Colbun Sa · BCS:COLBUN
Colbun Sa — Fenix Power — Debt Investor Presentation (December 2019)
17 slides from Colbun Sa's debt investor presentation, December 2019
Slide 1: Corporate Presentation 3Q19
CORPORATE PRESENTATION 3Q19
Slide 2: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 3: Fenix Power: a relevant & efficient CCGT in Peru
Company overview Fenix Power: a relevant & efficient CCGT in Peru THE COMPANY MARKET SHARE1 (%) Others Peruvian 23% Gov. One of the most efficient Orazul 17% 4% CCGT in Peru Huallaga Based on Heat Rate 4% Kallpa Statkraft 15% 40 miles south of Lima 4% Capital of Peru and largest city of the 8% Enel
Slide 4: Highly experienced shareholders
Company overview Highly experienced shareholders 51% 13% 36% BLUE BOLT1 ▪ Chilean power generation company ▪ One of the largest investment ▪ Established by the Government of the funds managers in Peru Emirate of Abu Dhabi (Aa2/AA/AA) ▪ 3rd largest player in the SEN (Chile’s main grid), with 16% of m
Slide 5: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 6: Power industry dynamics in Peru
Market overview Power industry dynamics in Peru GENERATION Others ▪ Stable regulatory framework Hydro 7% 55% ▪ US$ currency denominated market 52,548 GWh ▪ Investment grade country Natural Gas ▪ High growth potential 38% INSTALLED CAPACITY BY DEMAND GROWTH (12 month average %) TECHNOLOGY Thermal - S
Slide 7: Marginal cost & demand in Peru
Market overview Marginal cost & demand in Peru ▪ Oversupplied market in the last years has pushed down marginal costs ▪ Marginal costs are affected by take or pay schemes of gas contracts and by price declaration strategies 30 27 14 Marginal cost (US$/MWh) 25 75% 25 56% 52% 52% 12 44% Power (GW) 20
Slide 8: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 9: Commercial policy
Commercial strategy Commercial policy Contracting a relevant portion of capacity Fenix maintains a relevant base of long-term PPAs 1 2 3 Solid customers base Indexation formulas Creditworthy counterparties PPAs indexed to dollar and fuel Most of Fenix PPAs are signed with the prices, in order to mit
Slide 10: Operational long-term contracts
Commercial strategy Operational long-term contracts 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. NATURAL GAS SUPPLY ECL88 ▪ Counterparty: Camisea Consortium ▪ Expiration: August 2022 2. NATURAL GAS TRANSPORT TGP ▪ Counterparty: TGP ▪ Expiration: May 2032 3. GAS DISTRIBUTION & O&M C
Slide 11: Stable cash flow profile supported by long-term PPAs
Commercial strategy Stable cash flow profile supported by long-term PPAs PPAs PROFILE ENERGY SALES (%) Spot ▪ Average life of long-term PPAs of 6 years 27% ▪ US$ indexation ▪ ~77% contracted until 2023 ▪ Strong AAA locally-rated off takers PPAs 73% PPAs PORTFOLIO (TWh) ▪ Regulated customers PPAs ext
Slide 12: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 13: Financial results
Financial review Financial results 1. OPERATING REVENUES (US$ million) 2. EBITDA (US$ million) 56 54 57 217 193 202 175 36 1 2 2016 2017 2018 3Q19 LTM 2016 2017 2018 3Q19 LTM 3. GROSS DEBT/EBITDA LTM (x) 4. FINANCIAL EXPENSES COVERAGE (x) 9,8x 3,8x 3,6x 8,0x 6,5x 6,6x 2,3x 2,0x 2 2016 2017 2018 3Q19
Slide 14: Long term debt profile
Financial review Long term debt profile 1. FENIX BOND SUMMARY US$323 mm 5.9 years Sept-27 Amount outstanding Average life Maturity 4.317% Amortizing 144A/Reg S Coupon rate Profile Format 2. AMORTIZATION STRUCTURE (US$ million) 168 18 24 27 28 24 16 18 2020 2021 2022 2023 2024 2025 2026 2027 Note: Al
Slide 15: Cash Support Agreement
Financial review Cash Support Agreement ▪ Fenix’s shareholders signed a Cash Support Agreement that provides Fenix additional liquidity to meet its debt service payments. ▪ The agreement provides Fenix with a committed credit line from Colbún and the support from the remaining shareholders in case o
Slide 16: Key takeaways
Key takeaways 1. Attractive long-term growth prospects: 4. Strategic investment for its shareholders: Peru's generation industry is currently affected by Strong sponsorship from highly experienced short-term factors, but continues to exhibit high shareholders, including a key power generation player
Slide 17: Corporate Presentation 3Q19
CORPORATE PRESENTATION 3Q19
Fenix Power — Debt Investor Presentation (December 2019) on 6ix