Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2018 Earnings Presentation
23 slides from Orlen Spolka Akcyjna's earnings presentation, Apr 27, 2018
Slide 1: Consolidated financial results 1Q 2018
Consolidated financial results 1Q 2018 27th April, 2018 Financial results 1Q 2018 1
Slide 2: Agenda
Key highlights ….…………………………….. 3 External environment …………………......... 7 Upstream ……………………………………… 10 Downstream …………………………….…… 15 Consolidated financial results …….………... 18 Financial results 1Q 2018 Financial results 1Q 2018 2
Slide 3: Key highlights
Key highlights Financial results 1Q 2018 Financial results 1Q 2018 3
Slide 4: 1Q 2018 – summary
Key highlights 1Q 2018 – summary o LIFO EBITDA (1) of 0,54bn PLN, negatively affected by decreased downstream margins and worsened by weakening of PLN vs USD o Net debt lowered by 2.2 bn PLN pushing net debt/LIFO EBITDA (1) ratio down to 0.9x o Stable and efficient refinery following sucessfully com
Slide 5: Macroeconomic environment vs strategic assumptions
Key highlights Macroeconomic environment (1) vs strategic assumptions(2) Brent DTD Product crack spreads +17% USD/bbl USD/ton 177 67 134 -24% 57 Gasoline 2018 strategy 1Q 2018 actual 2018 strategy 1Q 2018 actual 114 93 -19% Natural gas Diesel +32% USD/boe 45 34 2018 strategy 1Q 2018 actual Heavy fue
Slide 6: 1Q 2018 – summary
Key highlights 1Q 2018 – summary LIFO EBITDA (1) Downstream - crude oil throughput m PLN k tons upstream downstream 754 682 540 -21% 2 700 2 560 427 547 1 924 324 266 217 205 1Q 2017 4Q 2017 1Q 2018 1Q 2017 4Q 2017 1Q 2018 Net debt / LIFO EBITDA (2) Upstream – daily hydrocarbons production (3) 1.9x
Slide 7: External environment
External environment Financial results 1Q 2018 Financial results 1Q 2018 7
Slide 8: FX rate, GDP growth, domestic fuel market
External environment FX rate, GDP growth, domestic fuel market FX USD/PLN rate (1) Diesel consumption (3) m m3 4.06 5.3 5.0 5.0 3.83 4.6 4.3 3.63 3.60 3.40 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Polish GDP growth (2) Gasoline consumption (3) m m3 4.9% 5.1% 5.
Slide 9: Crude oil, natural gas and product crack spreads
External environment Crude oil, natural gas and product crack spreads Crude oil (1) and nat gas prices (2) Key product crack spreads (1) USD USD/t 67 61 165 152 139 127 134 54 52 50 98 93 45 77 79 38 95 33 30 27 -98 -100 -117 -131 -154 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q 2017 2Q 2017 3Q 2017
Slide 10: Upstream
Upstream Financial results 1Q 2018 Financial results 1Q 2018 10
Slide 11: Producing assets – 1Q key figures
Upstream Producing assets – 1Q key figures B8 Sleipner Onshore fields Baltic Sea North Sea Lithuania Reserves(1) 36,7 mmboe Reserves(1) 14,3 mmboe Production(2) 2,6 kboe/d Reserves(1) 3,5 mmboe Production(2) 13,8 kboe/d Production(2) 0,8 kboe/d B3 Heimdal Baltic Sea North Sea Reserves(1) 14,1 mmboe
Slide 12: Overall production figures
Upstream Overall production figures Daily quarterly production Overall quarterly production boe/d m boe -13% 25 149 2.3 +4% 0.1 21 930 2.0 20 728 0.4 1.9 0.1 0.1 10 498 0.4 9 459 0.4 9 349 1.8 14 651 1.4 1.5 11 379 12 471 1Q 2017 4Q 2017 1Q 2018 1Q 2017 4Q 2017 1Q 2018 oil gas Norway Poland Lithuani
Slide 13: Total recoverable reserves comparing with 31.12.2017
Upstream Total recoverable reserves comparing with 31.12.2017 2P reserves m boe 92.0 88.1 -0.4 -0.1 6.0 3.5 Lithuania 3.6 -1.5 Poland 45.2 50.8 39.3 Norway 37.7 31 Dec 2017 Norway Poland reclassification (1) Poland Lithuania 31 Mar 2018 (1) Upward revision of 2P reserves for B3 field, due to extensi
Slide 14: Quarterly upstream EBITDA evolution
Upstream Quarterly upstream EBITDA evolution 1Q 2017 4Q 2017 1Q 2018 m PLN 266 -83 217 205 182 40 178 -59 -75 146 142 (1) EBITDA Depreciation EBIT 1Q17 EBITDA one offs Clean Depreciation Clean EBITDA Depreciation EBIT 1Q18 1Q17 4Q 17 EBITDA EBIT 1Q18 4Q 17 4Q 17 (1) balance of assets impairments and
Slide 15: Downstream
Downstream Financial results 1Q 2018 Financial results 1Q 2018 15 15
Slide 16: Volume of sales of key refining products
Downstream Volume of sales of key refining products thousand tons 2 617 2 535 2 239 421 409 2 242 1 979 372 416 355 1 665 1 584 1 434 1 378 1 239 386 433 531 542 448 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 (1) gasoline middle distilates heavy products (2) (1) middle distillates including : diesel, l
Slide 17: Quarterly downstream EBITDA evolution
Downstream Quarterly downstream EBITDA evolution 1Q 2017 4Q 2017 1Q 2018 -198 547 -16 -123 2 427 761 84 324 -175 548 415 Retail Retail Retail 20 30 26 EBITDA LIFO effect One offs Clean LIFO EBITDA LIFO effect One offs Clean LIFO EBITDA LIFO effect One offs Clean LIFO 1Q 17 EBITDA 1Q 17 4Q 17 EBITDA
Slide 18: Model refining margin evolution (USD/bbl)
Downstream Model refining margin evolution (USD/bbl) (1) 8.90 8.40 7.40 6.56 6.20 5.58 5.60 5.30 4.83 8.57 3.48 7.34 7.14 7.07 6.38 LOTOS PKN Orlen (2) ERMI 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 (1) LOTOS model refining margin = 14.14% gasoline + 4.24% naphtha + 4.53% LPG + 49.57% diesel + 5.34% j
Slide 19: Consolidated financial results
Consolidated financial results Financial results 1Q 2018 Financial results 1Q 2018 19
Slide 20: Decomposition of 1Q 2018 vs 1Q 2017 consolidated financial results
Consolidated financial results Decomposition of 1Q 2018 vs 1Q 2017 consolidated financial results 1Q 2017 1Q 2018 682 m PLN -21% 227 540 -123 2 411 183 -175 324 84 577 448 EBIT 1Q LIFO effect One offs Depreciation Clean LIFO Net profit EBIT 1Q LIFO effect One offs Depreciation Clean LIFO Net profit
Slide 21: Operating cash flows vs CAPEX
Consolidated financial results Operating cash flows vs CAPEX Quarterly 1Q 2018 m PLN 1 243 1 014 361 43 724 24 200 431 361 87 368 294 100 34 284 164 145 95 200 13 327 344 82 189 204 87 118 -136 1Q 2017 1Q 2018 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 CAPEX upstream operating cash flow CAPEX EFRA CAPE
Slide 22: Debt
Consolidated financial results Debt Net debt (1) Gearing ratio (2) Net debt / clean LIFO EBITDA (3) bn PLN 4.8 56% 1.9x 2.7 4.18 2.5 25% 0.9x 23% 0.8x 3.40 3.48 2016 2017 1Q 2018 2016 2017 1Q 2018 2016 2017 1Q 2018 net debt FX USD/PLN (1) End of period (2) gearing ratio = net debt / total shareholde
Slide 23: Grupa LOTOS S.A. Investor Relations
Grupa LOTOS S.A. Investor Relations tel. +48 58 308 73 93 fax +48 58 346 22 35 e-mail ir@grupalotos.pl @GrupaLOTOS Financial results 1Q 2018