Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q2 FY2017 Earnings Presentation
24 slides from Tenaga Nasional Bhd's earnings presentation, Apr 27, 2017
Slide 1: Presentation to Analysts
PRESENTATION TO ANALYSTS Unaudited Consolidated Results for the 2nd Quarter FY2017 ended 28th February 2017 27th April 2017 Prepared by: [email protected] Investor Relations & Management Reporting Department GROUP FINANCE DIVISION
Slide 2: Agenda
AGENDA RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 2
Slide 3: Key Highlights: Revenue and Capital Expenditure
KEY HIGHLIGHTS • Improved Revenue Driven by 2.3% Unit Electricity Demand Growth • Half-Year Capital Investment of Approximately RM5bn Revenue Table 1: Revenue Table 3: Improved by RM1.23bn Capital Expenditure 5.8% 1HFY’17 RM22.40bn 1HFY’16 RM21.17bn From RM RM 4.81bn 5.17bn Table 2: 1HFY'17 1HFY'16
Slide 4: Key Highlights: Profit After Tax
KEY HIGHLIGHTS 5.2% Reduction in Adjusted PAT Mainly from Increased Provision on Electricity Debtors Table 1: Table 2: Profit After Tax Adjusted Profit After Tax 1.5% Declined by RM0.05bn 5.2% Declined by RM0.16bn 1HFY’17 RM3.23bn 1HFY’17 RM2.91bn 1HFY’16 RM3.28bn 1HFY’16 RM3.07bn Table 3: Revenue (
Slide 5: System Weekly Maximum Demand (Peninsula)
SYSTEM WEEKLY MAXIMUM DEMAND (PENINSULA) Demand Has Normalised Since El-Nino Phenomenon Ended in July 2016 MW 1st Qtr 2nd Qtr 3rd Qtr Peak Demand: 4th Qtr 17,788 MW (20/04/16) 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 13,500 Peak Demand YoY Growth (%) 13,000 BNM FY 2013 16,562 M
Slide 6: Capital Expenditure
CAPITAL EXPENDITURE Major Projects Represent 49.1% of Total CAPEX RM mn 3,675.1 3,978.4 5,142.9 5,173.5 4,808.4 5,200.0 4,800.0 4,400.0 4,000.0 2,832.8 3,600.0 2,962.8 2,359.3 49.1% 3,200.0 1,865.8 1,476.6 2,800.0 2,400.0 O 310.5 O 249.1 2,000.0 O 316.1 O 227.7 O 366.3 D 1,600.0 1,130.4 D D D 1,243.
Slide 7: Status of Major Projects
STATUS OF MAJOR PROJECTS • 2 Generation Projects With 3GW Capacity in the Pipeline • 1 Large-Scale Solar Project Awarded by Energy Commission on 2nd March 2017 Jimah East Power Janamanjung Unit 5 1,000MW 99.1% 2,000MW 42.7% COD: COD: U1: 15th Jun 2019 1st Oct 2017 U2: 15th Dec 2019 TNB Sepang Solar
Slide 8: Key Performance Indicators
KEY PERFORMANCE INDICATORS INITIATIVES 1HFY’17 FY’16 • Return on Assets (ROA) (%) 5.9 6.4 • Company CPU (sen/kwh) 35.2 34.2 • Revenue from Non-Regulated 1.2 2.7 Business (RM bn) • Equivalent Plant Availability 89.9 89.3 Factor (EAF) (%) • Transmission System Minutes (mins) 0.05 1.47 • Distribution S
Slide 9: Technical 5-Year Performance
TECHNICAL 5-YEAR PERFORMANCE Continued Exceptional Operational Performances 1 EQUIVALENT PLANT AVAILABILITY FACTOR (EAF) (%) 90.1 88.7 89.9 87.7 82.8 1H FY'13 FY'14 FY'15 FY'16 FY'17 2 SYSTEM MINUTES (mins) 3 SAIDI (mins) 30.0 0.21 25.4 24.3 23.2 22.5 0.10 0.08 0.05 0.03 1H FY'13 FY'14 FY'15 FY'16 F
Slide 10: Shareholding
SHAREHOLDING Sustained Foreign Ownership at Around 25% Top 100* Shareholders as at Feb’17 Foreign Shareholding Khazanah Nasional 13.2 Berhad 6.8 12.1 26.90% Employees Provident 10.7 5.9 Fund Board 10.5 Permodalan Nasional Bhd 28.3 14.9 (%) 25.5 25.45% Other Corporations & 14.2 Govt. Agencies Aug’16
Slide 11: Interim Dividend for FY2017
INTERIM DIVIDEND FOR FY2017 INTERIM DIVIDEND Interim Single-Tier Dividend of 17.00 sen per ordinary share Distribution of dividend is based on 30% to 50% dividend payout ratio, based on the reported Consolidated Net Profit Attributable to Shareholders After Minority Interest, excluding Extraordinary
Slide 12: Agenda
AGENDA RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 12
Slide 13: Results Details: Analysis of EBITDA Margin
RESULTS DETAILS 0.5ppt Reduction in EBITDA Margin Mainly due to Increased Provision on Electricity Debtors amounting to RM0.4bn ANALYSIS OF EBITDA MARGIN RM mn 1QFY'17 2QFY'17 1HFY'17 1HFY'16 % Total Units Sold (GWh) 29,548.4 28,463.2 58,011.6 56,838.3 Revenue 11,241.6 11,162.3 22,403.9 21,166.1 Ope
Slide 14: Details of Revenue
DETAILS OF REVENUE 5.8% Increase in Total Revenue Mainly from 2.3% Demand Growth 1HFY'17 1HFY'16 Grow th UNITS SOLD GWh GWh % - TNB 54,768.2 53,547.8 2.3 - EGAT (Export) 23.3 1.1 >100.0 - SESB 2,576.7 2,534.6 1.7 - LPL 643.4 754.8 (14.8) Total Units Sold (GWh) 58,011.6 56,838.3 2.1 REVENUE RM mn Sen
Slide 15: Electricity Growth in Peninsula
ELECTRICITY GROWTH IN PENINSULA 2.3% Growth in Electricity Demand FY 2016 FY 2017 UNITS SALES 1Q 2Q 1H 1Q 2Q 1H Gwh 11,101 10,820 21,921 10,975 10,966 21,941 Industrial Growth (%) 1.2 (1.4) (0.1) (1.1) 1.3 0.1 Gwh 9,369 9,404 18,773 10,053 9,530 19,583 Commercial Growth (%) 3.9 6.1 5.0 7.3 1.3 4.3 G
Slide 16: Operating Expenses
OPERATING EXPENSES 6.8% Increase in Operating Expenses Variance Variance RM mn 1HFY'17 1HFY'16 RM mn % Capacity Payment 2,214.5 1,994.4 (220.1) (11.0) Energy Payment 4,510.9 4,054.5 (456.4) (11.3) Total IPPs Purchases/Costs 6,725.4 6,048.9 (676.5) (11.2) 11,222.6 10,343.1 (879.5) Fuel Costs 4,497.2
Slide 17: Generation Mix (Peninsula): Year-on-Year Analysis
GENERATION MIX (PENINSULA) Year-on-Year Analysis 9.3% Increase in Fuel Costs Mainly due to 2.9% Increase in Units Generated and Higher Coal Price Table 1: Fuel Costs (RM mn) Units Generated (Gwh) Fuel Variance Fuel Variance 1HFY'17 1HFY'16 1HFY'17 1HFY'16 Type RM mn % Type Gwh % Gas 4,063.9 3,786.5
Slide 18: Generation Mix (Peninsula): Quarterly Analysis
GENERATION MIX (PENINSULA) Quarterly Analysis % 4.1 4.1 3.0 3.1 3.0 4.1 0.1 0.4 0.6 0.6 0.5 0.1 49.3 49.6 52.0 52.2 54.4 50.2 46.5 45.9 44.4 44.1 45.6 42.1 1Q 2Q 3Q 4Q 1Q 2Q FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 Gas Coal Oil & Distillate Hydro 18
Slide 19: Fuel Costs (TNB & IPPs - Peninsula)
FUEL COSTS (TNB & IPPs - PENINSULA) Fuel Costs Units Generated Coal IPP, Dist. TNB, 0.0 Dist. TNB, 0.1 26.1 Dist. IPP, 0.1 Coal IPP, Dist. IPP, 0.2 23.1 Hydro, Oil TNB, 0.2 Coal IPP, Coal TNB, 3.5 Oil IPP, 0.0 Oil TNB, 0.5 23.1 24.7 Coal TNB, Coal IPP, Hydro, 22.5 18.5 Oil IPP, 0.0 4.0 Coal TNB, Dis
Slide 20: Coal Requirement
COAL REQUIREMENT Average Coal Price for 1HFY’17 was at USD70.2/MT @ RM303.8/MT Average Coal Price (CIF) FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 1HFY'17 USD/metric tonne 88.2 106.9 103.6 83.6 75.4 66.0 55.7 70.2 RM/metric tonne 293.8 325.9 321.9 259.5 244.6 236.0 231.1 303.8 Tonne (mn) 30.0 26.8 25
Slide 21: Debt Exposure & Gearing
DEBT EXPOSURE & GEARING Improved Gearing due to Multicurrency Sukuk Issuance of USD750.0mn in October 2016 28th Feb’17 (RM bn) 7.8% 2.92 31st Aug’16 (RM bn) 17.6% 8.7% Total Debt: 6.56 3.00 37.3 Total Debt: 34.3 8.5% Net Debt: Net Debt: 2.92 20.4 17.2 0.2% 0.2% 82.6% 0.05 0.06 74.4% 28.34 27.73 RM Y
Slide 22: Disclaimer
DISCLAIMER All information contained herein is meant strictly for the use of this presentation only and should not be used or relied on by any party for any other purpose and without the prior written approval of TNB. The information contained herein is the property of TNB and it is privileged and c
Slide 23: Contact Details
CONTACT DETAILS For further enquiries, kindly contact us at: INVESTOR RELATIONS & MANAGEMENT REPORTING DEPARTMENT Tenaga Nasional Berhad 4th Floor, TNB Headquarters No.129, Jalan Bangsar, 59200 Kuala Lumpur, MALAYSIA Tel : +603 2296 5566 Fax : +603 2284 0095 Email : [email protected] Website : w
Slide 24: Thank You
THANK YOU Unaudited Consolidated Results for the 2nd Quarter FY2017 ended 28th February 2017
Tenaga Nasional Berhad — Q2 FY2017 Earnings Presentation on 6ix