Pt Barito Pacific Tbk · IDX:BRPT
Pt Barito Pacific Tbk — H1 2023 Earnings Presentation
29 slides from Pt Barito Pacific Tbk's earnings presentation, August 2023
Slide 1: PT Barito Pacific Tbk 1H23 Earnings Call
PT Barito Pacific Tbk August 2023 1H23 Earnings Call Presentation to Analysts and Investors
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of PT Barito Pacific Tbk. (“Barito Pacific” or the “Company”) for information purposes and contains general background information about Barito Pacific group including forward-looking statements on its business, financial condition and
Slide 3: Agenda
Agenda Latest Key Updates 01 1H23 results summary Operational metrics 1 02 03 Business Updates & Growth Strategy 3
Slide 4: 1H23 Results Summary
J Barito Pacific S$ FY22 Results Summary S chandra Asri Barito Renewables e@
Slide 5: Key Dynamic Factors
Key Dynamic Factors Strongly positioned to benefit from the resurgence of the petrochemical industry; Maintaining vigilance in light of high uncertainty Petrochemical Spread to Naphtha Run rates & Capacity Factor Oil Price & EBITDA > 95% 105 +/- 90% 99 99 95 93 88 80 Before SEG 71 64 58 52 349 47 47
Slide 6: 1H23 Financial Summary
1H23 Financial Summary Revenue EBITDA EBITDA Margin Net profit after tax US$1,374m US$349m 25.4% US$82mn -15.1% +35% +9pp +173% 1,618 349 1,374 25.4% 258 82 15.9% 30 6M22 6M23 6M22 6M23 6M22 6M23 6M22 6M23 1 Volatile environment in the petrochemical industry mirrored economic condition in China as g
Slide 7: Balancing act – Fruition of Transformed Portfolio to Energy Segment
Balancing act – Fruition of Transformed Portfolio to Energy Segment Stronger blend of income with shielding factor from Geothermal Revenue contribution 6M23 EBITDA contribution 6M23 EBITDA breakdown 2018-6M23 26.4% 24.8% 25.6% 25.3% 25.4% Others Petrochemical 813 797 16.0% Geothermal 0% 27% 401 22%
Slide 8: Large War Chest To Aid Organic & Inorganic Growth Opportunities
2 Large War Chest To Aid Organic & Inorganic Growth Opportunities Robust Liquidity Pool Ample Liquidity as cushion; Organic expansions • Well-prepared for full-throttle recovery mode in the petrochemical sector US$2.8b • Secured equity commitment to progress CAP2, in light of the observed volatility
Slide 9: Safeguarded Capital Structure Amid Expansions
5 Safeguarded Capital Structure Amid Expansions Net Debt to Equity (x) Fixed vs. Floating (%) 100% 90% 16% 17% 29% 31% 80% 1.0x limit 70% 60% 54% 60% 79% 50% 0.75x 40% 84% 83% 0.65x 0.63x 71% 69% 0.59x 30% 20% 40% 46% 0.18x 10% 21% 0% 2017 2018 2019 2020 2021 2022 6M23 2019 2020 2021 2022 6M23 Fixed
Slide 10: Key operational updates
02 Key operational updates Utilization rate & Capacity factor 10
Slide 11: Market product prices
Market product prices Encouraging stability in product prices, despite the current bearish market sentiment POLYOLEFINS OTHERS (all figures in US$/T) OLEFINS 1,600 1,600 1600 1,453 1470 1,413 1,407 1424 1,389 1406 1,400 1476 1,353 1,400 1,295 1400 1,403 1,249 1,255 1193 1,203 1,152 1,200 1,309 1,177
Slide 12: Operating Rates
Operating Rates Maintained robust operating rates amidts market challenges Naphtha Cracker Polyethylene Plant Polypropylene Plant Styrene Monomer Plant 90% 98% 85% 88% 80% 81% 63% 62% 6M22 6M23 6M22 6M23 6M22 6M23 6M22 6M23 (1) Butadiene Plant MTBE Plant Butene-1 Plant All Plants 82% 83% 78% 76% 77%
Slide 13: Production and Sales
Production and Sales Sustained healthy production volume with growth seen in several plants (all figures in KT) Ethylene (1) Polyethylene Plant Polypropylene Plant Styrene Monomer Plant Prod Sales Prod Sales Prod Sales Prod Sales (1) 316 297 300 313 285 265 258 400 243 111 358 106 105 104 64 34 6M22
Slide 14: Energy Operating Performance
Energy Operating Performance Barito Renewable Geothermal Operating Assets – Average Net Capacity Factor Wayang Windu Salak Units 1 to 3 (IP operated turbine) Salak Units 4 to 6 98.7% 99.0% 97.0% 96.6% 99.7% (1) 99% 95% 97% 95% 97% 96% 93% 88% 90% 86% 2019 2020 2021 2022 6M23 2019 2020 2021 2022 6M23
Slide 15: Business Updates & Growth Strategy
03 Business Updates & Growth Strategy Expansions plan & Asset consolidation 15
Slide 16: Roadmap For Expansions
Roadmap For Expansions Best positioned to benefit from long runway of multi-year organic growth Petrochemical Energy Indo Raya Tenaga (PLTU) Core Business Pipeline geothermal MW addition: USC Coal-fired: • Expand petrochemical & infrastructure business • 2023: +15MW Salak Binary Plant • 2 x 1,000MW
Slide 17: Diversification and downstream expansions
2 Diversification and downstream expansions Geared to deliver stronger business performance with less risks, through creating integrated ecosystems and synergies within the industrial complex in the Cilegon area Chandra Daya Investasi Chandra Asri Alkali 70% 49% World Scale Krakatau Daya Listrik Kra
Slide 18: Fostering Resilience Via the Energy sector
Fostering Resilience Via the Energy sector Poised to preserve position as Indonesia’s leading integrated & diversified energy player Further approach to enhance diversification not only on a group level, but also on the subsidiaries 3,406MW* power capacity portfolio, owned both directly and indirect
Slide 19: A New Milestone Achieved through Group Consolidation
A New Milestone Achieved through Group Consolidation Corporate structure (simplified) Corporate structure (simplified) Restructuring & Consolidation Before After Barito Renewables Energy (BREN) Green Era • BREN to strengthen BRPT’s position as Green Era leading domestic integrated energy 66.67% 33.3
Slide 20: Barito Renewables Key Growth Strategies
Barito Renewables Key Growth Strategies Operate existing plants Maximize resources capacity of efficiently and at full capacity existing mature fields >90% capacity factor Capacity addition from existing Operational excellence with baseload generation operational assets of WW, Salak and Darajat capa
Slide 21: Strong Funding Capability Track Record
5 Strong Funding Capability Track Record Funding activities New Projects Capex Clear path to greater EBITDA (US$ billion) • Successful raised series of funding to support expansions US$50m-100m • Heavy green capex spending over the period of 2015- Drilling Capex/year >1,000MW 2022 (70% of accumulate
Slide 22: Purposeful Growth
Purposeful Growth ESG - On the path of continuous improvement Rating Provider 2020 Score 2021 Score 2022 Score Target MSCI ESG LEADERS √ BB BBB A Maintain Sustainalytics (BRPT) 34.1 (High Risk) 27.2 (Medium Risk) 26.2 (Medium Risk) 15 - 20 (Low Risk) Sustainalytics (TPIA) Not rated Not rated 17.7 (L
Slide 23: Q&A
Q&A 23
Slide 24: 6M23 Financial Summary
6M23 Financial Summary (US$ million, unless otherwise stated) 6M22 6M23 % Change Net Revenues 1,618 1,374 (15.1%) Petrochemical 1,337 1,074 (19.7%) Energy 278 297 6.8% Others 4 3 (25.0%) Cost of Revenues 1,393 1,089 (21.8%) Gross Profit 225 285 26.7% Finance costs 101 153 51.5% Net Profit after Tax
Slide 25: Petrochemical Organic Growth Roadmap
Petrochemical Organic Growth Roadmap Growth initiatives (2013-2022) Well-positioned to benefit from attractive industry outlook Petrochemical Attractive growth fundamentals 1 2 Market Leader Strategic growth via downstream integration & capacity expansions 7.2% Indonesia RoW 6.2% Import Pertamina Po
Slide 26: Petrochemical Growth Roadmap
Petrochemical Growth Roadmap Expanding capacity to deliver sustainable growth ahead Cracker Merger New PE, SSBR Expansion with TPI & PP MTBE BD Plant Cracker operation, & Increase expansion, and CAP2* Operation Expansion BD Acquisition PE Furnace Butene-1 expansion of SMI Capacity revamp 8,950 8,950
Slide 27: Geothermal: At Critical Mass
Geothermal: At Critical Mass EBITDA & Margin Reaching Critical Mass EBITDA EBITDA Margin 83.67% Ability to grow geothermal assets portfolio via brownfield & greenfield developments, and acquisitions 82.15% 476 Highly experienced technical team with strong 441 79.76% 79.63% capabilities across steam
Slide 28: Growth Through Partnership
5 Growth Through Partnership Energy Petrochemicals Partners Partners ■ Partnered with Star Energy on the acquisition of Salak and Darajat ■ Acquired 30% stake in CAP in 2011 geothermal assets from Chevron on 31 March 2017 ■ Currently owns a 30.57% stake in CAP ■ Sharing of technical and operational
Slide 29: Thank you
Thank you 3 Office Address: Contact Investor Relation/Corporate secretary PT Barito Pacific Tbk Email: Investor.relations@barito.co.id/Corpsec@barito.co.id Wisma Barito Pacific II, Fl 23 Tel: +6221 530 6711 Jl. Letjen. S. Parman Kav. 62-63 Jakarta 11410 @baritopacific.id Barito Pacific Tbk Barito-pa