Download ppt - Interim Results Six months ended 30 June 2010. Philip Cox Chief Executive Officer

Interim ResultsSix months ended 30 June 2010

Philip CoxChief Executive Officer

International PowerInterim Results August 20103

Highlights

Financial highlights

Good financial performance

Profit from operations of £524m (2009: £550m)

EPS of 14.1 pence (2009: 15.4 pence)– up 7% after adjusting for FX and the sale of

the Czech business

Strong free cash flow of £398m (2009: £326m)– up 22%

Interim dividend of 4.39 pence per share (2009: 4.25 pence), up 3%

Growth

PPAs signed for 76MW of new wind generation capacity in Canada

Good progress at 815MW Paiton 3 project and 110MW Thai National Power 2 project

Total construction pipeline of 1,400MW (net)

16

12

4

0

p

8

Underlying EPS – up 7%

2009 2010

UnderlyingEPS

Czech

0

400

800

1,200

1,600

2010 2011 2012 2013

HUBCO - Laraib

TNP2

Paiton 3

T-Power

Elecgas

IPR EuropeanWind Portfolio

Synergen

HUBCO - Narowal

Fujairah F2

Construction pipelineNet MW

Mark WilliamsonChief Financial Officer

Financial ReviewFinancial ReviewFinancial ReviewFinancial Review

Interim Results August 2010 International Power

Profit from operations

Interest

PBT

Tax

Non-controlling interests

Profit for the period

EPS

524

(191)

333

(64)

(54)

215

14.1p

Six months ended 30 June

550

(216)

334

(59)

(41)

234

15.4p

2009 Restated

£m

2009 restated for adoption of IFRIC 12 - Service Concession Arrangements and change in policy relating to retirement benefit obligations

2010 £m

Income statement

5

Reduction in PFO reflects the sale of Czech assets in H2 2009

Excluding Czech assets, EPS up 7%

Reduced interest reflects paydown of US debt

Effective tax rate, at 22%, includes:

– change in profit mix across the Group

– resolution of historic tax issues


H1-on-H1 PFO change

North America reflects lower gas prices and a reduced Coleto Creek provision release

Europe higher following Rugeley FGD commissioning and ISAB return to service

Middle East continues to perform well, delivering high availability

Australia benefited from good performance at Loy Yang B and Simply Energy

2010 also benefited from a 0.8p uplift on FX movements

6

H1 2009

15.4p

H1 201014.1p

North America

Europe

Australia

MiddleEast

Asia Corporate

£550m

£(9)m

£25m

£13m

£8m

£(1)m £(3)m £524m

H1 2009excl-Czech

12.4p

£491m

£(59)m

Czech

7%


Free cash flow

Free cash flow up 22%, or 33% excluding the Czech assets

Working capital benefited from the settlement of hedges on the UK portfolio

Interest lower following pay-down of US debt

H1 2009 H1 2010

£326m£33

£18 £(4)£6 £(11)

£398m

PFO

Maint.capex

Netinterest

paid

Taxpaid(net)

DividendsJV & assoc

£56

Workingcapital

7

H1 2009excl-Czech

£300m

£(26)

Czech

Interim Results August 2010 International Power8

Net debt structure

Cash and cash equivalents

Recourse debt

Convertible bond (2023)

Senior unsecured note (2017)



Non-recourse gross debt

IPM - acquisition debt

North America

Europe

Middle East

Australia

Asia

Total net debt

1,446

(152)

(198)

(493)

(170)

(1,013)

(276)

(877)

(2,528)

(362)

(1,182)

(43)

(5,268)

(4,835)

Total£m

IPR CorpAs at 30 June 2010

Project

737

(152)

(198)

(493)

(170)

(1,013)

-

-

-

-

-

-

-

(276)

709

-

-

-

-

-

(276)

(877)

(2,528)

(362)

(1,182)

(43)

(5,268)

(4,559)

JVs and associatesoff-balance sheet

355

-

(166)

(491)

(1,013)

(78)

(526)

(2,274)

(1,919)

Maturity

2023

2017

2015

2013

2012 -

2013-2029

2013-2026

- 2025

2012-2019

- 2025

Maturity

2019

2035

2030

-

2018

£m £m £m

Maturity indicates the first bullet and the last year of project debt amortisation within each region

No significant project debt refinancing in 2010 and 2011

-

-

-

2012

-

Cash/(Debt)

Philip CoxChief Executive Officer


North America

10

Power demand– Texas: cold winter but mild summer, lower congestion in South Zone– New England: strong demand in May, June and July– PJM: positive weather impact June/July

Gas prices– some recent volatility but overall prices remain low

Capacity auction– New England: May 2013 to June 2014 auction cleared at $2.52,

consistent with previous auction– PJM: 2013 to May 2014 capacity auction cleared at $27.73/MW day,

up from $16.46/MW day

Operational cost savings– good progress, savings of $5m to $10m expected

IP Canada renewables– PPAs signed for 76MW of additional capacity– expected to be operational 2011


Europe - UK

Jan to May power demand down slightly

Rugeley, Saltend, Deeside heavily contracted for 2010

First Hydro impacted by lower volatility and wholesale prices

– partially offset by ancillary services including contracted reserve

Government programme – some policy areas of importance to IPR

– IPR fully involved in the environmental policy development process

11

40

50

60

70

90

GW

2008 2010

80

WeekdayPeak Demand

Headline Availability

2009

Week Ahead Availability

OutturnAvailability


Continental Europe

Operationally plants performing well

ISAB second unit returned to service as planned

Italy remains committed to the renewables sector– Government re-confirmed renewables target in July– CV price support mechanism for 2010 maintained– system operator reviewing 2011 CV support mechanism

Construction of Elecgas and T-Power on track to commence operation in H1 2011

Development projects– development agreement signed with GALP for 50% of 800MW

CCGT Sines project in Portugal


Middle East and Asia

13

High commercial availability across all assets

Business performing well and in line with expectations

Fujairah F2 construction programme progressing with full commercial operation expected in 2010

Paiton 3 and TNP 2 construction progressing well

New Developments– Vietnam – IPR and partners awarded

the development of 1,200MW Son My project by the Government

– Indonesia – Central Java 2,000MW coal, pre-qualified, bid due November

Fujairah F2

Paiton 3


Australia

Good performance – no change to pricing since year-end results in March

– maximum price increased to $12,500/MWh

Climate change policy under new PM released in July

– CPRS delayed until after the end of 2012

Kwinana


Outlook

Good performance in the first half

Merchant assets remain well positioned – to capture value from recovery/volatility in market conditions

Portfolio of long-term contracted assets continues to perform well

Overall outlook for the year remains unchanged

Interim ResultsSix months ended 30 June 2010