Endesa Chile 9M14 Results

Transcription

1 Endesa Chile 9M14 Results October 29th 2014

2 Highlights Operating revenues increased 24%, mainly due to higher energy sales in Chile, Colombia and Peru. Hydro generation increased 12% due to better water availability in Chile, Colombia and Argentina. Operating costs increased by 37% due to higher energy purchases in Chile. Consolidated EBITDA increased by 14%. Net Income attributable to Endesa Chile s shareholders decreased 11%, primarily due to higher tax payments and a larger negative foreign currency exchange translation. Consolidated generation declined only 1% in spite of Bocamina II stoppage 2

3 Consolidated financial highlights Ch$ million 1 9M14 9M13 Change MM US$ 2 9M14 Revenues 1,809,886 1,460,088 24% 3,226 Costs (863,812) (631,325) 37% (1,539) Contribution Margin 946, ,763 14% 1,686 EBITDA 771, ,770 14% 1,374 EBIT 621, ,508 18% 1,108 Net Financial Expenses (130,923) (111,941) 17% (233) Related Company Results 44,404 81,394 (45%) 79 Taxes (187,785) (140,989) 33% (335) Net Income 390, ,226 9% 697 Attributable to shareholders of Endesa Chile 188, ,028 (11%) Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 Referential average exchange rate was Ch$/US$ as of September 30,

4 Diversified source of EBITDA Total Installed Capacity 1 : 14,572 MW Total Generation 1 (TTM): 50,864 GWh Argentina 25% Chile 44% Argentina 21% Chile 35% Peru 10% Peru 17% Colombia 21% EBITDA 9M14 (TTM): US$ 1,918 million Peru 17% Argentina 6% Chile 31% Colombia 27% Endesa Brasil Endesa Chile s ownership: 37.1%. Net Attributable Income (TTM) 2 : US$ 112 million. Colombia 46% 1 Excludes the proportional assets of 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 September 2014 Chile Colombia Peru Argentina 19% 3% 7% 9% 33% 47% 38% 55% 78% 20% 91% Distribution Companies Free Customers Spot Physical Sales as of September 2013 Chile Colombia Peru Argentina 4% 10% 16% 21% 29% 75% 19% 52% 37% 53% 84% Distribution Companies Free Customers Spot 5

6 Healthy debt maturity profile 2,500 2,000 1,500 1, US$ million Financial Debt Maturity 1 as of September 2014 Total Debt: US$ 4,212 MM ,364 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other 108 Cash: US$ 600 MM; (US$ 635 MM including >90 days cash investments) Committed Credit Lines: US$ 473 MM Non-Committed Credit Lines: US$ 327 MM Average life of debt: 7.2 years Debt by Country (MM US$) Peru 7% Debt by Type Debt by Currency Others 16% UF + CLP 4% Colombia 42% Chile 46% Bank Debt 9% US$ 52% Other Local Currency 44% Argentina 5% 1 Includes arrangements and other consolidation adjustments. Bonds 75% 6

7 Consistent consolidated cash flow generation (US$ million) 1 1,770 1,918 1, (266) (248) (278) (465) (528) (336) (331) (370) (449) EBITDA Net Financial Expenses Payments for Additions of Fixed Assets Income Tax Free Cash Flow *Attributable to each period M 2014 TTM 1 Amounts translated into US$ at the average exchange rate for each period. * For year 2012, jointly controlled companies are included 7

8 Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 7,332 GWh EL CHOCON El Chocón: 1,328 MW Hydro 1,328 MW Million US$ 9M M 2013 Change Revenues (9%) EBITDA % EBITDA Margin 55.0% 42.9% 28% Physical Sales (GWh) 2,698 2,335 16% Costanera: 2,324 MW *Based on installed capacity COSTANERA Thermal 2,324 MW Million US$ 9M M 2013 Change Revenues (9%) EBITDA % EBITDA Margin 41.5% 24.4% 70% Physical Sales (GWh) 5,301 6,289 (16%) El Chocón Buenos Aires Costanera 8

9 Chile Los Molles: Rapel-Sauzal: Maule: Laja: Ralco-Pangue: GasAtacama Tarapaca 18 MW 466 MW 875 MW 940 MW 1,157 MW 780 MW 182 MW D. Almagro Taltal: 268 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2: TG Quintero: Canela: Canela II: Installed Capacity: 6,351 MW Market Share*: 32% Total Generation: 12,995 GWh Ojos de Agua: ENDESA CHILE 478 MW 257 MW 8 MW 60 MW 9MW 54% Hydro 3,456 MW 44% Thermal 2,808 MW 2% NCRE 1 87 MW Tarapacá GasAtacama D. Almagro Taltal Huasco San Isidro Bocamina Los Molles Santiago Cachapoal Maule Laja Bio Bío Million US$ 9M M 2013 Change Revenues 1,581 1,245 27% EBITDA (14%) EBITDA Margin 23.3% 34.5% (32%) Physical Sales (GWh) 15,063 14,725 2% 1 Non Conventional Renewable Energy. *Based on installed capacity 9

10 Colombia Installed Capacity: 3,041 MW Market Share*: 21% Total Generation: 10,467 GWh EMGESA Cartagena Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 843 MW Cartagena: 208 MW Termozipa: 236 MW 85% Hydro 2,597 MW 15% Thermal 444 MW Termozipa Bogotá Guavio Betania Río Bogotá Million US$ 9M M 2013 Change Revenues 1, % EBITDA % EBITDA Margin 67.4% 62.9% 7% Physical Sales (GWh) 12,140 12,103 0% *Based on installed capacity 10

11 Peru Installed Capacity: 1,528 MW Market Share*: 19% Total Generation: 6,550 GWh EDEGEL Cuenca Río Rímac: 561 MW Yanango: 43 MW Chimay: 151 MW 49% Hydro 755 MW Ventanilla: 485 MW Santa Rosa: 288 MW 51% Thermal 773 MW Million US$ 9M M 2013 Change Revenues % Ventanilla Lima Río Rimac Yanango Sta Rosa Chimay EBITDA % EBITDA Margin 51.5% 53.7% (4%) Physical Sales (GWh) 6,929 6,646 4% *Based on installed capacity 11

12 Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 3,825 GWh Cachoeira: 665 MW CACHOEIRA Hydro 665 MW Fortaleza Million US$ 9M M 2013 Change Revenues % Cachoeira EBITDA % EBITDA Margin 53.2% 74.9% (29%) Physical Sales (GWh) 3,044 2,694 13% CIEN Rio de Janeiro Fortaleza: 322 MW FORTALEZA Thermal 322 MW CIEN: Transmission Brazil-Argentina Interconnection Two 500 Km lines Total interconnection capacity: 2,100 MW Million US$ 9M M 2013 Change Revenues % EBITDA (23%) EBITDA Margin 19.7% 31.8% (38%) Million US$ 9M M 2013 Change Revenues % EBITDA % EBITDA Margin 80.6% 67.8% 19% Physical Sales (GWh) 2,323 2,431 (4%) *Based on installed capacity 12

13 Projects under construction Colombia El Quimbo Hydro power plant, located in the Huila Department, Colombia Utilizes the flow coming from the Magdalena River. 400 MW of installed capacity with an estimated load factor of 60%. 79% complete as of Sept 30, 2014 with an accumulated investment of US$777 million 1 Beginning the work to prepare the bottom of the reservoir and build the Tesalia Substation. 1 Constant USD of year

14 Projects under construction Colombia Salaco Chain (optimization) Upgrading the minor plants to reach 221 MW capacity. Located in the Bogotá River system, Colombia. Total CAPEX of US$ 44 million. Optimization works started in January MW will be added to the capacity. As of September 30, 4 units had come into service, adding a net total of 128 MW and 176 Gwh of hydro generation. 14

15 Investments recently completed Purchase of additional 50% stake of GasAtacama Thermal power plant, Gas CCGT (6 units) 780 MW of installed capacity. Located in Mejillones, Atacama region, Norther Chile (SING system). Estimated load factor: 46% GasAtacama also has a 941 km gas pipeline, 530 km in Argentina and 411 km in Chile. In addition, the 226 km long Taltal lateral pipeline, carries natural gas to our Taltal thermal plant. Attractive investment Endesa Chile became the controller of GasAtacama (98%). Enhanced the role of the Company by reaching 20% market share of installed capacity in the SING system. Possibility of permanent gas supply through Endesa Chile and its own regasification infrastructure. Positive outlook regarding a likely interconnection between SIC and SING systems. 15

16 Projects under construction Chile 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, Total CAPEX of US$ 662 million. Estimated generation of 600 GWh/year. Permits Gx: EIA (Environmental Impact Study) approved in April 2008, DIA (Environmental Impact Statement) approved in November Tx: EIA (Environmental Impact Study) approved in May POH (Hydro works permit) approved in November Maule's irrigators claim was presented in January 2014 and an agreement was reached in February Current Status Civil works: Began the first topographical work in the falls area and facilities work in Los Maitenes. Finished the rescue and relocation of flora and fauna. Engineering Basic Gx Engineering completed. Basic Tx Engineering completed Los Cóndores 1 Final Investment Decision. 16

17 Expected evolution for Endesa Chile s installed capacity 22% increase in installed capacity through new projects Hydro plant Thermal plant 815 MW Curibamba MW Punta Alcalde MW Salaco- 145 MW Los Cóndores MW El Quimbo- 400 MW Taltal MW Neltume MW GasAtacama- 780 MW 13,717 13,717 13,717 13,717 March Acquisition of Non- Controlling Interest April Under Construction In basic enginering Under study In March 2014, Endesa Chile s Board of Directors approved the acquisition of the remaining 50% interest in GasAtacama, adding 780 MW of installed capacity since April

18 Summary Better Operations Results for the first nine months 2014 Diversified portfolio Hydrology Bocamina II temporary Shutdown Net Income was affected by Non Operating effects Tax reform in Chile Investments 18

19 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56) susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56) cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56) gabb@endesa.cl Francisco Basauri Investor Relations Executive (56) fbasauri@endesa.cl Contact us at: ir@endesa.cl 19

20 EXHIBITS 20

21 Strong financial position Ch$ Million 9M M 2013 Change % Change Th US$ 1 9M 2014 Gross Debt 2,343,956 1,894, ,460 19% 3,912 Cash 360, ,807 36,931 10% 602 Net Debt 1,983,218 1,570, ,529 21% 3,310 Leverage * % 1.00 Financial Coverage (0.20) (4%) Amounts translated into US$ at closing exchange rate for the period (Ch$ per US$) * Financial ratio for the Year End

22 Installed capacity and energy generation Installed Capacity (MW) MW CHILE COLOMBIA PERU ARGENTINA TOTAL HYDRO 3,456 2, ,328 8,136 COAL OIL-GAS 2, ,324 5,478 NCRE Total 6,351 3,041 1,528 3,652 14,572 Gwh / Change 1 CHILE COLOMBIA PERU ARGENTINA TOTAL HYDRO 7,831 15% 9,741 12% 3,330 (2%) 2,101 38% 23,002 13% Net Generation (GWh) COAL 1,082 (64%) 674 (4%) - 0% - - 1,756 (53%) OIL-GAS 3,939 (15%) 52 (34%) 3,221 11% 5,231 (11%) 12,443 (8%) NCRE % (38%) Total 12,995 (11%) 10,467 9% 6,550 4% 7,332 (1%) 37,343 (1%) 1 Compared with 9M

23 Healthy debt maturity profile in each country Financial Debt Maturity 1, as of September 2014 US$ million Balance TOTAL Chile ,227 1,930 Argentina Peru Colombia ,430 1,794 TOTAL ,703 4,212 1 Includes arrangements and other consolidation adjustments. 2 May not total exactly due to rounding. 23

24 Projects under study Chile 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 January 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, Estimated generation of 5,368 GWh/Year. Chile Taltal (Conversion) Closure to upgrade the existing LNG power plant, to a Combined Cycle Gas Turbine Power Plant. 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. 24

25 Projects under study Chile Neltume Hydro power plant, run of the river. Located in Panguipulli, in the Los Ríos Region (SIC). 490 MW of installed capacity. EIS 1 under review. Load Factor: 44%. Estimated generation of 1,885 GWh/Year. Perú Curibamba Hydro power plant, run of the river. Located in the Junín Department, utilizes the flow coming from the Comas and Uchubamba Rivers. 188 MW of installed capacity. EIS 1 approved. Load Factor: 63% with an estimated generation of 1,060 GWh/Year. 1 Environmental Impact Study. 25

26 Projects under study Chile HidroAysén Hydro power plants located in Aysén Region. Endesa Chile owns 51% and Colbún 49%. 2,750 MW of installed capacity. Estimated average load factor: 77%. On June 10 th 2014, the Ministers Committee revoked the EIS 1 previously approved for the five generation plants. HidroAysén was officially notified about the resolution on July 15th On August 13 th 2014, HidroAysén appealed to the Environmental Court of Santiago. Currently HidroAysén is examining all possible alternatives in order to restore the value of the project. 1 Environmental Impact Study. 26

27 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. 27