Gas Malaysia Bhd. · MYX:GASMSIA
Gas Malaysia Bhd — FY2015 Earnings Presentation
19 slides from Gas Malaysia Bhd's earnings presentation, Mar 25, 2016
Slide 1: Investors' Briefing: Business Review & Outlook
Investors’ Briefing BU S I N ESS R E V I EW & OU T LOOK 2 5 MA RCH 2 0 1 6 www.gasmalaysia.com 1
Slide 2: Agenda
01 Historical Volume 02 FY15 Results 03 Updates on New Ventures 04 Business Guidance www.gasmalaysia.com 2
Slide 3: 1: Historical Volume
1: HISTORICAL VOLUME www.gasmalaysia.com 3
Slide 4: Volume Growth
Volume Growth Increase in Volume Mainly from the Rubber, Chemical, F&B Industries 5-Year CAGR million MMBtu Quarterly Volume 5.0% 7.8% million MMBtu 159.1 Volume 147.6 Decelerating 2.5% 138.5 FY2015 2.0% 41.3 127.6 4.2% 40.3 124.9 39.5 38.6 37.9 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2011 2012 2013 2014 2015
Slide 5: Revenue Growth
Revenue Growth Revenue driven by Increase in Volume & Tariff RM million 30.5% 3,619 2,773 2,317 2,125 2,000 2011 2012 2013 2014 2015 www.gasmalaysia.com 5
Slide 6: 2: FY15 Results
2:FY15 RESULTS www.gasmalaysia.com 6
Slide 7: FY2015 Results
FY2015 Results PAT (RM million) 36% 36% decline 167.6 Full Impact of Margin 106.0 Compression from RM2.02 to RM1.58 per MMBtu Additional Billing for LNG 2014 2015 Volume from PETRONAS www.gasmalaysia.com 7
Slide 8: PAT Trending
PAT Trending PAT (RM million) 300 298 269 250 243 229 What Gives? 200 171 167 163 Structural Change in Tariff 150 106 1 Setting 100 2 Introduction of IBR Framework 50 0 2008 2009 2010 2011 2012 2013 2014 2015 www.gasmalaysia.com 8
Slide 9: 3: Updates on New Ventures
3: UPDATES ON NEW VENTURES www.gasmalaysia.com 9
Slide 10: Progress So Far
Progress So Far Combined Heat & Virtual Pipeline BioCNG Power (CHP) • Work progress 30% • CHP Plant installation in Prai is 90% completed • Supply facility completed • Initial consumption • Initial consumption 420,000 MMBtu/year • Initial consumption 1.1 million MMBtu/year 25,000 MMBtu/year • Expect
Slide 11: 6: Business Guidance
6: BUSINESS GUIDANCE www.gasmalaysia.com 11
Slide 12: Volume Forecast
Volume Forecast Forecast to Reflect Current Economic & Industry Situation Projected Volume Growth 3% - 5% 147 167 159 167 2014 2015 2016 www.gasmalaysia.com 12
Slide 13: Regulated Business under IBR
Regulated Business under IBR GOVERNANCE AIMS ▪ Form of economic regulation for public utilities to operate Natural Gas ▪ Links tariff setting to network efficiently performance Customers ▪ Applies to natural monopolies ▪ Protect customers as prices charged are based on efficient Accounting unbundlin
Slide 14: Tariff Building Blocks under IBR
Tariff Building Blocks under IBR WACC Annual X Operating Revenue = + Depreciation + expenses + Taxation Requirement Regulated (inc. Gas (ARR) Asset Base costs) + Working capital Note: • Average Tariff = ARR / sales volume • WACC is weighted average cost of capital www.gasmalaysia.com 14
Slide 15: Gas Industry Value Chain
Gas Industry Value Chain Upstream Midstream Downstream Exploration Production Transmission/ City Gates Marketing, Deploying Bringing gas to distributing and technology to surface using selling of natural gas locate new oil & natural and gas resources artificial methods Retail Processing Distribution
Slide 16: Ideal Margin Composition
Ideal Margin Composition Regulated Margin per MMBtu Retail margin Regulated margin largely 1.58 Network margin addresses the return for the network function. Gas Malaysia is in consultation with ST for the inclusion of retail margin in the tariff. BUT The result of the consultants’ study was present
Slide 17: Revised CAPEX
Revised CAPEX ~ RM400 million for the Next 4 years for ~170km Additional NGDS IBR Trial Period IBR Period 2017 - 2019 140 90 100 85 75 2015 2016 2017 2018 2019 www.gasmalaysia.com 17
Slide 18: Contribution from New Businesses
Contribution from New Businesses New Ventures to Contribute Meaningfully Starting 2017 New Venture 4-Year PAT CAGR Expected Contribution to Group 1 CHP 20% - 30% PAT by 2020 2 Virtual Pipeline 10% - 15% 3 BioCNG 30% - 40% 25% - 35% www.gasmalaysia.com 18
Slide 19: END
GAS MALAYSIA END www.gasmalaysia.com