Colbun Sa · BCS:COLBUN
Colbun Sa — Fenix Power — Q2 2020 Earnings Presentation
20 slides from Colbun Sa's earnings presentation, October 2020
Slide 1: Corporate Presentation 2Q20
CORPORATE PRESENTATION 2Q20
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 27% Engie 13% Orazul 4% One of the most efficient Huallaga 4% CCGT in Peru Kallpa 15% Statkraft 5% 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 Others ▪ Stable regulatory framework 5% Hydro 62% ▪ US$ currency denominated market 52,663 GWh ▪ Investment grade country Natural Gas 33% ▪ 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 27 75% 77% 14 Marginal cost (US$/MWh) 25 25 52% 51% 12 21 56% 44% Power (
Slide 8: COVID19 potential impacts
Market overview COVID19 potential impacts SEIN STATUS Growth m/m (%) Growth y/y (%) Marginal Cost (US$/MWh) 8.3 8.5 7.5 4.6 5.2 3.4 January February March April May June SEIN Demand growth (%) m/m 0.3% (4.5)% (9.1)% (23.9)% 10.0% 12.3% y/y 2.4% 6.2% (12.9)% (30.0)% (25.4)% (12.4)% FENIX STATUS ▪ Mea
Slide 9: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 10: 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 11: 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 12: 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 12
Slide 13: 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 20% ▪ US$ indexation ▪ ~76% contracted until 2023 ▪ Strong AAA locally-rated off takers PPAs 80% PPAs PORTFOLIO (TWh) 1.3 1.3 1.0 1.1 0.5 2.2 2.
Slide 14: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 15: Financial figures
Financial review Financial figures 1 2 1. OPERATING REVENUES (US$ million) 2. EBITDA (US$ million) 217 70 68 193 202 175 164 56 54 36 2016 2017 2018 2019 2Q20 2016 2017 2018 2019 2Q20 LTM LTM 3. GROSS DEBT/EBITDA LTM (x) 2 4. FINANCIAL EXPENSES COVERAGE (x) 9.8x 3.8x 3.6x 6.5x 6.6x 6.6x 6.9x 2.6x 2.
Slide 16: Long term debt profile
Financial review Long term debt profile 1. DEBT PROFILE 2. FENIX BOND ISSUANCE ▪ Amount outstanding: US$314 mm US$314 million - Bond ▪ Average life: 5.3 years ▪ Coupon: 4.317% US$119 million – Calidda Leasing1 ▪ Maturity: Sept-27 ▪ Format: 144A/Reg S US$14 million – CTM Leasing ▪ Repayment profile:
Slide 17: 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 18: Fenix news
Fenix news Fenix donates over 112 Fenix was awarded Socially Fenix restarts its Participatory million liters of drinking water Responsible Company Social-Environmental As soon as the state of national Distinction (ESR) Monitoring Program virtually emergency was declared, and aware In recognition of
Slide 19: 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 20: Corporate Presentation 2Q20
CORPORATE PRESENTATION 2Q20