Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q4 2018 Earnings Presentation

43 slides from Omv's earnings presentation, Feb 6, 2019

  1. Slide 1: OMV Q4 and full-year 2018 Results Conference Call

    OMV Q4 and full-year 2018 Results Conference Call February 6, 2019 OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO The spoken word applies 1/43 | OMV Group

  2. Slide 2: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 2/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 2/43 | OMV Group

  3. Slide 3: Macro environment – Higher oil and gas prices, healthy refining margins

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Ladies and gentlemen, good morning and thank you for joining us today. 2018 was really an outstanding year for OMV. We were able to deliver a record operational performance and to achieve many of the strategic targets we announced a

  4. Slide 4: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 4/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 4/43 | OMV Group

  5. Slide 5: Key messages Q4 2018

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 4: Key messages Q4 2018 Let me now briefly point out the highlights of the fourth quarter of 2018. OMV delivered a Clean CCS Operating Result of more than one billion Euros for the second quarter in a row. Clean CCS Earnings p

  6. Slide 6: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 6/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 6/43 | OMV Group

  7. Slide 7: Another strong quarter – Clean CCS Operating Result of more than EUR 1 bn achieved

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 5: Another strong quarter – Clean CCS Operating Result of more than EUR 1 bn achieved Let’s now turn briefly to our financial performance in the fourth quarter of 2018. The clean CCS Operating Result increased by 53 percent, f

  8. Slide 8: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 8/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 8/43 | OMV Group

  9. Slide 9: Upstream – Increased sales volumes and favorable price environment

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 6: Upstream – Increased sales volumes and favorable price environment Our Upstream business experienced a strong quarter driven by an improved operational performance and higher oil and gas prices. The Clean Operating Result r

  10. Slide 10: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 10/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 10/43 | OMV Group

  11. Slide 11: Downstream – Strong earnings driven by higher volumes and good margins

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 7: Downstream – Strong earnings driven by higher volumes and good margins In our Downstream business, the clean CCS Operating Result increased to 445 million Euros, up 25 percent. The Downstream Oil result rose by 22 percent t

  12. Slide 12: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 12/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 12/43 | OMV Group

  13. Slide 13: Free cash flow of EUR 0.3 bn after record dividends and major acquisitions

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 8: Free cash flow of EUR 0.3 bn after record dividends and major acquisitions Turning to cash flow, the fourth quarter was again strong with an operating cash flow of 1.1 billion Euros. As a result, we reached a record operati

  14. Slide 14: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 14/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 14/43 | OMV Group

  15. Slide 15: OMV Strategy 2025 – In a nutshell

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 9: OMV Strategy 2025 – In a nutshell In March of last year we presented our strategy 2025. I would like to briefly remind you what we promised one year ago and then give an overview of our progress. We set ourselves ambitious

  16. Slide 16: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 16/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 16/43 | OMV Group

  17. Slide 17: 2018 – Record Clean CCS Operating Result in OMV's history

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 10: 2018 – Record Clean CCS Operating Result in OMV’s history Ladies and gentlemen, 2018 was for OMV a year of strong strategy execution. I am extremely pleased how we delivered on our commitments. Let me briefly talk about th

  18. Slide 18: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 18/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 18/43 | OMV Group

  19. Slide 19: A new level of sustainable cash generation and potential for increase above EUR 5 bn mid-term

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 11: A new level of sustainable cash generation and potential for increase above EUR 5 bn mid-term Let me now come to the most important KPI for me when managing the company: cash flow. This is how we run the company. I would l

  20. Slide 20: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 20/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 20/43 | OMV Group

  21. Slide 21: Upgraded and cost-competitive Upstream portfolio

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 12: Upgraded and cost-competitive Upstream portfolio The next slide speaks for itself. Our portfolio changes and efficiency efforts have boosted the size and competitiveness of the Upstream business. Since 2015, our production

  22. Slide 22: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 22/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 22/43 | OMV Group

  23. Slide 23: Strengthened reserves base

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 13: Strengthened reserves base In 2018, we further strengthened our reserve base by adding around 200 million barrels to our reserves. This enabled us to achieve a Reserves Replacement Rate of 160 percent on a three-year avera

  24. Slide 24: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 24/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 24/43 | OMV Group

  25. Slide 25: Strong project pipeline for further production growth

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 14: Strong project pipeline for further production growth We are well on track with our growth targets in Upstream. We were extremely active last year, delivering a good pipeline of growth projects that will help us to reach o

  26. Slide 26: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 26/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 26/43 | OMV Group

  27. Slide 27: Downstream – Consistently strong cash generator

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 15: Downstream – Consistently strong cash generator In Downstream, we remained firmly focused on operational excellence and cost efficiency, generating strong returns and cash flows. In 2018, excluding Petrol Ofisi, our sales

  28. Slide 28: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 28/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 28/43 | OMV Group

  29. Slide 29: Excellently positioned for IMO 2020 to capture upside

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 16: Excellently positioned for IMO 2020 to capture upside Downstream will continue to be a strong cash generator for OMV and we see further upside through IMO 2020. OMV runs landlocked refineries and does not sell a lot of mar

  30. Slide 30: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 30/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 30/43 | OMV Group

  31. Slide 31: OMV and ADNOC form a strategic downstream partnership

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 17: OMV and ADNOC form a strategic downstream partnership – Decisive step to deliver OMV Strategy 2025 Ladies and gentlemen, just few days ago, OMV signed a landmark strategic partnership with ADNOC for a 15 percent stake in A

  32. Slide 32: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 32/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 32/43 | OMV Group

  33. Slide 33: Benefitting from an integrated position in Abu Dhabi

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 18: Benefitting from an integrated position in Abu Dhabi ─ One of the world’s major oil and gas centers With this transaction, OMV is building an integrated value chain in Abu Dhabi, similar to our successful business model in

  34. Slide 34: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 34/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 34/43 | OMV Group

  35. Slide 35: Healthy balance sheet with substantial gearing headroom

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 19: Healthy balance sheet with substantial gearing headroom OMV’s balance sheet remained very healthy and showed strong liquidity with a cash position of 4 billion Euros at the end of 2018. Net debt amounted to 2 billion Euros

  36. Slide 36: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 36/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 36/43 | OMV Group

  37. Slide 37: Focused disciplined organic investments

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 20: Focused disciplined organic investments Let me now come to our organic investments. We have substantially reduced the level of the organic investments from an average of 3.1 billion Euros in the years 2013 to 2015 to an av

  38. Slide 38: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 38/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 38/43 | OMV Group

  39. Slide 39: Shift in capital allocation priorities

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 21: Shift in capital allocation priorities Ladies and gentlemen, we have worked hard since we communicated our 2025 strategy last year. We were able to close major deals significantly faster than anticipated. We have committed

  40. Slide 40: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 40/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 40/43 | OMV Group

  41. Slide 41: Delivering on our progressive dividend policy – Record dividends in 2018

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 22: Delivering on our progressive dividend policy ─ Record dividends in 2018 Last year we introduced a new dividend policy: we committed ourselves to increase the dividend every year or at least maintain it at the respective p

  42. Slide 42: OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 42/43 | OMV

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 42/43 | OMV Group

  43. Slide 43: Outlook 2019

    OMV Q4 and full-year 2018 Results Conference Call, February 6, 2019 Slide 23: Outlook 2019 Let me conclude with the outlook for 2019. For the full year, we are forecasting an average oil price of 65 Dollars per barrel and European gas spot prices lower than in 2018.  Organic capex is projected to c

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