ctci corporation the 2nd investor · 2019-09-25 · improved. ctci will focus on the following...

CTCI Corporation

The 2nd Investor

Conference, 2019

2019.09.25

Agenda

• Operation Review – the 1st half of 2019

• Business Outlook

• Financial Highlights – the 1st half of 2019

2

Operation Review – the 1st half of 2019

3

Copyright © 2016 CTCI All Rights Reserved.

Groundbreaking Ceremony for

CTCI 2nd HQ

Company Honors

4

CTCI, CTCI ASI, ECOVE evaluated

as Top 5% of the 5th Corporate

Governance Evaluation

CTCI Corp, CTCI ASI, ECOVE, won

the 2018 Excellence in Corporate

Social Responsibility Award by

CommonWealth Magazine

A member of DJSI component for 5

consecutive years


Company Honors

• The CommonWealth Magazine Top 2,000

Enterprises Survey

• ENR Magazine Rankings

5

Company Sector 2018

CTCI

Contractor 1

Top 650 Service Enterprises 28

Sector 2019

Top 225 International Design Firms 80

Top 250 International Contractors 73

Top 250 Global Contractors 139Company Sector 2018

CTCI SEC Contractor 38

CTCI MAC Contractor 37

ECOVE Investment Holding Company 9

ECOVE

ESCEnvironmental Services 2

ECOVE

WMCEnvironmental Services 9

CTCI ASIIT Equipment Sales and

Services36


CTCI/Chiyoda Joint Venture

Titanium Sponge Plant Project

in Yanbu honored as

GCC Winner in the Industrial

Project of the Year category of

2019 MEED Projects Awards

Honors

6

Breaks safety record in LPIC

EPC1 Steam Cracker with Off-

Site Work & Utilities Project,

achieving

60 Million Man-hours without

Lost Time Injuries

CTCI HQ Building Certified

to LEED v4 Gold Level

P1 RAPID Project in Malaysia

achieved 23 Million Safe Man-

Hours without Lost Time

Incident

Selected as an

Outstanding Contractor for

Green Engineering Practices

for Taipower Tung Hsiao Power

Plant Renewal Project

Wins 1st Prize for Safety and

Health Excellent Contractor

for Taipower Talin Power Plant

Renewal Project


New Contracts and Breakdown

7

64.5

85.6

44.4

101.7

17.8

0

20

40

60

80

100

120

2015 2016 2017 2018 2019-Aug

Unit: NT$, Billion

Taiwan 43%

Southeast Asia 32%

China 21%

US 3%India 1%

Power 35%

Environmental24%

Hydrocarbon23%

General Industry8%

Others 7%

Transportation3%


• Taipei Wanda Line Phase II

• Taipower Datan Unit #7 Expansion Project

• Offshore Wind Farm Projects

(5 projects)

• Ho-Ping Power Station Air

Quality Control System

• STSP Industrial Wastewater

Treatment Plant Project

• Chimei 60 MW Gas Fired

Cogen plant Project

• STSP Wastewater Reclamation Plant

• Diesel Unit project

Projects to announce the bidding result by the end of 2019

• SABIC Petrochemical Plant

• Malaysia IPP Power Plant

• ADNOC Refining Gasoline &

Aromatics Project

• Petrokemya Olefins-I Project

Major projects to announce the bidding result by the

end of 2019 values at NT$113 billion.

8

Taiwan 38%

Middle East 32%

Southeast Asia 22%United

States 8%


Backlog and Breakdown

9

190.5

203.2

166.3

208

188.8

0

50

100

150

200

2015 2016 2017 2018 2019-Aug

Unit: NT$, Billion

Taiwan 63%

Southeast Asia20%

China 7%

US 5%India 3%

Middle East 2%

Environmental41%

Hydrocarbon30%

General Industry10%

Power 10%

Transportation8%

Others 1%

Business Outlook

10


Business Outlook

– Hydrocarbon (1)

1. The US market continues to flourish:

The first wave of ethylene investment in the US has been completed and

put into production; international companies continue to carry out the

second wave of ethylene and its downstream investment plans,

including：

ExxonMobil - Texas

SABIC - Texas

(CTCI has been awarded MEG petrochemical project by ExxonMobil

and SABIC)

Aramco Motiva - Texas

Lotte Corp. - Louisiana

Formosa Group - Louisiana

(CTCI has been awarded FEED project of Cracker, EG and PDH)

Mitsubishi Chemical Company – Texas or Louisiana11

Copyright © 2016 CTCI All Rights Reserved.12

2. Foreign investment in China:

The Chinese government continues to relax restrictions on foreign

investments, making several international companies decide to invest in new

integrated complex projects in China, and each investment is estimated to

be of US$10 billion worth:

BASF – Guangdong Petrochemical Complex Project

Aramco – Liaoning Petrochemical Complex Project

Shell/CNOOC – Guangdong Petrochemical Complex Project

ExxonMobil – Guangdong Petrochemical Complex Project

SABIC/FHCPEC – Fujian Petrochemical Complex Project

Business Outlook

– Hydrocarbon (2)


3. Taiwanese petrochemical companies

invest in new capacity in China:

With the raise of environmental awareness in Taiwan, environmental

assessments on new hydrocarbon plants have become stricter. Therefore,

several Taiwanese petrochemical companies turn to China for new

investment opportunities.

Chimei Corporation

Formosa Chemical & Fibre Corporation

Nan Ya Plastic Corporation

Grand Pacific Petrochemical Corporation

Formosa Plastic Corporation

Business Outlook

– Hydrocarbon (3)


Business Outlook

– Hydrocarbon (4)

4. Demand in Southeast Asia remains strong:

With the benefit of demographic dividend in Southeast Asia, the

demand of petrochemical products remains strong, bringing in more

investments in hydrocarbon plants; CTCI is focusing on the following

projects:

PTTGC Aromatics Reconfiguration Project – Thailand

IRPC Maximum Aromatics (MARS) Project – Thailand

IOCL Gujarat Refinery Expansion Project – India

MCPI Mundra PTA Project – India

CCET Carbon Black Plant Project – India (Awarded)

14


Liquefied Natural Gas (LNG)

1. LNG Receiving Terminal:

Building gas-fired power plants is one of the government’s energy policies, and

below are some related projects:

TPC Taichung LNG Receiving Terminal Regas Project

CPC Third LNG Receiving Terminal Regas Project

CPC Taichung LNG Plant Phase 2 and 3 Expansion Project

CPC Yung-An LNG Plant Regas Project

2. LNG Export Facility:

As governments all over the world are promoting environmental and energy

policies, EPC companies which have been dominating LNG Export Terminal

market are having full backlog of contracts, therefore creating an opportunity for

CTCI to enter the market through bidding for the below project:

QatarGas North Field Expansion EPC Project

Business Outlook

– Hydrocarbon (5)

15


1. Combined Cycle Power Plant EPC Project:

According to Taipower's long-term power

development plan, the following power plant projects will be executed:

Datan 400MW Project – Taoyuan

Hsin Ta & Taichung 6500MW Project – Kaohsiung & Taichung

Hsieh Ho 2600MW – Keelung

Tung Hsiao 3000MW – Miaoli

Combined Cycle Power Plant opportunities in overseas market include:

Malaysia

Thailand

The Philippines

Vietnam

Business Outlook – Power(1)


2. Taiwan Offshore Wind Power:

Business opportunities for Transition Piece and

Pin Pile Fabrication Work is estimated at NT$ 10 billion,

including:

WPD – YunLin Offshore Wind Farm (Awarded)

WPD – GuanYin Offshore Wind Farm

Orsted – Great ChangHua Offshore Wind Farm

CIP – Changfang and Xidao Offshore Wind Farm

CSC – Zhong Neng Offshore Wind Farm

NPI + Yushan – Hai-Long No.2 Offshore Wind Farm

Wind power consulting and PMC work：

TPC – Phase II Wind Farm Project

Business Outlook – Power(2)


1. Transportation:

According to Forward-looking Infrastructure

Development Program, several mass rapid

transportation lines are planned:

Taipei Wanda Line Phase II

Taipei Circular Line Phase II

2. General Industry:

The Client intends to build non-ferrous

refinery plants in Indonesia in view of the

raising demand for industry raw materials:

Indonesia non-ferrous mill plants (two

projects)

Business Outlook – Infrastructure


Business Outlook

– Environmental Related (1)

1. Waste-to-Energy (WtE) Business:

Domestic: Since the existing plants are going

to be decommissioned, the government plans

to launch a series of new/revamping projects in the near future, including:

Nantou Green Energy Center

Changhua Coastal Industrial Park Sludge Incineration Project

STSP Incineration Expansion Project

Tainan Chengxi Phase 2 Expansion Project

Overseas: In order to dispose urban trash and use it effectively, waste to

energy plants gradually become the major waste management solution in

Southeast Asia. CTCI is approaching the following potential projects:

Malaysia 1,000 TPD WtE Project

Indonesia 2,000 TPD WtE Project

Philippines 2,080 TPD WtE Project19


2. Air Pollution Control:

In order to improve air quality, the air pollution

control system shall be effectively upgraded and

improved. CTCI will focus on the following projects:

Taiwan IPP coal-fired power plant

Taipower coal-fired power plant

3. Wastewater Reclamation:

To respond to the government’s circular economy

policy, wastewater reclamation has become the key

for turning waste to energy; CTCI will approach the

following projects:

Taiwan STSP Wastewater Reclamation Project

Taiwan Taoyuan Northern Wastewater Reclamation Project

Business Outlook – Environmental Related (2)


Domestic Investment for Environmental Projects

21

Taoyuan Chung Li Sewerage

System BOT Project(19 years for construction,

246 km of sewage pipeline,

200,000 households having pipe connection)

Kaohsiung Feng Shan Shi Wastewater

Reclamation BTO Project(the first waste water treatment plant BTO

Project in Taiwan)

Kaohsiung Linhai Wastewater

Reclamation BTO Project(Waste Water Treatment Plant &

Waste Water Reclamation Unit)

Taoyuan Biomass Energy Center BOT Project (The first biomass energy center BOT project in Taiwan)


Potential Bidding Project Amount in 2020: NT$426 billion

By Region

Potential Bidding Opportunities

Middle East33%

Taiwan 32%

Southeast Asia 19%

United States14%

India 2%

Hydrocarbon70%

Power 15%

Transportation7%

Environmental6%

General Industry 2%

By Business Area

Financial Highlights

23


Consolidated Sales Revenues and Breakdown

24

67.170.51 71.6

64.1

37.7

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 2019-Aug

Unit: NT$, Billion

Southeast Asia 36%

Taiwan 33%

China 10%

Middle East9%

US 9%

India 3%

Hydrocarbon43%

Power 22%

Environmental14%

General Industry10%

Transportation7%

Others 4%


1st Half of 2019 Consolidated Income Statement

Unit: NT$, Thousand

2019/06/30 2018/06/30 YOY

Sales Revenues 27,093,923 100% 27,896,747 100% -2.9%

Operating costs (25,261,270) -93.2% (25,892,560) -92.8% -2.4%

Gross Profit 1,832,653 6.8% 2,004,187 7.2% -8.6%

Operating expenses (860,540) -3.2% (903,974) -3.2% -4.8%

Operating income 972,113 3.6% 1,100,213 3.9% -11.6%

Total non-operating income

and expenses11,378 0.0% 193,963 0.7% -94.1%

Profit before income tax 983,491 3.6% 1,294,176 4.6% -24.0%

Income tax expense (239,121) -0.9% (311,733) -1.1% -23.3%

Profit for the period 744,370 2.7% 982,443 3.5% -24.2%

Profit attributable to Owners

of the parent493,537 1.8% 727,722 2.6% -32.2%

Total basic earnings per share 0.65 0.95

25


1st Half of 2019 Consolidated Balance SheetUnit: NT$, Thousand

2019/06/30 2018/06/30

Current assets* 48,127,890 70% 48,074,239 76%

Non-current assets 20,355,456 30% 14,869,370 24%

Total assets 68,483,346 100% 62,943,609 100%

Current liabilities 43,114,474 63% 38,896,624 62%

Non-current liabilities 6,105,278 9% 4,683,320 7%

Total Liabilities 49,219,752 72% 43,579,944 69%

Equity attributable to owners of

the parent16,357,527 24% 16,434,513 26%

Non-controlling interest 2,906,067 4% 2,929,152 5%

Total equity 19,263,594 28% 19,363,665 31%

Total liabilities and equity 68,483,346 100% 62,943,609 100%

*Cash and cash equivalents: NT$ 17 billion

26


Dividend Payout

27

2.65 2.91

3.22 3.32

2.22

2.51 2.69

2.92

3.68

2.40 2.37 2.42

2.76 2.84

1.99 2.23

2.40 2.60

3.23

2.26

89%

83%86% 85%

90% 89% 89% 89% 88%

94%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS Cash DPS Cash Dividend Payout Ratio(%)Unit: NT$

ctci corporation the 2nd investor · 2019-09-25 · improved. ctci will focus on the following...

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