THAILAND FOCUS 2016 - listed...
Transcript of THAILAND FOCUS 2016 - listed...
CK POWER PUBLIC COMPANY LIMITED
THAILAND FOCUS 2016 : A NEW GROWTH STRATEGY
Company Overview
Financial Highlights
Industry Outlook
Looking Forward
AGENDA
Page 2
Our Group: Infrastructure Oriented
• Infrastructure Oriented
• Transportation System
• Tap Water Supply
• Electricity Supply
• Ultimate Parent Company
as the EPC contactor
Remark : Shareholding percentage as of June 29, 2016
Bangkok Expressway and Metro Public CompanyLimited (BEM)
TTW PublicCompany Limited(TTW)
Ch. KarnchangPublic CompanyLimited (CK)
Public
CK Power30.2480%
19.4023% 25.3140%
25.0357%
28.16% 19.40%
Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW
SouthEast Asia EnergyCompany Limited(SEAN)
Bangpa-in Cogeneration Company Limited (BIC)• BIC 1• BIC 2
Nam Ngum 2 Power Company Limited(NN2HPP)
Bangkhenchai Company
Limited (BKC)
Chiangrai Solar
Company Limited
(CRS)
Nakorn Ratchasima
Solar Company Limited
(NRS)
75%
65%
100%
30%
30%
Xayaburi Power
Company Limited(Xayaburi HPP)
56% 30%
Page 3
Well Diversified Portfolio
CKP
Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW
- BIC Phase 1
- BIC Phase 2
NN2HPP XayaburiHPP
BIC 1 BIC 2 BKC CRS NRS
Operation
Jan 2013
42%1/
615
258
Construction
Oct 2019
30%
1,285
385
Operation
Jun 2013
65%
118
76
Construction
Jun 2017
65%
120
78
Aug 2012
100%
8
8
Operation
Jan 2013
30%
8
2
Mar 2012
30%
6
2
COD/SCOD
CKP’s shares
Capacity MW
Equity MW
Remark : 1/ CKP owns 56% in SEAN which holds 75% in NN2.
Total Capacity MW = 2,160 MW Total Equity MW = 810 MW
Page 4
Asset Location
1
3 5 4
62
1
3
4
5
6
2
Ayutthaya, ThailandBangpa-in Cogeneration Power Project (BIC)
• BIC 1• BIC 2 (Under Construction)
Vientiane, Lao PDR Nam Ngum 2 Hydroelectric Power Project (NN2HPP)
Nakhon Ratchasima, Thailand
Solar Power Plant Project of
Bangkhenchai (BKC)
Chiang Rai, Thailand
Solar Power Plant Project of Chiangrai
Solar (CRS)
Nakhon Ratchasima, Thailand
Solar Power Plant Project of Nakorn
Ratchasima Solar (NRS)
Xayaburi, Lao PDRXayaburi Hydroelectric Power Project(Xayaburi HPP)(Under Construction)
12%Thailand88%
Lao PDR
CK Power’s Total Capacity MW
By Country
2,160 MW
Page 5
3,802 3,8384,097 3,967 3,883
Revenue (Secondary Axis)
1,971 2,218 2,314 2,218 2,152
1,043 988
154 92 95 16 41654 101
151 88
2011(Mar-Dec) 2012 2013 2014 2015 1H2015 1H2016PE SE EE
Electricity Sold and Revenue
(Unit: GWh)
1,8171,854
2/
(Unit: MB.)
In Operation : NN2HPP Type
Hydroelectric Power Project• Storage Dam
IOD March, 2011
COD January, 2013
Concession Period
25 years from COD with the GOL
Power Purchase Agreement
• 615 MW with EGAT• 25 years from COD with EGAT• Take or Pay
Power Generation
• Installed Capacity 615 MW (3x205 MW)
• Annual Supply Target 2,310 GWh plus Excess Energy
• PE 2,218 GWh per year
• SE 92 GWh per year
Shareholders • SEAN 75% • EdL-Gen 25%
Shareholders of SEAN
• CK Power 56%• RATCH 33%• Others 11%
Tariff Structure
YearPE Tariff
SE Tariff
EE Tariff
USD / kWh
THB / kWh
THB /kWh
THB / kWh
IOD 0.02475 0.963 1.253 1.060COD Date + 6 years after COD
0.02475 0.965 1.255 1.062
Thereafter 0.02668 1.041 1.353 1.062
1/
3/
4/
Remarks : Initial Operation Date (IOD) / Commercial Operation Date (COD)Government of Lao PDR
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
-
50
100
150
200
250
300
350
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Electricity2014 Electricity2015 Electricity2016
Inflow2014 Inflow2015 Inflow2016
PE : 230 GWhSE : 5 GWh
PE : 240 GWhSE : 40 GWh
Monthly Electricity Sale and Water Inflow
GWh MCMTotal Inflow for 1H2015 = 902 MCMTotal Inflow for 1H2016 = 1,036 MCM
1/
2/
3/
4/Electricite du Laos Ratchaburi Electricity Generating Holding Public Company LimitedPage 6
2/
332
647 636
321 304
44
114 123
56 68
1,289
2,716 2,578
0
500
1,000
1,500
2,000
2,500
3,000
-
100
200
300
400
500
600
700
800
2013(Jun-Dec) 2014 2015 1H2015 1H2016
EGAT Ius Revenue (Secondary Axis)
24,442
94,328 97,312
47,939 47,558
21
80 77
0
10
20
30
40
50
60
70
80
90
-
20,0 00
40,0 00
60,0 00
80,0 00
100 ,000
120 ,000
2013(Jun-Dec) 2014 2015 1H2015 1H2016
Steam Revenue (Secondary Axis)
EGATIUs
3.48 3.57 3.39 3.47 3.013.46 3.56 3.44 3.48 3.26
842.45 850.15 785.60 811.07 656.14
In Operation : BIC 1
(Unit: MB.)
1,1361,308
Type Gas-fired Cogeneration
COD-BIC 1SCOD-BIC 2
• June 2013• June 2017
Concession Period
25 years from COD
Power Purchase Agreement
• 90 MW with EGAT (Min. Take or Pay with gas price pass-through mechanism)
• Selling the rest of electricity and steam to industrial estate users
Shareholders of BIC
• CK Power 65%
• GPSC 25% • Others 10%
Installed Capacity
BIC 1• 118 MW of electricity• 20 tons per hour of
steamBIC 2• 120 MW of electricity• 20 tons per hour of
steam
(Unit: Ton)
Electricity Production Steam Production
(Unit: GWh) (Unit: MB.)
3139
Remarks : Global Power Synergy Public Company Limited
1/
Average Tariff (THB/kWh)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
-
10
20
30
40
50
60
70
80
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Electricity2014 Electricity2015 Electricity2016 Steam2014 Steam2015 Steam2016
GWh Ton
Monthly Electricity and Steam Production
Average Steam Price (THB/Ton)
1/
Page 7
In Operation : BKC
5,665
14,001 14,077 13,979
7,172 6,859
65
160 163 158
020406080100120140160180
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2012(Aug-Dec) 2013 2014 2015 1H2015 1H2016
Electricity Revenue (Secondary Axis)
Type Ground-mounted Solar Farm
COD August 2012
Concession Period
5 years from COD with automatic renewal
Power Purchase Agreement
• Provincial Electricity Authority (PEA)
• Adder: 8 Baht / kWh for 10 years from COD
Shareholders of BIC CK Power 100%
Capacity 8 MW (Unit: GWh) (Unit: MB.)
7682
Monthly Electricity Production and Irradiation
Electricity Production
Average Tariff (THB/kWh)11.4740 11.4278 11.6482 11.4537 11.4759 11.2225
-
1
2
3
4
5
6
7
-
200
400
600
800
1,000
1,200
1,400
1,600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Electricity2014 Electricity2015 Electricity2016 Irradiation2014 Irradiation2015 Irradiation2016
MWh kWh/m2
Monthly Electricity Production and Irradiation
Page 8
Under Construction : BIC 2
Type Gas-fired Cogeneration
SCOD June 2017
Concession Period
25 years from COD
Installed Capacity
• 120 MW of electricity• 20 tons per hour of steam
Power Purchase
Agreement
• 90 MW with EGAT (Min. Take or Pay with gas price pass-through mechanism)
• Selling the rest of electricity and steam to industrial estate users
62.02%
0% 20% 40% 60% 80% 100%
June 2017Work Progress as of June 2016
March 2016
21.74%
June 2016 +40.28%
Overview of BIC 2
Page 9
BIC 2: Work Progress
Total increase in work progress
March 201621.74%
+40.28%
June 201662.02%
1 ) Erection gas turbine package
2 ) Fan Blade installation at Cooling Tower.3-4 ) Pipe line main cooling water
supply on main pipe rack
1 2
3 4
Picture Caption
Page 10
Under Construction : Xayaburi HPP
Type Run-of-River
SCOD October 2019
Concession Period
31 years from COD
Annual Energy
Production7,370 GWh
Installed Capacity
1,285 MW
Power Purchase
Agreement
• Turbines 7x175 MW = 1,220 MW with EGAT
• Turbines 1x60 MW = 60 MW with EDL
• Take or Pay
Average monthly inflow
3,980 cubic meters per second
Maximum operating
level+275 m asl.
66.69%
0% 20% 40% 60% 80% 100%
October 2019Work Progress As of June 2016
March 2016
60.72%
June 2016 +5.97%
Overview of work area at upstream view
Perspective of Xayaburi HPP
Page 11
Xayaburi HPP: Work Progress
Total increase in work progress
March 201660.72%
+5.97%
June 201666.69%
1-2 ) Installation of draft tube3-5 ) Rebar and Formwork works at
Powerhouse
1 2
3 4 5
Picture Caption
Page 12
82%
66%56% 55%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
EBITDA Margin
59%
38%
3%
Revenue from Hydro Power Plant Revenue from Solar Power Plant Revenue from Cogeneration Power Plant
56% 54%
CK Power : Performance to Date
2,578
5,633 7,027 6,851
3,357 3,113
2,122
3,694
3,960 3,762
1,884 1,673 57
384
410 374
175109
55
219
472 412
215110
2012 2013 2014 2015 1H2015 1H2016
Revenue EBITDA Net Profit to Non-controlling interests Net Profit to Equity holders
Revenue CAGR 39%
(Y2012 – Y2015)
CK Power’s Performance
Unit: MB.
1,043
376
7
1,427
991
372
7
1,370
NN2 BIC 1 BKC Total
1H2015 1H2016
Electricity Sales Volume
Unit: GWh
97%
3%
58%
40%
2%
74%
23%
3%
59%
39%
2%
20122,512 MB.
20135,568 MB.
20146,942 MB.
20156,697 MB.
1H20153,244 MB.
1H20163,061 MB.
57%
40%
3%
Combination of Revenue from Sales of Electricity and Steam
Page 13
CK Power : Financial Position
Interest Bearing Debt
4,455
15,354
3,783
2,630 464
CKP NN2 BIC 1 BIC 2 BKC
Cost of debt (2Q2016) = 4.54%D/E Ratio = 0.86x
Net-interest Bearing Debt/Equity = 0.56x
2Q2016 (MB.)
Including $ 133M
Unit: MB.
470
16,229
3,863
922 503
CKP NN2 BIC1 BIC2 BKC
Cost of debt (2015) = 4.82%D/E Ratio = 0.72x
Net-interest Bearing Debt/Equity = 0.53x
2015 (MB.)
Including $ 140M
Financial Position
Unit: MB.
22,273 25,414 26,10331,812 31,844
22,881 25,068 23,224
22,754 27,492
45,154
50,482 49,327
54,566
59,336
2012 2013 2014 2015 as at June 30, 2016
Total shareholder's equity Total liabilities Total assets
CAGR 7%(Y2012 – Y2015)
Page 14
Neighboring Countries in Focus: Lao PDR
• Lao PDR to be “the battery of Asia”
• A theoretical hydroelectric potential of about 26,500 MW excluding the mainstream Mekong 1/
• MOU 7,000 MW with Thailand 2/
Source:1/ http://www.poweringprogress.org/ Department of Energy Business2/ under negotiation to increase to 10,000 MW
Status Project TypeContracted Capacity
(MW)
In Operation
Theun-Hinboun HPP Hydro 434
Houy Ho HPP Hydro 126
Nam Theun 2 HPP Hydro 948
Nam Ngum 2 HPP Hydro 597
Hongsa 1-2 Lignite 2 x 491
Hongsa 3 Lignite 491
Under Construction
Nam Ngiep 1 (2019) Hydro 269
Xe Pian Xe Namnoy(2019)
Hydro 354
Xayaburi HPP (2019) Hydro 1,220
MOU Stage Nam Theun 1 HPP Hydro 525
Total 5,946
Page 15
Source: http://www.poweringprogress.org/
1 2
3
4
5 6
7
8
910
11
Project
Capacity (MW)
Construction Planned
1. Pak Beng 1,230
2. Luang Prabang 1,410
3. Xayaburi HPP 1,285
4. Pak Lay 1,320
5. Sanakham 570
6. Pak Chom 1,079
7. Ban Khoum 2,000
8. Lat Sua 800
9. Don Sahong 360
10. Stung Treng 980
11. Sambor 460
Total 1,285 10,209
Neighboring Countries in Focus: Lao PDR
Abundant water resource on the mainstream Mekong River
Page 16
Industry Outlook: Myanmar
River BasinsDeveloped
capacity (MW)
Under construction
(MW)
Under processing
(MW)
Potential future
projects (MW)
Total of each
basins (MW)
AyeyarwadyUpper
AyeyarwadyLower
Ayeyarwady
1,870149
2,056150
15,200-
6,000-
25,126299
Chindwin - - 380 1,860 2,240
Sittaung 810 - 260 - 1,070
Thanlwin 302 81 15,395 765 16,543
Others 20 111 521 1,512 2,164
Total 3,151 2,398 21,756 10,137 47,442
Source: Department of Hydropower Implementation, Myanmar
Ch
ind
win
Riv
er
Than
lwin
Rive
r
Abundant Water Resource in the Major River Basins
• A hydroelectric potential of about 108,000 MW • MOU 1,500 MW with Thailand
Page 17
Year Solar Others Total
2014 1,299 6,191 7,490
2036 6,000 13,634 19,634
Industry Outlook: Domestic
Source: Thailand’s Power Development Plan 2015
41%
35%
12%
6% 6%
64%
20%
8%7% 1%EGAT
IPP
SPP
Imported & Exchange
TOTAL 37,612 MW
Power Generation by Producers
Natural Gas
Clean Coal
Renewable Energy
ImportedHydro
Diesel /Fuel Oil
Power Generation by Fuel Type
VSPP
Unit: MW PDP2015
Installed capacity at the end of 2014 37,612
New installed capacity 57,459
Retired (24,736)
Installed capacity at the end of 2036 70,335
PDP2015
Fuel Type Sep 2014(percentage)
Sep 2026(percentage)
Sep 2036(percentage)
Imported Hydro 7 10-15 15-20
Clean Coal (including Lignite)
20 20-25 20-25
Renewable 8 10-20 15-20
Natural Gas 64 45-50 30-40
Nuclear - - 0-5
Diesel/Fuel Oil 1 - -
TOTAL 100 100 100
Thailand’s Current Installed Capacity
Target Fuel Mix at the End of PDP 2015
Thailand’s planned installed capacity at the end of PDP 2015
Remark: 1/ Others renewable include Wind, Hydro, Waste, Biomass, Biogas, Energy Crops
Page 18
CKP in the Next 5 Years
Thai
lan
d • BIC-2: on time COD and in budget
• PDP2015: more renewable power projects, especially the ground-mounted solar power projects (at least new 100MW)
Lao
PD
R • XPCL: on time COD and in budget while taking into accounts the valid concerns from stakeholders
• Additional concessions: large-scale hydroelectric power projects
Mya
nm
ar • In-depth understanding: country and associated risks
• Materialization of new projects: focusing on hydroelectric power projects.
Page 19
Looking ForwardCKP Solid Project Pipeline and Strong Growth Plan during 2016 - 2020
Y 2016
Operating : 755 MW
Hydro :• NN2 615 MW
Cogeneration : BIC1
• Electricity 118 MW• Steam 20 tonsSolar : • BKC 8 MW• CRS 8 MW• NRS 6 MW
Y 2017 – 2018
Operating : 875 MW
New Capacity :
• Electricity 120 MW• Steam 20 tons
(June 2017)
Y 2019 – 2020
Operating : 2,320 MW
New Capacity :
• 1,285 MW
Xayaburi HPP
Y 2020 Onward
Target : 5,000 MW
Potentials :
• Hydro Power Projects from Cross-Border
• Domestic Power Projects
BIC 2
(October 2019)
• A fair return
• A sustainable growth
• A good corporate citizen
• A social & environmental friendly corporation
Commitment to Our Shareholders
Page 20
CKP’s Core Strength
CK Power
Expertise in Hydro & In-depth experience in other technology
Ability to Raise Funds(Hold Co., Project
Co, and Supportfrom major shareholders)
Relationship with Government Entities (Thailand and Lao PDR)
CK as an EPC Contractor
(>40 yrs experience)
Page 21
INVESTOR RELATIONS DIVISION
0 2691 9720 Ext. 13
http://www.ckpower.co.th
Disclaimer
The information contained in this presentation is intended solely for your personal reference only. This presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this presentation. Some statements made in this presentation are projections and forward-looking statements, with respect to CK Power Public Company Limited’s (CKP) corporate plans, strategies and beliefs and other statements that are not historical facts and are subject to various risks and uncertainties. These statements can be identified by the use of forward-looking terminology such as “may” , “will” , “expect” , “anticipate”, “intend” , “estimate” , “continue” “plan” or other similar words. The statements are based on the assumptions and beliefs of CKP’s management in light of the information currently available to CKP. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or should be relied on as a promise or representation of CKP as to the future.
THANK YOU
Page 22