Engro Powergen Qadirpur Limited September 11, 2014...Deal Summary Offerors Engro Corporation Limited...
Transcript of Engro Powergen Qadirpur Limited September 11, 2014...Deal Summary Offerors Engro Corporation Limited...
Engro Powergen Qadirpur Limited
September 11, 2014
Deal Summary
EPQL Ownership Structure
84%
10%
5% 1%
Existing Structure
Engro Powergen Limited
Engro Corp
IFC
Employees
69%
25%
5% 1%
New Structure Engro Powergen Limited
Institutional Investors & General Public
IFC
Employees
Deal Summary
Engro Corporation Limited & Engro Powergen Limited Offerors
Ordinary Shares of the Engro Powergen Qadirpur Limited (“EPQL” / “Company”) Security
40.475 mn Ordinary Shares of the Company (12.5% of the total paid-up capital) Public Offer
22nd to 24th September 2014 Subscription Date
Issue Breakdown Private Placement - 40.475 mn Shares / Public Portion – 40.475 mn Shares
PKR 30.02 per share Price
Advisor & Arrangers Habib Bank Limited and Bank Alfalah Limited
Karachi Stock Exchange Limited Listing Avenue
161 Million
MMBTU
29 Million Barrels
of Oil $3*
Billion
Before Engro Powergen Qadirpur Limited…
…this flame had been burning gas for more than 15 years!
All this was being wasted!
*Based on current price of oil
Key Milestones
Sep 2006
Feasibility approved by
PPIB
Feb 2007
Tariff Determined by NEPRA
Jul 2007
Generation License
issued by NEPRA
Oct 2007
PPA & IA signed
Apr 2008
GSA signed
Oct 2008
Loan disbursement
27th March 2010
COD Achieved
Achieved Commercial
Operations Date three months ahead of target.
Unmatched completion in the
power sector
First project on foreign financing under 2002 policy
Debt = 75% Equity = 25%
Total Project Cost $194 Mn
Gross Capacity = 224.8 MW
Plant Configuration = 1GT + 1HRSG + 1ST
GSA with SNPGL and 25 Years
PPA with NTDC
Avg Billable Availability Factor =
99%*
Avg Load Factor = 90%*
*Excluding Rotor Event
VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Use of permeate gas which was previously flared
• Significantly lower risk of gas curtailment
VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team • Gas based projects are one of
the cheapest sources of power
• High in NEPRA’s dispatch merit order (ranked 15th out of 76 - FY13)
VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team • 15% return pegged to US Dollar
• Indexation provides hedging
against Interest rate & Inflation
• Variation in fuel price is pass through
VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Last 4 years average dividend of PKR 3.53 per share
• Equity returns will increase in
line with depreciation of PKR/US$
VALUE PROPOSITION
Unique Source of
Fuel Supply
Among the Low Cost
Power Producers
Indexed and Predetermined
Returns
Strong Dividend
Yield
Experienced Management
Team
• Hired top tier talent from the Industry
• Successfully conducted rotor repair on site, well within expected time
Financial Information
2.86 3.55
6.17
1.54
CY10* CY11 CY12 CY13 1H14
922 1,149
1,998
499
CY10 CY11 CY12 CY13 1H14
1,111
1,786 2,101
1,458 1,088
CY10 CY11 CY12 CY13 1H14
Total Dividend – PKR Mn
Dividend Per Share – PKR
Net Income – PKR Mn
Financial Highlights – PKR Million
Earnings Per Share – PKR
* CY10 was the first year of Operations
3.47
5.58 6.49
4.5
3.36
CY10 CY11 CY12 CY13 1H14
Questions and Answers