Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2020 Earnings Presentation
46 slides from Omv Petrom Sa's earnings presentation, Oct 29, 2020
Slide 1: OMV Petrom Q3/20 Results Conference Call
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Christina Verchere Chief Executive Officer and President of the Executive Board Alina Popa Chief Financial Officer The spoken word applies. Check against delivery. Page 1 of 46
Slide 2: Intro
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. Thank you for joining our call. I hope you and your families are all safe and healthy. In the third quarter we have
Slide 3: Legal Disclaimer
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 2 – Legal Disclaimer Before going into details, please let me first draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 46
Slide 4: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 4 of 46
Slide 5: Economic environment
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 3 – Economic environment Let me start with some highlights regarding commodity prices and main currencies in the third quarter of 2020. The oil prices recovered versus the previous quarter, being supported on the supply side by OPEC+’s
Slide 6: Base load electricity prices and currencies
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Base load electricity prices in Romania were down around 31 percent year- on-year in EUR terms, but around 50 percent higher quarter-on-quarter. The spark spreads were positive in the third quarter, due to the lower gas prices and despite hi
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Slide 8: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 8 of 46
Slide 9: Romanian environment
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 4 – Romanian environment Romania has been under a state of alert since May. Triggered by a steep increase in number of cases, this month the Romanian authorities have imposed stricter localized measures such as closure of some schools,
Slide 10: Romanian macro indicators
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Worth mentioning is the fact that, at the beginning of October, ANRE published an Order regarding the connection of households to the gas distribution network. For households, gas connection to the distribution network will be free of charge
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Slide 12: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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Slide 13: Key messages Q3/20
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 5 – Key messages Q3/20 On slide 5, we present the key highlights for the quarter. During this challenging period, we secured our business, proved our agility and maintained our commitment towards all our stakeholders. We ensured busine
Slide 14: Strategy execution and partnerships
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 With regards to strategy execution, in Downstream Oil, together with Auchan, we announced the agreement to extend our partnership for opening MyAuchan proximity stores in Petrom-branded filling stations. The partnership represents an innovat
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Slide 16: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 16 of 46
Slide 17: Operational KPIs
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 6 – Operational KPIs On slide 6, I would like to present to you the operational performance, as reflected in our KPIs in the third quarter of 2020. Let me start with Upstream. The hydrocarbon production declined by almost 6 percent yea
Slide 18: Power operations
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 generated by the obligation to sell on the regulated and the centralized markets. Since July 2020, OMV Petrom no longer has an obligation to supply the gas regulated market, following market liberalization. Net electrical output was 1.3 tera
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Slide 20: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 20 of 46
Slide 21: CAPEX and E&A
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 7 – CAPEX and E&A Slide 7 provides an overview of CAPEX and exploration and appraisal activities for the first nine months of 2020 and the outlook for the whole year. Total CAPEX amounted to 2.4 billion RON, 15 percent lower year-on-ye
Slide 22: Exploration expenditure outlook
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 In 2020, we expect exploration expenditures to be around 0.2 billion RON, as we postponed some of the initially planned drilling activity and seismic acquisition. The planned activities for the fourth quarter include the testing of one explo
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Slide 24: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 24 of 46
Slide 25: Ongoing response to the current crisis while progressing with sustainability
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 8 – Ongoing response to the current crisis while progressing with our sustainability journey It’s been three quarters since we started to update the capital markets on the impact of and our reaction to the current crisis. What we hoped
Slide 26: Sustainability: environment and social
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 throughout the first nine months of 2020. This is supported by the energy efficiency projects in which we are constantly investing in order to reduce greenhouse gas emissions. As mentioned earlier, we entered into strategic partnerships in t
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Slide 28: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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Slide 29: Income Statement highlights
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 10 – Income Statement highlights Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 10, starting with some highlights from the Income Statement, with focus on the developments of the
Slide 30: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 30 of 46
Slide 31: Special items and CCS effect
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 11 – Special items and CCS effect On slide 11, we bridge the Clean CCS Operating Result to the Reported Operating Result. For the third quarter of 2020, we recorded inventory holding losses of (53) million RON due to the decrease of cr
Slide 32: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 32 of 46
Slide 33: Clean CCS Operating Result
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 12 – Clean CCS Operating Result Let me go on to slide 12, which shows the major building blocks for the development of the Clean CCS Operating Result in the third quarter of 2020. I will start with Upstream, where the negative market e
Slide 34: Clean CCS Operating Result: Downstream
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 prices and sales volumes, was more than compensated by the power business which recorded an excellent performance, built on forward contracts. With an excellent availability of 99 percent in the third quarter, the Brazi power plant covered 1
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Slide 36: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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Slide 37: Cash Flow highlights
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 13 – Cash Flow highlights On slide 13, I would like to continue with the highlights of our cash flow statement. In the third quarter of 2020, we achieved an operating cash flow of 1.7 billion RON, 18 percent lower year-on-year. Operati
Slide 38: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 38 of 46
Slide 39: Strong response to adjust to the weak market environment
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 14 – Strong response to adjust to the weak market environment Triggered by the challenging environment, we took swift financial measures to maintain the strength of our balance sheet. As announced with our previous results, we expect o
Slide 40: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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Slide 41: Sensitivities in 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 15 – Sensitivities in 2020 We are witnessing increased volatility and a twofold pressure on oil prices: from both the supply and the demand side, with global forecasts being currently pessimistic due to the coronavirus outbreak. Given
Slide 42: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Page 42 of 46
Slide 43: Outlook 2020
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 Slide 16 – Outlook 2020 Let me conclude our presentation with the outlook for the full year 2020, on slide 16. Here I would like to highlight our main market assumptions for 2020 and how they compare to the actual figures for 2019 and for th
Slide 44: Closing remarks and questions
OMV Petrom Q3/20 Results Conference Call, October 29, 2020 We will continue our dialogue with the authorities and we are looking forward to seeing the key oil and gas legislation amended, in order to enable large scale gas projects in Romania. With this, I close our presentation and thank you for yo
Slide 45: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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Slide 46: OMV Petrom Q3/20 Results Conference Call, October 29, 2020
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