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8/11/2019 ENEVA Corporate Presentation ? August 2014
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August, 2014
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Company Overview
1
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One of the largest private sector power generators in Brazil
ENEVA currently operates 2.4GW in coal and gas-fired power plants (2.9 GW until
Integrated energy platform, with privileged access to natural resources
Only private power generator in Brazil with access to onshore gas
Ongoing restructuring initiatives
- Reorganization of the companys structure and continuous TPPs operation stabiliz
- Strengthening of the companys capital structure
Competitive greenfield portfolio
Licensed coal, gas and wind power generation projects
Company Overview
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A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas
ENEVA at a Glance
2.9GW inflation-protected, long-term PPAs
o 2.4GW in operation
o 517MW under construction
Long-term PPAs guarantee R$2.2 billion in annual inflation-adjusted
capacity payments
PPAs provide hedge against commodity price exposure
Integrated gas E&P assets supply up to 8.4MM m/day to ENEVAspower
plants
Competitive portfolio of licensed greenfield wind, coal and gas fired
capacity
Company Description
ENEVA ownership structure
Geographic Footp
Amapari EnergiaENEVA 51% / Eletronorte 49%
Diesel - 23MW
ItaqENEVCoal
Natural GasExploratory
blocksContracted production
of 8.4MM m3/day
Free Float (37.1%)
42.9%20.0%
Other
ENEVA ParticipaesENEVA/E.ON
Joint Venture
50%
50%
BNDES
8.6%
EikeBatista
Controlling Block
28.5%
Note: 1) Ownership structure assumes future ENEVA Participaes (JV ENEVA/E.ON) incorporation, as disclosed on the Material Fact Notice as of July 3, 2013
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Pecm I
Capacity: 720MW
Fix. Rev.: R$600.3MM /year
CVU: R$99/MWh
Auction: A-5/2007
COD: Dec, 2012
Capacity: 360MW
Fix. Rev.: R$317.3MM/year
CVU: R$103/MWh
Auction: A-5/2007
COD: Feb, 2013
Itaqui
Note: (1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2013)
Capaci
Fix. Re
CVU: R
Auctio
COD: O
Coal Generation Portfolio Overview1.4 GW of installed capacity in full operation
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Parnaba II2 GE GTs x 168,8MW+ 1 GE ST x 181MW
Parnaba I4 GE GTs x 168,8MW
Parnaba III1 GE GT x 168,8MW
+ 1 Wrtsil GM x 7,3MWParnaba IV
3 Wrtsil GMs x 18MW
Capacity: 56MW
46% efficiency
Fix. Rev:R$54MM/year
CVU: R$69/MWh
Free market
COD: Dec, 2013
Capacity: 178MW
38% efficiency
Fix. Rev: R$98MM/year
CVU: R$160/MWh
Auction: A-5/2008
COD: Dec, 2013
Capacity: 676MW
37% efficiency
Fix. Rev: R$443MM/year
CVU: R$114/MWh
Auction: A-5/2008
COD: Apr, 2013
Parnaba IV Parnaba III Parnaba I
Notes: (1) Bertin project developed by ENEVA; (2) Fixed revenues indexed to infl ation index IPCA (Database: Nov, 2013)
Parnaba Complex OverviewA unique case in Brazil power generation sector with 910MW already in operation
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Outstanding management capabilities
Financial strength and discipline
Sector know-how: E.ON E&P looks at a volume delivery of +170k
barrels/day and +60 licenses in GB and Norway
Tried and tested Parnaba experience, know-how of Parnaba Complex
rooted within PGN
Strong Shareholders
All Parnaba gas-fired power plants are supplied by Parnaba Gs Natural,
owner and operator of 8 onshore exploration blocks
ENEVA has a direct interest in PGN as key supplier of its TPPs
Declaration of commerciality with Development Plan for 3 gas fields:
Gavio Real, Gavio Branco and Gavio Azul
Gas supply agreements secured for 8.4MM m/day
R$250 million capital injection concluded in Feb, 2014
Highlights
Integrated Natural Gas E&PStrong competitive position in gas-fired generation
Parnaba Gs Natural
18.2%9.1% 72.7%
Geographic Foo
Note: 1) Ownership structure after execution of the sale and purchase agreement between OGP and Cambuhy, subject to approval by OGPs creditors, under its judicial recovery procedur
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Operating & Financial Performance of Power
2
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Operating Costs
Operational Performance (Itaqui)
EBITDA (R$MM)
Availability Variable Revenue X Variable Cos
Sources: ONS & Company
Higher unavailability offset lower operating costs
1Q14
Operating Costs1(R$ million) 121.0
Gross Energy Generated (GWh) 583
Operating Costs per GrossEnergy Generated (R$/MWh)
207.7
NOTE: 1) Does not include Depreciation & Amortization.
63%
83% 84% 87%
75%
62%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Availability reduction in 2Q14 due to mainly fan equipment and
emissions control systems
36.1-22.1
5.50.6
20.1
EBITDA 1Q14 Net OperatingRevenues
OperatingCosts
OperatingExpenses
EBITDA 2Q14
261
232
144159
128149
112
141
108 10
107 106 103 102 102 100 104 108 10711
Variable Cost Gross
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Operational Performance (Parnaba I)
EBITDA (R$MM)
Availability Variable Revenue X Variable Cost
Sources: ONS & Company
OBS: Dispatch margin captured by Parnab
Operating costs per MWh followed Henry Hub prices decrease and reflected lower unacosts
NOTE: 1) Does not include Depreciation & Amortization.
Operating Costs
1Q14
Operating Costs1(R$ million) 221.9
Gross Energy Generated (GWh) 1,411
Operating Costs per GrossEnergy Generated (R$/MWh)
157.2
N.A.
91%97% 96% 99% 98%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
44.8
-20.625.3
0.7
50.3
EBITDA 1Q14 Net OperatingRevenues
OperatingCosts
OperatingExpenses
EBITDA 2Q14
77 74 65 7580
68 77 78 7479
80 8294 99 100 96 93 99 95 92
Variable Cost Gross V
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Operating Costs
Operational Performance (Pecm I)
Availability
NOTES: 1) Figures consider 100% of Pecm I; 2) Does not include Depreciation & Amortization; 3) 1Q14 unavailability figure considers ONS review (previously
Variable Revenue X Variable Cos
Lower Operating Costs per MWh mainly offset by higher fuel and unavailability costs
Sources: ONS & Company
1Q14
Operating Costs2(R$ million) 230.2
Gross Energy Generated (GWh) 1,014
Operating Costs per GrossEnergy Generated (R$/MWh)
227.1
EBITDA1(R$MM)
72%
41%
66%
51%
83%3
77%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
48.8
9.6
-26.1
0.3
32.5
EBITDA 1Q14 Net OperatingRevenues
OperatingCosts
OperatingExpenses
EBITDA 2Q14
71% 151127 118
136154
117
139 138
109119
107
111 105 104 100 99 99 97 102 105 106110
Variable Cost Gross Va
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Operational Performance (Pecm II)
Variable Revenue X Variable CostAvailability
Sources: ONS & Company
EBITDA negatively impacted by higher outsourced services and unavailability costs
EBITDA (R$MM) Operating Costs
1Q14
Operating Costs (R$ million) 99.4
Gross Energy Generated (GWh) 720.8
Operating Costs per GrossEnergy Generated (R$/MWh)
137.9
N.A. N.A. N.A.
85%97% 96%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
46.3
-7.1
-6.0 0.3
33.5
EBITDA 1Q14 Net OperatingRevenues
OperatingCosts
OperatingExpenses
EBITDA 2Q14
NOTES: 1) Figures consider 100% of Pecm II; 2) Does not include Depreciation & Amortization.
92 99111
99 106
114 118 122125 125
Variable Cost Gross V
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Operating Costs
Operational Performance (Parnaba III)
NOTES: 1) Figures consider 100% of Parnaba III; 2) Does not include Depreciation & Amortization.
Availability Variable Revenue X Variable Cost
Sources: ONS & Company
OBS: Dispatch margin captured by Parnab
Operational dispatch adjustment impacted Operating Costs
1Q14
Operating Costs2(R$ million) 61.9
Gross Energy Generated (GWh) 344
Operating Costs per GrossEnergy Generated (R$/MWh)
179.6
EBITDA1(R$MM)
N.A. N.A. N.A.
100% 99%
77%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
14.4 -19.6
-3.30.04
-8.4
EBITDA 1Q14 Net OperatingRevenues
OperatingCosts
OperatingExpenses
EBITDA 2Q14
75 71 69 69
161 161 161 161
Variable Cost Gross V
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Regulatory Update
3
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Part of 1.4GW Parnaba Thermoelectric Complex, a unique gas
to wirecase in Brazil
450MWavg sold in the 2011 A-3 Auction. PPA started in March,
2013
Lowest variable cost (R$59/MWh) among gas-fired projects in
Brazil
Investments of up to R$1.4 billion
All gas turbines already commissioned. Steam turbine to be fully
tested on the coming 4 months
Plantsconstruction and gas supply infrastructure delayed
o Lack of LT financing due to PPA signature difficulties
o OGX Maranho restricted financial capabilities before rescue plan
captained by Cambuhy Investimentos and E.ON
Project Overview
Adjusted proposal presented to Aneel,
o Completion of the construction of Parna
o Postponement of PPAs start date to J
whichever occurs first;
o Penalty amounting to approx. R$310MM
the term of Plants PPAs, through th
revenues; and
o Renewal of execution guarantees of R$6
ENEVA proposed to Aneel to run a Parnaba Thermoelectric Complex byParnaba III and 2 gas turbines from
from Parnaba II, as soon as it becomes
Additionally, ENEVA commits to close up to 5 years, subject to certain condit
o Sale of energy in the regulated market
and
o Availability of long-term financing for the
ENEVA Proposal to Aneel
Ongoing Regulatory Discussions (1)Parnaba II Delay
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Filed in Jan, 2014 a lawsuit against Aneel questioning
hourly-based unavailability charges
On Jan 24, 2014, a Federal Court granted an injunction
halting unavailability charges as measured, establishing
the methodology provided for in PPAs (60-month rolling
average)
The lawsuit also claims the reimbursement of amounts
paid since PPAsbeginning
Petition for revision of ADOMP methodology presented to
Aneel
o A technical note has already been released considering
Companyscontractual understanding
Itaqui and Pecm I
On Jun 26, 2014 filed a request f
Federal Court aiming to get tpresented to Aneel
Pecm II and Parnaba I & III
Plant 100%
Itaqui R$105.2M
Pecm I R$250.2M
Pecm II R$38.9M
Parnaba I R$52.2M
Parnaba III R$6.9MM
Total R$453.3M
+R$310MM already paid for un
Ongoing Regulatory Discussions (2)ADOMP / Unavailability Charges
Notes: 1) Consider hourly-based methodology for unavailability charges until June, 2014; 2) Does not consider amounts paid since injunction effectiveness.
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Brazilian Power Market and Greenfield Por
4
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Southeast Reservo
~70% of total storage ca
Source: ANEEL
Brazils Generation Capacity: 136 GW
Breakdown by source April, 2014
Brazil is highly dependent on hydro generation with increasingly faster depletion of re
Brazilian Energy Matrix
63.5%10.5%
2.5%
1.5%
2.2%
19.8%
Hydro Gas Coal Nuclear Wind Others
Dry Sea
67%
76%
38%
40%
35%36%
39%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul
Average 2007-2011 2012
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Source: ONS
Autonomy = Storage Capacity / (Load Thermal Generation)
Economic growth will boost
leading to a supply defi
Water storage capacity has stagnated,
leading to decreased system autonomy
65
65
60
65
70
75
80
85
90
2013 2014 2015 2016 201
GWavg
2016-on: New generatio~8 GWavg required un
Electric System ReliabilityNew thermal plants are necessary to guarantee reliable power supply
0
5
10
15
20
25
30
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
ReservoirsAutonomy(Months)
2013
Current reservoirautonomy ~6 months
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ParnabaComplex
Integrated to natural gas resources
Located in a tax-advantaged region
Ventos WindComplex
Located in one Brazilsbest wind resource areas
Attractive load factor
Just 30km from grid connection
Land ownership assured
Au(Coal + Gas)
Located at a port with a regasification terminal buildlicense
150km from Campos Basin natural gas accumulations
Environmental licensed to both coal and gas operations
Sul & Seival Integrated to the Seival Mine (proven reserves: 152 M ton)
Low operation costs
Power
supply-demand
unbalanced
Hydropower
concentrated
matrix
Spot prices at
historical highs
Demand for base-
load generation2 3 4 51
Sul727 MW
ParnabaComplex
2,166 MW
Se600
Solar 1 MW
ENEVAs Greenfield PortfolioAttractive licensed greenfield projects in various development stages
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Disclaimer
The material that follows is a presentation of general background information about ENEVA S.A. and its subsidiaries (collectively, ENE
the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty,
concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to ENEVA that reflect the current view
Company and its management with respect to its performance, business and future events. Forward looking statements include, with
that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like may, p
expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a numb
assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, object
and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents o
placement agents shall be liable before any third party (including investors) for any investment or business decision made or ac
information and statements contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.
Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients shou
in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from intern
publicly available information and industry publications. Although we have no reason to believe that any of this information or these
material respect, we have not independently verified the competitive position, market share, market size, market growth or other dat
by industry or other publications. ENEVA, the placement agents and the underwriters do not make any representation as to the accurac
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or i
written consent.
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Thank you.www.eneva.com.br