Orlen Spolka Akcyjna · GPW:PKN

Orlen Spolka Akcyjna — PGNiG Group — H1 2015 Earnings Presentation

19 slides from Orlen Spolka Akcyjna's earnings presentation, Aug 14, 2015

  1. Slide 1: PGNiG Group H1 and Q2 2015 Results

    PGNiG Group H1 and Q2 2015 Results August 14th 2015

  2. Slide 2: Financial highlights − Q2 2015

    Financial highlights − Q2 2015 (PLNm) Q2 2014 Q2 2015 % Revenue 6,846 7,895 15%  Revenue from high-methane (E) gas sales up PLN 1.4bn, to PLN 6.1bn in Q2 2015, with sales Operating expenses (excl. D&A) (5,560) (6,225) 12% volume up 1.4 bcm year on year, to 4.5 bcm, driven by the exchange sale requ

  3. Slide 3: Financial highlights − H1 2015

    Financial highlights − H1 2015 (PLNm) H1 2014 H1 2015 % Revenue 16,381 20,390 24%  Revenue from E gas sales up PLN 4.6bn, to Operating expenses (excl. D&A) (12,914) (16,394) 27% PLN 16.4bn in H1 2015, with sales volume up 4.2 bcm year on year, to 11.8 bcm, driven by EBITDA 3,467 3,996 15% the exch

  4. Slide 4: H1 2015 EBITDA by segment

    H1 2015 EBITDA by segment Contribution (PLNm) H1 2014 H1 2015 % to Group's  Revenue from sales of oil and condensate result down PLN 0.5bn year on year. Exploration and Production 1,941 1,542 (21%) 39%  Lower unit costs of gas purchase and greater Trade and Storage 157 824 x5 21% impact of one-of

  5. Slide 5: PPE – 87% of the 2015 target achieved

    PPE – 87% of the 2015 target achieved Planned gains Achieved gains Savings generated in H1 2015 represented 87% of the full-year savings target 349 196 • Setting efficiency improvement 133 targets for PGNiG Group 437 segments and companies. 260 304 304 304 • Defining the scope and timing of efficien

  6. Slide 6: Performance drivers

    Performance drivers PLN down against a stronger USD and up against a Nine-month average crude oil price in USD down 29% year weaker EUR year on year on year in Q2 2015, on the back of falling oil prices PLN USD/boe 4,5 4.17 140 4.09 120 110 4,0 + 22% 3.70 100 109 3,5 80 78 3.04 60 3,0 62 40 2,5 20 0

  7. Slide 7: Performance drivers

    Performance drivers Marked tariff reductions over the past periods and impact of the discount policy in Q2 2015. Price in the chart is calculated on the combined tariff sales of PGNiG SA and PGNiG OD to customers in Poland. PPE transactions and sales of gas directly from the fields are not taken int

  8. Slide 8: Segments – Exploration and Production

    Segments – Exploration and Production  Revenue from sales of crude oil down (PLN 0.3bn year (PLNm) Q2 2014 Q2 2015 % on year), with prices in PLN down over 30% and sales volumes unchanged. Revenue 1,809 1,316 (27%)  Revenue from geophysical and drilling services down Operating expenses (excl. D&A

  9. Slide 9: Segments – Trade and Storage (1)

    Segments – Trade and Storage (1) (PLNm) Q2 2014 Q2 2015 %  Rise in revenue from gas sales in the Trade and Storage segment from PLN 4.8bn to PLN 6.2bn, with Revenue 5,357 6,634 24% shifts in the sales structure and prices (exchange sale requirement). Operating expenses (excl. D&A) (5,428) (6,429)

  10. Slide 10: Segments – Trade and Storage (2)

    Segments – Trade and Storage (2) Gas inventory levels (bcm)  In Q2 2015, underground injection volumes 3 down relative to 2014. Higher utilisation of 2,5 gas storage capacities expected in Q3 2015. 2.72 Gas inventory level on 31st July- 2.2 bcm. 2 2.05 2.06  Volume of gas imported by PGNiG SA 1,5

  11. Slide 11: Segments – Distribution

    Segments – Distribution (PLNm) Q2 2014 Q2 2015 %  Gas distribution volume up 7.5% year on year (average air temperature lower by 0.3oC; average air Revenue 964 1,078 12% temperature in April down 1.4oC), to 2.02 bcm. Operating expenses (excl. D&A) (476) (381) (20%)  Net income from system balanci

  12. Slide 12: Segments – Generation

    Segments – Generation (PLNm) Q2 2014 Q2 2015 %  Revenue from sales of heat up 9%, to PLN Revenue 384 343 (10%) 0.19bn, with volumes up almost 9% and a higher heat tariff effective from August 1st 2014. Operating expenses (excl. D&A) (312) (241) (22%)  Revenue from electricity sales down 32%, to P

  13. Slide 13: Operating expenses − Q2 2015

    Operating expenses − Q2 2015  Sales volume up 1.5 bcm yoy, to 4.8 bcm, with (PLNm) Q2 2014 Q2 2015 % lower unit cost of gas. Cost of gas sold (3,023) (4,420) 46%  Reduced scale of trading in electricity Electricity for trading (299) (218) (28%) purchased from other parties. Other raw materials an

  14. Slide 14: Debt and sources of financing

    Debt and sources of financing Financing sources as at June 30th 2015 (PLNm)  Available financing programmes for PLN 8000 available used 14.6bn, including PLN 9.6bn underwritten 6000  Cash accumulated for distribution as dividend 4000 (paid on August 4th 2015). 8,500 2,000 2,940  On August 13th 20

  15. Slide 15: Slide 15

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: Changes on the Polish gas market

    Changes on the Polish gas market Gas sales volume (mcm) H1 2014 H1 2015 %  Since August 1st 2014, the PGNiG Group's gas sales volumes have included both PGNiG Total PGNiG Group 8,250 12,524 52% SA's sales through the exchange and PGNiG OD's sales to end customers and on the PGNiG SA 7,312 7,139 (2

  18. Slide 18: Gas trading and retail sales after August 1st 2014

    Gas trading and retail sales after August 1st 2014 Gas sold to key customers: above 25 mcm annually (4.6 bcm in 2014) Production Direct sales PGNiG SA (0.93 bcm in 2014) Gas purchase Polish Power Exchange (3.74 bcm in 2014) PGNiG Obrót Polish Power 6.7m customers Detaliczny (7.7 bcm of gas consumed

  19. Slide 19: Production and sales volumes

    Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q2 2015 Q1 2015 FY 2014 Q4 2014 Q3 2014 Q2 2014 Q1 2014 FY 2013 Q4 2013 Q3 2013 Q2 2013 Q1 2013 HIGH-METHANE GAS (E) 507 501 1,876 440 475 482 479 1,890 483 481 484 443 including in Poland 362 367 1,457 368 361 362 367 1,550 384

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