Slide 1: Webcast – Conference Call: Third Quarter 2019 Results
WEBCAST – CONFERENCE CALL Third Quarter 2019 Results 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2019 The information included in this document is published pursuant to the provision of article 226 of the Spanish Securities Market Law. This document contains statements that Repsol believes constitute forward-looking statements which may include
Slide 3: Index
Index 01. Key messages and operational highlights 02. Financial results 03. Outlook 2019 04. Conclusions 3
Slide 4: Solid 3Q19 & 9M19 cash generation in a challenging scenario
Solid 3Q19 & 9M19 cash generation in a challenging scenario Key messages and operational highlights Brent Price (USD/Bbl) Refining Margin Indicator (USD/Bbl) 75.2 6.9 72.1 6.7 68.9 5.5 64.6 4.8 62.0 3.5 3Q18 2Q19 3Q19 9M18 9M19 3Q18 2Q19 3Q19 9M18 9M19 Henry Hub (USD/MBtu) Exchange rate (USD/€) 2.9
Slide 5: Strong Operating Cash Flow delivery
Strong Operating Cash Flow delivery Key messages and operational highlights OCF* 22% higher year on year in a challenging scenario Upstream: Value over volume. FCF BE <50$/Bbl Bn€ +22% Bn€ Brent: 10% lower 4.1 3.4 2.4 2.4 9M18 9M19 9M18 9M19 Downstream: OCF 83% higher year on year Net Debt: +€1.4 Bn
Slide 6: Upstream production
Upstream production Key messages and operational highlights Kboed 711 691 694 3Q18 2Q19 3Q19 Q-o-Q increase in production Q-o-Q decrease in production • Higher volumes in Marcellus • Lower gas demand in Venezuela • Buckskin (GoM*) producing for the full quarter • Modulating our development activity
Slide 7: Development activity
Development activity Key messages and operational highlights Alaska (Pikka) Winter campaign already approved: 2 wells and a gravel lay program Indonesia (Sakakemang) Working on the final location of the Kaliberau-Dalam appraisal (2020E) Potential early development North America (Buckskin) Pa
Slide 8: Exploration activity
Exploration activity Key messages and operational highlights Gulf of Mexico Leon appraisal completed during 3Q19 Operator working on joint development of Leon and Moccasin Guyana Brazil 1 exploration well in Kanuku block spudded in October Sagitario appraisal started in September 4 new off
Slide 9: Challenging Refining
Challenging Refining Key messages and operational highlights Resilient Refining Margin Indicator Chemicals: Results in line year-on-year • Strong middle distillate spreads • 3Q19 sales affected by seasonality and stock • Premium of 0.80 $/Bbl over Indicator build-up • Turnaround of Bilbao completed
Slide 10: 3Q19 results: CCS Adjusted Net Income
3Q19 results: CCS Adjusted Net Income Financial results Group Upstream M€ M€ 588 522 368 218 3Q18 3Q19 3Q18 3Q19 Downstream Corporate & others M€ M€ 372 (68) 336 (116) 3Q18 3Q19 3Q18 3Q19 10
Slide 11: Guidance: On track to deliver €1 Bn of additional OCF in 2019
Guidance: On track to deliver €1 Bn of additional OCF in 2019 Outlook 2019 FY2019 GUIDANCE Prioritizing value over volume. Production ~710 KBoed • • ~730 Kboed production in October Ref. Margin • Expected IMO-led outperformance in 4Q19 ~6 USD/Bbl October Refining Margin Indicator: ~8 $/Bbl Indicator
Slide 12: Low Carbon Business
Low Carbon Business Outlook 2019 Approaching 1 million retail clients ~90% power generation portfolio achieved M Clients 2.5 0.96 0.73 Viesgo acquisition 3Q19 2025 12
Slide 13: IMO: Repsol's Spanish refining system perfectly positioned
IMO: Repsol’s Spanish refining system perfectly positioned Outlook 2019 Repsol: Top European player in conversion Diesel-HSFO crack spread > 40$/Bbl Med Diesel Crack 20,0 30% 10,0 Diesel-HSFO crack ~20-25 $/bbl 0,0 >40 $/bbl 20% -10,0 10% -20,0 -30,0 0% Source: Wood Mackenzie, Refinery Evaluation Mo
Slide 14: On track to deliver 2020 strategic objectives
On track to deliver 2020 strategic objectives Conclusions 1. Increasing shareholders returns 2. Growing our portfolio profitability • Removing dilution associated to the scrip dividend • Strong OCF generation: on track to deliver 2019 and increasing our dividend in 2018 and 2019 objective • Proposal
Slide 15: Third Quarter 2019 Results
Third Quarter 2019 Results Repsol Investor Relations investorsrelations@repsol.com 15