Endesa Chile 1Q14 Results

Transcription

1 Endesa Chile 1Q14 Results May 06 th 2014

2 Highlights 43% decrease in Net Income attributable to Endesa Chile s shareholders, mainly explained by a higher procurement and services cost and a greater negative exchange rate difference 6% decrease in consolidated EBITDA mainly due to 15% increase in Operating Costs due to higher energy purchases in Chile, and greater transportation expenses in Chile and Peru. 6% growth in Operating Revenues due to higher average energy sales price, mainly in Chile and Peru. 6% increase in hydro generation in Chile as a consequence of better water availability in the period. 2

3 Financial Highlights 1 Ch$ million 1 1Q14 1Q13 Change MM US 2 $ 1Q14 Revenues % 943 Costs (283) (245) 15% (512) Contribution Margin (3%) 432 EBITDA (6%) 333 EBIT (8%) 246 Net Financial Expenses (49) (35) 39% (88) Related Company Results % 68 Taxes (41) (35) 15% (74) Net Income (23%) 153 Attributable to shareholders of Endesa Chile (43%) 65 1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made under Ch$. 2 Referential average exchange rate was Ch$/US$ as of March 31,

4 Diversified Source of EBITDA Total Installed Capacity 1: 13,717 MW Total Generation 1 (TTM): 49,827 GWh Argentina 27% Chile 41% Argentina 20% Chile 37% Peru 11% Peru 17% Colombia 21% Colombia 26% EBITDA 1Q14 (TTM): US$ 1,751 million Argentina 6% Chile 35% Endesa Brasil Endesa Chile s ownership: 38.6%. Net Attributable Income (TTM) 2 : US$ 186 million. Peru 17% Colombia 42% 1 Excludes the proportional assets from GasAtacama (390 MW) and Endesa Brasil (987 MW). 2 Considers the total contributions of Endesa Brasil recognized by Endesa Chile as an equity method investment. 4

5 Balanced Commercial Policy Physical Sales as of March 2014 Chile Colombia Peru Argentina 18% 31% 47% 9% 13% 82% 22% 36% 55% 87% Regulated Unregulated Spot 1% Physical Sales as of March 2013 Chile Colombia Peru Argentina 24% 75% 32% 19% 49% 34% 13% 53% 82% 18% Regulated Unregulated Spot 5

6 Healthy Debt Maturity Profile 2,000 1,800 1,600 1,400 1,200 1, US$ million Financial Debt Maturity 1 Total Debt: US$ 3,845 MM 1, < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other Cash: US$ 556 MM Commited Credit Lines: US$ 485 MM Non-Commited Credit Lines: US$ 345 MM Average life of debt: 6.7 years Debt by Country MM US$) Debt by Type Debt by Currency Peru, 265 Others, 19% UF + CLP, 16% Colombia, Chile, Bank Debt, 14% Other Local Currency, 43% Argentina, 211 Bonds, 67% US$, 50% 1 Includes arrangements and other consolidation adjustments. 6

7 Consistent Cash Flow Generation (US$ million) 1 1,977 1,714 1, (300) (277) (233) (538)(590) (539) (381) (414) (381) (241) (357) EBITDA Net Financial Result Payments for Additions of Fixed Assets Income Tax Free Cash Flow Dividends* Q 2014 TTM *Attributable to each period 1 Amounts translated into US$ at the average exchange rate for each period. * For year 2012, jointly controlled companies are included 7

8 Strong Financial Position Ch$ Million 1Q Q 2013 Change % Change Th US$ 1 1Q 2014 Gross Debt 1,919,545 1,894,496 25,049 1% 3,483 Cash 306, ,807 (17,253) (6%) 556 Net Debt 1,612,990 1,570,689 42,301 3% 2,926 Leverage % 0.94 Financial Coverage (1.59) (45%) 3.56 Credit Risk Ratings Since: Jan Apr Feb BBB+ Baa2 BBB+ Affirmed: Aug Sept Aug Amounts translated into US$ at closing exchange rate for the period (Ch$ per US$) 8

9 Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 1,942 GWh EL CHOCON El Chocón: 1,328 MW Hydro 1,328 MW Million US$ 1Q Q 2013 Change Revenues (25%) EBITDA 5 7 (22%) EBITDA Margin 49.1% 47.2% 4% Physical Sales (GWh) % COSTANERA Costanera: 2,324 MW Thermal 2,324 MW Million US$ 1Q Q 2013 Change Revenues (60%) EBITDA % EBITDA Margin 43.5% 5% - Physical Sales (GWh) 1,487 2,230 (33%) El Chocón Buenos Aires Costanera Based on installed capacity 9

10 Chile Los Molles: Rapel-Sauzal: Maule: Laja: Ralco-Pangue: Tarapaca 18 MW 466 MW 875 MW 940 MW 1,157 MW 182 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2 TG Quintero: Installed Capacity: 5,571 MW Market Share*: 30% Total Generation: 4,062 GWh ENDESA CHILE 478 MW 257 MW 62% Hydro 3,456 MW 36% Thermal 2,028 MW Tarapaca D. Almagro Taltal Huasco San Isidro Bocamina Los Molles Santiago Cachapoal Maule Laja Bio Bio Canela: Canela II: Ojos de Agua: 18 MW 60 MW 9MW 2% NCRE 1 87 MW Million US$ 1Q Q 2013 Change Revenues % EBITDA (42%) EBITDA Margin 12.6% 27.1% (53%) Physical Sales (GWh) 4,822 5,006 (4%) 1 Non Conventional Renewable Energy. Based on installed capacity 10

11 Colombia Installed Capacity: 2,956 MW Market Share*: 20% Total Generation: 2,974 GWh EMGESA Cartagena Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 758 MW Cartagena: 208 MW Termozipa: 236 MW 85% Hydro 2,512 MW 15% Thermal 444 MW Termozipa Bogotá Guavio Betania Río Bogotá Million US$ 1Q Q 2013 Change Revenues (2%) EBITDA % EBITDA Margin 65.1% 61.2% 7% Physical Sales (GWh) 3,678 3,833 (4%) * Based on installed capacity 11

12 Peru Installed Capacity: 1,539 MW Market Share*: 20% Total Generation: 2,080 GWh EDEGEL Cuenca Río Rímac: 556 MW Yanango: 43 MW Chimay: 151 MW 45% Hydro 750 MW Ventanilla: 485 MW Santa Rosa: 304 MW 55% Thermal 789 MW Million US$ 1Q Q 2013 Change Revenues % Ventanilla Lima Río Rimac Yanango Sta Rosa Chimay EBITDA % EBITDA Margin 52.3% 57.5% (9%) Physical Sales (GWh) 2,184 2,270 (4%) * Based on installed capacity 12

13 Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 1,383 GWh Cachoeira: 665 MW CACHOEIRA Hydro 665 MW Fortaleza Million US$ 1Q Q 2013 Change Revenues % Cachoeira EBITDA % EBITDA Margin 73.2% 60.7% 21% Physical Sales (GWh) 1, % CIEN Rio de Janeiro Fortaleza: 322 MW FORTALEZA Thermal 322 MW Million US$ 1Q Q 2013 Change Revenues (1%) EBITDA (13%) EBITDA Margin 24.6% 28.3% (13%) CIEN: Transmission Brazil-Argentina Interconnection Two 500 Km lines Total interconnection capacity: 2,100 MW Million US$ 1Q Q 2013 Change Revenues (12%) EBITDA % EBITDA Margin 80.5% 68.7% 17% Physical Sales (GWh) (11%) *Based on installed capacity 13

14 Projects under construction El Quimbo Hydro power plant. Located in the Huila Department, Colombia Utilizes stream coming from Magdalena River. 400 MW of installed capacity. Estimated load factor: 60%. River detour in March

15 Projects under construction Salaco Chain (optimization) Repowering the minor plants to reach 221 MW capacity. Located in the Bogotá River system, Colombia Optimization works started in January MW will be added to the capacity. As of March 31, 2014, 2 repowered units have been commissioned, adding 42 MW of hydro installed capacity 15

16 Investments recently approved Los Cóndores Hydro power plant, run of the river. Located in San Clemente, in Maule region, Chile. 150 MW of installed capacity. Estimated load factor: 46% FID 1 approved on March 31, Gas Atacama Thermal power plant, Gas - CCGT Located in Mejillones, in Atacama region, Chile. 780 MW of installed capacity. Estimated load factor: 46% FID 1 approved on March 31, 2014 to buy the 50% outstanding non controlling stake. 1 Final Investment Decision. 16

17 Expected Evolution for Endesa Chile Installed Capacity 22% increase over March 2014 installed capacity Taltal MW Los Cóndores MW Curibamba MW Punta Alcalde MW Neltume MW GasAtacama MW El Quimbo MW Salaco 145 MW 13,717 13,717 13,717 13,717 March Under Construction Acquisition of Non- Controlling Interest In Basic Engineering 17

18 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) gabb@endesa.cl Contact us at: ir@endesa.cl 18

19 EXHIBITS 19

20 Installed Capacity and Energy Generation MW CHILE COLOMBIA PERU ARGENTINA TOTAL Total 5,571 2,956 1,539 3,652 13,717 Installed Capacity (MW) HYDRO 3,456 2, ,328 8,046 COAL OIL-GAS 1, ,324 4,688 CHP / RENEWABLES Gwh / Change 2 CHILE COLOMBIA PERU ARGENTINA TOTAL TOTAL 4,062 (16%) 2,974 (1%) 2,080 (5%) 1,942 (26%) 11,058 (13%) Net Generation (GWh) HYDRO 2,241 5% 2,749 2% 1,138 (10%) 487 7% 6,615 1% COAL 434 (61%) 218 (23%) - 0% (53%) OIL-GAS 1,332 (13%) 7 (80%) 942 3% 1,455 (33%) 3,737 (20%) CHP / RENEWABLES 54 (6%) (6%) 1 Compared with 1Q

21 Balanced Debt Maturity in each country Financial Debt Maturity 1 US$ million Balance TOTAL Chile ,770 Argentina Peru Colombia ,175 1,599 TOTAL ,079 3,845 1 Includes arrangements and other consolidation adjustments. 2 May not total exactly due to roundness 21

22 Projects Under Study Punta Alcalde Thermal, coal-steam power plant. Located in Huasco, in the Atacama region (SIC), Chile. 740 MW of installed capacity. Estimated load factor: 83% On Jan 17, 2014, the Supreme Court of Chile reaffirmed the approval of the EIS 1, in line with the ruling of the Ministers Committee on Dec 3, Taltal (Conversion) Closure to upgrade the existing LNG power plant. Conversion to Combined Cycle. Located in the Antofagasta region (SIC), Chile. 120 MW will be added to the current 245 MW capacity. EIS 2 submitted for approval in Dec Environmental Impact Study. 2 Environmental Impact Statement. 22

23 Projects Under Study Neltume Hydro power plant, run of the river. Located in Panguipulli, in Los Ríos Region (SIC). 490 MW of installed capacity. EIS 1 under review. Curibamba Hydro power plant, run of the river. Located in the Junín Department, utilizes streams coming from the Comas and Uchubamba Rivers. 188 MW of installed capacity. EIS 1 approved. 1 Environmental Impact Study. 23

24 Projects Under Study HidroAysén Hydro power plants located in Aysén Region. Endesa Chile owns 51% and Colbún 49%. 2,750 MW of installed capacity Average load factor: 77%. EIS 1 approved the generation plants (5). 1 Environmental Impact Study. 24

25 This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Endesa Chile and its management with respect to, among other things: (1) Endesa Chile business plans; (2) Endesa Chile cost-reduction plans; (3) trends affecting Endesa Chile financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Endesa Chile Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forwardlooking statements, which state only as of their dates. Endesa Chile undertakes no obligation to release publicly the result of any revisions to these forwardlooking statements. 25