Slide 1: OMV Results Q3/12
OMV Aktiengesellschaft OMV Results Q3/12 David C. Davies, Deputy Chairman of the Executive Board and CFO Hans-Peter Floren, Executive Board member responsible for G&P November 7, 2012 Move & More.
Slide 2: Q3/12 Highlights
Q3/12 Highlights Clean CCS EBIT in EUR mn 1 Production at 309 kboe/d Higher exploration expenses 786 +34% USD 12% stronger vs EUR Average Brent oil price at USD 109.50/bbl 587 OMV indicator refining margin more than 617 tripled vs. Q3/11 482 Gearing ratio decreased to 28% 7 Acquisition
Slide 3: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 5.28 120 113 1.50 35 5.5 110 110 31 5.0 100 30 4.5 1.41 1.44 25 90 4.0 25 80 3.5 26 70 1.38 20 24 3.0 60 15 2.5 50 1.32 1.74 40 11 10 2.0 10 1.5 30 1.25 20 1.26 1.0 5 10 0.5 0 1.20 0 0.0 Q3/11 Q
Slide 4: Results in Q3/12
Results in Q3/12 Clean CCS net income attributable in EUR mn 1 Q3/12 Q3/11 to stockholders in EUR mn 1 EBIT 779 569 37% Financial result (106) (71) 50% Taxes (272) (136) 99% +34% 317 Effective tax rate 40% 27% 47% Net income 401 362 11% 237 Minorities and hybrid capital (90) (137) (34)% owners Net
Slide 5: Cash flow
Cash flow 9m/12 in EUR mn 1 9m/12 9m/11 in EUR mn Net income 1,387 1,223 13% (288) 121 Depreciation and 1,549 1,208 28% amortization 1,549 Other (288) (153) 89% (1,513) Sources of funds 2,648 2,277 16% 1,387 Change in net working 121 (144) n.m. capital (625) Cash flow from operating 630 2,769 2,13
Slide 6: CAPEX and EBITD
CAPEX and EBITD 9m/12 Key investments in 9m/12 in EUR mn 3,861 Petrom drilling and workovers Exploration (e.g. Neptun, Zidane, Bina Bawi) Power plants Brazi and Samsun 3,017 Etzel (capitalized caverns lease fee) Petrobrazi modernization (tie in of revamped units during shutdown) 1,363 732
Slide 7: Special items
Special items Q3/12 in EUR mn 1 Q3/12 Q3/11 in EUR mn Clean CCS EBIT 786 587 (2) CCS gains/(losses) 30 (12) (15) Clean EBIT 817 576 30 6 Personnel related costs (2) (13) (26) Unscheduled depreciation (15) (4) 786 Asset disposals 6 16 779 Other (26) (6) Total special items (38) (7) EBIT 779 569 Clean
Slide 8: Exploration and Production Clean EBIT
Exploration and Production Clean EBIT in EUR mn Q3/12 vs. Q2/12 Q3/12 vs. Q3/11 1 743 23 (15) (122) (112) 617 (13) 257 (79) 617 482 69 Q2/12 Realization Volume Exploration Other Q3/12 Q3/11 Realization Volume Exploration Other Q3/12 expenses expenses Stronger USD supported result Positive FX eff
Slide 9: Exploration and Production Key Performance Indicators
Exploration and Production Key Performance Indicators Hydrocarbon production (1,000 boe/d) Q3/12 vs. Q2/12 283 289 299 305 309 Production up by 1% Oil and Production restarted in Yemen 136 143 157 164 168 NGL (~5 kbbl/d) Higher production in Austria 147 146 142 141 141 Gas and Tunisia Lower
Slide 10: Exploration and Production Petrom group
Exploration and Production Petrom group Hydrocarbon production (1,000 boe/d) Q3/12 vs. Q2/12 184 186 184 182 182 Clean EBIT up by 5%, Oil and mainly due to 89 90 90 89 88 NGL stronger USD vs. EUR Gas slightly higher sales volumes 95 96 94 93 94 lower OPEX Production stable due to Q3/11 Q4/
Slide 11: E&P: Exploration activities – Update
E&P: Exploration activities – Update Norway Romania • Bonna-1 pilot well drilled; full • Neptun deep block: Domino-1: 1.5-3 tcf exploration well will be drilled in estimated technical resources; appraisal 2013 options being evaluated; new drilling Kurdistan Region of Iraq campaign planned to start e
Slide 12: E&P: Project activities – Update
E&P: Project activities – Update Norway Romania • Edvard Grieg: Third • Totea deep development: First appraisal well acquisition within 12 perforated and in testing, second appraisal well months spudded in August and drilling in progress • Aasta Hansteen FID expected end 2012 Kurdistan Region of Ira
Slide 13: Portfolio renewal – overall ~0.9 billion boe in project pipeline
Portfolio renewal – overall ~0.9 billion boe in project pipeline Q3/2012 (Q2/2011) New ventures Exploration Appraisal Field development New production Caspian Sea Black Sea Bina Bawi-3, KRI Schiehallion FPSO Cherouq CPF, Tunisia model Caspian KRI 1 STOD 2 (Tunisia) FRDs (Romania) Cherouq (Tunisia) M
Slide 14: Gas and Power Clean EBIT
Gas and Power Clean EBIT in EUR mn Q3/12 vs. Q3/11 1 1 4 7 6 (10) 5 Q3/11 Supply, Gas logistics Power Other Q3/12 marketing and trading Negative EconGas contribution only partly offset by better Petrom gas business result Start-up of gas storage Etzel and overall lower cost level improved gas lo
Slide 15: Gas and Power Key Performance Indicators
Gas and Power Key Performance Indicators Gas sales volumes in TWh Q3/12 vs. Q3/11 119 100 Gas sales volumes up by 87% due 92 89 to trading 54 Increase in spread between oil- linked gas prices and spot prices Petrom gas sales volumes slightly Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 decreased by 2% EconGa
Slide 16: Refining and Marketing Clean CCS EBIT
Refining and Marketing Clean CCS EBIT in EUR mn Q3/12 vs. Q3/11 1 (23) (15) 152 243 129 Q3/11 Fuels Petrochemicals Marketing Q3/12 Fuels result was favored by higher refining margins mainly due to very high gasoline spreads Petrochemicals burdened by a higher naphtha price and a significantly lo
Slide 17: Refining and Marketing Key Performance Indicators
Refining and Marketing Key Performance Indicators Refining output in mn t Q3/12 vs. Q3/11 4.94 4.93 4.87 4.55 4.61 Lower Petrom refining output West East mainly due to gradual restart of 4.12 4.03 Petrobrazi 3.73 4.02 4.19 High oil price environment leads to Marketing volume pressure 0.82 0.91 0
Slide 18: Key financing indicators
Key financing indicators Gearing ratio in % 1 33 34 31 28 28 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Key financial principles Payout ratio in % 1 Long-term gearing ratio target of ≤30% 52 Maintain a strong investment grade rating 32 32 24 22 Sustainable dividend policy: Long-term payout ratio target of
Slide 19: Outlook 2012
Outlook 2012 Market environment Brent price expected to remain above USD 100/bbl for the remainder of 2012 Gas margin environment to remain challenging Recovery of refining and marketing margins broadly continued into Q4/12, however, outlook remains uncertain Business outlook CAPEX for 2012
Slide 20: Gas and Power Strategy implementation update
OMV Aktiengesellschaft Gas and Power Strategy implementation update Hans-Peter Floren, Executive Board member responsible for G&P Move & More.
Slide 21: Implementation of the strategic priorities presented in September 2011 is progressing well
Implementation of the strategic priorities presented in September 2011 is progressing well G&P strategy 2011 OMV as integrated gas and power player along Nabucco Progress on key priorities for G&P Raise performance short-term (2014) Asset-backed trading built up CCPP Brazi (860 MW) on stream, eq
Slide 22: Changing gas market environment triggered a reassessment of the G&P strategy
Changing gas market environment and new equity gas options triggered a reassessment of the G&P strategy Traditional gas midstream 1 OMV in good position to benefit from model heavily under pressure new equity gas and attractive markets A Gas oversupply in Europe driven by C OMV will benefit from new
Slide 23: EU gas market changed fundamentally – market will likely continue to be oversupplied
A EU gas market changed fundamentally – market will likely continue to be oversupplied Range for contracted supply volumes incl. indigenous production EU 27+Turkey, bcm OMV expected demand forecast range Full demand forecast range High uncertainty in forecast 700 Widening demand – supply capacity
Slide 24: Oversupply has led to decoupling of hub markets from long-term oil-indexed supply
B Oversupply has led to decoupling of hub markets from long-term oil-indexed supply EUR/MWh Border contract tracker (mainly oil-indexed) 1 NCG Increasing gap Forecast uncertain between oil-indexed 35 LTC prices and spot prices 30 Conversion between long- 25 term contracts and spot 20 prices expect
Slide 25: OMV equity gas position likely to grow significantly
C OMV equity gas position likely to grow significantly Equity gas volumes of OMV are expected to increase significantly Clear role of G&P Black Sea Generate additional value compared to E&P direct sales by creating access to Domino discovery markets, especially for restricted or (Romania) oversu
Slide 26: With SEE and Turkey OMV is active in Europe's most attractive markets
D With SEE and Turkey OMV is active in Europe’s most attractive markets Nabucco West TANAP South Caucasus Pipeline Gas demand by submarket bcma Stagnating demand Growing demand SEE: Moderate 97 92 growth (~1.8% p.a.2) avg. 2009-11 1 2020 UK 206 211 Turkey: Fastest 29 35 growing market CEE (~3.6%
Slide 27: OMV holds a position of strength in its core countries
E OMV holds a position of strength in its core countries Total market est., 2012, percent Position of OMV OMV Remaining market shares Strong current equity gas position (~5 bcm) 34 Growth potential: Domino and potentially shale gas 66 Captive demand through CCPP Brazi Romania ~14.4 bcm EconG
Slide 28: OMV is building gas positions in two currently very different market types
OMV is building gas positions in two currently very different market types West of Baumgarten (WoB) East of Baumgarten (EoB) Current status Current status Highly liquid No liquid hubs markets Limited market High market absorption absorption capacity capacity Heterogeneous Homogenous regu
Slide 29: Nabucco connecting OMV's core markets
Nabucco connecting OMV’s core markets Status Transit pipelines to Nabucco West concept (developed European markets by OMV) welcomed by Shah Deniz II (SDII) consortium Available gas: 10 bcm from SDII Binding, conditional Nabucco West tariff offer provided Next steps Q4 2012: Conclusion of coo
Slide 30: G&P business model
G&P business model Regions Austria & around Romania Turkey Central portfolio optimization Integrated gas - Supply OMV G&P is Equity gas Long-term (AUT, ROM, UK) contracts covering the whole Short-term (RUS, NOR) purchases value chain Logistics Optimization Pipeline function set up to (AUT, Nabuc
Slide 31: Disclaimer
Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever.
Slide 32: 32 | OMV Group, Results Q3/12
32 | OMV Group, Results Q3/12