Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2016 Earnings Presentation
23 slides from Orlen Spolka Akcyjna's earnings presentation, Apr 28, 2016
Slide 1: LOTOS Group 1Q 2016 consolidated financial results
LOTOS Group 1Q 2016 consolidated financial results Mariusz Machajewski, Vice President of the Management Board Maciej Szozda, Vice President of the Management Board April 28th, 2016 Grupa LOTOS S.A.
Slide 2: Key highlights External environment Upstream
1 Key highlights 3-4 2 External environment 5-8 3 Upstream 9 - 13 4 Downstream 14 - 18 5 Consolidated financial results 19 - 22 Grupa LOTOS S.A.
Slide 3: Key highlights
Key highlights Grupa LOTOS LOTOSS.A. S.A. 3
Slide 4: Key highlights 1Q 2016
Key highlights 1Q 2016 y/y % change EBITDA Clean(1) EBITDA PLN m Clean EBITDA reported LIFO LIFO Consolidated 400 547 +19% upstream 150 155 +106% downstream 241 383 +15% Operating cash flow 319 m PLN Crude oil throughput 2 444 k tons Upstream production 29 816 boe/day Note : Values for the segments
Slide 5: External environment
External environment Grupa LOTOS LOTOSS.A. S.A. 5
Slide 6: External environment - crude oil prices & product cracks
External environment - crude oil prices & product cracks USD/bbl Avg Brent/Ural spread Avg Brent price 2.5 80 1.5 60 64 61 57 44 38 0.5 48 48 38 31 32 60 47 -0.5 -1.5 -1.3 -1.6 -1.3 -1.5 -1.5 40 -1.5 -2.6 -3.2 -2.3 -2.6 -2.5 -2.9 -2.7 20 -3.5 0 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15
Slide 7: Model refining margin vs. peers
Model refining margin vs. peers (1) (1) (1) (2) USD/bbl LOTOS PKN OMV ERMI 12.00 11.30 11.40 10.00 9.20 7.84 8.00 7.78 7.45 8.20 8.00 7.36 7.45 5.9 6.00 6.50 6.41 5.19 5.18 4.00 4.77 3.75 2.00 7.32 9.38 8.08 7.41 6.21 4.74 0.00 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 (1) Source: Company data
Slide 8: External environment – GDP growth, FX development & domestic fuel consumption
External environment – GDP growth, FX development & domestic fuel consumption % Polish GDP growth mln m3 Diesel consumption 3.9 3.9 3.7 3.7 3.8 3.6 3.4 3.4 3.6 3.5 3.3 3.3 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 USD/PLN (3) mln m3 Gasoline cons
Slide 9: Upstream
Upstream Grupa LOTOS LOTOSS.A. S.A. 9
Slide 10: Hydrocarbons reserves and production figures
Hydrocarbons reserves and production figures Average daily oil&gas production (boe/d)(1) 2P(2) oil&gas reserves (m boe) 29 816 66.8 64.2 1 157 7.1 7.0 6 234 51.9 7.3 40.6 13 771 40.0 11 741 1 203 1 278 22 425 41.1 5 829 3 232 19.1 17.1 7 231 6 739 3.5 3Q'15 4Q'15 1Q'16 Sep 15 Dec 15 Mar 16 Norway Po
Slide 11: Quarterly sales split by products and countries
Quarterly sales split by products and countries 1Q 2015 4Q 2015 1Q 2016 2 018 ths boe 77% 601 447 563 498 3% 72% 3% 206 68% 91 91 91 9% Norway Poland Lithuania Norway Poland Lithuania Norway Poland Lithuania Oil Gas (1) share of natural gas in total sales (in %) Grupa LOTOS S.A. 11
Slide 12: Upstream quarterly clean EBITDA development
Upstream quarterly clean EBITDA development PLN m +106% y/y 155 75 71 Clean EBITDA 1Q'15 Clean EBITDA 4Q'15 Clean EBITDA 1Q'16 1Q 2015 4Q 2015 1Q 2016 (1) 4Q 2015: assets impairments (69 m PLN Lithuania, 20 m PLN Norway, 47 m PLN Poland) Grupa LOTOS S.A. 12 (2) 1Q 2016: assets impairments (5 m PLN L
Slide 13: Upstream segment - depreciation breakdown
Upstream segment - depreciation breakdown Lithuania 7 19 Segment’s depreciation predominantly Poland 115 concentrated in the Norwegian part of the Norway business(1) Almost half (56 m PLN) of the total Norwegian 15 46 depreciation (115 m PLN) on Heimdal and Sleipner decommissioning assets(2) 43 10 H
Slide 14: Downstream
Downstream Grupa LOTOS LOTOSS.A. S.A. 14
Slide 15: Refinery production - volumes of key products, crude oil throughput & utilisation rate
Refinery production - volumes of key products, crude oil throughput & utilisation rate Oil throughput (k tons) Refinery utilisation (%) k tons 120% 3 600 110% 100% 100% 94% 97% 3 200 93% 93% 100% Crude oil throughput at 2 444 k tons, 2 800 2 628 2 651 2 555 90% with capacity utilisation rate at c. 9
Slide 16: Share of key products in the overall refinery output
Share of key products in the overall refinery output 49.9% 50.1% 50.7% 49.0% 49.9% 20.8% 19.9% 19.7% 19.3% 18.8% 14.0% 13.6% 14.9% 13.2% 12.9% 3.6% 4.9% 5.0% 5.1% 5.0% 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 (1) (2) Middle distilates Gasoline Naphtha Heavy Products 1) Diesel + Jet Fuel + Light Heati
Slide 17: Retail performance and domestic fuel sales
Retail performance and domestic fuel sales Quarterly retail EBITDA Quarterly retail sales volumes m PLN k tons -4% y/y +21% y/y 21 329 303 20 16 251 (1) 1Q'15 4Q'15 1Q'16 1Q'15 4Q'15 1Q'16 Poland’s fuel overall sales volumes(2) Petrol station network (no. of units) k tons 445 477 +9% y/y 196 171 1 3
Slide 18: Downstream segment quarterly clean EBITDA LIFO
Downstream segment quarterly clean EBITDA LIFO m PLN +15% y/y 420 383 333 Clean EBITDA LIFO 1Q'15 Clean EBITDA LIFO 4Q'15 Clean EBITDA LIFO 1Q'16 1Q 2015 4Q 2015 1Q 2016 -10 8 492 420 LIFO Clean -75 6 LIFO Clean inventory LIFO inventory LIFO impairment EBITDA impairment EBITDA EBITDA LIFO effect LIF
Slide 19: Consolidated financial results
Consolidated financial results Grupa LOTOS LOTOSS.A. S.A. 19
Slide 20: Quarterly operating result decomposition
Quarterly operating result decomposition m PLN 1Q 2016 (1) (2) 1Q 2015 (1) (3) (1) FX operational differences (2) -48 m PLN effect of the difference in the balance of LIFO inventory valuation : partial „reversal” od the impairments from 31.12.2015; +5 m PLN assets impairment in Lithuania (3) Effect
Slide 21: Quarterly operating cash flow and CAPEX
Quarterly operating cash flow and CAPEX m PLN Operating cash flow CAPEX per segments 1Q 2016 100 (1) 564 225 402 321 319 199 Upstream Downstream 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 (1) EFRA Program 189 m PLN Grupa LOTOS S.A. 21
Slide 22: Indebtedness
Indebtedness PLN m (1) (2) Net debt Gearing ratio 5 701 5 569 74% 70% 64% Dec 2015 Mar 2016 Dec 2013 Dec 2014 Mar 2016 (3) Net debt/LTM clean EBITDA LIFO Net debt figures include: interest bearing loans and 3.8x borrowings, finance lease and bonds 2.6x 2.5x The current gearing ratio at a level o
Slide 23: Investor Relations
Grupa LOTOS S.A. Investor Relations tel. +48 58 308 73 93 fax +48 58 346 22 35 e-mail ir@grupalotos.pl Twitter : @GrupaLOTOS Grupa LOTOS S.A.