Repsol Sa · BME:REP
Repsol Sa — FY2020 Earnings Presentation
17 slides from Repsol Sa's earnings presentation, Feb 18, 2021
Slide 1: 4Q and FY 2020 Results Conference Call
4Q and REPSOL CONFERENCE FY 2020 CALL Results 18 February 2021 Josu Jon Imaz CEO 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2021 This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to tr
Slide 3: Index
Index 01. Key messages 02. Strategic Plan 2021-2025 03. Operational highlights 04. Financial results 05. Outlook 2021 3
Slide 4: Key messages: Solid 2020 performance in challenging environment
Key messages Solid 2020 performance in challenging environment Resilience Plan performance • €2.7 Bn of savings in 2020 (€0.5 Bn over initial objective) above target • Opex and Capex reductions, Working Capital optimizations • Net Debt reduced by €0.3 Bn (excluding hybrids) at $42 Brent Net Debt red
Slide 5: Strategic Plan 2021-2025: Stepping up the energy transition
Strategic Plan 2021-2025 Stepping up the energy transition – Driving growth and value Maximize FCF of Low Carbon Evolution of our legacy businesses business platforms operating model Self financed at Top quartile cash distribution Leading the $50 Brent and to shareholders journey $2.5 HH to an ambit
Slide 6: Commodity prices and product demand impacted by COVID-19
Market environment Commodity prices and product demand impacted by COVID-19 Brent Henry Hub ($/bbl) ($/Mbtu) 63.1 64.2 2.7 2.5 2.7 50.1 44.2 42.9 2.0 2.1 41.8 2.0 1.7 29.6 4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020 4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020 Refining Margin Indicator Exchange Rate ($/bbl) ($/€) 5.6
Slide 7: Upstream: Value over volume in resilience scenario
Operational highlights - Upstream Value over volume in resilience scenario. Organic FCF breakeven at ̴ $30/bbl Upstream production Opex reduction (kboed) (€Bn) -34 -38 +16 -4 2.1 -10% 1.9 709 648 2019 2020 FCF (€Bn) 1.2 +61% 2019 Europe & Latin North Asia, Russia 2020 Africa America America & Rest o
Slide 8: Upstream: Exploration success in core areas, progress in decarbonization
Operational highlights – Upstream Exploration success in core areas. Progress in decarbonization of operations. Successful highly selective drilling program in 2020 270,000 Tons of CO2e reduction in 2020 (2) Alaska New production 2021-2025 pushes down emissions intensity ‒ Mitquq and Stirrup Gulf of
Slide 9: Industrial: Lower refining margins and demand, chemicals resilient
Operational highlights - Industrial Lower Refining margins and demand. Chemicals resilient through the crisis Refining • All refineries under operation in 2020 Chemicals • International margins gradually recovered to 2019 levels Repsol assets • Reduced breakeven to minimum levels Resilient through r
Slide 10: Progress in the transformation of the Industrial business
Operational highlights - Industrial Progress in the transformation of the Industrial business Sustainable 1.3 Mt by 2025 Renewable 0.4 GWeq by 2025 Advanced decarbonization biofuels >2 Mt by 2030 Hydrogen 1.2 GWeq by 2030 projects Cartagena: 1st advanced biofuels Leading H24All European Bilbao: net-
Slide 11: Commercial and Renewables: higher operating result in 4Q20
Operational highlights - Commercial and Renewables All businesses generated a higher operating result in 4Q20 than in 4Q19 Mobility • Strong 4Q20 operating result Lubricants, Asphalts • Lower costs • Sales in Service Stations -23% 2020 in Spain vs. 2019 and • Contribution of International expansion
Slide 12: Building balanced renewable portfolio across technologies and geographies
Operational highlights – Commercial and Renewables Building balanced renewable portfolio across technologies and geographies Spain Chile Aguayo* 700 MW others 2020 482MW 1 Under Operation 275 MW Add. pipeline Elena 2021 (137.5 MW) DELTA 335 MW 2022 (137.5 MW) PI 175 MW Aragón 2020 Castilla y León 20
Slide 13: Road to Net Zero: surpassed CO2 reduction targets for 2020
Operational highlights – Emission reductions Road to Net Zero: surpassed CO2 reduction targets for 2020 Delivered 2020 carbon intensity reduction target Carbon Intensity Indicator reduction 2019-2020 All businesses % CII reduction (baseline 2016) reduced - 5% 2019 2020 CO2 emissions in CII in 2020 (
Slide 14: 4Q20 and FY20 Results
Financial results 4Q20 and FY20 Results Jan - Dec Jan - Dec Results (€ Million) Q4 2020 Q3 2020 Q4 2019 2020 2019 Upstream 195 51 186 195 1.050 Industrial 68 (67) 242 297 913 Commercial and Renewables 153 169 123 485 541 Corporate and Others (12) (146) (146) (377) (462) Adjusted Net Income 404 7 405
Slide 15: Outlook 2021: ongoing transformation in a resilience scenario
Outlook 2021: ongoing transformation in a resilience scenario Low-carbon Upstream Industrial Customer-centric generation FCF generation Transformation and Resilient and benefiting +710 MW Flexible capex operational efficiency from context improvement Competitiveness programs to deliver €400 M of sav
Slide 16: Conclusions
Conclusions Resilient performance and delivery on long-term strategic objectives • Resilience Plan delivered over initial targets Finished 2020 in stronger • Lower Net Debt and robust balance-sheet financial position • Delivered on shareholder commitments and decarbonization targets Solid 4Q20 resul
Slide 17: 4Q and FY 2020 Results
4Q and FY 2020 Results 18 February 2021 Repsol Investor Relations investor.relations@repsol.com 17