Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2017 Earnings Presentation
25 slides from Omv Petrom Sa's earnings presentation, Nov 9, 2017
Slide 1: Mariana Gheorghe and Stefan Waldner
Mariana Gheorghe Chief Executive Officer and President of the Executive Board Stefan Waldner Chief Financial Officer The spoken word applies. Check against delivery. 1
Slide 2: Slide 1 – Intro
Mariana Gheorghe - OMV Petrom - CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. 2
Slide 3: Slide 2 – Legal Disclaimer
Slide 2 – Legal Disclaimer Before we start the actual presentation, please let me draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. 3
Slide 4: Key messages Q3/17
Key messages Q3/17 Upstream: production 166 Free cash flow of RON 959 mn kboe/d: OPEX 10.2 USD/boe Clean CCS Operating Result at RON 1.04 bn Downstream Oil: refining margins up USD 2.8/bbl yoy; retail sales volumes +7% yoy Clean CCS EPS up 76% yoy Downstream Gas: gas sales 9m/17 LTIR at 0.17 (9m/16:
Slide 5: Slide 3 – Key messages Q3/17
Slide 3 – Key messages Q3/17 Moving to slide 3, let me start with some key highlights for Q3/17. We enjoyed another quarter of strong macroeconomic fundamentals, particularly in Romania, which translated into higher demand for our products. Market conditions in a broader sense were also supportive,
Slide 6: Economic environment
Economic environment Romania Q2/17 GDP growth’: 5.9% yoy Demand Q3/17 yoy: Fuels?: 9%; Gas: (2)%; Powert: 10% Regulatory discussions on gas in progress Progress on royalty regime, for both onshore and offshore activities a3it6 a4ne ann7 27 Qsii7 — Avg Urals price in USD/bbI (left scale) —=— Avg USDI
Slide 7: Slide 4 – Economic environment
Slide 4 – Economic environment On slide 4, we provide some macroeconomic highlights on Romania and an overview of the pricing environment in our industry. Romania had another quarter of solid economic performance: with impressive year-on- year GDP growth, though possible fragile given stimulative fi
Slide 8: Q3/18. Please note that prices on centralized platforms could include storage related tariffs in
Q3/18. Please note that prices on centralized platforms could include storage related tariffs in connection with gas volumes sold/extracted from storage. The grey line, for reference, shows the average gas price on the hub in Austria, which, at EUR 16.8/MWh, was higher by some 20% versus Q3/16, but
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Slide 10: Operational KPIs
Operational KPIs f Upstream OPEX' OMV Petrom Indicator Gas sales volumes (USD/boe) refining margin (USD/bbl) (TWh) ——_ ————<) ma. 1181 1052 1042 10.29 [ [| [J l l | Ty Q3/16 Q4N6 QT Q2i7 O37 3/16 416 17 2117 3/17 O36 Q416 Q1N7 QT O37 Hydrocarbon production Retail sales volumes (mn t) Net electrical
Slide 11: Slide 5 – Operational KPIs
Slide 5 – Operational KPIs And now on slide 5, I would like to present to you some operational KPIs for each business segment. Let me start with Upstream. As a priority, we continue to apply strict cost discipline on our OPEX. In Q3/17, average unit production costs decreased due to the abolition of
Slide 12: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A . co. (RON bn) CAPEX incl. capitalized E&A > 9m/17 at RON 1.7 bn: » 39 wells and sidetracks drilled <3.2 » ~700 workovers » FRDs: 5 in development, 7 under appraisal >» 2017E: > drilling ~70 development wells and sidetracks omii7 2017 > workovers ~1,00
Slide 13: Slide 6 – CAPEX and E&A
Slide 6 – CAPEX and E&A Slide 6 provides an overview of CAPEX and E&A activities. In 9m/17, our total CAPEX was around RON 1.7 billion. The majority was dedicated to Upstream. It included drilling of 39 wells, around 700 workover jobs and project activities on 12 FRDs (5 in development phase and 7 u
Slide 14: Cash Flow highlights
OMV Petrom Q3/17 Resa November 9, 2017 Stefan Waldner, CFO * Cash Flow highlights OMV Petrom Operating Cash Flow (bn RON) coat [ns Tea 338 03/16 Q3ii7 9mi16 om/t7 Investing Cash Flow (net outflow, bn RON) 2% > 2.26 Te 150 0.30 ost cas aan ‘omit omit7 Free Cash Flow (bn RON) 152% [a 14% 3/16 a3? 9mi1
Slide 15: Slide 8 – Cash Flow highlights
Slide 8 – Cash Flow highlights Thank you, Mariana, and good afternoon to you all. On slide 8, I would like to start with highlights of our cash flow statement. In Q3/17, we achieved an operating cash flow of about RON 1.5 billion, mainly on the back of strong operating profits. This, in turn, was su
Slide 16: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (bn RON) > Q3/17 Clean CCS Operating Result reflects: favorable market conditions (prices, demand) ic) insurance revenues related to power segment 0.6 0 lower OPEX, offsetting lower Upstream production oats sit? omits mit7 Clean CCS Net Income?
Slide 17: Slide 9 – Income Statement highlights
Slide 9 – Income Statement highlights On slide 9, I would like to discuss some Income Statement highlights, with a special focus on Q3/17 vs. Q3/16 developments. Sales increased by 10% year-on-year, supported by higher commodity prices and increased fuel sales volumes, which was partly offset by low
Slide 18: Clean CCS Operating Result
18 Clean CCS O perating Result (RON mn) Upstream Key drivers Q3/17 vs. Q3/16 » Higher realized prices » Decreased production costs and depreciation > Sales volumes -3% Q316 Realization Volume Exploration Other 37 ‘expenses Downstream 654 En » Strong refining margins and retail sales > Improved power
Slide 19: Slide 10 – Clean CCS Operating Result
Slide 10 – Clean CCS Operating Result Let me move on to page 10, which shows the development of the Clean CCS Operating Result by segment over the last 12 months. Let me start with Upstream in the upper chart. With the realized oil price increasing by around 18% year-on-year to USD 44/bbl in Q3/17,
Slide 20: Outlook
Outlook 201 7 No paid in 2016; 2Not Actual 2016 USD 43.7/bbl USD 6.98/bbl 174 kboe/d EUR 0.6 bn RON 1.56 bn 20 BP 41. OMV Petrom | Q3/17 Results portfolio 0 initiatives OMV Petrom #@ OMV Petrom
Slide 21: Slide 11 – Outlook 2017
Slide 11 – Outlook 2017 Let me finish the presentation with the outlook for the full year 2017, on page 11. Here I would like to highlight our main market assumptions as well as the targets we have set for 2017 and how they compare to the actual 2016 figures. First of all, we maintain the full-year
Slide 22: la
la OMV Petrom #@ OMV Petrom
Slide 23: BP
BP OMV Petrom #@ OMV Petrom 23
Slide 24: Clean CCS Operating Result (RON mn) 9m/17
Clean CCS Operating Result (RON mn) Upstream Key drivers 9m/17 vs. 9m/16 je | , 9om/16 Realization Volume Exploration Other omit ‘expenses, Downstream > 1,394 ..-- ay > » ea » omii6 smit7 WM Downstream Oi! Ml Downstream Gas Realized oil price +30% Decreased production costs and depreciation Group sa
Slide 25: Slide 14 – Clean CCS Operating Result (9m/17)
Slide 14 – Clean CCS Operating Result (9m/17) This slide shows bridge charts for the Clean Operating Result by segments from 9m/16 to 9m/17. Let me start with Upstream at the upper chart where the improvement was mainly supported by higher realization. With the realized oil price increasing by aroun