Eneva S.a. · BMFBOVESPA:ENEV3
Eneva — Investor Presentation (December 2014)
26 slides from Eneva's investor presentation, December 2014
Slide 1: December, 2014
December, 2014
Slide 2: Company Overview
1 Company Overview
Slide 3: Company overview
Company overview One of the largest private sector power generators in Brazil ENEVA currently operates 2.4GW in coal and gas-fired power plants (2.9 GW until the end of year) Integrated energy platform, with privileged access to natural resources Only private power generator in Brazil with access to
Slide 4: ENEVA at a glance
ENEVA at a glance A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas and coal) Company Description Geographic Footprint 2.9GW inflation-protected, long-term PPAs o 2.4GW in operation Amapari Energia ENEVA 51% / Eletronorte 49% Diesel - 23MW o 518MW under constructi
Slide 5: Coal generation portfolio overview
Coal generation portfolio overview 1.4 GW of installed capacity in full operation Itaqui Pecém I Pecém II Capacity: 360MW Capacity: 720MW Capacity: 365MW Fix. Rev.¹: R$312.7MM/year Fix. Rev.¹: R$637.0MM /year Fix. Rev.¹: R$302.1MM /year CVU: R$111/MWh CVU: R$107/MWh CVU: R$116/MWh
Slide 6: Parnaíba Complex overview
Parnaíba Complex overview A unique case in Brazil power generation sector with 910MW already in operation Parnaíba III Parnaíba II Parnaíba IV 1 GE GT x 168,8MW Parnaíba I 2 GE GTs x 168,8MW + 1 Wärtsilä GM x 7,3MW 4 GE GTs x 168,8MW + 1 GE ST x 181MW 3 Wärtsilä GMs x 18MW Gas Treatment Unit Parnaíb
Slide 7: Cambuhy/E.ON investment in Parnaíba Gás Natural
Cambuhy/E.ON investment in Parnaíba Gás Natural Securing ENEVA’s power plants gas supply Successful rescue plan of PGN Shareholding Structure In 2H13, ENEVA and E.ON led efforts to rescue PGN from Current OGP’s judicial recovery process and secure the gas supply for Controlling Block (63.7%) ENEVA’s
Slide 8: Parnaíba Gás Natural (PGN)
Parnaíba Gás Natural (PGN) 3 commercial gas fields fully committed to supply ENEVA power plants Overview Only part of Parnaíba Basin is yet licensed and explored Declaration of commerciality for 3 gas fields: Gavião Real, Gavião Azul and Gavião Branco o Santa Vitória discovery in Jan, 2014 (well OGX
Slide 9: Operating & Financial Performance of Power Plants
2 Operating & Financial Performance of Power Plants
Slide 10: Operational Performance (Itaqui)
Operational Performance (Itaqui) Ash disposal solution hit Operational costs in the quarter EBITDA (R$MM) Operating Costs -0.6 3Q14 3Q14 (Adj) 3Q14 2Q14 (Adj) /2Q14 100.5 Operating Costs² (R$ million) 21.1 121.6 115.5 5.3% 112.1 Gross Energy Generated (GWh) 679.5 679.5 462 47.1% -1.8 -6.1 20.1 Opera
Slide 11: Operational Performance (Parnaíba I)
Operational Performance (Parnaíba I) Reduced availability undermined 3Q14 EBITDA despite lower fuel costs EBITDA (R$MM) Operating Costs 3Q14 3Q14 (Adj) 3Q14 2Q14 (Adj) /2Q14 -35.8 Operating Costs¹ (R$ million) 189.8 207.6 196.6 -3.4% 50.3 -0.9 Gross Energy Generated (GWh) 1,173 1,173 1,412 -16.9% 17
Slide 12: Operational Performance (Pecém I)
Operational Performance (Pecém I) Revenues and costs compromised by GU01 stator burnout on Aug 25, 2014 EBITDA¹ (R$MM) Operating Costs 1.9 3Q14 3Q14 (Adj) 3Q14 2Q14 (Adj) /2Q14 Operating Costs² (R$ million) 26.4 263.4 256.3 2.8% 237.0 244.1 Gross Energy Generated (GWh) 965.2 965.2 1,186 -18.6% Opera
Slide 13: Operational Performance (Pecém II)
Operational Performance (Pecém II) Lower availability hurt operating revenues and higher spot prices increased unavailability costs EBITDA¹ (R$MM) Operating Costs -0.8 3Q14 3Q14 (Adj) 3Q14 2Q14 (Adj) /2Q14 31.1 -13.3 Operating Costs² (R$ million) 79.0 110.1 105.4 -25.1% 45.8 33.5 -4.6 Gross Energy G
Slide 14: Operational Performance (Parnaíba III)
Operational Performance (Parnaíba III) Recurring negative EBITDA as a result of gas optimization at Parnaíba Complex since mid-May 14 EBITDA¹ (R$MM) Operating Costs 3Q14 3Q14 (Adj) -8.4 -8.8 3Q14 2Q14 (Adj) /2Q14 -1.5 -0.6 Operating Costs² (R$ million) 63.4 82.1 65.1 -2.6% -17.0 18.7 Gross Energy Ge
Slide 15: Regulatory Update
3 Regulatory Update
Slide 16: Regulatory developments (1)
Regulatory developments (1) Parnaiba II PPA restructuring Parnaíba II Final Agreement with Aneel Parnaíba Gas Optimization Background: Delayed 450MW PPA, with initial supply date as of Mar Gas optimization of Parnaíba Thermoelectric Complex approved by 2014 Aneel: Parnaíba I substituted by Parnaíba
Slide 17: Regulatory developments (2)
Regulatory developments (2) Unavailability charges (ADOMP) now calculated and paid as provided for in PPAs Unavailability charges were being paid on an hourly-based methodology, while PPAs provided for a 60-month rolling average In Jan 2014 and Sep 2014, Federal Court ruled in favor of ENEVA, in lin
Slide 18: Financial Stabilization Update
4 Financial Stabilization Update
Slide 19: Financial Stabilization on course
Financial Stabilization on course May 12, 2014 2Q14 / 3Q14 Next Step • Signing of term-sheet with banks for: • R$100MM short-term bridge financing • R$300MM long-term credit facility to • R$1.5Bi capital increase to Pecém II disbursed Pecém II approved by BNDES o Phase I: R$316.5MM cash-only; and •
Slide 20: Brazilian Power Market and Greenfield Portfolio
5 Brazilian Power Market and Greenfield Portfolio
Slide 21: Brazilian energy matrix
Brazilian energy matrix Brazil is highly dependent on hydro generation with increasingly faster depletion of reservoirs Brazil’s Generation Capacity: 136 GW Southeast Reservoirs Breakdown by source – April, 2014 ~70% of total storage capacity 100% 19,8% 90% 80% 75% 70% 2,2% 67% 1,5% 56% 60% 2,5% 50%
Slide 22: Electric system reliability
Electric system reliability New thermal plants are necessary to guarantee reliable power supply Water storage capacity has stagnated, Economic growth will boost power demand leading to decreased system autonomy leading to a supply deficit in 2016 30 90 25 86 Reservoirs Autonomy (Months) 85 20 80 78
Slide 23: ENEVA's greenfield portfolio
ENEVA’s greenfield portfolio Attractive licensed greenfield projects in various development stages Power Hydropower Opportunities Spot prices at Demand for base- 1 supply-demand 2 concentrated 3 historical highs 4 load generation 5 for ENEVA’s unbalanced matrix growth Parnaíba Integrated to natura
Slide 24: Parnaíba I: Closing of the cycle (1)
Parnaíba I: Closing of the cycle (1) Highly competitive expansion to existing site Highlights Parnaíba Site Part of Parnaíba II Agreement settled with Aneel in nov, 2014 Bottoming of open cycle gas turbines from Parnaiba I power plant provides extra 360MW Competitive project as no additional gas nee
Slide 25: Parnaíba I: Closing of the cycle (2)
Parnaíba I: Closing of the cycle (2) Highly competitive expansion to existing site Net power output: 352,8 MW Plant’s upside efficiency: 51% (previously 37%) Additional gas consumption: zero Contractor: TBD (first phase performed by Duro Felguera) New equipment Implementation schedule: 36 months CAP
Slide 26: Disclaimer
Disclaimer The material that follows is a presentation of general background information about ENEVA S.A. and its subsidiaries (collectively, “ENEVA” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warr