Slide 1: OMV Petrom Q4/22 Results Conference Call
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Christina Verchere Chief Executive Officer and President of the Executive Board Alina Popa Chief Financial Officer The spoken word applies. Check against delivery. Page 1 of 40
Slide 2: Slide 1 – Intro
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. Thank you for joining our call. It is a real pleasure to present to you today OMV Petrom’s performance for the fourt
Slide 3: Slide 2 – Legal Disclaimer
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 2 – Legal Disclaimer Please let me first draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 40
Slide 4: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Page 4 of 40
Slide 5: Slide 3 – Still high and volatile commodity prices
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 3 – Still high and volatile commodity prices Let me start by taking a look at the evolution of commodity prices and the main currencies in the fourth quarter of 2022. Brent price continued its decline in the fourth quarter and averaged
Slide 6: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Page 6 of 40
Slide 7: Slide 4 – Strong GDP; mixed demand evolution
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 4 – Strong GDP; mixed demand evolution Moving to the macroeconomic environment, the latest available data shows that in the third quarter of 2022 Romanian GDP increased by 4.6 percent year-on-year, mostly supported by services. In Octo
Slide 8: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Page 8 of 40
Slide 9: Slide 5 – Regulatory and fiscal environment has further deteriorated
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 5 – Regulatory and fiscal environment has further deteriorated In our previous calls, we mentioned the temporary measures implemented by the Romanian Government to address the high gas and power prices, applicable starting April 2022.
Slide 10: Regulatory measures continued (fuels market, solidarity contribution)
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 In addition, the temporary measures for the fuels market were applicable voluntarily until end of December 2022. We continued to apply these measures in the fourth quarter of 2022 with a negative impact in our Clean CCS Operating Results of
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Slide 12: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 13: Slide 6 – Key messages Q4/22
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 6 – Key messages Q4/22 On slide 6, we present the key highlights for the quarter. At Group level, Clean CCS Operating Result of 2.1 billion RON was 38 percent higher year-on-year. Our operating cash flow decreased by 13 percent year-on
Slide 14: Key messages continued: GHG intensity
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Based on our preliminary data, the GHG intensity slightly decreased, with lower index levels in Exploration and Production and at the Brazi power plant, reflecting our ongoing initiatives to reduce carbon emissions. Page 14 of 40
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Slide 16: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 17: Slide 7 – Good operational performance in the context of lower market demand
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 7 – Good operational performance in the context of lower market demand On slide 7, I would like to present the operational performance and I will start with Exploration and Production. Hydrocarbon production decreased by 3.4 percent du
Slide 18: Brazi power plant generation
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 The Brazi power plant generated 1.48 terawatt-hour in the fourth quarter, maintaining its 11 percent share of Romania’s electricity generation mix. Page 18 of 40
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Slide 20: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 21: Slide 8 – Increasing CAPEX
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 8 – Increasing CAPEX Moving now to slide 8, total organic CAPEX amounted to 3.6 billion RON in 2022, 26 percent higher year-on-year. The majority, 2.6 billion RON, was directed to Exploration and Production, where we finalized the dril
Slide 22: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Page 22 of 40
Slide 23: Slide 9 – Strategy 2030
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 9 – Strategy 2030 Ladies and gentlemen, as 2022 was the first year of our new strategic cycle, let me present to you our progress in implementing our strategy last year and what we plan to deliver this year. And I will start with the f
Slide 24: Strategy progress: Petrobrazi, Brazi power plant, Auchan partnership
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 on the very good results so far, we accelerated the roll-out of our partnership with Auchan, reaching 275 modernized stores at the end of 2022. The roll-out in 400 Petrom-branded filling stations is expected to be finalized in 2023, one year
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Slide 26: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 27: Slide 11 – Income Statement: strong results
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 11 – Income Statement: strong results Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 11, starting with some highlights of the Income Statement, with focus on the developments of
Slide 28: Income statement: special charges and net income
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 driven mainly by revised future production profiles for our assets due to a steeper than previously expected natural decline and also by higher operating costs. These special charges were partially offset by the net temporary gains from forw
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Slide 30: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 31: Slide 12 – Clean CCS Operating Results improved in E&P and R&M; G&P affected by regulation
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 12 – Clean CCS Operating Results improved in E&P and R&M; G&P affected by increased regulation and overtaxation Let me go on to slide 12, which shows the major building blocks for the development of the Clean CCS Operating Result. I wi
Slide 32: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 33: Slide 13 – Cash flow
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 13 – Cash flow On slide 13, I would like to continue with the highlights of our cash flow statement. In the fourth quarter of 2022, we achieved an operating cash flow of 1.8 billion RON, 13 percent lower year-on-year, reflecting the ne
Slide 34: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 35: Slide 14 – 2022 Dividend proposal: RON 2,337 mn
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 14 – 2022 Dividend proposal: RON 2,337 mn Moving now to slide 15, let me remind you that in December 2021 we reinforced our dividend policy, with a stronger commitment, announcing our target to increase our base dividend per share by 5
Slide 36: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 37: Slide 15 – Outlook
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 Slide 15 – Outlook Let me conclude our presentation with the Outlook, on slide 15. We expect Brent oil price in 2023 to be above 80 dollars per barrel, significantly above the range of 65-70 dollars per barrel assumed in our Strategy 2030. F
Slide 38: Outlook conclusion and questions
OMV Petrom Q4/22 Results Conference Call, February 2, 2023 output is also expected to be lower year-on-year, in the context of a longer outage planned of two and a half months for the entire capacity. In conclusion, in 2023 we will continue to deliver on our Strategy 2030, with significant increase
Slide 39: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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Slide 40: OMV Petrom Q4/22 Results Conference Call, February 2, 2023
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