Semirara Mining & Power Corp. · PSE:SCC
Semirara Mining & Power — FY2016 Earnings Presentation
32 slides from Semirara Mining & Power's earnings presentation, Feb 28, 2017
Slide 1: Full Year 2016 Results Briefing
Full Year 2016 Results Briefing 28 February 2017
Slide 2: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS In million Php, except ratios Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Variance 2015 2015 2015 2015 2016 2016 2016 2016 Revenues 7,245 6,472 5,536 5,428 24,680 6,470 10,088 9,208 10,818 36,584 48% Coal 3,752 2,773 2,374 2,882 11,782 3,940 5,077 4,425 6,637 20,079 70% Power
Slide 3: Segment Financial Highlights
SEGMENT FINANCIAL HIGHLIGHTS Operating businesses Coal SCPC SLPGC 2015 2016 Variance 2015 2016 Variance 2015 2016 Variance Revenues (In M Php) 16,383 24,157 47% 12,797 10,984 -14% 733 6,537 792% Ave. Price 1,943 1,886 -3% 3.41 3.31 -3% 3.03 4.42 46% Cost of Sales - MT/Kwhr 1,024 1,016 -1% 1.69 2.24
Slide 4: YTD 2016 Volume Sold vs Cost of Sales
YTD 2016 VOLUME SOLD vs COST OF SALES COAL SCPC SLPGC 13,050 3,500 8,000 2.70 3,000 2.70 7,000 2.24 13,000 3,000 2.20 2,500 13,018 6,000 2.20 12,950 2,500 1.79 5,000 2,000 2,648 12,900 2,000 1.70 1.70 4,000 7,436 1,500 12,850 1,500 1.20 1,016 3,000 1.20 12,800 1,000 1,000 1,478 2,000 3,322 0.70 0.70
Slide 5: Quarterly Coal Average Cost / Ton
QUARTERLY COAL AVERAGE COST / TON 2,000 1,500 1,000 500 - Q1 Q2 Q3 Q4 Effect of higher stripping ratio per MT Mine Development Costs per MT Effect of Rehab Costs per MT Effect of cost for Narra Slope Stability per MT COS/MT (normal)
Slide 6: Deferred Stripping
DEFERRED STRIPPING 15.0 NARRA & MOLAVE PRE-STRIPPING/ MINE NARRA & MOLAVE 3.0 DEVELOPMENT PHASE PRODUCTION PHASE 2.5 Materials Moved (million BCM) Run of Mine Coal (million MT) 12.0 5..5 2.0 9.0 SR- 4.5 5.3 8.2 1.5 1.1 1.0 6.0 0.5 14.5 11.6 1.0 0.4 1.0 3.0 6.2 0.5 Strip Ratio - - Jan Feb Mar Apr May
Slide 7: Consolidated Revenues and NIAT
CONSOLIDATED REVENUES AND NIAT 2015 vs 2016 Gross Revenues NIAT 40 13 48% 42% 35 11 5.75 3.71 30 9 0.09 25 0.10 10.76 7 2.87 20 12.80 5.50 5 15 3 5.45 10 20.08 11.78 1 2.91 5 - (1) 2015 2016 2015 2016 Coal SCPC SLPGC 48% in Revenues, 42% in NIAT. SLPGC contributed to profitability as it became o
Slide 8: Cash Generation & Utilization - Consolidated
CASH GENERATION & UTILIZATION - CONSOLIDATED 2016 35.0 Release of SF 0.4 Dividends 30.0 4.3 Debt Availment Mine Dev’t 1.1 10.8 25.0 In Billion PHP Debt Repayment 20.0 13.9 15.0 Generation 16.9 Capex 10.0 5.7 Buyback 0.4 5.0 Cash End Beginning Cash 7.0 4.7 - GENERATION UTILIZATION
Slide 9: Consolidated Assets, Liabilities, & Equity
CONSOLIDATED ASSETS, LIABILITIES, & EQUITY 2015 vs 2016) 15% 4% 27% ASSETS LIABILITIES EQUITY 70 0 60 0 24 50 22 40 30 21 0 4 0 0 12 7 20 14 9 20 4 4 10 21 24 15 15 18 12 - (0) (0) (10) 12.31.15 12.31.16 12.31.15 12.31.16 12.31.15 12.31.16 Coal SCPC SLPGC Others
Slide 10: Coal Production
COAL PRODUCTION 2015 vs 2016 Materials Moved Coal Production 140.0 14.0 120.0 S/R S/R 12.0 9.02 34.3 9.08 100.0 10.0 3.6 80.0 23.8 8.0 25.0 2.4 2.8 60.0 9.5 6.0 36.5 1.1 40.0 27.8 4.0 2.0 2.2 20.0 2.0 26.3 30.8 3.4 2.3 - - 2015 2016 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 29% in materials moved, 33% i
Slide 11: Coal Sales
COAL SALES 2015 vs 2016 30 25 REVENUE (billion pesos) / VOLUME (million MT) 20 ASP ASP 1,943 1,886 14.3 15 5.9 10 1.0 0.7 2.3 1.5 7.5 3.1 5 0.4 0.3 7.2 1.0 7.6 0.7 3.9 4.3 0 Rev 2015 Vol 2015 Rev 2016 Vol 2016 Php16.4 B 8.4 M MT Php24.2 B 12.8 M MT POWER CEMENT OTHERS EXPORT 52% in volume sold, 3%
Slide 12: Coal Sales Mix
COAL SALES MIX 2015 vs 2016 YTD 2015 YTD 2016 37% 59% 33% 47% 12% 4% 6% 2% 8.4 M MTs 12.8 M MT 36% 60% 31% 44% 14% 6% 6% 3% Php 16.4 B Php 24.1 B Power Cement Others Export off-take of cement & other plants, power plants & exports. Total sales to own power plants decreased by 5%; SCPC off-take i
Slide 13: DOE Royalties
DOE ROYALTIES In million PHP 3,000 2016 DOE Royalties: 2,500 PHP 2.65 B 2,000 1,500 1,000 DMCI 500 - Royalties paid to the government since the DMCI group bought into the company and took over management and operations totaled to PHP13.72 billion as of 2016.
Slide 14: 2015 Gov't Collection from Energy Resources
2015 GOV’T COLLECTION FROM ENERGY RESOURCES In thousand PHP Region Collection 40% LGU share CAR 966.18 386.47 RO I 12,766.63 5,106.65 SCC 2015 RO IV-A 47,082.04 18,832.82 Government RO V 51,782.59 20,713.04 Royalties payment: RO VI 1,812,099.52 724,839.81 RO VII 83,877.65 33,551.06 RO VIII 123,030.3
Slide 15: SCPC Power Plants' Performance
SCPC POWER PLANTS’ PERFORMANCE 2015 vs 2016 Gross Gen, Total Plant Ave. Capacity, Total Plant 4,500 3,959 27% 600 11% 3,500 500 1,819 2,909 400 228 176 2,500 1,339 300 1,500 200 2,140 291 289 1,570 100 500 - (500) 2015 2016 2015 2016 Unit 2 Unit 1 Capacity Factor, Total Plant 80% 70% 27% 60% 50% 40%
Slide 16: SCPC Power Plants' Availability & Outages
SCPC POWER PLANTS’ AVAILABILITY & OUTAGES 2015 vs 2016 Availability (Hours) 18,000 16,000 TP 87% 15% 14,000 TP 74% 12,000 91% Planned Outage, Hrs 2015 2016 Variance 10,000 87% 8,000 Unit I 360 264 -27% 6,000 Unit II 744 - -100% 4,000 Total Plant 1,104 264 -76% 84% 62% 2,000 - Unplanned Outage, Hrs 2
Slide 17: SCPC Energy Sales
SCPC ENERGY SALES 2015 vs 2016 2015 2016 Variance BCQ Revenue in Pesos, Net 11,925 10,776 -10% BCQ Volume Sold (GWh) 3,581 3,276 -9% BCQ, Ave Price 3.33 3.29 -1% Spot Sale in Pesos 872 207 -76% Spot Volume Sold (GWh) 173 46 -73% Spot Sales, Ave Price 5.05 4.48 -11% Total Revenue in Pesos 12,797 10,9
Slide 18: SCPC Energy Sales Mix
SCPC ENERGY SALES MIX 2015 vs 2016 2015 2016 5% 8% 5% 5% 1% 1% 1% 1% 82% 92% 3,754 GWH 3,322 GWH 7% 1% 1% 2% 1% 9% 5% 4% 79% 92% PHP 12.80 B PHP 10.98 B Meralco Batelec I Trans Asia Spot Others Meralco remains to be the single biggest customer of the Company, accounting for 92% of sales volume and r
Slide 19: SLPGC Power Plants' Performance
SLPGC POWER PLANTS’ PERFORMANCE 2015 vs 2016 Gross Gen, Total Plant Ave. Capacity, Total Plant 1,600 555% 1,383 250 17% 1,400 1,200 200 1,000 711 119 800 150 109 600 100 400 672 200 211 50 93 117 160 - 51 - 2015 2016 2015 2016 Unit 4 Unit 3 Capacity Factor, Total Plant 60% 555% 50% 40% 30% 53% 20% 1
Slide 20: SLPGC Power Plants' Availability & Outages
SLPGC POWER PLANTS’ AVAILABILITY & OUTAGES 2015 vs 2016 Availability (Hours) 14,000 TP 67% 12,000 10,000 68% Planned Outage, Hrs 2015 2016 8,000 Unit 3 - - 6,000 Unit 4 - 1,079 4,000 Total Plant - 1,079 TP 12% 65% 2,000 17% - 6% Unplanned Outage, Hrs 2015 2016 2015 2016 Unit 3 2,923 2,808 Unit 3 1,4
Slide 21: SLPGC Energy Sales
SLPGC ENERGY SALES 2015 vs 2016 2015 2016 Variance BCQ Revenue in Pesos, Net 530 6,040 1,040% BCQ Volume Sold (GWh) 115 1,281 1,011% BCQ, Ave Price 4.59 4.72 3% Spot Sale in Pesos 204 497 144% Spot Volume Sold (GWh) 127 197 55% Spot Sales, Ave Price 1.60 2.52 57% Total Revenue in Pesos 733 6,538 792
Slide 22: SLPGC Energy Sales Mix
SLPGC ENERGY SALES MIX 2015 vs 2016 2015 2016 2%2% 19% 34% 23% 96% 24% 242 GWH 1,478 GWH 4% 4% 13% 27% 34% 92% 27% PHP 733 M PHP 6.54 B MPower VECO GNPower Others MPower started buying power in Q2 2016. It accounts for 34% of sales volume and revenues in 2016.
Slide 23: Key Takeaways
KEY TAKEAWAYS • Record high NIAT of Php 12.04 billion, 42% higher than 2015 net profits of Php 8.49 billion; Coal also posted record high production and sales volume this year. • Approved ECC amendment on 29 April to increase mining capacity from 12 million tons to 16 million tons • Molave BOI-regis
Slide 24: Appendix
APPENDIX
Slide 25: Audited Comparative Statements of Comprehensive Income - Coal
AUDITED COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - COAL For the period ending December (in million Php) Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 YTD 2016 Variance Revenue 5,554 3,653 3,090 4,076 16,373 4,647 6,297 5,475 7,738 24,157 48% Costs of Sales 2,901 2,27
Slide 26: Audited Comparative Statements of Comprehensive Income - SCPC
AUDITED COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SCPC For the period ending December (in million Php) Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Revenue 3,519 3,730 3,193 2,480 12,922 1,676 2,888 3,114 3,386 11,063 Contracted Energy 3,084 3,400 3,061 2,397 11,9
Slide 27: Audited Comparative Statements of Comprehensive Income - SLPGC
AUDITED COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - SLPGC For the period ending December (in million Php) Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Revenue - - 277 (167) 110 260 2,145 1,676 1,716 5,796 Contracted Energy - - 96 5 101 253 1,882 1,585 1,650 5,371 Sp
Slide 28: Audited Comparative Statements of Comprehensive Income - Consolidated
AUDITED COMPARATIVE STATEMENTS OF COMPREHENSIVE INCOME - CONSOLIDATED For the period ending December (in million Php) SMPC SCPC SLPGC Others 2015 SMPC SCPC SLPGC Others 2016 Revenue 11,782 12,797 101 - 24,680 20,079 10,758 5,747 - 36,584 Cost of Sales 6,388 4,133 21 - 10,542 11,013 5,733 1,995 - 18,
Slide 29: Audited Comparative Statements of Financial Position - Consolidated
AUDITED COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of December 2016 vs 2015 – In million pesos SMC SCPC SLPGC SBPG SRPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 50% 100% 100% 100% 100% 2016 2015 PARENT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT INDIRECT DIRECT ASSETS Current
Slide 30: Audited Comparative Statements of Financial Position - Consolidated
AUDITED COMPARATIVE STATEMENTS OF FINANCIAL POSITION - CONSOLIDATED As of December 2016 vs 2015 – In million pesos SMC SCPC SLPGC SBPG SRPG SCS SEU SCRC SCIP CONSOLIDATED 100% 100% 100% 50% 100% 100% 100% 100% 2016 2015 PARENT DIRECT DIRECT DIRECT DIRECT DIRECT DIRECT INDIRECT DIRECT LIABILITIES Cur
Slide 31: Consolidated Loan Profile
CONSOLIDATED LOAN PROFILE In Millions Business Dec Jan-Dec Dec Segment 2015 Availment Payment 2016 Coal (USD) 87.2 96.6 113.0 70.8 Coal (PHP Equivalent) 4,101 4,618 5,413 3,518 Coal (PHP) 2,107 2,100 2,107 2,100 Total Coal (PHP) 6,209 6,618 7,420 5,618 SCPC (PHP) 2,304 4,100 4,676 1,728 SLPGC (PHP)
Slide 32: Disclaimer
DISCLAIMER •Semirara Mining and Power Corporation (the “Company”) and its advisors assumes no responsibility or liability regarding actions or decision that may be taken regarding any information resulting from unintentional errors or omissions contained in this document. •In addition, this document
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