Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q3 2015 Earnings Presentation
25 slides from Orlen Spolka Akcyjna's earnings presentation, Oct 29, 2015
Slide 1: LOTOS Group 3Q 2015 consolidated financial results
LOTOS Group 3Q 2015 consolidated financial results Mariusz Machajewski, Vice President of the Management Board Maciej Szozda, Vice President of the Management Board Zbigniew Paszkowicz, Vice President of the Management Board October 29th, 2015 Grupa LOTOS S.A.
Slide 2: Agenda
1 Key highlights 3-4 2 External environment 5-8 3 Upstream 9 - 12 4 Downstream 13 - 18 5 Consolidated financial results 19 - 24 Grupa LOTOS S.A.
Slide 3: Key highlights
Key highlights Grupa LOTOS LOTOSS.A. S.A. 3
Slide 4: Key highlights 3Q 2015
Key highlights 3Q 2015 y/y % change q/q % change EBITDA Clean(1) EBITDA PLN Clean EBITDA Clean reported LIFO LIFO EBITDA LIFO Consolidated 82 m 609 m +43% +2% upstream 74 m 91 m -14% -11% downstream 10 m 519 m +82% +2% Operating cash flow 564 m PLN Crude oil throughput 2 651k tons (100% utilisation
Slide 5: External environment
External environment Grupa LOTOS LOTOSS.A. S.A. 5
Slide 6: External environment - crude oil prices & product cracks
External environment - crude oil prices & product cracks Avg Brent/Ural spread Avg Brent price USD/bbl 2.5 80 1.5 60 64 61 58 56 57 0.5 48 47 48 60 -0.5 -1.8 -1.4 -2.2 -1.5 -1.3 -1.6 -1.3 -1.5 -1.5 40 -1.5 20 -2.5 -3.5 0 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Diesel crack Gas
Slide 7: Model refining margin vs. peers
Model refining margin vs. peers (1) (1) (1) (2) USD/bbl LOTOS PKN OMV ERMI 12.00 11.30 11.40 10.00 9.38 9.20 8.08 8.00 7.32 7.78 7.41 6.97 7.45 7.36 7.45 6.00 6.60 6.50 6.41 5.19 4.97 4.90 4.00 4.70 4.07 3.75 1.92 2.00 1.48 0.00 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 (1) Source: Company dat
Slide 8: External environment – GDP growth, FX development & domestic fuel consumption
External environment – GDP growth, FX development & domestic fuel consumption (4) % Polish GDP growth (1) mln m3 Diesel consumption 3.9 3.7 3.6 3.6 3.6 3.4 3.4 3.4 3.5 3.3 3.3 3.3 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015(2) 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 (4) (3) USD/PLN 3Q'15
Slide 9: Upstream
Upstream Grupa LOTOS LOTOSS.A. S.A. 9
Slide 10: Hydrocarbons reserves and production figures
Hydrocarbons reserves and production figures Average daily oil&gas production (boe/d)(1) 2P(2) oil&gas reserves (m boe) 12 716 12 425 53.5 52.8 51.8 1 446 11 740 1 342 7.8 7.4 7.3 1 278 3 844 3 206 3 232 (3) 40.3 41.4 41.1 7 426 7 877 7 230 5.4 4.1 3.5 3Q'14 2Q'15 3Q'15 Sep 14 Jun 15 Sep 15 Norway P
Slide 11: Quarterly sales split by products and countries
Quarterly sales split by products and countries 3Q 2014 2Q 2015 3Q 2015 ths boe 660 601 398 72% 72% 334 295 6% 8% 82%(1) 206 9% 123 88 91 Norway Poland Lithuania Norway Poland Lithuania Norway Poland Lithuania (1) share of natural gas in total sales (in %) Oil Gas Grupa LOTOS S.A. 11
Slide 12: Upstream quarterly clean EBITDA development
Upstream quarterly clean EBITDA development PLN m -14% y/y 106 103 91 Clean EBITDA 3Q'14 EBITDA 2Q'15 Clean EBITDA 3Q'15 3Q 2014 2Q 2015 3Q 2015 65 88 103 69 17 91 58 74 106 41 34 33 18 EBITDA One offs(1) Clean EBITDA Depreciation Clean EBIT EBITDA Depreciation EBIT EBITDA One offs(2) Clean EBITDA D
Slide 13: Downstream
Downstream Grupa LOTOS LOTOSS.A. S.A. 13
Slide 14: Refinery production, crude oil throughput & utilisation rate
Refinery production - volumes of key products, crude oil throughput & utilisation rate Oil throughput (k tons) Refinery utilisation (%) k tons 120% 3 600 110% 100% 100% 3 200 94% 93% 100% Crude oil throughput at 2 651 k tons, 91% 2 800 2 628 2 651 90% with capacity utilisation rate at c. 100% 2 417
Slide 15: Share of key products in the overall refinery output
Share of key products in the overall refinery output 51% 51% 47% 49% 49% 19% 21% 20% 20% 18% 15% 14% 14% 14% 13% 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 (1) Diesel + Jet Gasoline Heavy Products (1) Heavy Sulfur Fuel Oil and bitumens Grupa LOTOS S.A. 15
Slide 16: Retail performance and market share evolution
Retail performance and market share evolution Quarterly retail EBITDA Quarterly retail sales volumes m PLN k tons +13% y/y 48 313 324 40 286 269 251 20 21 27 (1) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Market share by sales volume Petrol station network (no. of units) 459 432 33.
Slide 17: Downstream segment quarterly clean EBITDA LIFO
Downstream segment quarterly clean EBITDA LIFO m PLN +82% y/y 519 508 286 Clean EBITDA LIFO 3Q'14 Clean EBITDA LIFO 2Q'15 Clean EBITDA LIFO 3Q'15 3Q 2014 2Q 2015 3Q 2015 -60 -7 -59 -38 198 52 26 664 508 519 286 318 207 10 EBITDA LIFO effect FX Clean LIFO (1) (2) EBITDA LIFO effect One offs FX Clean
Slide 18: Downstream segment clean LIFO EBITDA cumulative for 9M 2015
Downstream segment clean(1) LIFO EBITDA cumulative for 9M 2015 PLN m +116% y/y 1 359 629 Clean LIFO EBITDA 9m'14 Clean LIFO EBITDA 9m'15 (1) Excluding : 9M 2014: FX operational differences 9M 2015: theoretical LIFO inventory impairment , VAT arrears for 2010 and 2011 and FX operational differences G
Slide 19: Consolidated financial results
Consolidated financial results Grupa LOTOS LOTOSS.A. S.A. 19
Slide 20: 3Q 2015 results breakdown vs 3Q 2014
3Q 2015 results breakdown vs 3Q 2014 PLN m 176 3Q 2015 215 609 433 -7 318 -94 (2) Clean EBITDA (1) EBIT LIFO effect FX differences One off items Clean EBIT LIFO Depreciation LIFO PLN m 204 65 427 3Q 2014 52 26 223 80 (1) FX operational differences included in the cost of sales (2) 3Q 2015 : VAT arre
Slide 21: Quarterly clean EBITDA LIFO by segments
Quarterly clean EBITDA LIFO(1) by segments PLN m -1 519 3Q 2015 segment results 609 91 (2) Upstream Downstream Other Clean EBITDA LIFO PLN m +234 -37 -15 changes 427 609 to segment results(3) 3Q'14 Clean Upstream Downstream Other 3Q'15 Clean EBITDA LIFO EBITDA LIFO (1) All figures excluding one – of
Slide 22: 9M 2015 results breakdown vs 9M 2014
9M 2015 results breakdown vs 9M 2014 PLN m 540 9m 2015 +115 +272 1 670 1 130 743 EBIT LIFO effect One offs(1) Clean LIFO EBIT Depreciation Clean LIFO EBITDA 591 1 027 9m 2014 +655 436 -318 -99 (1) 9M 2015: theoretical LIFO inventory impairment , VAT arrears for 2010 and 2011 , FX operational differe
Slide 23: Quarterly operating cash flow
Quarterly operating cash flow PLN m 576 564 451 321 200 102 (1) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 (1) There were two elements influencing the net position of the operating cash flow in 2Q 2015 : The increase of inventories caused by the investment in the crude oil reserves, acquired to benefit f
Slide 24: Indebtedness
Indebtedness PLN m (1) (2) Net debt Gearing ratio 5 319 5 322 65% 62% 64% Dec 2014 Sep 2015 Dec 2013 Dec 2014 Sep 2015 (3) Net debt/LTM clean EBITDA LIFO Net debt figures include: interest bearing loans and borrowings, finance lease and bonds 5.2x 3.8x The current gearing ratio at a stable level
Slide 25: 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 Grupa LOTOS S.A.