Slide 1: OMV Q3/16 conference call
OMV Q3/16 conference call November 9, 2016 Rainer Seele Chairman of the Executive Board and CEO Reinhard Florey Chief Financial Officer The spoken word applies 1/38 | OMV
Slide 2: OMV Q3/16 conference call, November 9, 2016
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Slide 3: Key messages
OMV Q3/16 conference call, November 9, 2016 Rainer Seele Ladies and gentlemen, good morning and thank you for joining us. I am happy to review our Q3 financial performance together with our CFO Reinhard Florey. Let me start with the key messages. Slide 3: Key messages OMV’s performance in Q3/2016 re
Slide 4: OMV Q3/16 conference call, November 9, 2016
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Slide 5: OMV divests Upstream UK subsidiary
OMV Q3/16 conference call, November 9, 2016 Slide 4: OMV divests Upstream UK subsidiary Let me give you more details on this transaction: OMV signed an agreement for the sale of its wholly owned Upstream subsidiary in the UK to Siccar Point Energy Limited. The transaction has an economic effective d
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Slide 7: HSSE – Safety is our top priority
OMV Q3/16 conference call, November 9, 2016 Slide 5: HSSE – Safety is our top priority One key message is always important: Our HSSE performance. The sustainable management of Health, Safety, Security and Environment is top priority for OMV and critical to the responsible delivery of our products an
Slide 8: OMV Q3/16 conference call, November 9, 2016
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Slide 9: Development of economic environment
OMV Q3/16 conference call, November 9, 2016 Slide 6: Development of economic environment Now, I would like to briefly talk about OMV’s market environment. The average oil prices stabilized at a level of 46 US Dollars per barrel in Q3/2016 versus Q2/2016. Of course, the OPEC agreement end of Septembe
Slide 10: OMV Q3/16 conference call, November 9, 2016
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Slide 11: Financial performance in Q3/16
OMV Q3/16 conference call, November 9, 2016 Slide 7: Financial performance in Q3/16 With the next slide, I will highlight the key figures of the third quarter and Reinhard will comment on them in greater detail later. Clean CCS EBIT increased from 214 million Euros in Q2/2016 to 415 million Euros in
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Slide 13: Financial performance in 9m/16
OMV Q3/16 conference call, November 9, 2016 Slide 8: Financial performance in 9m/16 Moving on to our financial performance in the first nine months of 2016, OMV realized solid operating results despite the decrease in both the oil price and the refining margin. OMV reported a clean CCS EBIT of 796 m
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Slide 15: Key portfolio developments
OMV Q3/16 conference call, November 9, 2016 Slide 9: Key portfolio developments On September 22, 2016, OMV signed the sale agreement for a 49 percent stake in Gas Connect Austria to a consortium of Allianz and Snam. This transaction supports the financial stability and cash flow of the OMV Group whi
Slide 16: OMV Q3/16 conference call, November 9, 2016
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Slide 17: 2016 CAPEX guidance reduced to EUR 2 bn
OMV Q3/16 conference call, November 9, 2016 Slide 10: 2016 CAPEX guidance reduced to EUR 2 bn During the course of 2016, OMV continued to reduce its CAPEX spending. While we projected CAPEX to come in at 2.4 billion Euros at the beginning of the year, we now estimate that we will only spend 2.0 bill
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Slide 19: 41% reduction of E&A expenditure in 2016
OMV Q3/16 conference call, November 9, 2016 Slide 11: 41% reduction of E&A expenditure in 2016 In 2016, we will reduce exploration and appraisal expenditure by 41 percent to 360 million Euros. This forecast reflects a 90 million Euros reduction from the 450 million Euros in exploration and appraisal
Slide 20: OMV Q3/16 conference call, November 9, 2016
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Slide 21: On track to deliver committed cost savings
OMV Q3/16 conference call, November 9, 2016 Slide12: On track to deliver committed cost savings We also continue to make good progress with the implementation of our cost reduction and efficiency program. We will achieve cost savings of 100 million Euros by the end of 2016 and commit to more than 15
Slide 22: OMV Q3/16 conference call, November 9, 2016
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Slide 23: Reinhard Florey: Income statement summary
OMV Q3/16 conference call, November 9, 2016 Reinhard Florey Slide13: Intro chart Good morning ladies and gentlemen from my side as well. Slide 14: Income statement summary On slide 14 you can see the summary of the Q3 income statement. My remarks will focus on a comparison of Q3 versus Q2/2016 figur
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Slide 25: Cash flow
OMV Q3/16 conference call, November 9, 2016 Slide 15: Cash flow Let me now turn to our cash flow, which was again strong in Q3/2016. Cash flow from operating activities came in at 652 million Euros. Depreciation, amortization and impairments including write-ups amounted to 899 million Euros. Cash ou
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Slide 27: Substantially increased results despite ongoing difficult market environment
OMV Q3/16 conference call, November 9, 2016 Slide16: Substantially increased results despite ongoing difficult market environment Despite the ongoing difficult market environment, OMV’s earnings increased substantially. Clean CCS EBIT rose from 214 million Euros to 415 million Euros. In Upstream, sa
Slide 28: OMV Q3/16 conference call, November 9, 2016
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Slide 29: Upstream Q3/16 vs. Q3/15: Difficult pricing almost offset by lower costs and higher volumes
OMV Q3/16 conference call, November 9, 2016 Slide17: Upstream Q3/16 vs. Q3/15: Difficult pricing almost offset by lower costs and higher volumes On the next slide you can see the Upstream clean EBIT development in Q3/2016 versus Q3/2015. Clean EBIT declined from 52 million Euros to 38 million as a r
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Slide 31: Downstream showed robust performance
OMV Q3/16 conference call, November 9, 2016 Slide18: Downstream showed robust performance Let me now turn to the Downstream performance. Downstream clean CCS EBIT decreased from 402 million Euros to 377 million Euros. This was attributable to the lower OMV indicator refining margin which decreased f
Slide 32: OMV Q3/16 conference call, November 9, 2016
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Slide 33: OMV Petrom Group reports improved results versus Q2/16
OMV Q3/16 conference call, November 9, 2016 Slide19: OMV Petrom Group reports improved results versus Q2/16 Now let’s turn to the OMV Petrom Group results. Clean CCS EBIT increased from 49 million Euros in Q2/2016 to 137 million Euros. This was driven by improved results mainly in Downstream. The Up
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Slide 35: Targeting a long-term gearing ratio of ≤30%
OMV Q3/16 conference call, November 9, 2016 Slide20: Targeting a long-term gearing ratio of ≤30% Benefiting from the strong cash generation of the Group, OMV decreased both its net debt and its gearing ratio. Net debt declined from 4.04 billion Euros at the end of 2015 to 3.74 billion Euros. The gea
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Slide 37: Outlook 2016
OMV Q3/16 conference call, November 9, 2016 Rainer Seele Slide21: Outlook 2016 Let me summarize OMV’s Outlook for you. For the full year 2016, we increase our oil price assumption to an average of 44 US Dollars per barrel. The gas market environment in Europe continues to be characterized by ove
Slide 38: OMV Q3/16 conference call, November 9, 2016
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