AES Gener March 2016 Gener... · 2016-06-07 · Disco Bid 2015-2 Award Proponent Parent Company Energy (GW/year) Price per Energy block Existing Energy (GWh/year) Energy from Projects
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AES GenerMarch 2016
AES GenerKey investment considerations
Coal Hydro Natural Gas Diesel Biomass
Leading position: Largest energy producer in Chile, and major producer in Colombia, with one of the most efficient plants in Argentina
Diversification: One of the most diversified LatAm generator player in terms of geographical footprint and technology
Reliable Growth: Secured future growth through fully-financed pipeline and world-class contractors
Stable cash flows: Largely contracted US dollar-denominated revenue streams with built in fuel and inflation protection
Strong capital structure: A successful financing history committed to investment grade rating
Highlights Asset map
1
2
3
4
5
Bogota
Antofagasta
Santiago
3 countries
22 operating plants
4 plants under construction
5 technologies
1 international transmission line
1
5,243 MW of installed capacity(1) US$3.8bn market capitalization(2)
1,083 MW of fully funded capacity under construction(3) US$1.3bn remaining capex of the U$4bln 2nd
expansion phase fully funded1)
100% of baseload energy in Chile sold under long-term PPAs US$691mm 2015 EBITDA
12.2 years of average remaining PPA life BBB-/Baa3 credit ratings (S&P, Fitch, Moody’s)
IntroductionKey statistics
Data as of December 31, 2015, unless otherwise note d
(1)(2)(3)
Includes Guacolda.As of February 24, 2016.152 MW Gucaolda V and 21 MW Andes Solar recently completed
2
21% 21%19%
10%
6%4% 4%
14%
EPM Emgesa Isagen Gecelca Celsia EPSA Others
Note: In GWh, data as of December 31, 2015.
Leading position
#1 generation player in Chile
Major player in Colombia
27% 26%
18%14% 15%
Endesa Colbun E-CL Others
3
1
Ratings System DataExpected Energy Sales
Growth (CAGR 2015-2025)Energy Sales
(GWh) Generation by
Fuel Type
S&P AA-
Moody’s Aa3
Fitch A+
Installed capacity 4,175 MW
Generation18,800 GWh
Installed capacity 15,925 MW
Generation52,899 GWh
45%50%
5%
HydroThermalOther
3%
97%
Renewable
Thermal
70%
30%
Regulated
Unregulated
Attractive markets with stableregulatory frameworks
SING
SIC
4.8%
4.1%
12%
88%
Regulated
Unregulated
Chile
Source:Note:
CNE, data as of December 2015.Excludes TermoAndes which today exclusively sells to Argentina. 4
1
Ratings System DataExpected Energy Sales
Growth (CAGR 2015-2025)Energy Sales
(GWh) Generation by
Fuel Type
S&P BBB
Moody’s Baa2
Fitch BBB
Installed capacity 16,221 MW
Generation 66,173 GWh
S&P B-
Moody’s Caa1
Fitch CCC
Installed capacity 33,353 MW
Generation 118,507 GWh
Attractive markets with stableregulatory frameworks (cont’d)
3.2%
3.5%
67%
33%
Regulated
Unregulated
47%
40%
13%
Large CustomersResidentialCommercial
30%
64%
6%
HydroThermalOther
68%
31%1%
HydroThermalOther
Colombia and Argentina
Colombia
Argentina
Source: XM, data as of December 2015 for Colombia and Private Consultants for Argentina.
5
1
SIC39%
SING22%
SIN36%
SADI3%
Contracted43%
Spot57%
Regulated34%
Unregulated60%
Spot6%
Diversified generation platform
EBITDA 2015 - By electric system Revenues 2015 - By customers
Installed capacity - By fuel type
Note: As of December 31, 2015.SIC: Sistema Interconectado Central.SING: Sistema Interconectado del Norte Grande.
Total Chile61%
US$ 691mm
Coal47%
Hydro24%
Natural gas20%
Diesel8%
Solar0.4%
Biomass0.2%
5,243 MW
Contracted78%
Spot22%
US$1.4bn
US$0.5bn
US$0.1bn
6
2
Reliable growthHistory of world-class development
(GW)
� US$3bn capital expenditure
� 1,664 MW of generation plus 32 MW of BESS
� Projects successfully completed
� US$4bn capital expenditure
� 1,256 MW
� Construction on time and budget
� Guacolda V completed
� Andes Solar in commissioning tests
� New business line: Desalinization
� Angamos completed
� Ventanas under development
2nd Phase Fully Funded
2007 – 2013 Phase I Expansion 2012 – 2018 Phase II Expansion (1)
2
3
4
5
6
7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Since 2007, we have constructed 1,664 MW of new cap acity in Chile…
Phase I: Successful and disciplined strategy
3,393
5,057
2007 2015
Installed Capacity (MW)
BESS Angamos IBESS Norgener2 2
� 12 MW
� Battery
� 20 MW
� Battery
Guacolda III Guacolda IV4 4
� 152 MW
� Coal
� 152 MW
� Coal
Angamos I & II1
� 545 MW (2 units)
� Coal
Los Vientos3
� 132 MW
� Diesel
Nuevas Ventanas Ventanas IV6 7Santa Lidia5
� 139 MW
� Diesel
� 272 MW
� Coal
� 272 MW
� Coal
1 2
4
36
7
5
Antofagasta
Santiago
Expansionary Projects Executed (~US$3bn)
...accounting for ~21% of the Chilean growth
21%
10% 10%7%
AES Gener Colbun EC-L Endesa
8
3
5,0725,224
5,797
152
573
531
Angamos Desal
2015 2016 2018/2019
Guacolda V (152 MW)Completed
Angamos Desalinization Completed
Fully funded plan
Environmental approvals and social awareness
Platform expansion with competitive advantage
Experienced team
Strong partners
Secure profitability
Investment grade rating
����
High growthPhase II: Secured fully-funded pipeline
Alto Maipo (531 MW)Progress: 24%
����
����
����
����
����
Development checklist US$4bn of fully funded projects under construction (1)
Solar-Andes (21 MW)In commissioning tests
Tunjita (20 MW)Progress: 98%
Cochrane (532 MW)Progress: 94%
����
9
3
Stable cash flowsLong term , proven and strong commercial strategy
660 624 671 691
2012 2013 2014 2015
EBITDA (US$mm)
28% 28% 29%32%
2012 2013 2014 2015
EBITDA Margin (%)
AES Gener strategy Predictable cash flows
Efficient GenerationLong Term Contracts
(up to 20 years)
Back-up Generation Spot Sales
Firm CapacityCapacity
Charge Revenue
~75% ofExpected Generation
Medium Term Contracts(1-4 years)
Remaining GenerationSpot and Frequency
Regulation Sales
Firm Energy(~3,000 GWh)
Reliability Charge Revenue
Contract EnergyEnergía Plus Contracts
(306MW)(1)
Sales to Spot Resolution 482
Note:(1)
Data as of December 31, 2015.Currently contracted 220MW.
� Exports to Argentina through 100% owned exclusive transmission line
10
4
-
5,000
10,000
15,000
20,000
25,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GW
h-y
ea
r
AES Gener Contract level
� Long term contracted position with an average life of 12 years with a high qualityand diversified customer base
� No significant maturities until 2024
� Efficient portfolio fully aligned with our contracted capacity
Distribution33%
Mining59%
Industrial8%
AES Gener Contracts by Sector
ContractContractContractContractavg. life: avg. life: avg. life: avg. life: 12 years
Contract Strategy Chile
Long term, dollarized, indexed contracts
11
4
$167$225 $242
$317
$210
$230 $235$49 $66
$130
100% 100% 94%
2012 2013 2014 2015
Capex DividendsDebt Paydown Dividend Payout Ratio
$286 $449
$703 $860
$55
$33
$58
$98
2012 2013 2014.00 2015
Construction Maintenance Environmental
$355 $355 $377 $426
$245 $209 $263
$246
28% 28% 29%
32%
9%
14%
19%
24%
29%
34%
2012 2013 2014 2015
Title
$1,126 $1,298$1,520 $1,669
$1,156$1,487
$1,214
$1,706
2.8x3.3x 3.7x
4.5x
2012 2013 2014PF / Non Recourse Debt Corporate Debt Net Debt/EBITDA
Adjusted EBITDA & EBITDA margin
Strong financial performance and value creation
ArgentinaColombiaChile
(US$ mm)
$660 $624 $671 $691
Total debt and net debt / EBITDA
Total capex Capital allocation
$366
$477
$585
$443
2015
(US$ mm) (US$ mm)
(US$ mm)
$419
$1,002
$830
$532
(1)
(1) Capex net of project financing.
$2,282
$2,785 $2,734
$3,375
12
4
xxx
2016 2017 2018 2019 2020 2021 2022 2023 2024 25-73
69
139176
154
559
162172 173
1,768
136
2025+
97.9% denominated in US$ 88.5% at fixed interest rate
US$ Million
Recourse Debt
49%51%
Non Recourse
Debt
Total Outstanding as of December 31, 2015 US$3,507 M illion
Average Cost 5.3%
Average Life 14.5 years
Net Debt/EBITDA 4.5x (2.4x excluding non recourse debt)
Strong capital structurePrudent debt profile
13
4
� COMPANY 2015 EBITDA HIGHER THAN IN 2014� $20 million higher than last year
� Better results in Chile partially offset by lower energy margin in Colombia and Argentina
� LEADER IN GENERATION IN CHILE� Company contributed with 27% of country generation
� Operational excellence proven by high availability
� DIVERSIFIED AND LONG TERM CONTRACTED ASSET PORTFOLIO� Geographical, technological, customers base and fuel sources
� Dollarized Long Term PPAs aligned with efficient generation
� MOVING FORWARD WITH SECOND EXPANSION PHASE� Guacolda V and desalinization plant successfully completed in 2015
� Generator with more projects under construction in Chile
� Expansion plan fully funded
� World class partners: GIP, Mitsubishi, Antofagasta Minerals
� STRONG AND ENHANCED CAPITAL STRUCTURE� Investment grade rating
� Strong liquidity
� Extended debt maturity profile
Key TakeawaysGrowth under AES Corp control
14
Annex I: Next Bid with distribution companies
Source: Systep
-
2000.0
4000.0
6000.0
8000.0
10000.0
12000.0
14000.0
16000.0
18000.0
20000.0
0
20
40
60
80
100
120
140
EN
DE
SA
CO
LBU
N
AE
S G
EN
ER
GU
AC
OLD
A
CA
MP
AN
AR
IO
MO
NT
E R
ED
ON
DO
DIE
GO
DE
ALM
AG
RO
PU
YE
HU
E
PA
NG
UIP
ULL
I
PU
NT
ILLA
E-C
L SI
NG
Vo
lum
e (
GW
h)
Vo
lum
e (
GW
h)
Vo
lum
e (
GW
h)
Vo
lum
e (
GW
h)
Pri
ce (
US$
/MW
h)
Pri
ce (
US$
/MW
h)
Pri
ce (
US$
/MW
h)
Pri
ce (
US$
/MW
h)
Distros prices & VolumeDistros prices & VolumeDistros prices & VolumeDistros prices & Volume
Price (US$/MWh) Energy (GWh-year)
Disco Bid 2015-2 Award
Contracts with Distribution Companies
16
Distribution Company Bids
Disco Bid 2015-2 Award
ProponentParent Company
Energy (GW/year)
Price per Energy block
Existing Energy
(GWh/year)
Energy from Projects
(GWh/year)In Operation Projects
Aela Generación S.A.Andes
Mainstream768 79.32 87 681
Cuel Eolic Park (33 MW)
Sarco (238 MW) and Alena (108 MW) eolic parks
Abengoa Abengoa 39 97.00 - 39Thermosolar CSP + PV (110 CSP + 100 PV)
Ibereólica Cabo Los Leones
Ibereolica 195 89.31 - 195Cabo Los Leones Wind Park I (170 MW)
SCB II SpA First Solar 88 67.64 88 -Luz del Norte Unit 1 (36 MW) and Unit 2 (38 MW)
Luz del Norte Units 3 & 4 (67 MW)
Amuche Solar Solar Pack 110 64.85 - 110
Los Libertadores Solar Park (16 MW)La Constitución Solar Park (48 MW)
1,200 79.34 175 1,025
17
Upcoming Bid
Schedule 2015-01
Tender Call May 29, 2015
Question & Answers December 30, 2015
Date of proposals April 20, 2016
Award May 10, 2016
Supply January 1, 2021 to December 31, 2041
Disco Bid Energy [GWh] 2021 2022 2023 2024 2025 2026 2027 2028 +
2015-01 (2021+20 years) BS1+BS2 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600
2015-01 (2022+20 years) BS3 - 7,150 7,150 7,150 7,150 7,150 7,150 7,150
Total 6,600 13,750 13,750 13,750 13,750 13,750 13,750 13,750
Awarding Mechanism
• Levelized price of energy
• Fuel indexes: Annual Energy Outlook 2015 from EIA
• Indexed price present value @10%
Change of law
• Future: 2% variation of capital or operation cost of contract execution
Next Disco Bids
• The following Disco Bids are expected according to CNE projections:
• 3,000 since 2023+20 years (Tender call 2016)
• 8,000 since 2024+20 years (Tender call 2017) 18
Annex II: Angamos & Guacolda
Angamos
Revenues(US$ millions)
$38
$198 $225 $214 $238 $137
$133 $81 $83 $44
$174
$332 $308 $298 $284
2011 2012 2013 2014 2015
Contracted Spot Other
EBITDA and EBITDA Margin(US$ millions)
$ 72
$ 127$ 119
$ 112 $ 111
41.5% 38.4% 38.8% 39.9% 38.9%
0%
20%
40%
60%
80%
100%
0
50
100
150
2011 2012 2013 2014 2015
EBITDA EBITDA Margin
Credit MetricsCapital Expenditures
(US$ millions)
1%
12% 12%
7%
8%
11.0x
6.5x 6.4x
7.0x
7.1x
4.1x
3.0x 3.1x 3.0x2.5x
0
2
4
6
8
10
12
0%
2%
4%
6%
8%
10%
12%
14%
2011 2012 2013 2014 2015
CFO/Debt Debt/EBITDA EBITDA/Finance Expense
$112
$26
$5 $11 $11
2011 2012 2013 2014 2015
Summary of Historical Financials
20
4.6x
2.9x
5.1x
6.2x
3.7x
7.0x7.2x
3.9x
0
1
2
3
4
5
6
7
8
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2012 2013 2014 2015
Net Debt / EBITDA EBITDA / Finance Expenses
$117
$165
$129 $122
19%
30%25%
28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2012 2013 2014 2015
EBITDA EBITDA margin
Guacolda
Summary of Historical Financials
Revenues(US$ millions)
EBITDA and EBITDA Margin(US$ millions)
Capital Expenditures(US$ millions)
Credit Metrics
$613 $554
$515
$438
2012 2013 2014 2015
$98 $125
$342
$115
2012 2013 2014 201521
Annex III: Major Assets
Diversified Asset Portfolio
� Guacolda Complex
− 5 Units
− 760 MW - Coal
− Located in Huasco (Northern part of the SIC)
− Start of operations: 1995/1996/2009/2010/2015
� Alfalfal I
− 178 MW – Hydro Run-of-River
− Located 50 km from Santiago
− Start of operations: 1991
� Other plants: 106 MW
− 93 MW – Other Hydro Run-of-River
− 13 MW - Biomass
� Ventanas Complex
− 4 Units
− 884 MW - Coal
− Located in Valparaíso Region
− Start of operations: 1964/1977/2010/2013
� Nueva Renca
− 379 MW – LNG / Diesel
− Located in Santiago
− Start of operations: 1997
� Other plants: 437 MW
SIC coal – fired plants: 1,644 MW Back – up plants: 816 MW
Hydro run-of-river plants and renewables: 284 MW
23
� TermoAndes
− Combined Cycle (2 Gas Turbines and 1 Steam Turbine)
− 643 MW – Natural Gas
− Located in Salta, Argentina
− Start of operations: 1999
Argentina: 643 MW
Battery storage (BESS) & Solar: 53 MW
� AES Chivor
− 8 Units
− 1,000 MW - Hydro
− Located in Boyacá, Colombia
− Start of operations: 1977/1981
Colombia: 1,000 MW
� Norgener
− 2 units
− 277 MW – Coal
− Located in Tocopilla
− Start of operations: 1995/1997
SING coal plants: 822 MW
Diversified Asset Portfolio
� Angamos
− 2 units
− 545 MW – Coal
− Located in Mejillones
− Start of operations: 2011
24
� Battery Storage: 32 MW
− Norgener and Angamos
− Start of operations: 2009/2011
� Solar: 21 MW
− Adjacent to Andes Substation
− Start of operations: 2016
Annex IV: Other Financialinformation
Wide access to capitalSuccessful financing for US$7bn growth
Confirmation of investment grade rating by 3 agenci es through a diversified financing strategy
Sources of Financing for the Expansions (1) Amount (US$ million)
Equity
Cash from Operations 710
Capital Increases 668
Partners 682
DebtBonds
International 300
Local 415
Banks Project Finance 4,225
(1) First and Second Phases: From 2007 – 2018.
26
27
Solid PerformanceSignificant value creation for shareholders
The largest total return to shareholders since 2010 (1)…
5.9%
4.5%5.2%
6.3%
2012 2013 2014 2015
AES Gener +93%
Colbún +40%
Endesa +27%
E-CL +40%
98%
50%41%
30%
Endesa Colbun EC-L
… and the highest payout ratio among peers (3)… with an attractive dividend yield (2)…
Source:(1)(2)(3)
Bloomberg as of February 24, 2015.In Chilean pesos, including dividends.LTM dividends paid / market capitalization end of period.Last 3 years average.
IPSA +2%
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016
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