Pacific Energy : FY17 Results Investor Presentation

PACIFIC ENERGY LIMITED‌‌‌‌‌‌‌‌‌

ASX : PEA

2017 RESULTS PRESENTATION

AUGUST 2017

Important Notice and Disclaimer

This presentation has been prepared by Pacific Energy Limited (PEA) for information purposes only.

This presentation is not a product disclosure statement or prospectus for the purposes of the Australian Corporations Act 2001 (Cth), nor does it constitute financial product or investment advice or a recommendation, offer or invitation by any person or to any person to sell, purchase or otherwise invest in securities in PEA in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment.

This presentation contains general information only and does not take into account the investment objectives, financial situation and particular needs of individual investors. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser, lawyer, accountant, tax or such other adviser as considered appropriate having regard to their objectives, financial situation and needs before taking any action.

The information in this presentation includes historic information about the performance of PEA and securities in PEA. That information is historic only, and is not an indication or representation about the future performance of PEA or securities in PEA. You should not place undue reliance on any such information.

No representation or warranty, express or implied, is given as to the accuracy, completeness, reliability or adequacy of any statements, estimates, opinions or other information, or the reasonableness of any assumption or other statement, contained in this presentation. Nor is any representation or warranty, express or implied, given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, forward-looking statements or potential returns contained in this presentation. Forward-looking statements include, but are not limited to, information which reflects management's expectations regarding PEA's future growth, results of operations (including, without limitation, capital expenditures), performance (both operational and financial) and business prospects and opportunities. Often, forward-looking statements include words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forecasts, forward-looking statements or potential returns only reflect subjective views held by PEA, and are based on certain assumptions made by PEA, as at the date specified in the relevant information and are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of PEA. Although management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. Actual events and results may vary from the events or results expressed or implied in such statements. Given these uncertainties, you should not place undue reliance on any such statements

Subject to any continuing obligations under applicable law or any stock exchange listing rules, in providing the information in this presentation, PEA des not undertake any obligation to publicly update or revise any forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

To the maximum extent permitted by law, PEA and its related bodies corporate, directors, officers, employees, advisers and agents disclaim all liability and responsibility (including without limitation any liability arising in negligence, statute or otherwise) for any direct or indirect loss or damage which may arise or be suffered by any person through use or reliance on anything contained in, or omitted from, this presentation. An investment in PEA securities is subject to investment and other known and unknown risks, some of which are beyond the control of PEA. PEA does not guarantee any particular rate of return or the performance of PEA securities.

The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions.

Pacific Energy Limited

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Corporate Snapshot

• Power station designer, owner, operator and electricity supplier under long term contracts
• 3 operating subsidiaries:

  Subsidiary	Power Stations	MW	Market	Region
  Pacific Energy Hydro	2	6	Grid	Victoria
  KPS (Australia)	21	272	Off-Grid (miners)	WA, NT, SA
  KPS (Africa)	Commenced July 2016		Off-Grid (miners & others)	Africa

• Market Capitalisation $220m

• Net Debt $28m

• Enterprise Value $248m

• 12 Month Share Price Range 50c-77c (currently 60c)

• Dividend 2.5 cents fully franked (4.2% @ 60 cents)

• Major Shareholders Ken Hall (50%) (founder of KPS)

  Institutions (37%)

  PEA is a sector PEA is a stand out with stand out ywith e anannunituy isttylsetyl

  incinocmoemaendand excellent earnings

  visibility under lonlogntegrmterm cocnotrnatcrtas.cts.

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  Pacific Energy Limited

  FY17 Highlights

  Financial

  • EBITDA up 7% to $40.8m (underlying EBITDA up 9% to $40.0m)

  • NPAT up 6% to $16.6m

  • Operating cash flow up 13% to $35.0m

  • Capital investment of $19m (2016: $37m), including expansion capex of $13m

  • Final dividend maintained at 1.5 cps (2.5 cps full year) fully franked

  • Gearing (net debt:NTA) down from 32% to 23%

    Operating

  • 39MW of new long-term contracts / expansions of existing contracts secured in past year (16% Increase YOY)

  • Secured several multi-year contract extensions

  • Completed first year of African expansion strategy - positive response from market ≈ 100MW of current tenders

  • Excellent safety, reliability and fuel efficiency reinforce reputation for delivering industry benchmark performance

    Corporate

  • Substantial change in share register with block trade of Pacific Road's 23% holding to 19 institutional investors

  • Increased free float and improved liquidity

Pacific Energy Limited 4