Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q4 2019 Earnings Presentation

20 slides from Omv's earnings presentation, Feb 6, 2020

  1. Slide 1: Q4 and full year 2019 Results Conference Call

    Q4 and full year 2019 Results Conference Call Rainer Seele Chairman of the Executive Board and CEO February 6, 2020 OMV Aktiengesellschaft

  2. Slide 2: Disclaimer

    Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will”, and similar terms or by their context. These forward-loo

  3. Slide 3: Macro environment – Weaker market environment than in Q4/18

    Macro environment – Weaker market environment than in Q4/18 in Upstream and Downstream Oil prices USD/bbl OMV indicator refining margin USD/bbl 69 69 70 63 62 63 6 5.2 5.5 5.0 60 66 5 62 60 59 61 4.0 50 4 3.2 40 3 30 Average Brent price 20 2 Average realized crude price 10 1 0 0 Q4/18 Q1/19 Q2/19 Q3

  4. Slide 4: Key messages

    Key messages FINANCIAL STRONG DELIVERING THE PERFORMANCE OPERATIONS STRATEGY Clean CCS Operating Result of Quarterly production of Agreed to sell share in mature oil EUR 781 mn (-26% y-o-y) 505 kboe/d field in New Zealand impacted by weaker market Production cost environment in Upstream and at USD 6

  5. Slide 5: Clean CCS Operating Result impacted by weaker market environment and higher depreciation

    Clean CCS Operating Result impacted by weaker market environment and higher depreciation Clean CCS Operating Result Clean CCS Net Income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Other, Consolidation EUR mn Downstream 1,053 949 1.50 1.40 781 490 457 57

  6. Slide 6: Upstream – Higher gas sales volumes offset by weaker market environment

    Upstream – Higher gas sales volumes offset by weaker market environment, fewer oil liftings in Norway, and higher depreciation Q4/19 vs. Q4/18 Clean Operating Result EUR mn  Weaker market environment  Realized oil price decreased by 2% (119) -21%  Realized gas price decreased by 18% 578  Positiv

  7. Slide 7: Downstream – Weaker market environment in petrochemicals partially offset by stronger Gas and ADNOC contribution

    Downstream – Weaker market environment in petrochemicals partially offset by stronger Gas and ADNOC contribution Q4/19 vs. Q4/18 Clean CCS Operating Result EUR mn Oil  Weaker market environment (59) -13%  Refining indicator margin at USD 5/bbl (-4%) 445  Ethylene/propylene net margins at EUR 363/

  8. Slide 8: 2019 cash flow from operating activities excluding net working capital effects at EUR 4.3 bn

    2019 cash flow from operating activities excluding net working capital effects at EUR 4.3 bn Organic cash flow 12m/19 EUR bn 4.2 4.3 Cash flows 12m/19 vs. 12m/18  Increase of sources of funds by EUR 41 mn  Borealis dividends in Q4/19 of EUR 153 mn (FY/19: EUR 297 mn, FY/18: EUR 360 mn) 2.5  Net w

  9. Slide 9: Strong full year results despite weaker market environment

    Strong full year results despite weaker market environment Clean CCS Operating Result Cash flow from operating activities 1 EUR bn EUR bn Upstream Downstream Corporate & Others ≥4.0 ~3.0 4.3 3.9 4.2 3.6 3.5 3.2 3.0 3.0 2.0 2.0 1.2 1.7 1.5 0.1 0.0 1.5 1.5 1.8 1.6 1.7 -0.1 2 2015 2016 2017 2018 2019 2

  10. Slide 10: Healthy balance sheet

    Healthy balance sheet Net debt and gearing ratio Gearing ratio 29% 28% 28% Cash position 21% EUR bn 1 2.9 14% 13% 4.9 4.7 Net debt Undrawn revolving 4.0 (EUR bn) credit facilities 3.0 EUR bn 1 2.0 2.0 3.2 1 As of end of 2019 2015 2016 2017 2018 Sep. 30, 19 Dec. 31, 19 10 | OMV Group, Q4 and full yea

  11. Slide 11: Delivering on our progressive dividend policy – Record dividends in 2019

    Delivering on our progressive dividend policy – Record dividends in 2019 Dividend Per Share EUR CAGR 2.00  Record dividend of EUR 2.00 per share for 2019 +19% 1.75 proposed (+14% vs. 2018) 1.5  We are committed to delivering an attractive and 1.20 predictable shareholder return through the 1.00 bu

  12. Slide 12: Outlook 2020

    Outlook 2020 2019 Outlook 2020 Brent oil price (USD/bbl) 64 60 Average realized gas price (EUR/MWh) 11.9 <11.9 Total hydrocarbon production (kboe/d) 487 ~500 1 OMV European indicator refining margin (USD/bbl) 4.4 >5.0 Ethylene/propylene net margin (EUR/t) 433 <400 Utilization rate European refinerie

  13. Slide 13: Move towards a lower-carbon future

    Move towards a lower-carbon future More gas, More valuable Innovative less oil products, burn less technology 13 | OMV Group, Q4 and full year 2019 Conference Call, February 6, 2020

  14. Slide 14: BACKUP

    BACKUP OMV Aktiengesellschaft

  15. Slide 15: Upstream – Stronger market environment offset by lower oil sales volumes and higher E&A expenses

    Upstream – Stronger market environment offset by lower oil sales volumes and higher E&A expenses Clean Operating Result Q4/19 vs. Q3/19 EUR mn  Stronger market environment +9  Realized oil price increased by 3%  Realized gas price increased by 5% 449 59 63 459  Production of 505 kboe/d (+25 kboe

  16. Slide 16: Downstream – Lower earnings impacted by weaker refining and petrochemical margins

    Downstream – Lower earnings impacted by weaker refining and petrochemical margins, partially offset by gas result Clean CCS Operating Result EUR mn Q4/19 vs. Q3/19 (105) Oil 490  Weaker market environment 25 57  Lower refining margin (-8%) 23 25 385  Lower ethylene/propylene net margins (-18%) Ga

  17. Slide 17: Operational KPIs

    Operational KPIs Hydrocarbon production Refined product sales Retail sales kboe/d mn t mn t 480 505 5.60 1.81 447 5.25 5.17 1.64 1.58 Q4/18 Q3/19 Q4/19 Q4/18 Q3/19 Q4/19 Q4/18 Q3/19 Q4/19 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 42.8 43.9 98 96 98 44.7 39.4 32.7 27.

  18. Slide 18: Strong balance sheet

    Strong balance sheet Balance sheet Dec. 31, 2019 vs. Sep. 30, 2019 EUR bn 40.3 40.4 40.4 40.3 Stockholders’ equity 13.0 12.9  Assets and liabilities held for sale impacted by Tangible & 20.9 20.6 the reclassification of the 69% stake in Maari intangible assets field in New Zealand as well as 40 mar

  19. Slide 19: Sensitivities of OMV Group in 2020

    Sensitivities of OMV Group in 2020 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result Brent oil price (USD +1/bbl) +60 +25 OMV invoiced gas price (EUR +1/MWh) +140 +90 OMV indicator refining margin (USD +1/bbl) 2 +110 +85 Ethylene/propylene net margin (EUR +10/t) +15 +10 EUR-US

  20. Slide 20: OMV Aktiengesellschaft

    OV OMV OMV Aktiengesellschaft ouv OMV

OMV Aktiengesellschaft — Q4 2019 Earnings Presentation on 6ix