Quarterly Results Call 2Q13

7/29/2019 Quarterly Results Call 2Q13

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2Q13 Earnings Release

Rio de Janeiro | August, 2013


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DisclaimerThe material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively,

as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warran

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 a

Company and its management with respect to its performance, business and future events. Forward looking statements include

statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like

anticipate, expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subj

uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially fr

expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, dir

employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business

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

advisors in this regard.

The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal

publicly available information and industry publications. Although we have no reason to believe that any of this information or these rep

material respect, we have not independently verified the competitive position, market share, market size, market growth or other data

or by industry or other publications. MPX, 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 in

written consent.


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2Q13 Highlights & Subsequent Events

Financial & Operational Highlights:

Commercial gross generation capacity reached 1,779 MW;

Additional 1,114 MW currently under construction; Generation net revenues amounted to R$ 508.6 million; Production of natural gas in the Panaba basin reached R$ 4.5 MMm3/day.

Changes in the Controlling Group:

E.ON increased its interest to 36.2% and joined Mr. Eike Batista in the Companys c

Mr. Eike Batista reduced his stake to 29% and resigned as member and Chairman o


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Share Capital Increase

MPX Shareholding Structure as of June 30, 2012

36.2% 29.0%

EIKEBATISTA FREEFLOAT

34.8% ~38% ~24%

EIKEBATISTA

MPX Indicative Shareholdin

Capital Incre

A R$ 800 million private capital increase was approved by the Board of Directors on J

81,235,437 newly-issued common shares, equivalent to approximately R$ 52

subscribed and paid-in during the Initial Preemptive Right Period, which ended on Au

The First Additional Subscription Period begins on Aug 14 and will end on Aug 16.

Obs: Assuming no subscription by Eike Batista


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Revenues & Costs

196,1

395,1

1Q13 2Q13

Net Operating Revenues (R$ MM)

101.5%

312,6

418,3

1Q13 2Q13

33.8%

Operating Costs (R$ MM)

Net Operating Revenues: + 101.5% vs. 1Q13 resulting

commercial capacity

Itaqui: The plant has stabilized during the quarter. In t

the plant started being remunerated according to its to

Parnaba I: Achieved full commercial capacity in early A

Operating Costs: + 33.8% vs. 1Q13

Increased fuel costs resulting from full capacity operat

Decreasing needs for energy acquisition

Unavailability charges impacted by:

In May, Itaqui stopped to adjust ventilation system (

Parnaba I stopped to conduct repairs in the substat

Operations have been stable in both plants since the


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Operational Performance

Decreasing need to acquire energy to fulfill contractual obligations

In June, Pecm II had to purchase energy to ensure compliance with PPA. The plant

electrical tests required by ONS and commercial operation is now conditional to the

transmission system under construction by Chesf/TDG

0

100

200

300

400

500

600

700

800

900

Jan Feb Mar Apr May Jun

Net Energy Produced (GWh) Energy sold (GWh)


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48,3

2Q12

Operating Expenses

Operating Expenses: - 13.1% vs. 2Q12

Personnel: - 14.8%, mainly attributable to:

Optimization of administrative and operating teams (- R$ 0.4 million)

Reduction of personnel expenses resulting from the spin-off of the

Colombian mining assets (-R$ 2.9 million)

Outsourced Services: -8.2%, mainly attributable to :

Shared services in the holding company, resulting from the reduction

of EBXs service structure (-R$ 4.4 million)

Increase in IT expenses (+R$ 2.7 million)

Leases and Rents: -37.0%, mainly attributable to reduced real estate

rental expenses at the holding level (-R$ 1.2 million)

Other Expenses: -31.3%, mainly attributable to a decrease in publicity

and advertising expenses at the holding level (-R$ 1.1 million)

Consolidated Operatin(R$ MM)

- 13.1


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Consolidated EBITDA

2Q13 Reported vs Adjusted EBITDA (R$ MM)

The Consolidated EBITDA does not include the Pecm I results.

-38,6

50,3

10.3

69.59,0

2Q13Consolidated

EBITDA

Net costs relatedto the acquisition

of energy

Unavailabilitycharges

Startup costs 2Q13Consolidated

Adjusted EBITDA

Adjusted EBITDA in 2Q13 w

50.3 million, mainly due to

Elimination of net losses

acquisition of energy to

obligations

Elimination of unavailability

from maintenance stoppages

Adjustment of diesel con

eliminate increased start-up c


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Debt

Consolidated gross debt profile (R$ million)

2,65146%

3,08254%

Short Term Long Term

2,651

1,121 1,53

Project Holdi

Short Term Debt (R$ millio

100 350

Paid-off bycapital increase

Projedebent

Short Term Debt (2Q13):

R$ 1,121.5 million at project level:

R$ 845.2 million refer to outstanding bridge-loans to Parnaba

I & II power plants to be paid-off with draw down from

long-term financing.

R$ 276.2 million refer to current portion of the project finance

debts of Pecm II, Itaqui and Parnaba I

MPX holding plans to eliminate outs

loans with its subsidiaries through

advantaged infrastructure debentures

subsequent use of funds to pay-off loan

The remaining short-term debt balanc

will be replaced by a long-term debent

5 to 7-year maturity

Total:R$ 5,733 MM


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Cash Position

364,7

282,3 263,1

218,2

175,8237,4

64,26,4 20,0

Cash and CashEquivalents

(1Q13)

Revenues CAPEX Operating Costsand Expenses

Debt Service Debt Raised IntercompanyLoan

Contribution ofPartners and

Capital Increase

Escrow Acc

Consolidated Cash (R$ million)

Cash position impacted by:

Full commercial capacity reached in Parnaba I and Itaqui, resulting in higher rev

Increased costs resulting from unavailability charges and acquisition of

contractual obligations

Increased debt service resulting from higher debt position

Additional debt raised to meet working capital needs and capex requirements


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Installed Gross Generation Capacity and Status of Projects

under Construction (MW)

MPXs power plants under construction: Pecm II, Parnaba II, III and IV, totaling 1,114 MW of insta

The implementation of Parnaba II CCGT is underway according to schedule of PPA.

Construction works at Parnaba III have been completed and commissioning is expected to 3

conclusion of the expansion of the capacity of the Gas Treatment Unit.

Pecm II (365 MW): Commercial operation is now conditioned to the availability of the new 5

substation/transmission line under construction by Chesf/TDG

1,779

365

517 176 2,856

2Q13 Pecm II Parnaba II Parnaba III Parnaba IV 20


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Ongoing Regulatory Issues

Discussions with ANEEL regarding hourly unavailability penalties vs 60-month

unavailability criteria (ADOMP);

Discussions with ANEEL regarding pass-through criteria for energy acquired;

Possibility to increase firm energy of Pecm I and Itaqui by 10MW/each, reflecting cont

360MW/each vs 350 MW registered in the energy auctions). New firm energy nu

calculated by MME;

Request filed at ANEEL so that appropriate treatment is given to Pecm II as the M

liable for delays in transmission systems for which it is not responsible.


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EXPLORATION

In 2Q13, 5 new wellsdrilled by OGX, 3 of them are

wildcats*:

Fazenda Alencar prospect (OGX-112): 22 meters of

net pay of gas discovered

Fazenda Sossego prospect (OGX-114): 14 meters of

net pay of gas discovered

Fazenda Havana prospect (OGX-115): In progress

Additionally, 2 wildcat adjacent wells commenced to bedrilled:

SE Bom Jesus (OGX-111), adjacent to Bom Jesus

(OGX-88): 20 meters of net pay of gas discovered

NW Fazenda Chicote (OGX-113), adjacent to Fazenda

Chicote (OGX-107): Gas shows were found

*A wildcat well is the first well drilled on a new prospect.

Parnaba Basin: Natural Gas E&P

GAS PRODUCTION AT GAVIO RE

Natural gas production suppliesP

gas turbines

2Q13 Production Ramp-up

In May, average daily natural gas produc

April due to a periodic intervention at th

In 2H13, GTU capacity will be

startup of the Parnaba III OCG

4,1

3,9

April May

Average Daily NaturProduction (MMm/


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For more information, contact:Investor Relations(55 21) 2163-9215

[email protected]
mailto:[email protected]:[email protected]

Documents

Quarterly Results Call 2Q13