teleconference 2q12

28
Rio de Janeiro | August, 2012 2Q12 Earnings Release

Upload: mpxri

Post on 27-May-2015

475 views

Category:

Business


0 download

TRANSCRIPT

Page 1: Teleconference 2Q12

Rio de Janeiro | August, 2012

2Q12 Earnings Release

Page 2: Teleconference 2Q12

DISCLAIMER

The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, “MPX” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made 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 MPX that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the 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 should consult their own advisors in this regard.

The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MPX’s prior written consent.

2

Page 3: Teleconference 2Q12

HIGHLIGHTS 1

Page 4: Teleconference 2Q12

Drill-stem test in well OGX-88 (Bom Jesus) in the Parnaiba Basin concluded with 36 meters

of net pay, supporting future development

Acquisition, through JV with E.ON, of 1,200 MW of greenfield wind developments in

northeast Brazil

363.2 MW of gas fired generation and 158.7 MW of wind registered for 2012 A-3 and A-5

Auctions

Takeover of construction works at Pecém I & II and Itaqui Power Plants

Cash injection of R$ 421 million by previous EPC contractor

Accelerated EPC progress

E.ON AG acquired 11.7% of MPX through a R$1.0 billion capital increase, becoming a

strategic investor at the company

2Q12 HIGHLIGHTS & SUBSEQUENT EVENTS

4

Page 5: Teleconference 2Q12

GREENFIELD PROJECTS 2

Page 6: Teleconference 2Q12

João Câmara

RN

VENTOS: A 1,200 MW WIND COMPLEX IN ONE OF

BRAZIL’S BEST WIND RESOURCE AREAS

Total Capacity: 600 MW + call option on

additional 600 MW

Estimated Load Factor: 48% (P50)

Location: Rio Grande do Norte, NE Brazil

Grid connection 30km from Complex

All land rights secured

158.7 MW registered for 2012 energy auctions

Environmental licensing in process

High-quality greenfield assets in northeast Brazil

6

Page 7: Teleconference 2Q12

GAS POWER PLANTS AND TREATMENT UNIT

3

Page 8: Teleconference 2Q12

TPP Parnaíba

Electromechanical construction of 4 out of the 6 gas turbines completed

4 turbines on-site and 2 additional (Phase II) to be shipped to Brazil by the end of 3Q12

Natural Gas E&P

Drill-stem test in well OGX-88 (first appraisal well of the Bom Jesus accumulation) demonstrated the

potential for future development:

36 meters of gas net pay

Low gas condensate ratio (CGR) indicating dry gas, similar to the results of Gavião Real Field

Gavião Real Field project: 14 production wells drilled to date

Commissioning of the GTU is expected to begin in 4Q12 and commercial production in January, 2013

Gavião Real Development Plan revised to support registration of 363.2 MW for 2012 A-3 and A-5 Auctions

PARNAÍBA COMPLEX

8

Gas E&P and Power Plants Under Construction (TPP Parnaíba)

Page 9: Teleconference 2Q12

PARNAÍBA TPPWork Progress

9

Page 10: Teleconference 2Q12

PARNAÍBA TPPWork Progress

10

Page 11: Teleconference 2Q12

PARNAÍBA TPPWork Progress

11

Page 12: Teleconference 2Q12

12

PARNAÍBA TPPWork Progress

12

Page 13: Teleconference 2Q12

PARNAÍBA E&P

13

Page 14: Teleconference 2Q12

PARNAÍBA E&P

14

Page 15: Teleconference 2Q12

COAL POWER PLANTS4

Page 16: Teleconference 2Q12

TAKEOVER OF CONSTRUCTION WORKS

In July 2012, MPX and EDP announced the joint acquisition of MABE, the EPC consortium formed by

Tecnimont and Efacec to build the Pecém and Itaqui TPPs

As part of the agreement:

Tecnimont and Efacec injected R$421MM at MABE, relinquished the R$185MM cash

retention withheld by the projects and paid in full all liabilities preceding Apr 30, 2012

Performance guarantees remained unchanged

Contractor pending claims and legal actions were eliminated

PECÉM I PECÉM II ITAQUI TOTAL

Cash injection at MABE 196 110 115 421

Cash retention relinquished 100 47 38 185

Performance guarantees 200 104 107 411

Guarantees for claims and contingencies 83 42 41 166

16

More effective management of Pecém and Itaqui TPPs

Page 17: Teleconference 2Q12

Pecém I: Unit #1Repair turbine rotor bearings and machine turbine rotor journals. Restart unit –> first synchronization –> electrical load tests –> DCO.

 Itaqui

Steam blowing –> reinstatement –> by-pass operation –> steam to turbine –> electrical tests –> first synchronization –> electrical load tests –> DCO.

Pecém I: Unit #2Cold commissioning –> first fire –> steam blowing –> reinstatement –> by-pass operation –> steam to turbine –> electrical tests –> first synchronization –> electrical load tests –> DCO.

  Pecém II

Construction completion –> cold commissioning –> first fire –> steam blowing –> reinstatement –> by-pass operation –> steam to turbine –> electrical tests –> first synchronization –> electrical load tests –> DCO.

MILESTONES LEADING TO COMMERCIAL OPERATIONS

17

Coal Plants Under Construction

3Q12 4Q12 1Q13

360

1,080

1,445

360

360

365

Pecém I #1 Pecém I #2Itaqui Pecém II

Capacity Ramp-up (MW)

Page 18: Teleconference 2Q12

Overview

PECÉM I & II

18

Page 19: Teleconference 2Q12

19

Overview

PECÉM I & II

19

Page 20: Teleconference 2Q12

ITAQUIOverview

20

Page 21: Teleconference 2Q12

ITAQUIITAQUIOverview

21

Page 22: Teleconference 2Q12

FINANCIAL HIGHLIGHTS5

Page 23: Teleconference 2Q12

NET OPERATING REVENUES

23

1H10 2H10 1H11 2H11 1H12

41,431

57,023

84,491 83,788

141,609

Increased net operating revenues

driven largely by increased volume

of energy sold by our MPX Power

Trading unit.

Consolidated Net Operating Revenues (R$ thousand)

Obs: MPX Power Trading unit was fully-transferred to the JV at the end of April, 2012 and thus consolidated figures presented here reflect only 50% of the unit’s results for May and June, 2012.

Page 24: Teleconference 2Q12

Operating expenses Parent Consolidated*

(R$ thousand) 2Q12 2Q11 % 2Q12 2Q11 %

  Personnel (16,316) (19,571) -16.6% (25,252) (28,906) -12.6%

Outsourced services (15,320) (10,288) 48.9% (21,090) (16,266) 29.7%

  Leases and Rentals (2,187) (1,976) 10.7% (2,262) (2,512) -10.0%

Other expenses (2,782) (2,172) 28.1% (4,906) (3,651) 34.4%

  Total (36,604) (34,008) 7.6% (53,510) (51,335) 4.2%

Depreciation and amortization (395) (253) 56.0% (803) (375) 113.9%

  Total (36,999) (34,261) 8.0% (54,313) (51,711) 5.0%

OPERATING EXPENSES

24

Decrease in Personnel Expenses at the Parent Company:

• Reduced payroll expenses resulting from the transfer of employees to the Company’s projects

• Lower expenses related to outstanding stock options plans

• Engineering, financial and legal consulting related to the closing of transaction with E.ON, the spin-off of CCX

and the takeover of construction works at the Pecém I & II and Itaqui TPPs.

Increase in Consolidated Expenses with Outsourced services, resulting from:

* excluding CCX

Page 25: Teleconference 2Q12

NET FINANCIAL RESULTS

25

* excluding CCX

Financial Result Consolidated

(R$ thousand) 2Q12 2Q11 %

Derivatives (Hedge) 7,302 (44,685) -116.3%

  Fair Value - Debentures 49,555 - -

Interest - Debentures (20,065) - -

  Costs - Debentures (81,465) - -

Other (30,809) 1,004 -3167.2%

NET FINANCIAL RESULT (75,482) (43,681) 72.8%

Increased financial expenses related to

the Company’s convertible debentures

(R$ 101.6 million):

Interest: R$ 20.1 million

Costs: R$ 81.5 million

Page 26: Teleconference 2Q12

CONSOLIDATED CASH POSITION

26

Consolidated Cash & Cash Equivalents

 * cash withheld by projects transferred to JV (50%) and CCX (100%)

1,325.1

78.8 78.9

686.4

151.9

445.0

610.9 394.5

178.0 14.8

1,113.3

Page 27: Teleconference 2Q12

Debt Maturity Profile*

(R$ million)

CONSOLIDATED DEBT

27

Total Consolidated Gross Debt: R$ 5,103.8 million

Short term: R$ 1,662.2 million

R$ 825 million bridge loan to Parnaíba I and R$ 325 million to

Paraníba II => to be paid-off with draw down from long-term financing

expected in 2H2012

With the conclusion of CCX’s spin-off, a balance of R$ 422.5 million in

short-term debt was transferred to CCX

Long term: R$ 3,441.6 million

Average amortization: 14 years

Average cost of debt: 9.4%

Average tenure: 5.6 years

Debt (R$ million)

*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures. ** R$ 258.7 million in 2012 and R$ 1,168.4 million in 2013 of bridge loan to Parnaíba, to be paid-off with draw down from long-term financing expected for 2H12.

Cash & Cash Equivalents

2012 2013** 2014 2015 From 2016 on

1,113.2

541.9

1,288.8

262.0 228.5

2,803.7

Page 28: Teleconference 2Q12

For more information, contact:Investor Relations (55 21) 2555-9215

[email protected]