Omv Petrom Sa · BVB:SNP

Omv Petrom Sa — Q1 2020 Earnings Presentation

18 slides from Omv Petrom Sa's earnings presentation, Apr 29, 2020

  1. Slide 1: OMV Petrom Q1/20 Results

    OMV Petrom Q1/20 Results Christina Verchere, CEO April 29, 2020 OMV Petrom S.A.

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe

  3. Slide 3: Economic environment

    Economic environment Oil price (USD/bbl) Gas prices (EUR/MWh)1 68.9 22.6 21.5 20.7 63.4 62.0 63.1 68.8 14.8 13.8 62.8 19.5 63.1 62.0 50.1 15.5 13.0 11.2 10.6 48.1 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Avg Urals price in USD/bbl Avg Brent price in USD/bbl Romanian centralized ma

  4. Slide 4: Romanian environment

    Romanian environment Fiscal and regulatory Macroeconomic environment framework Authorities’ reaction to COVID: GDP growth:  Emergency state since mid-March  Q4/191: + 4.2% yoy  Health and social, fiscal and monetary measures  2020e2: - 5% yoy  Price cap for fuels, gas and power during emergency

  5. Slide 5: Key messages Q1/20

    Key messages Q1/20 performance Financial Clean CCS Operating Cash Clean CCS Operating result Flow ROACE RON 1.0 bn RON 1.4 bn 12.5% Upstream: Operational  Strong hydrocarbon production performance highlights  Largest onshore 3D seismic survey in Europe (Urziceni East block) finalized Downstream Oi

  6. Slide 6: Operational KPIs

    Operational KPIs Upstream Downstream Oil Downstream Gas Hydrocarbon production OMV Petrom Indicator Gas sales volumes (kboe/d) refining margin (USD/bbl) (TWh) -2% 0% +86% +17% +52% 153 151 150 152 150 +11% 6.75 19.85 18.61 6.46 71 72 71 72 72 4.68 12.23 13.37 3.62 3.85 9.39 82 79 79 80 79 Q1/19 Q2/1

  7. Slide 7: CAPEX and E&A

    CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn)  Q1/20 at RON 1.0 bn:  20 new wells and sidetracks -30% -30%  ~210 workovers 4.2  Securing long term logistic access to Petrobrazi refinery  Bio compliance blending project 3.0  2020E at RON ~3.0 bn (from RON

  8. Slide 8: OMV Petrom's response to COVID-19 and the new market environment

    OMV Petrom’s response to COVID-19 and the new market environment  Working intensively with authorities to contain Partner for impact on operations and critical infrastructure Romania  Reliable and responsible tax payer OMV Petrom: Attractive  Proven track record in managing economic crises Prepar

  9. Slide 9: OMV Petrom Q1/20 Results - Alina Popa, CFO

    OMV Petrom Q1/20 Results Alina Popa, CFO April 29, 2020 OMV Petrom S.A.

  10. Slide 10: Income Statement highlights

    Income Statement highlights Clean CCS Operating Result (RON bn) -21% -20%  Q1/20 Clean CCS Operating Result reflects: 1.23 1.12 0.98 ► Lower oil and gas prices ► Improved refining margin ► Positive consolidation line Q1/19 Q4/19 Q1/20 Co&O and Cons Downstream Upstream Clean CCS Net Income1 (RON bn)

  11. Slide 11: Special items and CCS effect

    Special items and CCS effect RON mn Q1/20 Q4/19 Q1/19 Q1/20 CCS effect Clean CCS Operating Result 975 1,120 1,227  Negative due to decrease in quotations CCS effects: Inventory holding gains / (losses) (239) 17 38 Special items 94 (89) 23 Thereof Upstream (27) (204) 50 Q1/20 Special Items Downstrea

  12. Slide 12: Clean CCS Operating Result

    Clean CCS Operating Result Upstream (RON mn)  Lower oil and gas prices 825  Higher exploration expenses -473  Higher depreciation -20 -27 -148 157  Favourable FX Q1/19 Market Volume Exploration Other Q1/20 effects Downstream  Higher refining margin (RON mn)  96% refining utilization rate 661 1

  13. Slide 13: Cash Flow highlights

    Cash Flow highlights Cash Flow from Operating Activities (RON bn) -10% -10% 1.78 1.51 1.36  Q1/20 CFO: lower decrease than Operating Result due to higher depreciation, impairments and provisions Q1/19 Q4/19 Q1/20 Free Cash Flow 1 (RON bn) -80% 80% 0.67 0.74  Q1/20 CFO2: -10% yoy 0.14  Q1/20 CFI3:

  14. Slide 14: Strong response to adjust to the weak market environment

    Strong response to adjust to the weak market environment  Rephased and optimized long-term delivery Reduced projects RON 1.2 bn1 CAPEX  Cut of non-committed CAPEX (30%)2  Focus on projects in development, decrease by Reductions of >30% of number of wells to be drilled ~RON 1.5 bn  Postpone explo

  15. Slide 15: Prepared to cope with challenges

    Prepared to cope with challenges Net Debt/(Cash) (RON mn) 1,286 40  Strong balance sheet -237  No gearing -2,897 -4,891 -5,982 -6,095 2015 2016 2017 2018 2019 Q1/20 Group’s Clean CCS Operating Result breakdown (%) (-30)%  Integrated business model supports financial 56% 43% results ~95% Average 2

  16. Slide 16: Sensitivities in 2020

    Sensitivities in 2020 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +20 mn Equity gas price EUR +1/MWh ~EUR +18 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn USD appreciation by 5 USD Exchange rates (EUR/USD) ~EUR +50 mn cents 16 | OMV P

  17. Slide 17: Outlook 2020

    Outlook 2020 Assumptions/Targets Indicators Actual 2019 2020 USD 40/bbl Brent oil price USD 64.21/bbl (Previously: USD 60/bbl) Production 152 kboe/d decline below 5% yoy 1 Refining margin USD 4.67/bbl USD >5.0/bbl RON ~3.0 bn CAPEX 2 RON 4.2 bn (Previously: RON ~4.2 bn) Negative FCF after dividends

  18. Slide 18: Q&A OMV Petrom S.A.

    OMV Petrom S.A. @ OMV Petrom The energy for a better life.

OMV Petrom — Q1 2020 Earnings Presentation on 6ix