquisition of Philadelphia Gas Works (PGW), 2Q ’14 consolidated net income was $14.3M, or $0.25 per diluted share, compared to $17.9M, or $0.35 per diluted share, in 2Q ’13 Including after-tax acquisition-relate
Slide 4: Strategic Initiatives
2Q ‘14 Earnings Strategic Initiatives Growth – through investment in electric and gas infrastructures Growth – through addition of new natural gas heating customersSupported by CT state legislationPursuing investment opportunities in Renewable Generation and other projectsConstruction on Renewables
Slide 5: Pending Acquisition of Philadelphia Gas Works Operations
2Q ‘14 Earnings * Description Acquisition of assets and certain liabilities of Philadelphia Gas Works (“PGW Operations”) Purchase Price Total consideration of $1.86B; PGW Operations acquired on a cash-free and debt-free basis Financing Plan UIL intends to issue long-term debt and equity (or in combi
Slide 6: PGW Acquisition – Current Status/Next Steps
2Q ‘14 Earnings PGW Acquisition – Current Status/Next Steps City Council StatusCouncil is awaiting the result of an independent consultant evaluationJuly 16th was the first day UIL could have terminated the Acquisition Agreement and may now exit the deal at any time while it is pending before City C
Slide 7: Long-Term Organic Growth: 10-yr Capex Forecast
2Q ‘14 Earnings Long-Term Organic Growth(1)10-yr Capex Forecast (‘14-’23) * (1) Excludes pending PGW acquisition* Includes Renewable Generation - $47M ’14-’18Amounts may not add due to rounding 2014-2023P 2014-2023P
Slide 8: Projected Avg. Rate Base Growth ('14-'18)
2Q ‘14 Earnings Projected Avg. Rate Base Growth* (‘14-’18) * * Excludes pending PGW acquisition** Gas forecast includes 338 (h)(10) election(1) Including Renewable Generation(2) Represents investments at UIL CorporateAmounts may not add due to rounding $M ‘14-’18Rate Base CAGR 8.3% GasDistribution:7
Slide 9: Gas Heating Customers Added
2Q ‘14 Earnings Gas Heating Customers Added 5,901 households & businesses through June ‘14 * Expect to meet ’14 goal of 16,000 conversions
Slide 10: Gas Heating Customer Additions '10–'13 Actuals & Projections
2Q ‘14 Earnings Gas Heating Customer Additions ’10–’13 Actuals & Projections for ‘14–‘23 *
Slide 11: FERC ROE Complaint
2Q ‘14 Earnings FERC ROE Complaint FERC issued an order tentatively determining a 10.57% base ROE for New England Transmission Owners (NETOs)FERC established a paper hearing to determine whether GDP is an appropriate measure of long-term growth FERC instituted hearing & settlement judge procedures i
Slide 12: Regulatory Update
2Q ‘14 Earnings Regulatory Update Gas Distribution Rate Case – CNGFinal decision issued on 1/29/14 ordered a private letter ruling (PLR) request on 338 (h)(10) issueCT OCC filed an appeal of PURA’s rate case decision – challenged:Decision to require CNG to seek a PLR from the IRS, rather than offset
Slide 13: 2Q & YTD '14 Financial Results by Segment
2Q ‘14 Earnings 2Q & YTD ‘14 Financial Results by Segment *
Slide 14: 2Q & YTD '14 Financial Results - Details
2Q & YTD ‘14 Financial Results - Details Electric distribution & Other2Q ‘14 net income of $11.2M, or $0.20 per diluted share, compared to $12.1M, or $0.24 per diluted share, in 2Q ’13 -- decrease primarily due to:Increased uncollectible expense of $0.3M, the absence of CTA earnings of $0.2M and a d
Slide 15: 2Q & YTD '14 Financial Results - Details: Gas distribution
Gas distribution2Q ’14 loss of $2.2M, or $0.04 per diluted share, compared to a loss of $0.9M, or $0.02 per diluted share, in 2Q ‘13 -- increase in loss primarily due to:Warmer weather, increased corporate charges of $0.9M, and increased uncollectible expense of $0.8M, partially offset by customer g
Slide 16: Financial Results - Details: Gas distribution (cont.)
2Q & YTD ‘14 Financial Results - Details Gas distribution (cont.)Impact of weather, normalized usage per customer and customer growth – 2Q & YTD ‘14 compared to the same periods in ’13Preliminary avg. ROEs* as of 6/30/14: SCG 9.75 – 9.95%, CNG 9.23 – 9.43%Preliminary avg. weather normalized ROEs* as
Slide 17: Financial Results - Details: Corporate
2Q & YTD ‘14 Financial Results - Details CorporateExcluding acquisition-related expenses, 2Q ’14 Corporate costs were $3.7M, or $0.06 per diluted share, compared to $2.2M, or $0.04 per diluted share, in 2Q ‘13 -- increase in costs primarily due to:The partial reversal of $2.0M of an interim tax bene
Slide 18: 2014 Earnings Guidance Including Acquisition-Related Expenses to Date
2Q ‘14 Earnings 2014 Earnings Guidance Including Acquisition-Related Expenses to Date *
Slide 19: Questions
2Q ‘14 Earnings Questions