Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Investor Day (June 2024)
42 slides from Omv Petrom Sa's investor day presentation, Jun 19, 2024
Slide 1: Capital Markets Day OMV Petrom
Capital Markets Day OMV Petrom Bucharest | June 19, 2024
Slide 2: Disclaimer
Disclaimer This presentation or the fact of its distribution does not, and is not intended to, target, dividend, production evolution, price assumptions in base and downside constitute or form part of, and should not be construed as, constituting or forming scenarios should be taken as forecasts or
Slide 3: Our speakers today
OMV Petrom Our speakers today Presenters Christina Verchere Alina Popa Cristian Hubati CEO CFO EB Member Exploration & Production Martin Urquhart Radu Caprau Franck Neel VP Neptun Deep Project EB Member EB Member Refining & Marketing Gas & Power 3 CMD June 2024
Slide 4: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 5: Our strategy proved resilient in a changing environment
Strategy 2030: Transforming for a lower carbon future Our strategy proved resilient in a changing environment Strong capital discipline & dividend policy Transition to low and zero carbon Energy transition leader for Romania and SEE Optimize traditional Grow regional business gas Innovation & People
Slide 6: Significant milestones achieved since 2021
Strategy 2030 execution Significant milestones achieved since 2021 ✓ Optimize ✓ Grow ✓ Low ✓ GHG traditional regional and zero reduction business gas carbon Near field discoveries Neptun Deep Strong portfolio of renewable Scope 1-2 emissions: Petrobrazi refinery: FID1 taken projects - 22%3 Turnaroun
Slide 7: Sustainable growth in energy, value and dividends
OMV Petrom strong investment proposition Sustainable growth in energy, value and dividends Integrated energy Growing cash flows Highly competitive Transforming company developing and maintaining dividend for a lower largest offshore gas strong profitability distributions3 carbon future resource1 in
Slide 8: Leading the energy transition in Romania and SE Europe
Decarbonization strategy Leading the energy transition in Romania and SE Europe Scope 1 – 2 GHG emissions mn t CO2 eq -30% 2030 Scope We are enabling: 4.5 1-2 Intensity -22% ● Neptun Deep - largest gas resource in the EU 3.5 -30% ● Largest new solar and wind power portfolio in Romania ● Largest inve
Slide 9: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 10: Romania: the fastest growing economy in the EU
Energy context Romania: the fastest growing economy in the EU Demand2 in Romania Romanian GDP per capita set to grow1 2030 vs 2023 2040 vs 2030 Gasoline +5% -30% CAGR % Diesel +5% -30% 4.2 Jet +25% +5% 2.7 Gas +25% -30% 1.8 Power +15% +20% thereof renewable3 +140% +100% 2023-2030 thereof EV (TWh) +1
Slide 11: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 12: Integrated E&P assets: maximize value
Operational excellence in traditional business Integrated E&P assets: maximize value CAPEX1 up to EUR Value over volume and strict cost 2023 2030 400 mn / year management: Workovers >400 ● Maximize economic recovery p.a. ~500 (unchanged) IRR ● Focusing on near field opportunities New wells 45 ~50 >1
Slide 13: Transforming while delivering strong cash flows
E&P business highly cash generative Transforming while delivering strong cash flows Hydrocarbon production1 Production cost Operating cash flow kboe/d USD/boe USD/boe -50% >40% 16 ~16 > 160 28 138 11 113 ~100 54% 70% ~8 52% 50% 11 46% 48% 50% 30% 2020 2023 2025 2030 2020 2023 2025 2030 2020 2023 202
Slide 14: High performing refinery with above average utilization
Petrobrazi refinery High performing refinery with above average utilization Production Up > 10% 2022 1 2030 mn t/year 4.2 (targets unchanged) 0.2 0.2 Refinery 95% >95%5 utilization4 2.0 Traditional Expand aromatics _ +50 products kt/year 2025 portfolio 1.3 Bottom of the _ 0.1 barrel upgrade6 ~200 0.
Slide 15: Dual brand strategy to further drive value increase
Our Retail proposition Dual brand strategy to further drive value increase 2023 2030 (targets unchanged) Profitability +16% +20% per filling station1,4 Non-fuel business +58% +100% margin1 Throughput +14% +20% per filling station2 5.7 mn l ~ 6 mn l Customers‘ first choice Number of services 28 >50 i
Slide 16: Leading integrated gas and power supplier
Redesigned gas and power business capturing market trends Leading integrated gas and power supplier Gas customers: Maximize returns from integrated Equity & • End users 2023 2030 3rd party gas optimization of our gas and power • Wholesales portfolios • Internal consumption ● Strong supply portfolio
Slide 17: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 18: Black Sea – a unique opportunity for OMV Petrom and the region
Grow regional gas Black Sea – a unique opportunity for OMV Petrom and the region Black Sea – a stepping-stone to greater energy security in South-East Europe OMV Petrom – Operator of two deep Neptun Deep offshore neighboring blocks, leveraging OMV Petrom - Operator strong experience Han Asparuh ● Ne
Slide 19: Neptun Deep: A game-changer project - set for success
Neptun Deep A game-changer project - set for success Strong team capabilities Robust project fundamentals Proven development concept Novel technology ● International team with Project view (100% interest) Domino: to produce via two ● Fully remotely operated extensive experience in ● OMV Petrom 50%,
Slide 20: Very low carbon intensity operations by industry standards
Neptun Deep Very low carbon intensity operations by industry standards Direct GHG emissions Neptun Deep will significantly contribute to per unit of hydrocarbon production ✓ kg CO2 per boe the > 70% reduction target of the Scope 1-2 E&P carbon intensity 2 16.6 ✓ Depletion Driven Concept - The natura
Slide 21: On track to deliver first gas in 2027, on budget
Neptun Deep On track to deliver first gas in 2027, on budget Exploration Exploration&&Appraisal Appraisal Development Development 2008-2022 2023 2024 2025 2026 2027 OMVP became FDP approval by Drilling and Permitting & operator of ND FID NAMR construction Approvals Aug 2022 Jun 2023 Aug 2023 permitt
Slide 22: Neptun Deep: First steel cut for topsides
► Neptun Deep: First steel cut for topsides
Slide 23: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages CMD June 2024
Slide 24: Largest new solar and wind power portfolio in Romania
Increased and accelerated plans in renewable power Largest new solar and wind power portfolio in Romania Key figures by 2030 Increased targets enabled by partnerships and We built a strong portfolio… ~2.5 GW CAPEX ● Profitable mix between M&A and capacity (GW) 1 target capacity installed1 organic pr
Slide 25: Becoming the first major producer of renewable fuels in SE Europe
Decarbonizing customers’ transportation: SAF/HVO Becoming the first major producer of renewable fuels in SE Europe FID taken for: CAPEX for FID-ed units Our new targets by 2030 250 kta SAF/HVO in EUR mn and ~8 kta green H2 750 Biofuels kta production Increasing biofuels 250 2 300 demand in our regio
Slide 26: Consolidating our position as 1st choice mobility provider in Romania
Decarbonizing customers’ transportation: E-mobility Consolidating our position as 1st choice mobility provider in Romania >5,000 CPs1 CAPEX for 2024-2030 Our increased target No. of CPs EUR mn Increased 2030 target ~160 ~270 ~1,000 >5,000 (prev. 500) Capture early mover advantage and 2023 2024 2030
Slide 27: Unique opportunities beyond renewable power, biofuels, e-mobility
New energy technologies Unique opportunities beyond renewable power, biofuels, e-mobility CCS Other high potential technologies Potential for strong demand for lower Competitive advantages in CO2 storage H2 and zero-carbon H2 Exploring integrated H2 player position ● In-depth knowledge of geological
Slide 28: Investing to 2030 in projects with double-digit returns
Increase our low and zero carbon businesses Investing to 2030 in projects with double-digit returns Green and blue H2 HVO/SAF, Biofuels ~EUR 0.4 bn ~EUR 0.9 bn Capex1 ~30% ~EUR 3.7 bn New technologies FID-ed IRR ~EUR 1.2 bn 10-15% Renewable power and Energy storage Alternative / e-mobility ~EUR 1.0
Slide 29: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 30: 2022-2023: Resilient financial frame despite market upheaval
Market context 2022-2023: Resilient financial frame despite market upheaval Base case prices revised upwards1 2025 – 2030 Brent oil ~80 USD/bbl Indicator refining margin 8 – 10 ● Changes to supply chains USD/bbl ● Increased geopolitical and regulatory risks Gas hub price 25 – 30 EUR/MWh ● Higher and
Slide 31: Profitable investments drive strong financial performance
Financial frame Profitable investments drive strong financial performance Rigorous capital Strong financial Attractive returns discipline performance to shareholders ● CAPEX1 of ~EUR 11 bn ● 2030 Clean CCS EBIT of ● 5%-10% p.a. dividend ● CAPEX1 of ~EUR 3.7 bn >EUR 1.5 bn growth for low & zero carbo
Slide 32: Company's transformation supports higher shareholder returns
Capital allocation Company’s transformation supports higher shareholder returns 1 Organic CAPEX 2 Progressive base dividends 3 Inorganic CAPEX 4 Special dividends ● Further invest in the ● Committed to a ● Selective M&A ● Special dividends profitable traditional competitive transactions to help pote
Slide 33: Rigorous capital discipline underpins strategy
Financial Frame Rigorous capital discipline underpins strategy Average annual CAPEX per Average annual CAPEX per strategic pillar business segment EUR bn % Double digit ~1.7 returns 15 ~1.0 25 IRR > 10% (prev. > 9%) 5 0.8 2 35 IRR >12% 28 IRR > 12% 70 60 60 2019-2023 2024-2026 2027-2030 2019-2023 20
Slide 34: Delivering strong financial performance across the business
Financial Frame Delivering strong financial performance across the business Clean CCS EBIT Clean CCS EBIT Clean CCS ROACE per strategic pillar1 per business segment1 % EUR bn % ~1.4 ~15 1.2 20 ~1.1 20 15 ~12 35 7 30 40 45 50 45 2019-2023 2024-2026 2027-2030 2019-2023 2024-2026 2027-2030 2020 2025 20
Slide 35: Dividend distributions at highly competitive levels
Living up to our promises Dividend distributions at highly competitive levels Progressive base dividends Competitive among our peers Dividend per share breakdown Total distributions1, 2, 3 RON/share Distributions 36% 45% 39% 44% share in OCF 0.0791 0.0825 0.0713 Special Total distribution 19.6 yield
Slide 36: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 37: Enabling our transformation
Digitalization and People Enabling our transformation Digitalization with impact People make it happen Leveraging digitalization to accelerate transformation Excellence in business operations via simplification, standardization & automation Re-inventing care Outstanding customer experience Essential
Slide 38: Contents
Contents 1 | Strategy 2030 overview and delivery 2 | Energy context 3 | Optimize traditional business 4 | Grow regional gas 5 | Transition to low and zero carbon 6 | Financial frame 7 | Strategy enablers 8 | Key messages
Slide 39: Delivering on our Strategy 2030
OMV Petrom Strategy 2030 Delivering on our Strategy 2030 Strategy 2030 Underway Double digit Strong financial Experienced proven resilient with Neptun Deep returns on framework and management team against backdrop development – investments in low peer leading with proven ability of significantly ons
Slide 40: Strategy 2030 update
Strategy 2030 update VY
Slide 41: Back up
Back up
Slide 42: Still strong financial position
Resilience under downside-price scenario1 Still strong financial position Clean CCS EBIT EUR bn Base case Downside scenario Under downside price scenario: 1.7 1.7 Commitment to pay progressive base >1.5 dividends maintained CAPEX plans largely unchanged by 2030 ~0.8 Gearing ratio below 20% thr