4Q 2019 TGI Results Presentation 1€¦ · 7 1 Key Updates Operational Performance Cusiana Phase...
Transcript of 4Q 2019 TGI Results Presentation 1€¦ · 7 1 Key Updates Operational Performance Cusiana Phase...
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4Q 2019 TGI Results PresentationMarch 4, 2020
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Disclaimer
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933,as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-lookingstatements are only predictions and are not guarantees of future performance. All statements other than statements ofhistorical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include, among otherthings, statements concerning the potential exposure of TGI, its consolidated subsidiaries and related companies to market risksand statements expressing management’ expectations, beliefs, estimates, forecasts, projections and assumptions. Theseforward-looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”,“expect”, “intend”, “may”, “plan”, “objectives”, ”outlook”, “probably”, “project”, “will”, “seek”, “target”, “risks”, “goals”, “should”and similar terms and phrases. Forward-looking statements are statements of future expectations that are based onmanagement’s current expectations and assumptions and involve known and unknown risks and uncertainties that could causeactual results, performance or events to differ materially from those expressed or implied in these statements. Although TGIbelieves that the expectations and assumptions reflected in such forward-looking statements are reasonable based oninformation currently available to TGI’s management, such expectations and assumptions are necessarily speculative andsubject to substantial uncertainty, and as a result, TGI cannot guarantee future results or events. TGI does not undertake anyobligation to update any forward-looking statement or other information to reflect events or circumstances occurring after thedate of this presentation or to reflect the occurrence of unanticipated events.
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Key Updates
Financial and Operational Performance
Investment Projects
Questions and Answers
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Agenda
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Key Updates01
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October 7: ratification of the corporate and bond rating by Fitch Ratings on BBB, stable
December 13: ratification of the corporate rating by S&P at BBB-, stable
5.8% increase in revenues in 4Q 2019 vs. 4Q 2018
EBITDA margin 4Q 2019 grew 1,5 pp to 71,1%
Second dividend payment of USD$39,8 mm
July 16: bond rating ratified by Moody's Investor Services at Baa3, stable
Key Updates1Financial Performance
EBITDA growth of 9,6% during 2019 to USD$360,4 mm and increase in EBITDA margin in 2,4 pp from 74,5% to 76,9%
Higher revenue (+ 6,1%) during 2019 compared to 2018 due to: change of charges to 100% fixed in a contract, rate indexation, anddecrease of suspensions due to scheduled maintenance and/or force majeure events during 2019
Adoption of IFRS 16 from January 1, 2019
Increase in bad debt allowance by methodology established in IFRS 9
Capitalization of Contugas for USD$21,7 mm and recognition of loss by participation method for USD$22,9 mm
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Key Updates1
TGI Forum: issues on the future of gas in South America, perspectives of gas in Colombia and its potential in the Colombian market (4Q 2019)
Strategic Performance
Renewal of Cusiana - Sabana and Ballena Barrancabermeja contracts for an estimated value of USD$40 mm (3Q 2019)
Relationship and diagnosis of indigenous communities in the area of influence of the Ballena sector, Guajira (1Q 2019)
TGI, ACP and commercialization agents networking round: 2nd workshop addressing commercial and infrastructure issues for connection and development of new fields (3Q 2019)
Subscription of contract for the first project of Works for Taxes for COP$8.500 mm for the construction and optimization of the networks of the aqueduct system in the urban center of La Paz, Cesar (2Q 2019)
A vehicle use restriction exemption for gas vehicles was announced (1Q 2019)Internal approval by TGI of new agreements to promote the use of CGVs for the period between August 2019 and November 2021 These agreements were signed with Vanti, EPM, GDO, Efigas, Gases del Llano and Alcanos de Colombia (2Q 2019)Transmilenio: entry into operation of 140 CGV units out of a total of 741 scheduled (2Q 2019)
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Key Updates1Operational Performance
Cusiana Phase IV: Loop Puerto Romero – Vasconia (46 Mpcd). Mechanical completion: December 21
With information provided by TGI, CREG opened a file to determine the efficient value of investment and AO&M for 4 IPAT projects (3Q 2019)
Delivery of exit points Floresta (Boyacá) and Paratebueno (Cundinamarca) during 1Q 2019
Start of operations of the realignment for the Gualanday - Dina gas pipeline (1Q 2019)
Completion of adaptation works in Vasconia – Miraflores – Puente Guillermo stations (3Q 2019)
Replacement of branches: entry into operation of the Yarigüíes - Puerto Wilches branch on November 30 and of the Pompeya branch on December 12
IFIAT index at 0,3 for 2019 against proposed maximum of 1,08, highlighting 5th consecutive year with 0 fatalities
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Financial and Operational Performance02
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Revenue Breakdown
Stable and predictable cash flow generation2TGI presents stable revenue during 2019
Revenue by Industry Revenue by Currency
Revenue 2019: USD$468,8 mm (+ 6,1%)
▪ Annual revenue 2019 of USD$468,8 mm (+ 6,1%) vs. 2018 due to:
✓ Change of charges to 100% fixed in a specific contract
✓ Fewer suspensions due to maintenance and/or force majeure
✓ 2019 price indexation
✓ Higher transported average volumes
▪ Distribution, Refinery, Thermal and Vehicle sectors led demand during 2019(96,1% in 4Q 2019)
▪ 4Q 2019 vs. 4Q 2018: revenue grew USD$6,4 mm (+ 5,8%):
✓ Tariff indexation
✓ Increased detours and hiring
✓ Fewer suspensions
Revenue by Charge
USD$ Million
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Operating Income Net Income
TGI Financial Performance2
USD$ Million USD$ Million
USD$ Million
Sustainable and profitable results
▪ EBITDA:
✓ 2019 vs. 2018: USD$360,4 mm (+ 9,6%) and 76,9% margin
✓ 4Q 2019 vs. 4Q 2018: USD$83,5 mm (+ 8,0%) and 71,1% margin
▪ Operating income:
✓ 2019 vs. 2018: USD$269,4 mm (+ 8,0%)
✓ 4Q 2019 vs. 4Q 2018: USD$63,0 mm (+ 12,3%)
▪ Net income:
✓ 2019 vs. 2018: USD$125,9 mm (- 7,4%) and 26,8% margin
✓ 4Q 2019 vs. 4Q 2018: USD$16,2 mm (- 74,3%) and 13,8% margin
EBITDA & EBITDA Margin
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USD$ Billion
TGI Financial Performance2Capital structure
▪ Moody's: ratification of Baa3 bond rating with stable outlook (July,2019)
▪ Fitch: corporate and bond credit rating ratified at BBB with stableoutlook (October, 2019)
▪ S&P: corporate rating ratification BBB-, stable (December, 2019)
▪ Payment of IELAH debt in August 2019 (due to maturity)
▪ Improvement of indebtedness ratios:
✓ Total gross debt/EBITDA at 3,1x (3,5x in 2018)
✓ EBITDA/Financial expenses at 5,2x (3,8x in 2018)
PPE Liabilities | Equity
Cash and Equivalents
USD$ Billion
USD$ Million
Equity
Liabilities
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TGI Financial Performance2Gross Total Debt / EBITDA
Net Total Debt / EBITDA EBITDA / Financial Expenses
Debt Profile
LTM
LTM
LTM
Total Gross DebtUSD$ 1,1 billion
4.0(1)
(1) Reasonable indebtedness limit
3.0(1)
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Gas pipeline Length(Km)
Transported VolumeAverage – Mscfd
The total length of TGI’s pipeline system is approximately 3.994Km, of which 3.844 km are the property of and operated by TGI;the remaining 150 Km, even though they are under control andsupervision of TGI are operated by the contractor.
Of the total volume transported in the nationwide pipelinenetwork, TGI had a volume transported of 483,6 Mpcd, ofwhich greater use was made of the fixed portion by dispatchersand there was an increase in detours. Compared to 4Q 2018,volume shows an increase close to 5.2%.
Operational Performance2
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Total Capacity Firm Contracted Capacity(1)
Use Factor
(Mscfd) Average – Mscfd
(1) The tendency line refers to the ratio: Firm contracted capacity/available capacity. The Available capacity differs from the Total Capacity because TGI requires a percentage of the same for its own use
Operational Performance2
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Investment Projects03
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Project Description Total projectinvestment
Status
Increase the natural gas transportationcapacity by 58 Mscfd between Cusiana andVasconia.
• Construction of 38,5 Km of loops of 30”in diameter
• Expansion of the Gas CompressionStation of Puente Guillermo
• Modifications to the Gas CompressionStations of Miraflores and Vasconia
~$ 92,3 mm
• Total CAPEX executed to date – USD$57,3 million• Total CAPEX executed 4Q 2019 – USD$9,5 million• Physical Work Progress – 80,5%• Start of operations:
₋ Puente Guillermo Station: 17 Mpcd – 2Q 2018₋ Loop Puerto Romero – Vasconia: 46 Mpcd – 1Q
2020 (Mechanical finalization: 4Q 2019)₋ Loops Puente Guillermo – La Belleza and El
Porvenir – Miraflores: 12 Mpcd – 3Q 2020 *
Cusiana Phase IV
Replacement of
Branches
Replacement of 4 branches for reachingtheir regulatory useful lifespan inaccordance with resolution CREG 126 of2016 and 1 branch by mutual agreement:
~$ 11,6 mm
• Total CAPEX executed to date – USD$5,8 million• Total CAPEX executed 4Q 2019 – USD$1,8 million• Physical Work Progress – 73,1%• Start of operations:
₋ Yarigüíes – Puerto Wilches Branch: 4Q 2019₋ Branch Pompeya: 4Q 2019₋ Z. Industrial Cantagallo – Cantagallo: 1Q 2020 *₋ Branch Cantagallo – San Pablo: 1Q 2020₋ Branch Galán – Casabe – Yondó: 1Q 2020
• Branch Yarigüíes - Puerto Wilches
• Branch - Pompeya
• Branch Z. Industrial Cantagallo –Cantagallo
• Branch Cantagallo – San Pablo
• Branch Galán – Casabe – Yondó
Investment Projects in Execution3
*Estimated date of start of operations
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TGI Outlook3New opportunities Gas pipeline network(1)
The following IPAT projects are first choice for TGI, according to currentresolutions:
• Mariquita – Gualanday Loop• Yumbo – Mariquita Bidirectionality• Compressor Project. Jamundi Branch - Downstream
(Pradera Node)• Barrancabermeja – Ballena Bidirectionality
TGI is waiting for the publication of the final terms of reference of thefollowing project to determine if it will participate:
• Pacific Regasification Plant• Buenaventura – Yumbo Gas pipeline
Estimated schedule - UPME:• Terms of reference publication: 1Q 2020• Reception of offers and awarding: 4Q 2020• Start of operations of the Plant: September, 2023• Start of operations of the Gas Pipeline: January, 2024
Cartagena Refinery
Barrancabermeja Refinery Bucaramanga
Bogotá
Neiva
Cali
Medellin 2.23 tcf
0,49 tcf
OriginalProducers:
EcopetrolEquion
High Magdalena Valley
Middle Magdalena
Lower Magdalena
Originalof North:
ChevronEcopetrol
0,62 tcf
Guajira
Cusiana-Cupiagua
References
TGI Gas pipelines
Natural Gas Reserves
City
FieldRefinery
Third-party Gas pipelines
Reserves in other regions 0.42 tcf
Total reserves 3.78 tcf (2017)*
Pa
cifi
c O
cea
n
Caribbean Sea
VEN
EZU
ELA
(1) Has access to the three main gas production fields, Guajira and Cusiana-Cupiagua, Total reserves for 2018 were 3.78 tcf. Disaggregation by department is not available.
Source: National Mining and Energy Planing Unit - National Hydrocarbons Agency
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04 Questions and Answers
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Investor RelationsFor further information about TGI, please contact any of the Investor Relations team members
AdrianaMunévar
Financial Vice
President - [email protected]
+57 (1) 3138400
Valeria Marconi
Investor Relations
Manager GEB
+57 (1) 326 8000 Ext 1536
Sandra JimenezGEB Investor
Relations Advisor
+57 (1) 326 8000 Ext 1827
www.tgi.com.cowww.grupoenergiabogota.com/inversionistas
Mauro CáceresGEB Investor
Relations Advisor
+57 (1) 326 8000 Ext 1395
[email protected] CamiloGuayana
Financial Planning
Director - [email protected]
+57 (1) 3138400
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