Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2019)
13 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 19, 2019
Slide 1: OMV Petrom Group 2018 Overview and 2019 Outlook
OMV Petrom Group 2018 Overview and 2019 Outlook General Meeting of Shareholders April 19, 2019 OMV Petrom S.A.
Slide 2: Agenda
Agenda 1 Highlights 2018 2 Outlook 2019 3 Strategy Execution 2 | OMV Petrom General Meeting of Shareholders, April 19, 2019
Slide 3: Romanian environment
Romanian environment Macroeconomic Fiscal framework environment Provisional 2018 GDP growth1: Offshore Law promulgated +4.1% yoy; GEO 114/2018 amended: CPI annual inflation: 3.3% end- • gas price cap for Dec households5: RON 68/MWh • regulated power price for Demand households 2018 yoy • 2% fee on g
Slide 4: Financial performance and Strategic projects
Financial performance and Strategic projects performance Clean CCS Financial Operating Clean CCS Dividend Operating 2018 Cash Flow ROACE proposal 1 result RON 7.4 bn 14.3% RON 1.5 bn RON 4.8 bn Neptun Deep: Strategic Projects Prerequisites for FID are currently not in place Committed to dialogue
Slide 5: Cost efficiency and operational excellence
Cost efficiency and operational excellence Total operating cost1 Key drivers 2018 vs. 2015 (RON mn) -945 -945 Upstream: efficiency programs implemented led to cost base reduction by 24% Downstream: reduced maintenance costs, energy efficiency improvements and 3rd party contracts renegotiation, -
Slide 6: Focused on safeguarding our employees and the environment
Focused on safeguarding our employees and the environment Our vision: “ZERO Harm – NO Losses” 2018 LTIR1: 0.26, in line with international benchmarks (IOGP2 2017: 0.27) Upstream: 3 out of 9 Assets in Romania recorded ZERO LTI in 2018 Downstream: ZERO LTI in Petrobrazi in 2018, including 2 mill
Slide 7: Upstream KPIs
Upstream KPIs OPEX1 Key drivers 2018 vs. 2017 (USD/boe) 17.27 Higher OPEX, in USD/boe terms, +3%: +3% 3% 13.16 11.69 Unfavourable FX 10.90 11.18 Lower production available for sale Lower personnel and services expenses 2014 2015 2016 2017 2018 Hydrocarbon production (kboe/d) Total Upstream pro
Slide 8: Downstream Oil KPIs
Downstream Oil KPIs OMV Petrom Indicator refining margin Key drivers 2018 vs. 2017 (USD/bbl) -19% -19% 8.71 7.75 6.98 6.28 Refining margin -19% yoy, due to higher cost of crude 1.89 2014 2015 2016 2017 2018 Retail sales volumes (mn t) +1% +1% 2.53 2.56 2.70 2.74 Retail sales up 1% yoy 2.37 Ref
Slide 9: Downstream Gas KPIs
Downstream Gas KPIs Gas sales volumes Key drivers 2018 vs. 2017 (TWh) -8% -8% 51.39 50.36 51.40 47.70 47.32 Lower gas sales volumes, mainly due to lower equity production 2014 2015 2016 2017 2018 Net electrical output (TWh) Higher net electrical output due to Brazi +41% +41% power plant higher a
Slide 10: Agenda
Agenda 1 Highlights 2018 2 Outlook 2019 3 Strategy Execution 10 | OMV Petrom General Meeting of Shareholders, April 19, 2019
Slide 11: Outlook 2019
Outlook 2019 Indicators Actual 2018 Assumptions/Targets 2019 Brent oil price USD 71/bbl USD 65/bbl 1 Refining margin USD 6.28/bbl USD ~6.28/bbl Production 160 kboe/d ~ -5% yoy 2 CAPEX RON 4.3 bn RON 3.7 bn FCF after dividends RON 2.0 bn positive 1 The budget is based on the assumption of 70 USD/bbl
Slide 12: Agenda
Agenda 1 Highlights 2018 2 Outlook 2019 3 Strategy Execution 12 | OMV Petrom General Meeting of Shareholders, April 19, 2019
Slide 13: Progress towards achieving strategic objectives
Progress towards achieving strategic objectives 2018 highlights Intensive drilling campaign Continuous optimization of the Enhancing producing portfolio Increased operational efficiency competitiveness Successful Petrobrazi turnaround Strong performance Investments 42% higher yoy1 and attr