Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2023 Earnings Presentation
32 slides from Omv Petrom Sa's earnings presentation, Oct 31, 2023
Slide 1: OMV Petrom Q3/23 Results Conference Call
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 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 32
Slide 2: Slide 1 – Intro
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 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. It is a real pleasure to present our performance for the third quarter of 2023. Page
Slide 3: Slide 2 – Legal Disclaimer
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 2 – Legal Disclaimer Please let me first draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 32
Slide 4: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 4 of 32
Slide 5: Slide 3 – Commodity prices – Lower commodity prices
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 3 – Commodity prices – Lower commodity prices Let me start by taking a look at the evolution of commodity prices in the third quarter of 2023. Brent price increased by 11 percent versus the previous quarter and averaged 87 dollars per
Slide 6: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 6 of 32
Slide 7: Slide 4 – Romanian environment: Mixed demand evolution despite economic growth
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 4 – Romanian environment: Mixed demand evolution despite economic growth Moving to the Romanian macroeconomic environment, the latest available data shows that, in the second quarter of 2023, GDP increased by 2.6 percent year-on-year,
Slide 8: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 8 of 32
Slide 9: Slide 5 – Romanian regulatory environment – Highly regulated gas and power market
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 5 – Romanian regulatory environment – Highly regulated gas and power market It’s been more than one year since the Romanian Government implemented measures to address the high gas and power prices; regulation that will be in place from
Slide 10: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 10 of 32
Slide 11: Slide 6 – Key messages Q3/23 – Continued to deliver on our Strategy 2030
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 6 – Key messages Q3/23 – Continued to deliver on our Strategy 2030 On slide 6, we present the key highlights for the quarter. Our financial performance was the best quarterly result recorded this year. Still, it reflected the lower com
Slide 12: Key messages Q3/23 (continued)
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 In our third strategic pillar, optimizing our traditional business, we finalized, ahead of plan, the roll-out of our partnership with Auchan in our Petrom-branded filling stations. I will go into more detail on this later. Regarding gas supp
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OMV Petrom Q3/23 Results Conference Call, October 31, 2023 This page was left blank intentionally. Page 13 of 32
Slide 14: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 14 of 32
Slide 15: Slide 7 – Delivering on our retail strategy – Auchan partnership
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 7 – Delivering on our retail strategy – Auchan partnership strengthens our retail business And now a few words on our partnership with Auchan. As a leading provider of products and services for mobility in the region, we are constantly
Slide 16: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 16 of 32
Slide 17: Slide 8 – Operational performance – Resilient performance
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 8 – Operational performance – Resilient performance On slide 8, I would like to present our operational performance and I will start with Exploration and Production. Hydrocarbon production decreased by 3 percent, reflecting the natural
Slide 18: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 18 of 32
Slide 19: Slide 9 – CAPEX – On an upward trend yoy
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 9 – CAPEX – On an upward trend yoy Moving now to slide 9, total organic CAPEX amounted to 3.4 billion RON in the first nine months of 2023, higher by 48 percent year-on-year. Half of this was directed to Exploration and Production, whe
Slide 20: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 20 of 32
Slide 21: Slide 11 – Income Statement – Results decreased from Q3/22 record highs
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 11 – Income Statement – Results decreased from Q3/22 record highs Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 11, starting with some highlights on the Income Statement, with f
Slide 22: Income Statement (continued)
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 The Clean CCS net income attributable to stockholders decreased by 44 percent year-on-year to 2.1 billion RON. As mentioned in our previous conference call, the new legislation issued in May 2023 introduced the obligation to pay a solidarity
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OMV Petrom Q3/23 Results Conference Call, October 31, 2023 This page was left blank intentionally. Page 23 of 32
Slide 24: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 24 of 32
Slide 25: Slide 12 – Solid Operating Results, yet lower yoy
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 12 – Solid Operating Results, yet lower yoy Let me go on to slide 12, which shows the major building blocks for the development of the Clean CCS Operating Result. I will start with Exploration and Production. The market effect deviatio
Slide 26: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 26 of 32
Slide 27: Slide 13 – Cash flow – Strong cash generation, improved working capital
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 13 – Cash flow – Strong cash generation, improved working capital On slide 13, I would like to continue with the highlights regarding our cash flow statement. In the third quarter of 2023, the operating cash flow was 3.0 billion RON an
Slide 28: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 28 of 32
Slide 29: Slide 14 – Outlook – 2023-2025
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Slide 14 – Outlook – 2023-2025 Let me continue our presentation with the Outlook, on slide 14. We revised upwards our expectations in terms of Brent oil price for 2023 and we see it now to be above 80 dollars per barrel. Our hydrocarbon prod
Slide 30: Closing and questions
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 With this, I close our presentation and thank you for your attention. We are now available for your questions. Page 30 of 32
Slide 31: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 31 of 32
Slide 32: OMV Petrom Q3/23 Results Conference Call, October 31, 2023
OMV Petrom Q3/23 Results Conference Call, October 31, 2023 Page 32 of 32