Bloomberg: EDC PM FY 2016 - Energy Development · PDF file0 2,000,000 4,000,000 6,000,000...
Transcript of Bloomberg: EDC PM FY 2016 - Energy Development · PDF file0 2,000,000 4,000,000 6,000,000...
INVESTOR FACT SHEET FY 2016
AS OF DECEMBER 31, 2016
PSE: EDC
Bloomberg: EDC PM
A DIVERSIFIED RENEWABLE ENERGY COMPANY
Energy Development Corporation is the largest integrated steam and geothermal power producer in the
world, with over four decades of hands-on experience for the entire geothermal value chain -- from
exploration and development all the way to electricity production. Given the favorable industry dynamics in
the Philippines today, it is now also venturing into the development of other RE sources of energy.
“Defensive qualities” inherent to its business model and operations make EDC a defensive and value play that
is difficult to ignore.
www.energy.com.ph
OUR POWER GENERATING ASSETS
150.0 MW Burgos
7.85 MW Solar
120.0 MW Pantabangan
12.0 MW Masiway
120.0 MW Bacman I
20.0 MW Bacman II
112.5 MW Tongonan
112.5 MW Palinpinon I
60.0 MW Palinpinon II*
125.0 MW Upper Mahiao
232.5 MW Malitbog
180.0 MW Mahanagdong
50.9 MW Optimization
49.4 MW Nasulo
52.0 MW Mindanao I
54.0 MW Mindanao II
Note: *20 MW Nasuji Power Plant placed on preservation
1
1
1
2
3
1
3
2
1
Wind
Hydro
Solar
Geothermal (EDC Subsidiary)
Geothermal (Integrated)
1 1
1
1
1 2
2 3
3
INSTALLED CAPACITY
1,457.8 MW COL Financial Group
George Ching
BUY
8.34
Deutsche Regis Partners
Gio dela Rosa
BUY
8.40
JPMorgan Securities
Ajay Mirchandani
NEUTRAL
6.30
Macquarie Securities
Karisa Magpayo
OUTPERFORM
7.80
Morgan Stanley
Mayank Maheshwari
OVERWEIGHT
7.38
Nomura
Dante Tinga
NEUTRAL
6.50
Philippine Equity Partners
Rafael Javier
BUY
6.20
RCBC Securities
Jeremy Yumul
BUY
7.50
UBS Securities
Karen Hizon
BUY
6.80
Unicapital Securities, Inc.
Jonathan Latuja
BUY
7.44
Wealth Securities
Laura Dy-Liacco Santos
HOLD
6.10
ANALYST COVERAGE
CONTACT INFORMATION
Corporate Address:
38th Floor, One Corporate Centre
Julia Vargas cor. Meralco Avenue,
Ortigas Center, Pasig City, 1605 PH
Investor Relations:
Erudito Recio,
+ 63 (2) 982 2140
Ryan Velasco,
+63 (2) 982 2184
Jamica Brillante,
+63 (2) 755 2332 loc. 2620
E-mail:
Customer Segment
14.5 Bn DUs
12.9 Bn NPC
3.2 Bn WESM
2.8 Bn TransCo
0.8 Bn NGCP
Technology Platform
1,169 MW Geothermal
150 MW Wind
132 MW Hydro
6.82 MW Solar
INVESTOR FACT SHEET FY 2016
AS OF DECEMBER 31, 2016
PSE: EDC
Bloomberg: EDC PM
A DIVERSIFIED RENEWABLE ENERGY COMPANY
www.energy.com.ph
24,540
28,369
25,656
30,867
34,360 34,236
13,238
17,330 15,641
17,922 18,680 20,736
4,459
8,522 6,568
9,197 8,798 9,155
2011 2012 2013 2014 2015 2016
REVENUES
EBITDA
RNIA
Derivative Transactions
70.0 % Hedged 2016-17 US$ Debt Service
Interest rate reduction
initiatives
6.2 % p.a. Interest Rate for 2016
Addressing lumpy
principal payments
68% of Total Debt Amortizing Repayment
FY 2016 FINANCIAL HIGHLIGHTS
DELIBERATELY MANAGING FINANCIAL RISKS
Financial Results: • Revenue = flat at Php34.2 bn
• EBITDA = up 11% to Php20.7 bn
• RNIA = up 4% to Php9.2 bn
• Gearing level comfortably at 1.3 times
debt to equity and 3.6 times net debt to
EBITDA, on consolidated basis.
Operating Highlights: • 1% increase in electricity production
from 8,441 to 8,531 GWh
• 90% of revenue derived from long-term
contract agreements
Capital Structure: • 18,737,010,000 – Common shares
• Php 96,496 Mn – Market Capitalization
• Php 10,600 Mn – Cash and cash
equivalents
• Php 135,806 Mn – Total Assets
• Php 62,229 Mn – Long-term Debt
60%
71% 70% 71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
20
40
60
80
100
120
2014 2015 2016 2017E
Hedged Unhedged
US$ Mn
DEBT SERVICE REQUIREMENT INTEREST RATE LOANS BY REPAYMENT SCHEDULE
71% hedged Reduced to 5.8% Smoothened lumpy principal payments
52%
66% 68% 72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
20
40
60
80
100
120
2014 2015 2016 2017E
Amortizing Bullet
PhP Bn
5.9% 6.3% 6.2%
5.8%
1%
2%
3%
4%
5%
6%
7%
0
20
40
60
80
100
120
2014 2015 2016 2017E
Total Debt
PhP Bn
E* = estimated % assuming no new financing
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
INVESTOR FACT SHEET FY 2016
AS OF DECEMBER 31, 2016
PSE: EDC
Bloomberg: EDC PM
A DIVERSIFIED RENEWABLE ENERGY COMPANY
Our focus on generating clean, renewable energy is motivated by our commitment to be carbon positive
and to minimize our negative impact on the environment. We maintain healthy watersheds through our
biodiversity conservation efforts, and the stakeholder engagements that allow us to share our values
with the community. We use our resources with circumspection and follow rigorous environmental
standards. We try to be as efficient as possible, and aim to improve our operational performance each
year. Thus, we hope to transform our world into a low-carbon world.
www.energy.com.ph
OUR ENVIRONMENTAL PERFORMANCE
806,117 CO2 equivalent for
EDC 2016 generation
6,057,282 CO2 equivalent if heavy oil
was used to generate the
same amount of power
8,275,442 CO2 equivalent if coal
was used to generate the
same amount of power
5,251,165 CO2 avoided in lieu
of other fossil fuels
7,469,325 CO2 avoided
in lieu of coal
0.170
0.008
0.110
0.040
0.090
0.001 -
0.050
0.100
0.150
0.200
BacMan Ilocos
Norte
Leyte Mount
Apo
Negros
Island
Nueva
Ecija
Carbon Intensity (in tons CO2 per MWh)
Our Carbon Footprint (in tons CO2)
Our power plants have lower carbon emissions intensity compared to the Luzon-Visayas grid of 0.60 ton CO2/MWh and Mindanao grid of 0.29 ton CO2/MWh.
ATTAINING A LOW-CARBON OPERATION IS THE ONLY ACCEPTABLE RESPONSE TO CLIMATE CHANGE.
Source: EDC’s 2016 Performance Report
9.3x more
6.5x more
INVESTOR FACT SHEET FY 2016
AS OF DECEMBER 31, 2016
PSE: EDC
Bloomberg: EDC PM
A DIVERSIFIED RENEWABLE ENERGY COMPANY
EXECUTIVE MANAGEMENT
Mr. Vasay, Filipino, is the Chief Financial Officer and Treasurer of the Company since October 2010. He has been
with the Lopez Group since 1997 and held appointments with First Gen Corp. under various capacities including his
current position as Senior Vice President. Prior to joining First Gen Corp., he worked with Metropolitan Bank and
Trust Company, Chase Manhattan Bank and International Exchange Bank where he held key executive positions
responsible for the credit review of institutional and corporate clients, portfolio management, risk management
and Treasury and F/X Operations.
Mr. Vasay holds a Diploma in International Executive Management from Chartered Management Institution of
Ashridge Berkhamsted-London (2006). He earned his Bachelor’s Degree in Business Administration from the
Angeles University (1976), and passed the Philippine Government Board Examinations for Certified Public
Accountant (CPA) a year later.
Mr. Lopez, Filipino, is Chairman and Chief Executive Officer of Energy Development Corporation (EDC), First
Philippine Holdings Corporation (FPH) and First Gen Corporation (First Gen). EDC and First Gen are publicly listed
power generation companies that are into clean and indigenous energy. He is currently the Vice Chairman of
Rockwell Land Corporation and also sits on the board of ABS-CBN Corporation, the Philippines’ leading
information and entertainment multimedia conglomerate.
A staunch environmentalist, he is the Chairman of the Sikat Solar Car Challenge Society and is a member of the
Board of Trustees of World Wildlife Fund Philippines (WWFPhilippines) and Philippine Tropical Forest Conservation
Foundation.
Mr. Lopez is a member of the Asia Business Council, World Presidents Organization, ASEAN Business Club,
Management Association of the Philippines, Philippine Chamber of Commerce and Industry, European Chamber of
Commerce of the Philippines and Makati Business Club.
Mr. Federico R. Lopez is a graduate of the University of Pennsylvania with a Bachelor of Arts degree in Economics
and International Relations, cum laude (1983).
Mr. Tantoco, Filipino, is the President and Chief Operating Officer (COO) of EDC and has been a Director of the
Company since November 2007. He is also a Director and Executive Vice President (EVP) of First Gen Corp., First
Gen Luzon Power Corp., First Gen Hydro Power Corp., First Gen Geothermal Power Corp., First Gen Visayas Hydro
Power Corp., First Gen Mindanao Hydro Power Corp., First Gen Energy Solutions, Inc., First Gen Premier Energy
Corp., Red Vulcan Holdings Corp., First Gen Visayas Energy, Inc., First Gen Prime Energy Corp., First Gen
Renewables, Inc., Blue Vulcan Holdings Corp., Northern Terracotta Power Corp., Prime Meridian Powergen Corp.,
OneCore Holdings, Inc., DualCore Holdings, Inc., GoldSilk Holdings Corp., First Gas Holdings Corp., First Gas Power
Corp., FGP Corp., First Gas Pipeline Corp., First NatGas Power Corp., AlliedGen Power Corp. and FGLand Corp; and
EVP of First Gen Bukidnon Power Corp., Unified Holdings Corp., First Gen Northern Energy Corp., and First
Philippine Holdings. He is currently the President and Trustee of the Oscar M. Lopez Center for Climate Change
Adaptation and Disaster Risk Management Foundation, Inc. He has been a Director of the International Geothermal
Association since 2010. He worked previously with management consulting firm Booz, Allen and Hamilton, Inc. in
New York and London where he specialized in mergers and acquisition advisory, turnaround strategy advisory, and
growth strategy formulation for media and manufacturing companies.
Mr. Tantoco has an MBA in Finance from the Wharton School of Business of the University of Pennsylvania (1993)
and a Bachelor of Science degree in Business Management from the Ateneo de Manila University where he
graduated with honors (1988).
FEDERICO R. LOPEZ Chairman and CEO
RICHARD B. TANTOCO President and COO
NESTOR H. VASAY Senior Vice-President, Chief Finance Officer/Corporate Treasurer,
Head - Finance and Shared Services Group
www.energy.com.ph