Analyst Presentation 3Q 2013 Financial Results November 15...
Transcript of Analyst Presentation 3Q 2013 Financial Results November 15...
Analyst Presentation
3Q 2013 Financial Results
November 15th, 2013
www.gasplus.it
INDEX
1 1
INDEX
MARKET SCENARIO
HIGHLIGHTS
FINANCIAL RESULTS
Eni Gas Release Price
MARKET SCENARIO
Euro – Us Dollar Exchange rate
2
Market
TTF Gas Price
Brent Price
HIGHLIGHTS
3 3
Fin. Overview
Positive results compared with the actual market environment for
the Oil&Gas industry characterized by a lower hydrocarbon prices
scenario
E&P Business Unit recorded good results despite production
constraints on a non operated concession
Remarkable EBITDA of Commercial Gas Assets thanks to the
portfolio selection and commercial turnover reduction
Stable positive results from regulated activities
Significant reduction of NFP thanks to cash flow generation and
constant monitoring of working capital including the recent securitization
agreement.
FINANCIAL RESULTS
4 4
Fin. Overview
9M 13 Financial results
Total Revenues decrease determined by portfolio optimization strategy
EBITDA down by 10.0% but strong improvement of EBITDA margin from 25.04% to 34.74%
Consistent reduction of net financial charges due to strong reduction of NFP
Net result still impacted by increased tax rate due to the expanded perimeter of Robin Tax application
9M 2013 – Group P&L
Group (M€) 9M 13 9M 12 % Change 3Q13 3Q12 % Change
Total Revenues 130.3 200.9 -35,1% 19.8 37.5 -47.2%
Operating Costs 85.0 150.6 -43.5% 9.2 24.0 -61.7%
EBITDA 45.3 50.3 -10.0% 10.7 13.5 -20.7%
EBIT 28.2 32.1 -12.2% 5.1 7.0 -27.1%
EBT 19.2 21.1 -9.0% 2.9 2.9 0.1%
Net Result 10.3 11.8 -12.1% 1.7 1.5 13.3%
EPS (€) 0.24 0.27 -12.1% 0.03 0.03 13.3%
9.3
-1.4 -0.6
-6.7 -5.5
-3.3
-3.5
-0.3
0.1 0.2 0.2
Short Term Financial Charges Long Term Financial ChargesCharges on Funds NPV Other Financial ChargesFinancial Revenues
47.0
34.8
4.0
4.1 6.5
-0.7 -0.1
E&P Network Commercial Gas Assets Other
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FINANCIAL RESULTS Fin. Overview
Net Profit evolution (M€)
9M 2013 Consolidated results
EBITDA breakdown by BU (M€)
50.3 45.3
-12.2
0.1
6.5 0.6
9M12 E&P Network CommercialGas Assets
Other 9M13
50.3 45.3
Group EBITDA evolution (M€)
9M12 9M13
-5.0
1.1
2.0 0.4
9M12 EBITDA D&A Financialcharges &
Other
Taxes 9M13
11.8
10.3
11.6
9M12 9M13
Net Financial Charges evolution (M€)
FINANCIAL RESULTS
6
Fin. Overview
September 30, 2013 – Group Balance Sheet
Lower net working capital mainly driven by receivables reduction, enhanced by the securitization
contract of the commercial portfolio (max plafond revolving amount € 35 M)
Net Financial Debt reduction thanks to a more efficient working capital management and cash-flow
generated by the industrial activities
Improvement and significant reduction of D/E ratio from 0.73 to 0.48
Group (M€)
September
30, 2013
December
31, 2012
% Change
Inventories 26.1 30.2 -13.6%
Receivables 38.9 80.4 -51.6%
Payables (32.5) (35.7) -9.0%
Other working Credits/Debits (1.9) (10.2) -81.4%
Non current Assets 489.6 503.4 -2.7%
Taxes, Abandonment, Severance and Other provision (212.8) (212.3) 0.2%
Net invested capital 307.4 355.7 -13.6%
Net Financial Debt 99.1 150.5 -34.2%
of which long term 88.5 133.3 -33.6%
of which short term 10.5 17.2 -39.0%
Equity 208.4 205.2 1.6%
Total Sources 307.4 355.7 -13.6%
150.0
35.0 35.0
44.1 42.7
48.0
40.5 41.0
26.7
25.2
26.1 26.9
27.4
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
31 Dec2010
31 Dec2011
31 Dec2012
30 Sep2013
Vendor Loan 2017*
ML Term Loan - Baloon2016**
ML Term Loan -Amortizing 2012-2016**
USFIN financing (31 Dec2013)***
Bridge loan 2011
FINANCIAL RESULTS
7
Fin. Overview
Breakdown of NFP (M€)
Breakdown of acquisition financing by duration (M€)
175.2
145.7 145.6
102.1
Breakdown of working capital financing by duration (M€)
* includes interests; ** includes a quota of the IRS fair value; *** Reimbursed in March 2013
175.2 145.7 145.6
102.1
75.4
67.2 4.9
-3.0
-50,0
0,0
50,0
100,0
150,0
200,0
250,0
300,0
31 Dec 2010 31 Dec 2011 31 Dec 2012 30 Sep 2013
Acquisition financing Working capital financing
250.6
212.9
150.5
99.1
0.3 2.5 -1.6 -3.0
31.1 29.7
6.5
44.0 35.0
-10,0
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
31 Dec2010
31 Dec2011
31 Dec2012
30 Sep2013
Revolving 2011 -2016
Revolving 2011
Self liquidating creditline
Overdraft and others
75.4 67.2
4.9
-3.0
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FINANCIAL RESULTS: E&P E&P
9M 2013 P&L - E&P contribution
EBITDA reduction affected by (i) oil and gas prices scenario and (ii) contingent production decrease,
mainly due to constraints on a non operated concession, partially balanced by strong control on operating
costs
Exploration and Development Capex reduction mainly due to delay in the on-going authorization process
Development: step forward related to two main projects: (i) for the first, final stage of executive design and
(ii) on-going EIA issuance procedure for the other
Exploration: (i) forthcoming long production test of “Masseria Morano 1 Dir” and (ii) executive design for
location and construction permit of “Faseto 1 Dir” well
As of September 30th, 2013 2P hydrocarbon reserves are Bscme 5,1
International activities:
• Romania: On-going discussions among ExxonMobil, Petrom and Gas Plus with Romanian authorities
for the spin-off of Midia Deep area from Midia concession (Gas Plus owning a 15% interest) which is
expected within 2013
• Poland: application for extension of Block 106 concession submitted
E&P (M€) 9M13 9M12 % Change 3Q13 3Q12 % Change
Hydrocarbon Production
(MScme) 173.7 185.1 -6.2% 57.2 62.2 -8.0%
of which natural gas 152.2 158.1 -3.7% 50.1 54.1 -7.4%
of which oil and condensate 21.5 27.0 -20.4% 7.1 8.1 -12.3%
Exploration Capex 0.6 1.5 -60.0% 0.2 0.8 -75.0%
Development Capex 1.6 8.9 -82.0% 0.4 2.6 -84.6%
EBITDA 34.8 47.0 -26.0% 10.4 16.3 -36.2%
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FINANCIAL RESULTS: Commercial Gas Assets Commercial
Gas Assets
9 9
9M 2013 P&L - Commercial Gas Assets Contribution
Strong increase of marginality: EBITDA € 6.5 million thanks to optimization of customers portfolio (focus on
profitability and solvency) which has reduced the volume sold but has strongly increased the marginality
Receivables Securitization Agreement leads to improvement in the working capital management and reduction in
credit risk
Next Gas Year Outlook
Mainly in wholesale activities, marginality will be affected by new gas prices regime “TTF linked” introduced by
AEEG
In order to balance the decrease in marginality, the focus of the Group will be on (i) increasing the sales in the
most profitable segments, considering the creditworthiness, and (ii) optimizing the costs structure
Commercial Gas Assets
(MScm) BU 9M13 9M12 % Change 3Q13 3Q12 % Change
Supply (MScm) 257.4 476.4 -46.0% 71.8 122.1 -41.2%
Sales (MScm) 263.1 443.6 - 40.7% 35.8 78.6 - 54.5%
Third retail S&S 91.4 181.0 - 49.5% 12.4 20.9 - 40.7%
Balancing (former Trading) S&S 64.5 102.8 -37.3% 11.3 34.1 -66.9%
Captive S&S 107.2 159.8 -32.9% 12.1 23.6 -48.7%
Residential Retail 63.7 69.5 -8.3% 4.9 4.5 8.9%
Small Business/Multipod Retail 19.3 31.5 -38.7% 1.7 3.0 -43.3%
Industrial Retail 24.2 58.8 -58.8% 5.5 16.1 -65.8%
EBITDA 6.5 0.0 n.m. 0.2 -2.7 111.1%
of which S&S 2.5 -1.0 350.0% -0.3 -2.7 88.9%
of which Retail 4.0 1.0 300.0% 0.5 0.0 n.m
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FINANCIAL RESULTS: N&T and Storage
9M 2013 P&L – N&T Contribution
San Benedetto (AP)
(49% GPS)
Sinarca (CB)
(60% GPS)
Poggiofiorito (CH)
(100% GPS)
Network
Confirmed positive results in line with last year
Increase in 2013 VRT (+3% with respect on 2012) due to
remuneration of capex on smart meters
New tariff model from 2014 onwards
Constant monitoring and evaluation of the new ATEM
tenders with the goal, at least, to maintain the same
perimeter of activities and the same level of profitability
Transportation
7.037 MSmc transported in 9M 2013
42 km fully owned transportation network
SAN BENEDETTO (49% GPS - Operator): EIA procedure
(Law334/99) ongoing
POGGIOFIORITO (100%GPS): EIA and NOF procedure
(Law 334/99) ongoing
SINARCA PROJECT (60% GPS - Operator): Final
authorization and technical assessment
Storage projects:
Network and
Transportation Storage
N&T (M€) 9M13 9M12 %
Change 3Q13 3Q12 %
Change
Distributed
Volumes
(MScm) 134.7 132.7 1.5% 20.1 20.5 -2.0%
Direct end
users (#K) 88.9 89.5 -0.7% n.m. n.m. n.m.
Pipeline (Km) 1,487.3 1,476.2 0.8% n.m. n.m. n.m.
CAPEX 1.0 0.7 42.9% 0.5 0.1 400.0%
EBITDA 4.1 4.0 2.5% -0.1 -0.1 0.0%
COMPANY PROFILE
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Annex
Shareholding as at 30 Sept. 2013 Share information
N. of share: 44,909,620
Share price as of 30/09/2013: € 4.50
Share price as of 14/11/2013: € 4.71
Mkt cap 14/11/2013 : € 211.5 million
Italian Stock Exchange – segment MTA
Own shares as of 30/09/2013: 1,336,677
Share price performance
Group structure Management
Cinzia Triunfo
Achille Capelli
Sandro Mezzi
Davide Usberti
Germano Rossi
Bruno de Vinck
Chief Executive Officer
Chief Financial Officer
Director of Network Business Unit
Planning, Development & General Affairs Director,
CEO of Padana Energia
Director of International E&P Branch
Regulated activity - Network
Director of Italian E&P Branch
Fabio Guastella Head of Supply & Sales Business Unit
100% 100% 100%
Società
Padana
Energia SpA
Gas Plus S.p.A.
Gas Plus
Italiana Srl
Gas Plus
Vendite Srl
Retail E&P S&S
Gas Plus
International
BV
100%
Reggente
SpA
81,5%
100% 100%
100% 97%
85%
Gas Plus
Storage Srl
Gas Plus
Reti Srl
Gas Plus
Energia Srl
Gas Plus
Salso Srl
Gas Plus
Trasporto Srl
Other Storage Network and
Transportation
BU Commercial Asset
Business
Unit
Legal
Entities
Gianmaria Viscardi Network Chief Executive Officer
Giovanni Dell’Orto Chairman of International E&P Branch
Floating shares; 7,57%
FINDIM; 15,51%
USFIN; 73,94%
Treasury Shares; 2,98%
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Disclaimer
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gas
Plus. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on management’s current expectations and assumptions and involve
known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the
potential exposure of Gas Plus to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts,
projections and assumptions. These forward-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. There are a number of factors that could affect the future operations of Gas
Plus and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report,
including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c)
currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g)
environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and
successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject
to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising
from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks,
project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions.
All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of this presentation. Neither Gas Plus nor any of its subsidiaries undertake any obligation to
publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of
these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this
presentation.