1Q13 Results Presentation


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1Q13 Results Presentation

  1. 1. 1Q13 Earnings ReleaseRio de Janeiro | May, 2013
  2. 2. DISCLAIMERThe 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 orwarranty, 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 expectationsof the Company and its management with respect to its performance, business and future events. Forward looking statements include, withoutlimitation, 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. Suchstatements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actualresults to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither theCompany, 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 thispresentation 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 theirown advisors in this regard.The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, marketresearch, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reportsare inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth orother data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make anyrepresentation 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 withoutMPX’s prior written consent.2
  3. 3. 1Q13 HIGHLIGHTS & SUBSEQUENT EVENTS3E.ON signs definitive agreements to acquire 24.5% of MPX from Eike Batista atR$10/share Subsequent R$ 1.2 billion capitalization of the Company through a primary public offering ofat least R$1.2 billion JV MPX-E.ON will be reintegrated to MPX at book valueCapacity in operation reaches 1,396 MWVolume of energy sold: 1,363 GWhConsolidated net revenues: R$ 196.1 million in 1Q13 +159.2% in relation to 1Q12Conclusion of acquisition of TPP MC2 Nova Venécia, with 176 MW, and transfer of theproject to ParnaíbaAgreement with Kinross for implementation of 56 MW gas-fired thermal project in theParnaíba Basin
  4. 4. 4Amapari EnergiaParnaíba I, II, III & IVExploratory BlocksItaquiPecém I & IITauá• Total Capacity: 360 MW• MPX Ownership: 100%• Start-up: 02/05/2013• Total Capacity: 23 MW• MPX Ownership: 51%• Operating since 2007• Risked prospective resources: 11Tcfs• Current gas production: 4.1million m3/day• Total Capacity: 1 MW• First Solar plant in Latin America• Parnaíba I: 676 MW MPX Ownership : 70% Operating full capacity since april2013• Additional capacity underconstruction: Parnaíba II: 517 MW Parnaíba III: 176 MW Parnaíba IV: 56 MW• Pecém I: 720 MW MPX Ownership : 50% Turbine 1 – Start-up: 12/01/12 Turbine 2 – Start-up: 2Q13• Pecém II: 360 MW MPX Ownership : 100% Start-up: 2Q13POWER PLANTS IN OPERATION AND UNDERCONSTRUCTION
  5. 5. DISCOVERIES Fazenda Chicote accumulation - Net pay: 66 mFazendaSanta Isabel accumulation – Net pay: 24 m São Raimundo accumulation – Net pay: 27 m 3 rigs operating simultaneously: 2 focused on explorationand 1 completion rig on the production developmentGAVIÃO REAL Beginning of commercial production in Jan/13 Current gas production: 4.1 million m3/dayGAVIÃO BRANCO Declaration of commerciality presented to ANP Total estimated volume in place between 0.2 and 0.5 Tcf5PARNAÍBA BASIN: NATURAL GAS E&P
  7. 7. 7NET OPERATING REVENUES75.7196.11Q12 1Q13159.2%Net Revenues (R$ MM) Consolidated Net Operating Revenues : R$ 196.1 MM in 1Q13. Itaqui: R$ 129.6 MM. Parnaíba I: R$ 57.5 MM from turbines 1, 2 and 3 as the followingschedule from commercial operation:Net Operating Revenues - ItaquiCommercial generation 46.7Fixed Revenue 29.0Variable Revenue 17.7Pass-through of the energy acquisition cost 82.9Total Net Operating Revenues 129.6Parnaíba I Commercial Operation1st turbine 02/01/132nd turbine 02/20/20133rd turbine 03/29/2013
  8. 8. OPERATING EXPENSES8Operating Expenses: - 36.9% vs. 1Q12 Personnel: - 24.3%, highlighted by: Optimization of the corporate structure (-R$ 4.3 MM) Non-cash expenses related to outstanding stock options plans (-R$ 2.3 MM) Outsourced Services: -45.1%, highlighted by: Shared services in the parent company (-R$ 2,4 MM) Legal and technical consulting expenses (-R$ 1.8 MM) Spin-off of Colombian mining assets (-R$ 6.8 MM) Leases and Rents: -60.0%, highlighted by: Real estate rental in the parent company (-R$ 0.9 MM) Spin-off of Colombian mining assets (-R$ 1.5 MM)61.939.01Q12 1Q13Consolidated Operating Expenses(R$ MM)- 36.9%33.623.71Q12 1Q13Parent Operating Expenses(R$ MM)- 29.4%
  9. 9. ITAQUIGross generated energy : 267.5 MWhEnergy sold: 227.3 MWhItaqui Adjusted EBITDA: R$ 37.3 MMExclusion of non-recurring revenues andexpenses• Fixed Revenue adjusted to reflect the plant’s full360 MW capacity• Revenues and costs related to energy acquisitioneliminated• Consumption of diesel and coal costs adjustedso as to reflect steady state operationalstandardsItaqui Income Statement(in million of R$) 1Q13 Adjusted 1Q13Gross Generated Energy (GWh) 267.5 267.5Energy Sold (GWh) 227.3 227.3Gross Revenues 143.7 72.0Fixed Revenues 32.2 46.4Variable Revenues 19.6 19.6Revenues with Pass Through of EnergyAcquisition91.9 -Deductions from Gross Revenue (14.0) (7.0)Net Operating Revenue 129.7 65.0Operating Costs (221.3) (24.0)Costs with Energy Acquisition (164.9) -Cost of Coal (19.0) (10.7)Cost of Diesel Oil (24.7) (0.5)Other Costs (12.8) (12.8)Operating Expenses (3.6) (3.6)EBITDA (95.3) 37.3EBITDA Margin (%) -73.5% 57.5%9
  10. 10. PECÉM I (50%)Gross generated energy : 496.4 MWhEnergy sold: 427.1 MWhPecém I Adjusted EBITDA: R$ 32.3 MMExclusion of non-recurring revenues and expenses• Fixed Revenue adjusted to reflect only 1 turbine (360MW)• Revenues and costs related to energy acquisitioneliminated• Consumption of diesel and coal costs adjusted steadystate operational standardsPecém I (50%) Income Statement(in million of R$) 1Q13Adjusted1Q13Gross Generated Energy (GWh) 496.4 496.4Energy Sold (GWh) 427.1 427.1Gross Revenues 116.1 58.9Fixed Revenues 35.7 35.7Variable Revenues 23.3 23.3Revenues with Pass Through of EnergyAcquisition57.2 -Deductions from Gross Revenue (12.4) (6.3)Net Operating Revenue 103.8 52.7Operating Costs (173.6) (18.5)Costs with Energy Acquisition (135.5) -Cost of Coal (21.5) (6.5)Cost of Diesel Oil (5.0) (0.4)Other Costs (11.5) (11.5)Operating Expenses (1.9) (1.9)EBITDA (71.7) 32.3EBITDA Margin (%) -69.1% 61.3%Depreciation and Amortization (8.0) (8.0)EBIT (79.7) 24.3Net Financial Income (14.4) (14.4)Other Revenues/ Expenses - -Current and Deferred Taxes 32.0 32.0NET INCOME (62.1) 41.910
  11. 11. OGX MARANHÃOGrowing operating marginsOperations started in Jan/13 at the Gavião Real field, supplying gas for1st turbine of Parnaíba I OCGTEBITDA margin of ~ 49% reflects the asset’s profitabilityOGX Maranhão (100%)(in thousand of R$) 1Q13Operating Period(1)68 daysGas Production - in MMm3 (2)83.5Gross Revenue(3)39,279Deductions from Gross Revenues(4)(4,522)Net Revenues 34,757Production Costs (3,597)Royalties, Special Part. and Government Part. (2,718)General and Administrative Expenses (6,317)Exploration Expenses (5,010)EBITDA 17,115(1) Date of closing for book values: 25th day of the month.(2) Gas production related to OGX Maranhão’s participation in the blocks (70%).(3) Gross revenues comprised of revenues from gas sales and revenues from lease of the GTU.(4) Deductions from Revenues: taxes such as PIS/COFINS/ICMS.-59.2% 60.6%jan/13 feb/13 mar/13EBITDA Margin (%)3.635.444.5jan/13 feb/13 mar/13Average Gas Production(MMm3)11
  12. 12. CAPITAL EXPENDITURES12 Additionally in 4Q12, MPX invested R$ 9.7 million in the exploratory campaign in the Parnaíba Basin and in the developmentof the Gavião Real and Gavião Branco fields. According to the new accounting standard, the Consolidated Capital Expenditures does not contemplate Pecém I.(R$ million) 1Q13 4Q12Project CapexInterestCapitalizedCapexInterestCapitalizedItaqui 65.7 13.7 99.7 39.7Pecém II 54.0 24.0 23.2 21.7Parnaíba I 60.7 6.7 117.5 29.5Parnaíba II 125.2 13.7 107.1 14.2Total 305.6 58.1 347.5 105.1
  13. 13. 13Debt Maturity Profile (R$ million)INDEBTEDNESSNote: Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures.R$ billion Mar/13Gross Debt (R$ MM) 5.5Net Debt (R$ MM) 5.1Average Cost (%) 8.3Average Tenure (years) 5.0Dívida de Curto Prazo (2013):R$ 740.1 million refer to outstanding bridge-loans to Parnaíba I & II power plants-> to be paid-off with draw down from long-term financing.R$ 204.5 million refer to debt amortization for Pecém II, Itaqui and Parnaíba I364.72,342.0208.8 234.2 239.12,435.8Cash & Cash Equivalents 2013 2014 2015 2016 From 2017 on1,498(27%)3,962(73%)Working Capital Project Finance
  14. 14. For more information, contact:Investor Relations(55 21) 2163-9215ri.mpx@mpx.com.br