Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q4 2021 Earnings Presentation
35 slides from Orlen Spolka Akcyjna's earnings presentation, Mar 23, 2022
Slide 1: Consolidated financial results Q4 2021 and FY 2021
Consolidated financial results Q4 2021 and FY 2021 23th of March 2022
Slide 2: Consolidated financial results 4th quarter 2021 and FY 2021
Consolidated financial results 4th quarter 2021 and FY 2021 Key highlights ….………………………………………………... 3 External environment .……………………………………..…..... 6 Exploration & production….…………………..…………….… 11 Refining & marketing ….………………………………………… 18 Consolidated financial results ……………………………..… 24 Appendices ………
Slide 3: FY2021 and Q4 2021 performance
Key highlights FY2021 and Q4 2021 performance ● financial performance influenced by the improving external environment in connection with the recovery of economies after the outbreak of the COVID-19 pandemic ● LIFO-based EBITDA(1) for 2021 at PLN 4.23bn vs PLN 1.36bn the year before, up by 212%, of
Slide 4: Summary Full year 2021
Summary Full year 2021 LIFO EBITDA(1) Refining & marketing – crude oil throughput in Gdańsk m PLN +212% k tons 4 229 -3% 10 672 10 197 9 914 2 861 3 019 2 224 1 357 (3) 905 refining & marketing 1 221 630 469 exploration & production 2019 2020 2021 2019 2020 2021 Operating cash flow Exploration & pro
Slide 5: Summary Q4 2021
Summary Q4 2021 LIFO EBITDA(1) +635% Refining & marketing – crude oil throughput in Gdańsk m PLN k tons 1 478 +4% 1 152 2 699 2 508 2 612 905 907 201 583 refining & marketing 60 255 exploration & production 141 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Net debt / LIFO EBITDA (2) Exploration &
Slide 6: Consolidated financial results Q4 2021 and FY 2021
Consolidated financial results Q4 2021 and FY 2021 Key highlights ….…………………………………………………... Podsumowanie ….……………………………………………........ 33 External Otoczenieenvironment .…………………………..…........ 66 makroekonomiczne.……………….…….. Exploration & production….…………………..…………….… Segment wydobywczy ….…………………..……………….
Slide 7: Nat gas prices development
External environment Nat gas prices development Natural gas prices(1) 400 m bbl/d 350 300 ● in 2021, an increase in the average 250 annual gas price of 390% from 18 USD/boe to 88 USD/boe 200 ● the average nat gas prices in Q4 2021 150 soared to 170 USD/boe compared to 29 USD/boe in Q4 2020 100 ● ver
Slide 8: Macroeconomic environment vs strategic assumptions
External environment Macroeconomic environment (1) vs strategic assumptions (2) Brent DTD Product crack spreads USD/bbl USD/ton +6% 179 An upward trend in the HYDROCARBONS 71 quotations visible from the beginning of 2021 67 -26% 132 Average price of natural gas according Gasoline to National Balanci
Slide 9: FX rate, GDP growth, domestic fuel market
External environment FX rate, GDP growth, domestic fuel market FX USD/PLN rate (1) Diesel consumption (3) m m3 4,1 6,0 4,0 5,6 5,8 3,9 5,4 5,3 3,9 4,8 4,8 3,8 3,8 3,8 3,8 3.9 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Polish GDP growth (2) Gasolin
Slide 10: Crude oil, natural gas and product cracks
External environment Crude oil, natural gas and product cracks Crude oil (1) and nat gas prices (2) Key product crack spreads (1) USD USD/t 170 160 132 97 115 91 83 66 69 96 69 73 71 60 61 47 51 50 34 34 50 43 44 38 47 30 18 15 30 30 9 30 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 -63 -81 -85 B
Slide 11: Consolidated financial results Q4 2021 and FY 2021
Consolidated financial results Q4 2021 and FY 2021 Key Podsumowanie highlights ….…………………………………………………... ….…………………………………………..….... 33 External Otoczenieenvironment makroekonomiczne.…………………………… .……………………………………..…..... 66 Exploration Segment wydobywczy & production….…………………..…….… ….…………………..…….…... 111
Slide 12: Exploration & Production key highlights
Key highlights Exploration & Production ● Clean EBITDA for 2021 at PLN 1 221m, i.e. higher by 160.5% y/y, thanks to significantly higher crude oil and natural gas prices, despite the reported decrease in volumes sale by 23.4% y/y, ● In Q4 2021, clean EBITDA at the level of PLN 583m (+315% yoy) ● Dec
Slide 13: Producing assets in Q4 2021
Exploration & Production Producing assets in Q4 2021 B8 Sleipner Heimdal Baltic Sea North Sea North Sea Reserves(1) 32.1 m boe Reserves(1) 9.2 m boe Reserves(1) 0.4 m boe Production(2) 3.4 kboe/d Production(2) 8.3 kboe/d Production(2) 1.9 kboe/d YME North Sea Reserves(1) 12.5 m boe B3 Utgard Product
Slide 14: Overall production figures
Exploration & Production Overall production figures Average daily production in quarters Overall FY production boe/d m boe -15% -10% 7.4 18 167 0.2 6.3 Norway 16 320 1,9 0.2 Poland 15 170 Lithuania 2,1 9 229 8 552 8 914 5,3 4,1 8 938 7 767 2020 2021 6 256 FY product mix structure (sales) Q4 2020 Q3
Slide 15: Total recoverable reserves vs 31 December 2020
Exploration & Production Total recoverable reserves in comparison to 31st of December 2020 Reserves 2P m boe 74.8 Lithuania 2,5 -4.1 -2.1 69.2 -0.2 0,8 2,3 Poland 46.0 43.9 Norway 26.3 23.0 2020-12-31 Production Norway Production Poland Production Lithuania Norway reclassification (1) 2021-12-31 (1)
Slide 16: Annual operating results of the segment
Exploration & Production Annual operating results of the segment 2020 2021 +160% 1 476 m PLN 1 211 265 -255 1 221 469 911 322 -442 -764 Clean 322 One offs EBIT 2020 Depreciation EBITDA 2020 2020 EBITDA 2020 EBIT 2021 Depreciation EBITDA 2021 One offs 2021 Clean EBITDA 2021 461 -2 -7 1.4 39 -35 911 -
Slide 17: Quarterly operating results of the segment
Exploration & Production Quarterly operating results of the segment Q4 2020 Q3 2021 Q4 2021 m PLN +315% -36 583 81 538 195 61 141 255 84 86 -29 EBIT Q4 Depreciation One offs Clean EBIT Q3 Depreciation EBITDA EBIT Q4 Depreciation One offs Clean 2020 Q4 2020 EBITDA 2021 Q3 2021 2021 Q4 2021 EBITDA Q4
Slide 18: Consolidated financial results Q4 2021 and FY 2021
Consolidated financial results Q4 2021 and FY 2021 Podsumowanie Key highlights ….…………………………………………………... ….……………………………………………........ 3 Otoczenie External environment makroekonomiczne.…………………………….. .……………………………………..…..... 6 Segment wydobywczy Exploration & production….…………………..…………….… ….…………………..……………
Slide 19: Refining & Marketing key highlights
Key highlights Refining & Marketing ● Clean EBITDA LIFO (1) for 2021 at the level of PLN 3,018.9m (compared to PLN 905.3m in 2020), mainly thanks to the improvement of cracks of key petroleum products, despite the maintenance shutdown at the refinery in Gdansk and the resulting decrease in productio
Slide 20: Refining output structure
Refining & Marketing Refining output structure k tons % share in total 2 836 2 758 2 772 2 708 2 418 2 802 2 944 2 871 14% 14% 13% 12% 14% 14% 12% 17% 6% 4% 4% 4% 5% 6% 6% 4% 58% 56% 54% 56% 61% 59% 59% 61% 8% 10% 10% 8% 9% 9% 7% 3% 8% 3% 3% 2% 2% 3% 3% 3% 13% 12% 12% 14% 12% 11% 12% 13% Q1 2020 Q2
Slide 21: Annual operating results of the segment
Refining & Marketing Annual operating results of the segment 2020 2021 m PLN 4 062 209 784 -1 253 3 019 +233% 3 278 905 740 153 Retail Retail 13 253 205 768 -615 (2) EBIT 2020 Depreciation EBITDA 2020 One offs LIFO effect Clean EBIT 2021 Depreciation EBITDA 2021 One offs LIFO effect Clean (1) 2020 E
Slide 22: Quarterly operating results of the segment
Refining & Marketing Quarterly operating results of the segment Q4 2020 Q3 2021 Q4 2021 m PLN +1 407% 1 186 1 063 -317 907 905 38 -297 139 1 186 825 885 -144 243 60 -39 66 83 Retail Retail 20 EBITDA LIFO effect One offs Clean LIFO Retail EBITDA LIFO effect One offs Clean LIFO EBITDA LIFO effect One
Slide 23: Model refining margin
Refining & Marketing Model refining margin(1) USD/bbl Model refining margin Revenues from products of 94% of throughput, including 23% gasoline, 63% diesel and 8% heavy fuel oil. Costs: 100% of processed crude and natural gas. Own consumption HSFO 6% Gasoline 10,1 8% 9,6 23% 8,5 8,1 -82% 7,3 7,5 7,0
Slide 24: Consolidated financial results Q4 2021 and FY 2021
Consolidated financial results Q4 2021 and FY 2021 Podsumowanie ….……..………………………………………….. 33 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.……………………………. External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..…………………. 1111 & production….…………………..…
Slide 25: Full year operating results
Consolidated financial results Full year operating results 2020 2021 m PLN +212% 4 229 -1 253 1 049 -45 4 478 1 357 3 212 1 090 924 -1 397 -1 146 740 (1) EBIT 2020 LIFO effect One offs 2020 Depreciation Clean EBITDA Net loss 2020 EBIT 2021 LIFO effect One offs 2021 Depreciation Clean EBITDA Net prof
Slide 26: Quarterly financial results
Consolidated financial results Quarterly financial results Q4 2020 Q4 2021 m PLN +636% 1 478 277 -297 103 990 1 395 201 283 17 -144 -8 45 EBIT Q4 2020 LIFO effect One offs 2020 Depreciation Clean EBITDA Net loss EBIT Q4 2021 LIFO effect One offs Depreciation Clean EBITDA Net profit LIFO Q4 2020 Q4 2
Slide 27: Operating cash flows vs CAPEX
Consolidated financial results Operating cash flows vs CAPEX Quarterly CAPEX 2021 m PLN 1 836 Exploration Refining & Total 1 597 & Production Retail Marketing CAPEX 2021 71 1 139 50 110 220 496 451 1 048 86 195 75 108 90 118 270 403 155 156 106 112 72 286 -1 031 44 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4
Slide 28: Debt
Consolidated financial results Debt Net debt(1) Gearing ratio(2) Net debt / EBITDA LIFO (3) bn PLN 3,8 3,9 3,9 23% 1.4 2.9 10% 17% 1.0 0,9 1,3 1.9 0,4 11% 1,2 1.8 1.6 0,7 5% 0,2 2019 2020 2021 2019 2020 2021 2019 2020 2021 impact of lease liabilities impact of lease liabilities impact of lease liabi
Slide 29: Grupa LOTOS S.A. 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 @GrupaLOTOS
Slide 30: Appendices
Consolidated financial results Q4 2021 and FY 2021 Podsumowanie ….………………………………………………... 33 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.…………………………… External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..………………... 1111 & production….…………………..……
Slide 31: Macroeconomic environment and operational highlights
Appendices Macroeconomic environment(1) and operational highlights 2017 2018 2019 2020 2021 Q4 2019 Q4 2020 Q4 2021 Brent Dtd (USD/bbl) 54.15 71.18 64.21 41.96 70.88 63.27 44.32 79.48 Brent Dtd vs Ural Rtdm spread (USD/bbl) 1.40 1.47 0.89 0.58 1.83 1.54 0.12 1.64 Natural gas UK NBP (USD/boe) 32.20 4
Slide 32: Financial performance
Appendices Financial performance (PLNm) 2017 2018 2019 2020 2021 Q4 2019 Q4 2020 Q4 2021 Revenue 24,185.6 30,121.7 29,493.3 20,908.6 33,123.6 7,212.5 5,203.6 10,644.8 Cost of sales 20,194.1 25,619.0 25,649.1 19,441.7 26,775.1 6,240.5 4,588.0 8,725.0 Gross profit 3,991.5 4,502.7 3,844.2 1,466.9 6,348
Slide 33: Financial position
Appendices Financial position (PLNm) 2017 2018 2019 2020 2021 Q4 2019 Q4 2020 Q4 2021 Assets 21,171.2 22,223.9 23,672.1 21,856.4 25,964.8 23,672.1 21,856.4 25,964.8 Non-current assets 12,462.1 13,078.0 14,236.2 13,960.1 14,525.6 14,236.2 13,960.1 14,525.6 Current assets, including: 8,709.1 9,145.9 9
Slide 34: Cash flows
Appendices Cash flows (PLNm) 2017 2018 2019 2020 2021 Q4 2019 Q4 2020 Q4 2021 Net cash from operating activities, including: 3,126.5 2,327.5 2,130.2 2,869.9 2,897.3 132.9 1,138.7 1 596.5 Net profit/(loss) 1,671.8 1,587.4 1,152.9 (1,146.2) 3,211.8 354.0 (7.5) 990.2 Depreciation and amortisation 844.3
Slide 35: Grupa LOTOS S.A. 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 @GrupaLOTOS