investors report 1q 2016 · 2 gerencia de financiamiento y relación con inversionistas, teléfono:...
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1 Gerencia de Financiamiento y Relación con Inversionistas, Teléfono: +57(1) 3268000 ext 1675/1827
E mail:[email protected] www.grupoenergiadebogota.com/inversionistas
Investors Report 1Q 2016
Bogotá D.C., May 24th
2016
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY AND RELEVENT FACTS .........................................................................................................2
1.1. Overview of power and natural gas sectors serviced .........................................................................................2
1.2. Summary of EEB financial results 1Q 2016 ..........................................................................................................2
1.3. Relevant facts of EEB and Grupo Energía de Bogotá .........................................................................................3
2. PERFORMANCE OF SUBSIDIARY COMPANIES. ..........................................................................................................3
2.1. EEB Transmission ..................................................................................................................................................4
2.2. DECSA – EEC ..........................................................................................................................................................5
2.3. TGI ............................................................................................................................................................................5
2.4. CALIDDA ..................................................................................................................................................................7
2.5. CONTUGAS .............................................................................................................................................................8
2.6. TRECSA ...................................................................................................................................................................8
2.7. EEBIS Guatemala ....................................................................................................................................................8
3. PERFORMANCE OF ASSOCIATES COMPANIES ..............................................................................................................9
3.1. EMGESA ................................................................................................................................................................ 10
3.2. CODENSA .............................................................................................................................................................. 12
3.3. PROMIGAS ............................................................................................................................................................ 13
3.4. GAS NATURAL ...................................................................................................................................................... 14
3.5. REP and CTM Perú ............................................................................................................................................... 14
4. ANNEXES ....................................................................................................................................................................... 16
Annex 1: Legal Notice & Clarifications ............................................................................................................................ 16
Annex 2: Definitions of EBITDA included in this report. ................................................................................................ 16
Annex 3: Statement of Comprenhensive Income, 1Q2016 ............................................................................................. 17
Annex 4 : EEB Consolidated and Standalone Financials as of 4Q 2015 ....................................................................... 17
Annex 5: Equity Method .................................................................................................................................................... 18
Annex 7: Terms Technical and regulatory ....................................................................................................................... 18
Annex 8: Overview of the parent company – EEB .......................................................................................................... 19
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Investors Report 1Q 2016
1. EXECUTIVE SUMMARY AND RELEVENT FACTS
1.1. Overview of power and natural gas sectors serviced
Electricity Demand
Table No 1 – Overview of electric power sectors 1Q 2016
(GWh) Colombia Peru Guatemala
Installed capacity – MW 16,501 10,150 2,385 Demand – GWh 16,614 10,820 1,683
Demand variation 1Q 2016/ 1Q 2015 - % 4.5 -6.9 -26.1
Table No. 2 Overview of natural gas sectors 1Q 2016
(mpcd) Colombia Perú
Proven and probable reserves– TPC (2012)
5.5 21.071
Internal Demand - mm pcd 1,108 1,206 Variation in internal demand 1Q 16/1Q 15
8.9% 3.4%
Explanation of demand variation
The two main reasons behind the rise in the demand relate to industrial – refinery and thermal electric consumption. Thermal electric consumption experienced an increase of 14.3%, because during the last three quarters of 2015 and the beginning of 2016 the El Niño phenomenon conditions were maintained.
It is mainly due to higher levels of exported gas (Pampa Melchorita 97.6 MMCFD) and for the Chilca-Termochilca (18.5MMCFD) station.
Fuentes: UPME, CON, MEM, Osinergim
1.2. Summary of EEB financial results 1Q 2016
Table N° 3 - EEB´s consolidated financial indicators
USD Mm 1Q 2016 1Q 2015
Revenue 306.9 275.5 Cost of Sales 189.6 157.3 Profit from operating activities 104.9 71.0 EBITDA YTD 428.7 182.0
Profit (loss), attributable to: [Owners of parent] 168.3 68.1
Latest international credit ratings:
S&P BBB-/Negative 03/09/2014
Fitch BBB/AAA(col)/Stable
27/10/2015
Moody’s Baa2/Stable 04/09/2015
Financial results reported by Grupo Energía de Bogotá at the closing of 1Q 2016; Revenues of consolidated
operations of EEB, parent company of Grupo Energía de Bogotá – GEB - reached COP 927,537 million, growing
by 30.7%, equivalent to +COP 217,868 million when compared to 1Q of the previous year, mainly as a result of (i)
increased gas sales (+COP 64,105 million) due to new internal installations to clients and greater internal sales to
industrial clients on account of the Fishing season (Cálidda and Contugas) and (ii) increased revenues in the
transport of natural gas in Colombia (+COP 101,224 million) due to greater transported volume in TGI. S.A.
E.S.P. and the effect of a higher exchange rate in the tariff component expressed in US$ (iii) increased revenues
on electricity distribution in Colombia +COP 22,264 million, on account of growth in the average price per GWh,
and (iv) the start up of UPME projects at EEB S.A. E.S.P.’s local transmission level and some TRECSA
substations in Guatemala).
The results of operational activities reached COP 317,225 million at the closing of 1Q 2016 and when compared
to the same period of 2015 it exhibits growth of 47.81%, of which the main contributors were the gas transport
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Investors Report 1Q 2016
and distribution businesses, which experienced higher operational revenues and some controlled costs and
expenses during the period.
Financial revenues increased by 29.5% as a result of (i) appreciation of hedging operations COP 9,297 million
and (ii) decreased in financial yields of COP 1,969 million.
Financial expenses increased by 20.2% as a result of (i) increase of interests in financial obligations, (ii)
commissions and bank expenses and (iii) appreciation of hedging operations.
Net exchange rate difference reached COP 64,736 million, increasing by 196.3% vis-à-vis 1Q 15.
Earnings attributable to the Group’s controlling side corresponding to 1Q 2016 experienced an increase when
compared to the same quarter of 2015, amounting to 146.9% resulting from an increase in operational activities
results, and the positive exchange rate difference and growth of its shareholding stake.
Lastly, Group earnings increased by 147.5%, which represents COP 530,541 million. On the other hand, EBITDA
reached COP 1.2 billion at the closing of 1Q 2016.
1.3. Relevant facts of EEB and Grupo Energía de Bogotá
03.04.2016 Empresa de Energía de Bogotá S.A. E.S.P. informs the general public by means of a relevant
information mechanism pursuant to Decree 2555 of 2010 and other applicable standards, that on 31 March 2016
Contract 636 of 2016 of the Bogota District Council was executed and published, whereby it authorizes Empresa
de Energía de Bogotá S.A. E.S.P. to sell its stake in Isagen S.A. E.S.P., representing 2.52% of outstanding
shares in such company.
31.03.2016 After analyzing the results of the company, the General Shareholders Assembly of Empresa de
Energía de Bogotá (EEB), parent company of Grupo Energía de Bogotá, decided to distribute dividends
amounting to COP224,350 million, equivalent to 70% of profits during the 2015 period, of which over COP
171,000 million correspond to the Capital District.
10.03.2016 The Finance Commission of the Bogota Council approved the sale of share of Empresa de Energía
de Bogotá in ISAGEN, with 11 votes in favor and 3 against; the decision moves to the plenary session of the
Council. The argument of the share price, was among the arguments used to approve such process.
22.02.2016 The Board of Directors of Transportadora de Gas Internacional (TGI) S.A., ESP, affiliate of Empresa
de Energía de Bogotá (EEB), appointed Mr. Julian García Salcedo, a civil engineer, as its new President.
19.01.2016 During special session of the Board and pursuant to the Bylaws of the company, the Board of
Directors after thorough discussions on the company’s evolution in recent years, approved changing the
company’s CEO. EEB’s Board of Directors appointed Ms. Astrid Álvarez Hernández, a civil engineer from
Universidad Javeriana, specialized on environmental engineering from Universidad de los Andes and holds an
MA from Ohio University.
2. PERFORMANCE OF SUBSIDIARY COMPANIES.
Table No. 4 - Summary of expansion projects EEB Group - controlled companies 1Q 16
Project / Cia. Country Sector * Executed USD Mm
Status in operation
Lima Callao – Cálidda Perú D GN 19.3 In construction 2016-2017 TGI – Colombia Colombia T G N 1.9 In construction 2016-2016 EEC – Colombia Colombia D E 3.2 In construction 2016
Guatemala – TRECSA Guatemala T E 18.1 On stream* 2016 Proyectos UPME – EEB Colombia T E 5.7 In construction 2015-2018
T: Transportation; D: Distribution; GN: Natural Gas ; E: Electricity
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*Partially on stream
*Figures not includes GEBBRAS Capex
2.1. EEB Transmission
Table N° 5 - EEB´s selected transmission business indicators
1Q 16 1Q 15 Var %
Investments - USD Mm 5.7 8.1 -29.6
Infrastructure availability - % (1) 99.91 100 0.0
Compensation for unavailability - % (2) 0.1522 0.200 -0.23
Maintenance program compliance - % (3) 100 100 0.0
Participation in Colombia’s transmission activity - % (4) 12.7 10.1 25.9
Table 6 - Progress Investment projects EEB transmission business
UPME Project as of 1Q 16 On stream EAI Progress
Chivor II 08/07/2017 5.5 51%
Cartagena Bolívar 07/03/2017 11.6 37%
Río Córdoba 30/11/2016 1.8 36%
Armenia 26/11/2015 1.3 95%
Tesalia 14/02/2016 10.9 81%
Sogamoso Norte 30/09/2017 21.1 30%
Refuerzo Suroccidental 500 kV 30/09/2018 24.3 9%
Ecopetrol San Fernando 30/04/2017 6.3 27%
Río Córdoba Transformadores 30/11/2016 0.6 37%
La Loma 500Kv 30/11/2016 1.3 39%
Loma 110kV 30/06/2018 6.9 0%
Conexión Drummond 220kV 30/11/2016 EAI: Expected Annual Income – USD Millions
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2.2. DECSA – EEC
Table N° 7 - EEC’s selected indicators - Controlled by DECSA*
1Q 16 1Q 15 Var %
Number of clients 95.8 107.9 -11.2 Operating revenue - USD Mm 34.3 31.6 8.3 Operating income - USD Mm 5.3 3.2 65.2 EBITDA Qtrly. - USD Mm, 8.2 6.1 35.7 EBITDA Margin LTM - % 22.7 21.3 6.6 Net Income - USD Mm 2.2 1.8 27.0 Losses - % 10.1 9.8 3.6 Net Debt / EBITDA LTM 1.2 1.4 -11.3 EBITDA LTM / interest LTM 12.2 12.2 0.2
Operational profits grew at a greater pace given increased revenues on account of energy sales and some lower
related costs. Revenues increased by COP 20,704 million due to the increase in consumption experienced in the
regulated market, which allowed sales in excess of 10.7 GWh vis-à-vis the same month in 2015, similarly, there is
a positive effect due to the tariff, given that to date the new regulatory methodology has not been implemented.
On the other hand, there are “other revenues” in excess of COP 1,376 million, highlighting greater revenues on
measurement equipment amounting to COP 349 million, Other Revenues from new businesses and
standardization of COP 803 million.
EBITDA increased by COP 9,235 million vis-à-vis the amount reached during the same quarter of 2015 mainly on
account of greater revenues due to energy sales, specifically in the Regulated Market. In addition, other revenues
increased due to the sale of energy measurement equipment and normalization equipment and new supplies.
An increase in National Demand of 712 GWh was experienced, equivalent to 4.5%, driven mainly by the
regulated segment - 68% vs. 32% - non-regulated. Where the economic activity that drove the consumption of
Energy relates to the manufacturing industry and mining and quarry exploitation.
Progress of EEC projects
EEC has a project amounting to US$ 3.2 million. As of 1Q 2016 it managed to execute 16% of the investment
plan. This execution corresponds mainly to over execution of a series of projects related to business growth and
new supplies.
2.3. TGI
Tabla N° 8 - TGI’s selected indicators
1T 16 1T 15 Var %
Operating revenue -USD Thousands 117,784 109,992 7.1
Operating income -USD Thousands 73,579 67,310 9.3
EBITDA YTD – USD Thousands 99,551 94,877 4.9
Net income - USD Thousands 69,461 20,738 234.9
Transported volume - Mm cfd 566.5 469.4 20.7
Firm contracted capacity - Mm cfd 673.3 669.0 0.6
International debt ratings
S&P BBB-/Negative 03/09/15
Fitch BBB/Stable 27/10/15
Moody’s Baa3/Stable 12/06/15
At the closing of 1Q 2016, operational revenues reached US$117.8 million, growing by US$ 7.8 million (+7.1%)
when compared to results obtained during the same period in 2015. Regarding TGI’s revenues on natural gas
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transport services, 79.5% was derived from fixed charges established by firm contracts, 3.7% of revenues
correspond to non-regulated revenues and 16.8% of revenues correspond to variable charges, and the increase
of natural gas demand was affected by El Niño phenomenon.
Also, operational costs and expenses jointly increased by 4.5% during 1Q 2016, to a great extent due to greater
fuel gas costs for compressor stations and the operative gas balance in the system. However, the company also
achieved cost reductions in items such as insurance (US$1 miilion) and lower expenses on wealth tax (-US$
2.3miilion).
As per the foregoing, operational profits during 1Q 2016 reached US$ 73.6 million, represented in growth of 9.3%
when compared to the same period of the previous year.
Non-operational results showed reduced expenses amounting to US$3.7 million when compared to the same
period of the previous year, due mainly to the net effect in hedging operations and greater financial yields.
Furthermore, given the fact that in 2016 the Colombian peso appreciated with respect to the US$ by 4% and that
in the same period of the previous year it experienced a devaluation of 7.7%, in this reported period, there is
evidence of lower expenses on account of the exchange rate difference (US$14.0 million) and the release of the
provision of differed tax (US$ 24.1 million), pursuant to IFRS methodology to estimate such tax.
Lastly, company’s net profit reached US$ 69.4 million1, which represents an increase of US$48.7 million when
compared to the same period of the previous year, mainly as a result of i) greater operational results amounting to
US$ 7.7 million, ii) slight growth in operational costs and expenses amounting to US$ 1.9 million, iii) lower
expenses on the difference of the exchange rate for this quarter amounting to US$14 million and iv) the release of
the provision of differed tax.
Relevant facts of TGI
Currently, the methodology to calculate WACC rate for tariffs in electric power distribution and transmission
activities and natural gas transport and distribution activities was issued by means of CREG Resolution 095 of
2015. To date, WACC rate has only been issued for the gas distribution activity. Definite remuneration
methodologies for electric power transmission and distribution activities and natural gas transport activity have not
been issued yet.
On 29 January 2016, the Companies’ Superintendence authorized the reform to the company’s bylaws, which
consists of the merger between IELAH, a special purpose vehicle domiciled in Spain bought in July 2014 to The
Rohatyn Group (former Citi Venture Capital - CVCI), through which it maintained a stake in TGI of 31.92%. The
company is currently working on completing this process, expected in 1H 2016.
On 22 February 2016, the Board of Directors appointed as president of TGI, Mr. Julian Antonio García Salcedo,
who has around 30 years of experience in the oil and gas sectors, having held a series of executive positions in
companies such as Gran Tierra Inc (oil company listed in NY and Toronto), Emerald Energy PLC and Gold Oil Plc
(oil companies listed in London), Carboandes, BP and Ecopetrol. He is a civil engineer from Universidad de los
Andes (Colombia), with masters’ in civil engineering from Colorado State University (EEUU), MBA from
Birmingham University (England) and Economics from Universidad de Los Andes.
On 29 March 2016, the General Shareholders Assembly summoned in regular session ratified and elected new
members to the company’s Board of Directors and approved the project to distribute protifs amounting to
approximately USD$22.1 million (COP 62,096 million), which were paid on 4 April to all shareholders.
On 27 April 2016, the Board of Directors approved two new expansion projects: i) Cusiana Phase IV (43 Mmcfd),
estimated Capex US$78 million; ii) Gas pipelines having met their regulatory useful life, replacement of 4
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stretches, estimated Capex for substitution equals US$17 million and maintenance for the remaining 6 stretches,
estimated maintenance Capex amounts to US$32 million.
Year-to-date average transported volume on TGI’s infrastructure amounted to 566.5 mmcfd, and maintains its
market share of 53.7% at the closing of 1Q 2016.
Progress of TGI investment projects:
Table N° 9 Expansion Projects in Colombia 1Q 16
Description Capex New
Capacity Execution
On stream
(USD mm)
(Mmcfd) (%) On
stream
Cusiana Fase III Enhancement of compression capacity with the supply and start up of three new units.
31 20 59.7% 3Q 16
Cusiana- Apiay- Ocoa The project will increase transport capacity of the Cusiana – Apiay gas pipeline by 32 mmcfd and branch Apiay – Ocoa by 7 mcfd.
48 39.0
Project is being structured under a new execution strategy
4Q 17
Loop: Armenia / Dos Qiebradas Construction of the Armenia Loop 28 Km in 8” and 8km of Dos Quebradas Loop in 3”.
24 9 25.7% 2Q 17
For greater details on financial, operational and commercial information of TGI, please click on the following link.
2.4. CALIDDA
Table N° 10 - Cálidda’s selected indicators – USD Thousands
1T 16 1T 15 Var %
Number of clients 369,542 278,028 32.9 Operating revenue 190,097 129,300 47.0 Operating income 22,440 20,655 8.6 EBITDA YTD 29,016 26,185 10.8 EBITDA Margin 15.3 20.3 -24.6 Net Income 13,762 7,617 80.7 Net Debt / EBITDA LTM 2.6 2.6 -1.1 EBITDA LTM / interest LTM 5.8 6.3 -8.3
As of 1Q, Cálidda has 369,542 connected clients to its network, having reached 91,514 more clients than during
1Q 2015. During the 1Q of this year, a total of 24,406 clients were connected (24,114 residential).
During 1Q of this year, 371 km of networks have been built (PE: 361.5km; Steel: 8.6km). Cálidda’s distribution
system has a network extension of 6,360 km.
Greater revenues on gas and transport (+US$ 13 million), Distribution (+US$12 million), enhancement of the
network (+US$2.5 million) and relocation services (+US$6 million). Lower revenues on installations (US$ -6
million).
Greater EBITDA as a result of the renegotiation of firm contracts with generators and contracts with contractors.
In addition to network relocation revenues.
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Progress of Cálidda’s investment projects:
Investments undertaken during 1Q were mainly related to polyethelene network extensions (US$19 million) for
household connections.
For greater details on financial, operational and commercial information of Cálidda, please click on the following
link.
2.5. CONTUGAS
At the closing of March 2016, the company has 37,208 enabled clients (with over 39,005 residential sales
conducted and 38,580 internal installations built).
Progress of Contugas investment projects:
During 1Q 2016, Contugas generated operational revenues amounting to US$11.6 million, net profit of US$4.2
million and EBITDA generation of US$ 3.4 million.
2.6. TRECSA
PET PROJECT-01-2009: Design, incorporation of easements, construction, supervision, operation and
maintenance of Transmission works that were part of tender offer PET-01-2009 of CNEE. It comprises the
construction of:
845 km of transmission lines.
11 new substations.
12 enhancements to existing substations.
2060 tower sites.
Project progress:
21 substations have construction licenses. (91%)
With the new lines’ design, 57 municipal endorsements have been obtained (75%)
With the new lines’ design, 694 km of rights of way have been incorporated (70%)
Properties A and F have been awarded their environmental license.
Due to detours, some environmental instruments have had to be updated.
To date, 2838 ECUT licenses have been obtained.
Construction of transmission lines 51% (403 km of cable laying)
Construction of Substations 66% (12 energized substations)
Construction progress 59%
2.7. EEBIS Guatemala
CEMENTOS PROGRESO (Phase 1): Design, supply, construction and start up of connection assets in San Gabriel
Station. The construction comprises:
230 kV line of approximatedly 17 km to be energized at 69kV.
Build civil works of 230kV substation in level switch breaker.
Supply and mounting of basic structure.
Supply and mounting of 40MVA transformer at 69/13.8 KV.
Supply and mounting of 50 MVA transformer at 230/13.8 KV.
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Project progress:
Progress in transmission lines 72%
Progress in substations 64%
ANILLO PACIFICO SUR : Design, electrical studies, acquisition of land, incorporation of easements, environmental
and municipal authorizations. Construction, tests, connection and start up of facilities to connect at 230KV generation
stations of sugar mills to the National Interconnected System.
The construction comprises:
4 new substations.
2 reconfiguration of substations
1 enhancement of substation
90 km of transmission lines
243 tower sites.
Project progress.
Approved road carrier license.
100% of construction licenses and municipal endorsements.
Payment of 19.42 km of easements (21%)
23 ECUT license requirements filed.
EIS uploaded in MARN.
Construction of transmission lines 29%
Construction of Substations 52%
PRONICO: Project to Render Services for Engineering, Environmental Impact Studies, Electrical Studies –NTAUCT–
and other to Achieve Access Resolution to Station’s Transport Capacity – PRONICO – to the National Interconnected
System and the Regional Interconnected System.
Project Progress.
Substations’ Engineering 55%
Lines’ Engineering 50%
Environmental Management -EIS- 82%
Management of electrical studies 63%
Global weigthed average 59%
3. PERFORMANCE OF ASSOCIATES COMPANIES
Table No 11 - Non-controlled investments main financial indicators 1Q 2016
COP Mm Emgesa Codensa Gas
Natural Promigas
REP USD
Thousands
CTM USD
Thousands
Operating revenue 1,104,880 1,015,103 604,350 270,521 33,775 32,481 Operating income 1,393,048 988,696 107,235 215,754 15,865 20,059 EBITDA Quarterly 539,662 309,877 114,285 234,727 24,261 28,638 Net income 219,264 118,272 64,287 170,969 9,683 9,859
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Table No 12 - Expansion projects of associates companies – Capex executed as of 1Q 16
Project Company Sector Country Capex executed
USD Millions On stream
Quimbo / Manteinance EMGESA G electricity Colombia 7.3 4Q-15 Attention new demand CODENSA D electricity Colombia 3.4 15 Extensions system GAS NATURAL D natural gas Colombia 1.1 16 Extensions system CTM D electricity Peru 62.6 15-16 Ampliaciones concesión REP T electricity Peru 6.0 15-18 extensions system PROMIGAS T + D natural gas Colombia 34.9 15-17
T: Transport; D: Distribution; GN: Natural Gas; E: Electricity
3.1. EMGESA
Table N° 13 Overview of Emgesa 1Q 2016
Instaled capacity - MW 3,459
Capacity´s Composition 11 Hydros y 2 thermos
Generation - Gwh 3,271
Sales - Gwh 4,113 Controlled by Enel Energy Group
Controlled by 51.5%: 37.4% Ordinary and 14.1% Preferred non-voting shares
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Table N° 14 - Selected financial indicators of Emgesa
COP Million USD Million
1Q 2016 1Q 2015 Var % 1Q 2016 1Q 2015 Var %
Operating revenue 1,104,880 621,072 77.9 340.1 251.5 35.2
Gross income 609,743 452,983 34.6 188 183 2
EBITDA YTD 539,662 385,920 39.8 166.1 156.2 6.3
EBITDA Margin % 48.8 62.1 -0.2 48.8 62.1 -0.2
Net income 219,264 192,945 13.6 267.7 256.0 4.6
Dividends received by EEB 187,911 326,354 -42.4 57.8 132.1 -56.2
Debt / EBITDA 7.0 8.0 -11.9 8.0 7.0 8.0
EBITDA / Interests 4.6 -4.9 -193.5 4.6 -4.9 -193.5
Relevant facts of EMGESA
28.03.2016 The Board of Directors of Emgesa S.A. ESP, during its last session, approved increasing the total
debt cap of Emgesa by $324,000 million to a total cap of $4,780,000 million.
16.03.2016 The Board of Directors of Emgesa S.A. ESP approved an investment project to implement the E4E
program, which objective is to ensure the integration and traceability of business processes and update business
and control systems, for an amount of COP$13,400 million to be executed between 2016 and 2017.
01.03.2016 Emgesa S.A. ESP hereby informs the general public that the Huila Administrative Court decided, by
means of Official Document dated 22 February of 2016, issued within a collective redress, to allow the generation
of electric power of El Quimbo hydroelectric station, property of Emgesa, for a period of six months while it
implements a project to recover oxygen levels in the Quimbo-Betania stretch.
19.02.2016 The rating agency Standard & Poor’s revised the perspective of the long-term credit rating at
international level of Emgesa S.A. ESP, from stable to negative, and confirmed its current rating in BBB: The
revision of the perspective follows a similar rating upon the Republic of Colombia. See attached release issued by
Standard & Poor’s.
Progress in EMGESA’s investment projects:
Table N° 15 Capex– Emgesa
1Q 2016 1Q 2015 Var %
Million COP 10,331 46,948 -78.0
Million USD 430.24 364.69 18.0
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3.2. CODENSA
Table N° 16 Overview of Codensa 1Q 2016
Instaled capacity - MW 2,889,596
Capacity´s Composition 22.7
Generation – Gwh 3,682
Sales – Gwh 0.9 Operating revenue - COP mm 7.04
Controlled by Enel Energy Group
EEB’s stake 51.5% (36.4% ordinary; 15.1% preferred
non-voting shares)
Table N° 17 - Selected financial indicators of Codensa
COP Million USD Million
1T 2016 1T 2015 Var % 1Q 2016 1Q 2015 Var %
Operating revenue 1,015,103 869,893 16.7 312.4 352.2 -11.3
Gross income 407,433 389,189 4.7 125.4 157.6 -20.4
EBITDA YTD 309,877 280,509 10.5 95.4 113.6 -16.0
EBITDA Margin % 30.5 32.2 -5.3 30.5 32.2 -5.3
Net income 118,272 105,273 12.3 101.1 42.6 137.2
Dividends received by EEB 78,076 200,502 -61.1 24.0 81.2 -70.4
Debt / EBITDA 0.6 3.0 -79.0 0.6 3.0 -
EBITDA / Interests 6.92 -4.89 -241.5 6.9 8.2 -15.1
Relevant facts of Codensa
29.03.2016 The General Shareholders Assembly during regular meeting approves the distribution of profits and
the payment of dividends of 2015 period.
28.03.2016 The Board of Directors of Codensa S.A. ESP approved the enhancement of the global cap to the
Bond Issuance and Placement Program of Codensa in COP$560.000 million, to a total cap of COP $1.51 billio
28.03.2016 The Board of Directors of Codensa S.A. ESP approved expanding Codensa’s total debt cap by
COP$41.500 million to a total cap of COP$1.756.500 million.
28.03.2016 The Board of Directors of Codensa S.A. approved the investment project for the implementation of
the E4E program for an amount of COP$37.017 million to be executed between the years 2016 and 2017.
18.03.2016 Codensa S.A. ESP informs the market that on 15 March it entered into a credit agreement with Bank
of Tokyo – Mitsubishi UFJ, amounting to COP$ 200.000.000.000, which expires on 18 March 2019.
Progress of CODENSA’s investment projects:
Table N° 18 Capex – Codensa
1Q 2016 1Q 2015 Var %
Million COP 100,215 65,729 52.5
Million USD 33.2 25.5 30.0
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3.3. PROMIGAS
Table N° 19 - Overview of Promigas 1Q 2016
Number of clients 9 Volume of sales - Mm cfd 332.3 Market share - % 40 Network – km 2,367 Profit from operating activities - COP MM 270,521 EEB’s stake through EEB Gas - % 15.6
Table No 20- Indicadores financieros seleccionados de Promigas
COP Million USD Million
1Q 2016 1Q 2015 Var % 1Q 2016 1Q 2015
Operating revenue 270,521 207,166 30.6 89.5 80.4
Cost of sales 20,803 29,142 -28.6 6.9 11.3
Operating income 215,754 151,688 42.2 71.4 58.9
EBITDA YTD 234,727 163,378 43.7 77.7 63.4
EBITDA Margin (%) 86.8 78.9 10.0 86.8 78.9
Net income 170,969 118,182 44.7 56.6 45.9
Net debt (1) / EBITDA 1.76 2.2 -18.2 1.8 2.2
EBITDA / Interests(2) 8.5 8.3 2.7 8.5 8.3
Operational revenues increased as a result of an authorized tariff increase for gas transport activities as per CREG
resolution of May 2015.
Sales costs decrease as a result of an entry in 2015 of 50%, which was pending from an agreement entered with
Corpamag to complete a dredging contract of Caño Clarín.
Depreciations and amortizations increased as a result of adjustments to the calculation method to depreciate gas
pipelines under concession in March 2015.
Net profit experienced a reduction explained by increased operational expenses from greater financial costs.
Relevant facts of Promigas
22.03.2016 Promiga’s Shareholders Assembly was held on this date, attendance reached 84.24%, in which it
approved, among other issues, the partial election of the Board of Directors for the period March 2016 – 2017
22.03.2016 Project to distribute dividends approved by the Shareholders Assembly of Promigas S.A. E.S.P.
Table No 21 Capex – Promigas
1Q 2016 1Q 2015 Var %
COP Million 100,215 65,729 52.5 USD Million 33.2 25.5 30.0
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3.4. GAS NATURAL
Table N° 22 - Overview of Gas Natural 1Q 2016
Control Natural Gas
EEB Participation 25%
Table N° 23 - Selected indicators of Gas Natural
COP Million USD Million
1T 2016 1T 2015 Var % 1T 2016 1T 2015
Operating revenue 604,350 434,305 39.2 200.0 168.6
Cost of sales 462,505 288,082 60.5 153.0 111.8 Operating income 107,235 77,867 37.7 35.5 30.2 EBITDA Quarterly 114,285 87,794 30.2 37.8 34.1 EBITDA Margin (%) 18.9 20.2 -6.5 18.9 20.2 Net income 64,287 59,554 7.9 21.3 23.1 Net Debt / EBITDA LTM 2.6 2.7 -3.7 2.6 2.7 EBITDA LTM / interest LTM 15.8 15.2 3.8 15.8 15.2
Relevant facts of Gas Natural
30.03.2016 Project to distribute dividends approved by the Shareholders Assembly of Gas Natural.
Table No 24 - Capex- Gas Natural
1T 2016 1T 2015 Var %
COP Million 3,239 28,757 -88.7 USD Million 1.1 11.2 -90.4
3.5. REP and CTM Perú
Table N° 25 - Selected financial indicators of REP
USD Ml
1Q 2016 1Q 2015 Var %
Operating revenue 33,775 32,438 4.1
Cost of sales -15,878 -9,457 68
Operating income 15,865 15,244 4.1
EBITDA YTD 24,261 22,722 7
EBITDA Margin 71.8 70.0 2.5
Net income 9,683 8,182 18
Net debt (2) / EBITDA 1.9 2.1 -7.6
EBITDA / Interests (3) 8.1 8.4 -4.2
REP showed increased revenues and EBITDA as a result of the update of the tariff and the commercial start up of
enhancement 15 and 16 during January 2016.
REP Investment Projects:}
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Enhancement 12: Amp. Transf 40MVA. Investment value US$8.4 million. Start up 1Q 2014.
Enhancement 13: New 220 kV Substation - Pariñas, Rep. Transmission line at 180 MVA (40 km). Investment value
US$ 17.2 million. Start up expected 3Q 2016.
Enhancement 14: New 220 kV Substation - Reque – New transformer at 100 MVA. Investment value US$ 23.4
million. Operation start up 2Q 2015
Enhancement 15: Enhancement Capac – Transmission line of 144.5 Km - Approx. 700 MVA. Investment value
US·44.6 million. Operation start up 1Q 2016
Enhancement 16: New Substation – Amarilis - Revamping at LT 75 MVA. Investment value US$16.5 million.
Operation start up 1Q 2016.
Enhancement 17: Capacity enhancement of substations. Investment value US$28.8 million. Operation start up
expected for 2Q 2017.
Table N° 26 - Selected financial indicators of CTM
USD Ml
1Q 2016 1Q 2015 Var %
Operating revenue 32,481 29,129 11.5
Cost of sales -12,268 -12,477 -2
Operating income 20,059 16,496 21.6
EBITDA YTD 28,638 23,970 19
EBITDA Margin (%) 88.2 82.3 7.1
Net income 9,859 2,958 233
Net debt (2) / EBITDA 6.3 5.9 6.5
EBITDA / Interests (2) 3.9 3.7 7.2
For CTM, the increase of operational revenues and EBITDA is the result of the commercial start up of the
transmission line Machupichu Cotaruse.
CTM Investment projects:
CONCES. LT MACC-ABAY-COT: TL 421 Km. Investment value US$107 million. Operation start up 3Q 2015.
500 Kv Transmission Line CONCESION - MANTARO – MARCONA: TL 916 Km Investment value US$446.9
million. Operation start up, 2Q 2017.
CONCESSION- TL LA PLANICIE –INDUSTRIALES: TL 17.3 Km. Investment value US$51.5 million. Operation
start up 3Q 2017.
CONCESION- TT FRIASPATA MOLLEPATA and ORCOTUNA Substation: TL 94.0 Km New substation
Orcotuna. Investment value US$52.2 million. Operation start up expected for 3Q 2017.
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4. ANNEXES
Annex 1: Legal Notice & Clarifications
This document contains projections and estimates, using words such as “anticipate,” “believe,” “expect,” “estimate”,
and others having a similar meaning. Any information other than historical information included in this report, including
but not limited to the Company’s financial condition, its business strategy, plans, and management objectives for
future operations are projections.
Such projections are based on economic, competitive, regulatory and operational scenarios and involve known and
unknown risks, uncertainties and other important factors that could cause the Company’s results, performance or
actual achievements to be materially different from the results, performance or future achievements that are
expressed or implicit in the projections. For these, reasons, the results may differ from the projections. Potential
investors should not take them into consideration and should not base their decisions on them. Such projections are
based on numerous assumptions concerning the Company’s present and future business strategies, and the
environment in which the Company will operate in the future.
The Company expressly states that it will be under no obligation to update or revise any projections contained in this
document.
The company´s previous results should not be taken as a pattern for the company´s future performance.
Clarifications
Only for information purposes, we have converted some of the figures in this report to their equivalent in
USD, using the TRM rate for the end of the period as published by the Colombian Financial
Superintendence. The exchange rates used are as follows:
TRM as of March 31, 2016: 3,022.35
TRM as of March 31, 2015: 2,576.05
In the figures submitted, a comma (,) is used to separate thousands and a point (.) to separate decimals.
.
Annex 2: Definitions of EBITDA included in this report.
EBITDA is not an acknowledged indicator under Colombian or US accounting standards and may show
some difficulties as an analytical tool. Therefore, it must not be taken on its own as an indicator of the
company´s cash generation.
EBITDA: EBITDA for a specific period of time (LTM; Q1) has been calculated by taking operating income
(loss) and adding amortization of intangibles and depreciation of fixed assets for that period.
EEB Consolidated EBITDA for a period, consists of operating revenues of EEB and its consolidated
subsidiaries for such period, minus the sum of (i) cost of sales, (ii) administrative expenses allocated to
cost, (iii) administrative expenses and (iv) interest income on investments of pension assets, plus
dividends and interest earned (which includes dividends declared by EEB’s related companies, whether
such dividends are actually paid or not), taxes (other than income taxes), amortization and depreciation,
pension payments and provisions.
EEB Consolidated Adjusted EBITDA for a specific period is calculated taking the Consolidated EBITDA
for such period and adding the cash flows coming from investing activities during such period to the
extent attributable to capital distributions by EEB’s related companies.
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Annex 3: Statement of Comprenhensive Income, 1Q2016
Table N° 27 – Estado de Resultados Consolidado EEB
Mar 15 Mar 16 Variación % Var.
REVENUE 709,669 927,537 217,868 30.7%
Natural gas distribution 313,144 377,249 64,105 20.4%
Natural gas transportation 275,488 376,712 101,224 36.7%
Electricity distribution 81,576 103,840 22,264 27.2%
Electricity transmission 39,461 69,736 30,275 76.7%
Cost of Sales Natural gas distribution (272,773) (303,741) (30,968) 11.3%
Natural gas transportation (103,836) (139,385) (35,549) 34.2%
Electricity distribution (76,866) (90,381) (13,515) 17.5%
Electricity transmission (21,884) (39,538) (17,654) 80.6%
Administrative expenses (30,243) (49,309) (19,066) 63.0%
Other income (expense), net 10,556 12,042 1,486 14.0%
Profit from operating activities 214,623 317,225 102,602 47.1%
Finance income 24,807 32,135 7,328 29.5%
Finance costs (106,393) (127,957) (21,564) 20.2%
Exchange gain (loss) (67,193) 64,736 131,929 196.3%
Equity Method 209,103 232,376 23,273 11.1%
Profit (loss) before taxes 274,947 518,515 243,568 88.5%
Tax (Income/Expense) (60,652) 12,026 72,678 -119.8%
Profit/loss 214,295 530,541 316,246 147.5%
Other comprehensive income (16,297) (199,101) (182,804) 1121.6%
Comprehensive income 197,998 331,440 133,442 67.4%
Owners of parent 205,972 508,720 302,748 146.9%
Minority Interest 8,323 21,821 13,498 162.1%
Profit (loss) 214,295 530,541 316,246 147.5%
Table N° 28 – Consolidated EBITDA – Breakdown
COP Millones
1T2015 1T2016
(-) Operating Costs & Expenses 724,106 941,328
(-) Administrative Expenses (475,358) (573,045)
(+) Dividends (34,124) (51,058)
(+) Depreciation (Costs | Exp.) 59,055 81,758
(+) Amortización (Cost| Exp.) 25,997 28,331
(+) Tax (Cost | Exp) 39,259 63,057
(+) Provisions 2,577 4,701
(+) Financial Income 215,679 817,047
(-) Interest in Autonomous Equity (2,942) (3,148)
(-) Hedging (4,058) (13,355)
EBITDA Consolidated Adj. 550,192 1,295,616
Annex 4 : EEB Consolidated and Standalone Financials as of 1Q 2016
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Annex 5: Equity Method
Table N° 29 Share Profit in Associates. Empresa 1T 15 1T 16
Emgesa 113,793 100,110 Codensa 54,851 61,655 Gas natural 13,171 16,065 Rep 8,082 12,584 Transmantaro 2,921 12,813
Promigas 14,154 26,74 Emsa 2,139 2,177 Gebbras - 0,231
TOTAL 209,103 232,376
Annex 6: Terms Technical and regulatory
BLN: US billion (109)
CAC: Compound Annual Growth
COP: Colombian Peso
CHB: Central Hidroeléctrica de Betania
CTM: Consorcio Transmantaro
CREG: Comisión de Regulación de Energía y Gas de Colombia. (Colombia’s Energy and Gas Regulating
Commission). Colombia’s state agency in charge of regulating electric power and natural gas residential public
utility services.
DANE: Departamento Administrativo Nacional de Estadística (National Administrative Statistics Department).
Agency responsible for planning, collecting, processing, analyzing, and disseminating official statistics in
Colombia.
Gwh: Gigawatt hour; unit of energy equivalent to 1,000,000 kwh
GNV: Natural Gas for vehicles
IPC: Colombian Consumer Price Index
KM: Kilometers
KWH: Unit of energy equivalent to the energy produced by a power of one kilowatt (kW) for one hour
MEM: Mercado de Energía Mayorista de Colombia; Wholesale Energy Market in Colombia
Mm: million
Ml: thousands
MW: Megawatt, power unit or work which equals one million watts
N.A. Not applicable.
Non-Regulated Electricity User: electricity consumers who have a peak demand greater than 0,10 MW or a
minimum monthly consumption above 55.0 MWh
Natural Gas Non-Regulated User: user with consumption above 100 kcfd
CFD: Cubic feet per day
Proinversión: Peruvian agency that promotes private investment in Peru
SIN: Sistema Interconectado Nacional, National Interconnected System
STN: Sistema de Transmisión Nacional, National Transmission System
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SF: Superintendencia Financiera – Financial Superintendency. State entity in charge of regulating, overseeing
and controlling the Colombian financial sector
TRM: Market Representative Exchange Rate; it is an average of the transactions carried out in peso–dollar, and it
is calculated daily by the SF
UPME: State agency responsible for planning Colombia’s mining and energy sectors
USD: US dollars
Annex 8: Overview of the parent company – EEB
EEB is an integrated energy company with interests in the natural gas and electricity sectors and operations in
Colombia, Peru and Guatemala.
EEB was founded in 1896 and is controlled by the District of Bogota (76.2% ownership). The company, as a
public company in Colombia, adhered to global standards of corporate governance.
EEB has an expansion strategy focused on the transmission and distribution of energy in Colombia and other
countries within the region.
EEB participates in the entire electricity value chain and in almost all the natural gas value chain, except for
exploration and production.
Since 2009, EEB shares have been traded on the Colombian stock market. In November 2011, EEB finished
a Re-IPO in the Colombian stock market for approximately USD 400 million.
EEB is one of the largest Colombian corporate debt issuers. In October 2007, EEB and TGI issued corporate
bonds in the international markets for USD 1.36 billion. In 2011 and the beginning of 2012 both companies
refinanced their notes extending their maturities and lowering its costs. Cálidda, our Peruvian subsidiary also
issued in April/2013 a USD 320 million bond.
Since 2009, EEB is traded on the Colombian Securities Exchange and is part of the local indexes COLCAP,
COLEQTY y COLIR
(1) EEB ownership through DECSA Special Purpose Vehicle. (2) EEB ownership directly and indirectly through IELAH Spain (additional 31.92%). (3) EEB effective ownership via direct and indirect stakes. (4) Through GEBBRAS Special Purpose Vehicle acquired on August 21, 2015 51% stake in four concessions for ~USD158 mm.