Post on 26-Mar-2015
Interim ResultsSix months ended 30 June 2010
Philip CoxChief Executive Officer
International PowerInterim Results August 20103
Highlights
Financial highlights
Good financial performance
Profit from operations of £524m (2009: £550m)
EPS of 14.1 pence (2009: 15.4 pence)– up 7% after adjusting for FX and the sale of
the Czech business
Strong free cash flow of £398m (2009: £326m)– up 22%
Interim dividend of 4.39 pence per share (2009: 4.25 pence), up 3%
Growth
PPAs signed for 76MW of new wind generation capacity in Canada
Good progress at 815MW Paiton 3 project and 110MW Thai National Power 2 project
Total construction pipeline of 1,400MW (net)
16
12
4
0
p
8
Underlying EPS – up 7%
2009 2010
UnderlyingEPS
Czech
0
400
800
1,200
1,600
2010 2011 2012 2013
HUBCO - Laraib
TNP2
Paiton 3
T-Power
Elecgas
IPR EuropeanWind Portfolio
Synergen
HUBCO - Narowal
Fujairah F2
Construction pipelineNet MW
Mark WilliamsonChief Financial Officer
Financial ReviewFinancial ReviewFinancial ReviewFinancial Review
Interim Results August 2010 International Power
Profit from operations
Interest
PBT
Tax
Non-controlling interests
Profit for the period
EPS
524
(191)
333
(64)
(54)
215
14.1p
Six months ended 30 June
550
(216)
334
(59)
(41)
234
15.4p
2009 Restated
£m
2009 restated for adoption of IFRIC 12 - Service Concession Arrangements and change in policy relating to retirement benefit obligations
2010 £m
Income statement
5
Reduction in PFO reflects the sale of Czech assets in H2 2009
Excluding Czech assets, EPS up 7%
Reduced interest reflects paydown of US debt
Effective tax rate, at 22%, includes:
– change in profit mix across the Group
– resolution of historic tax issues
Interim Results August 2010 International Power
H1-on-H1 PFO change
North America reflects lower gas prices and a reduced Coleto Creek provision release
Europe higher following Rugeley FGD commissioning and ISAB return to service
Middle East continues to perform well, delivering high availability
Australia benefited from good performance at Loy Yang B and Simply Energy
2010 also benefited from a 0.8p uplift on FX movements
6
H1 2009
15.4p
H1 201014.1p
North America
Europe
Australia
MiddleEast
Asia Corporate
£550m
£(9)m
£25m
£13m
£8m
£(1)m £(3)m £524m
H1 2009excl-Czech
12.4p
£491m
£(59)m
Czech
7%
Interim Results August 2010 International Power
Free cash flow
Free cash flow up 22%, or 33% excluding the Czech assets
Working capital benefited from the settlement of hedges on the UK portfolio
Interest lower following pay-down of US debt
H1 2009 H1 2010
£326m£33
£18 £(4)£6 £(11)
£398m
PFO
Maint.capex
Netinterest
paid
Taxpaid(net)
DividendsJV & assoc
£56
Workingcapital
7
H1 2009excl-Czech
£300m
£(26)
Czech
Interim Results August 2010 International Power8
Net debt structure
Cash and cash equivalents
Recourse debt
Convertible bond (2023)
Senior unsecured note (2017)
Convertible bond (2015)
Convertible bond (2013)
Non-recourse gross debt
IPM - acquisition debt
North America
Europe
Middle East
Australia
Asia
Total net debt
1,446
(152)
(198)
(493)
(170)
(1,013)
(276)
(877)
(2,528)
(362)
(1,182)
(43)
(5,268)
(4,835)
Total£m
IPR CorpAs at 30 June 2010
Project
737
(152)
(198)
(493)
(170)
(1,013)
-
-
-
-
-
-
-
(276)
709
-
-
-
-
-
(276)
(877)
(2,528)
(362)
(1,182)
(43)
(5,268)
(4,559)
JVs and associatesoff-balance sheet
355
-
(166)
(491)
(1,013)
(78)
(526)
(2,274)
(1,919)
Maturity
2023
2017
2015
2013
2012 -
2013-2029
2013-2026
- 2025
2012-2019
- 2025
Maturity
2019
2035
2030
-
2018
£m £m £m
Maturity indicates the first bullet and the last year of project debt amortisation within each region
No significant project debt refinancing in 2010 and 2011
-
-
-
2012
-
Cash/(Debt)
Philip CoxChief Executive Officer
International PowerInterim Results August 2010
North America
10
Power demand– Texas: cold winter but mild summer, lower congestion in South Zone– New England: strong demand in May, June and July– PJM: positive weather impact June/July
Gas prices– some recent volatility but overall prices remain low
Capacity auction– New England: May 2013 to June 2014 auction cleared at $2.52,
consistent with previous auction– PJM: 2013 to May 2014 capacity auction cleared at $27.73/MW day,
up from $16.46/MW day
Operational cost savings– good progress, savings of $5m to $10m expected
IP Canada renewables– PPAs signed for 76MW of additional capacity– expected to be operational 2011
International PowerInterim Results August 2010
Europe - UK
Jan to May power demand down slightly
Rugeley, Saltend, Deeside heavily contracted for 2010
First Hydro impacted by lower volatility and wholesale prices
– partially offset by ancillary services including contracted reserve
Government programme – some policy areas of importance to IPR
– IPR fully involved in the environmental policy development process
11
40
50
60
70
90
GW
2008 2010
80
WeekdayPeak Demand
Headline Availability
2009
Week Ahead Availability
OutturnAvailability
International PowerInterim Results August 201012
Continental Europe
Operationally plants performing well
ISAB second unit returned to service as planned
Italy remains committed to the renewables sector– Government re-confirmed renewables target in July– CV price support mechanism for 2010 maintained– system operator reviewing 2011 CV support mechanism
Construction of Elecgas and T-Power on track to commence operation in H1 2011
Development projects– development agreement signed with GALP for 50% of 800MW
CCGT Sines project in Portugal
International PowerInterim Results August 2010
Middle East and Asia
13
High commercial availability across all assets
Business performing well and in line with expectations
Fujairah F2 construction programme progressing with full commercial operation expected in 2010
Paiton 3 and TNP 2 construction progressing well
New Developments– Vietnam – IPR and partners awarded
the development of 1,200MW Son My project by the Government
– Indonesia – Central Java 2,000MW coal, pre-qualified, bid due November
Fujairah F2
Paiton 3
International PowerInterim Results August 201014
Australia
Good performance – no change to pricing since year-end results in March
– maximum price increased to $12,500/MWh
Climate change policy under new PM released in July
– CPRS delayed until after the end of 2012
Kwinana
International PowerInterim Results August 201015
Outlook
Good performance in the first half
Merchant assets remain well positioned – to capture value from recovery/volatility in market conditions
Portfolio of long-term contracted assets continues to perform well
Overall outlook for the year remains unchanged
Interim ResultsSix months ended 30 June 2010