Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — H1 2019 Earnings Presentation
19 slides from Towngas Smart Energy's earnings presentation, August 2019
Slide 1: Towngas China 2019 Interim Results Presentation
Towngas China (1083.hk) 2019 Interim Results Presentation
Slide 2: statements reflect the company’s view on some future events
This presentation and subsequent discussion may contain certain forward-looking statements. These forward-looking statements reflect the company’s view on some future events and involve known and unknown risks and uncertainties and other factors which may cause actual performance and development dif
Slide 3: Towngas China as a major city-gas platform in China for Hong Kong & China Gas
Towngas China as a major city-gas platform in China for Hong Kong & China Gas • Major utilities and energy Hong Kong & China Gas company in Hong Kong and (0003.hk) mainland China • A HSI constituent stock 67.76% • Major city-gas company in Towngas China mainland China (1083.hk) as of 31 July 2019 3
Slide 4: 5 projects added, total in 20 provincial regions
Heilongjiang 5 project added, total 120 projects in 20 provincial regions Jilin Liaoning Total Hebei projects New Projects Inner Mongolia Beijing 2 City-gas 97 - Shanxi Shandong Midstream 4 - 1. Maanshan Economic and Technological Development 3 Shaanxi Henan Anhui Jiangsu Zone South District 1 Distr
Slide 5: Project growth: injection from HKCG, newly acquired, existing
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 25 37 40 47 61 66 74 87 97 102 104 105 115 120 140 Injection from HKCG 5 120 Newly Acquired 11 2 3 100 Existing 6 10 80 14 8 5 60 6 115 8 96 102 102 104 40 3 7 87 10 66 73 2 61 20 40 47 37 25 25 0 2006 2007 2008 2009 2010 2011
Slide 6: Financial and Operational Performance
Financial and Operational Performance 6
Slide 7: 1H 2019 highlights
• Operating Profit before Finance Costs: HK$955Mn 4% Gas Sales Volume Total Projects Total Customers New Connections 14% +5 +0.4Mn* +0.5Mn* (*6 months) 7
Slide 8: 1H 2019 financial results
(HK$ Mn) 1H 2019 1H 2018 Change Turnover Gas Sales & Others 5,619 4,728 +19% Connection Fees 893 856 +4% 6,512 5,584 +17% Operating Profit before Finance Costs 955 916 +4% Less: Finance cost 199 253 -21% Profit Attributable to Shareholders 756 663 +14% Basic EPS (HK cents per share) 26.89 23.96 +12%
Slide 9: Financial position, share data and credit ratings
TCCL (1083 HK) 30 Jun 31 Dec 19 Aug 31 Dec Change Change 2019 2018 2019 2017 HK$ Bn HK$ Bn Total assets 35.4 34.0 +3% Share price (HK$)^ 5.45 5.81 -6% Net asset value 18.0 17.8 +3% Market cap. (HK$ Bn) 15.6 16.3 -4% Cash and Bank 2.0 1.7 +18% No. of Shares (Bn) 2.87 2.81 +2.2% Total borrowings 10.2
Slide 10: Gas Sales Volume (Bn m³)
(Bn m³) 1H18 1H19 Change Industrial 2.8 3.2 +16% Commercial 0.9 1.0 +11% Residential 1.3 1.4 +11% Total 4.9 5.6 +14% 12 10.0 10 Gas Sales Volume (Bn m³) 8.4 8 7.1 6.5 6.6 5.9 6 5.3 5.6 4.7 4.9 4.0 4 3.2 2.7 2 2.1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H18 1H19 10 *All JVs (10
Slide 11: Gas sales volume by subsidiaries, JCEs & associates, Chengdu JV
Volume (Mn m3) 1H 2019 1H 2018 Change Subsidiaries 1,694 1,472 +15% JCEs & Associates 3,012 2,620 +15% Chengdu JV 913 858 +6% Total 5,619 4,949 +14% Note: Chengdu JV with 13% shareholding is classified as a financial investment 11
Slide 12: Gas Sales Volume Mix and Productivity
Gas Sales Volume Mix (%) Productivity Customers No.(LHS) Gas Volume/Employee (RHS) Residential Commercial Industrial (Mn) (‘000 m³) 488 16 500 14 419 450 26% 12 400 26% 10 350 8 300 18% 56% 17% 57% 6 250 10.7 4 9.2 200 2 150 1H18 1H19 0 - 1H18 1H19 * All JVs (100%) 12
Slide 13: National gas volume growth; lift restriction on foreign ownership of city-gas
1. National Gas Volume Growth Continues 2018 2020 2030 National Annual 280 Bn m³ 360 Bn m³ 480 Bn m³ Consumption Share of Primary Energy 8% 10% 15% 2. Lift restriction on foreign ownership of city-gas JVs Restriction on majority foreign ownership for cities with population >500,000 was lifted Op
Slide 14: Russian Gas Will Spark Volume Growth in North-Eastern & Northern Regions
Russian Gas Will Spark Volume Growth in North-Eastern & Northern Regions Russian NG arriving in Dec 2019 with volume of 38 Bn m³ p.a. by 2024 North-Eastern 2018 2019F 2023F Number of projects 21 21 >26 Volume (Bn m³) 1.6 1.9 4.3 Volume Growth CAGR: 22% Shaanxi Hubei Northern 2018 2019F 2023F Eastern
Slide 15: National pipeline company and NDRC on connection fees
3. Set up National Oil and Gas Pipeline Company Open access to pipelines and NG importation Free flow of NG, LNG nationwide Lower procurement cost Gas shortage in certain regions will be reduced 4. NDRC on Connection Fees Policy The guidelines issued in June 2019 is more liberal Provinci
Slide 16: Coal-to-Gas Conversion Policy
5. Coal-to-Gas Conversion Policy Chinese government continues to reduce carbon emission and improve air quality Step up boiler conversion: 10 to 35 steam tons (eqv. 2,800 m³ NG/hour) Benefits to TCCL 2017 2018 2019F Cumulative Annualized Gas Consumption Capacity 630 580 520 1,730 (Mn m³) Key d
Slide 17: Green Energy Integrated Services Business Growth
Green Energy Integrated Services Business Growth • Green Energy Integrated Services 3,500 • Enhance energy efficiency with more gas sales • Projects 2,800 Central space heating Central steam supply for industrial 2,000 parks Air-conditioning Electricity 1,000 50 60 Pipelines for steam supp
Slide 18: Gas storage in Jintan, Jiangsu
Gas storage in Jintan, Jiangsu • To meet winter peak demand • Sharing investment cost among JVs • National pipelines facilitates free flow of NG Jintan Underground NG Storage • NG trading opportunities Project Information Cumulative • Shanghai Gas is a partner of Phase • Phase 1-1 capacity: (3 caver
Slide 19: Thank you
BK MAIR) Towngas China Company Limited
Towngas China Company — H1 2019 Earnings Presentation on 6ix