Gazprom Neft · RUS:SIBN

Gazprom Neft — Investor Day (2017)

23 slides from Gazprom Neft's investor day presentation, Jun 6, 2017

  1. Slide 1: Gazprom Neft Investor Day 2017

    GAZPROM INVESTOR DAY 2017 GAZPROM NEFT

  2. Slide 2: Disclaimer

    GAZPROM INVESTOR DAY 2017 DISCLAIMER This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gazprom Neft and its consolidated subsidiaries All statements other than statements of historical fact There are a number of factors

  3. Slide 3: 2016 Key Events

    GAZPROM INVESTOR DAY 2017 2016 KEY EVENTS Upstream Downstream  Started commercial production at Novy Port and East Messoyakha fields  Continued refinery modernization program:  Launched crude shipments from Novy Port through Arctic terminal  Active construction of Euro+ unit in Moscow Refinery ‘

  4. Slide 4: Industry Leading Hydrocarbon Production Growth

    GAZPROM INVESTOR DAY 2017 INDUSTRY LEADING HYDROCARBON PRODUCTION GROWTH Resource base under PRMS, MMToe Hydrocarbon production, MMToe Refining throughput, MMTonnes +8.2% -2.7% 2,699 2,719 86.2 43.1 41.9 79.7 Probable 1,181 1,205 Proved 1,518 1,514 2015 2016 2015 2016 2015 2016

  5. Slide 5: Robust Financial Results Despite Low Oil Price

    GAZPROM INVESTOR DAY 2017 ROBUST FINANCIAL RESULTS DESPITE LOW OIL PRICE Sales, bln US$ EBITDA, bln US$ Net income, bln US$ +2.5% +66.0% -6.9% 27 6.6 6.8 3.0 25 1.8 2015 2016 2015 2016 2015 2016

  6. Slide 6: Strategy 2025

    GAZPROM INVESTOR DAY 2017 STRATEGY 2025 Exploration and production  Maximize commercial hydrocarbon Hydrocarbon production 100 MMToe recovery from existing resource base 1P reserves to production ratio 15 years  Build leading position in liquid hydrocarbon production in north of Refining Yamal Nen

  7. Slide 7: Responding to Challenging Macro Environment

    GAZPROM INVESTOR DAY 2017 RESPONDING TO CHALLENGING MACRO ENVIRONMENT Tackling short-term Portfolio Creation share- challenges optimization holder value  Focusing on lower risk and lower cost  Prioritizing projects which will yield  Increase FCF resources short-term production and cash flow incre

  8. Slide 8: Upstream Growth Opportunities

    GAZPROM INVESTOR DAY 2017 UPSTREAM GROWTH OPPORTUNITIES Legacy fields placed in Khantiy-Mansiysk, Eastern Siberia Yamalo-Nenets, Krasnoyarsk, Tomsk, Omsk, Tyumen, Orenburg regions and Serbia Kuymba Chona 2P reserves: 245 mt 2P reserves: 78 mt Start up: 2018 Start up: 2024 Prirazlomnoye In 2016: Offs

  9. Slide 9: Launched Production at Messoyakha, One of Key Projects

    GAZPROM INVESTOR DAY 2017 LAUNCHED PRODUCTION AT MESSOYAKHA, ONE OF GAZPROM NEFT’S KEY PROJECTS Startup of East Messoyakha field  September 2016 Completed infrastructure development in less than 144 MMToe 5.6 MMToe 2P reserves Peak production: 2020 three years  71 producing oil wells  8 km pipeli

  10. Slide 10: Novy Port: Began Year-Round Crude Exports

    GAZPROM INVESTOR DAY 2017 NOVY PORT: BEGAN YEAR-ROUND CRUDE EXPORTS May, 2016 marked the official launch of year- round crude exports at Novoportovskoye field A key outpost in the development of the Northern Sea Route and Arctic exploration  May: Began year-round crude shipments from Gulf of Ob ter

  11. Slide 11: Refining: Focus on Light Product Yield

    GAZPROM INVESTOR DAY 2017 REFINING: FOCUS ON LIGHT PRODUCT YIELD 7.5 Modernization plans Results Omsk  Delayed coker Light product yield – 81% 10.7  Deep processing unit Conversion rate – 99%  CDU/VDU unit 0.1 Moscow  Complex processing Light product yield – 80% unit Euro+ Conversion rate – 99%

  12. Slide 12: Continued Retail Growth

    GAZPROM INVESTOR DAY 2017 CONTINUED RETAIL GROWTH Filling 1,173 in Russia stations, Food spot sales (maximum Av. number of transaction per day) per station per station, per day 200 in CIS unit 1,100 beverage 648 420 East Europe 577 burger and hot-dog Retail sales, MMTonnes Average retail station thr

  13. Slide 13: Retaining Market Share in B2B

    GAZPROM INVESTOR DAY 2017 RETAINING MARKET SHARE IN B2B Aviation Bunkering Lubricants Bitumen  Presence in 235 airports  Presence in 37 ports  Number of service stations in G-Energy  3 bitumen plants  Company-owned refueling complexes: 41  Company-owned fleet of 11 vessels Service premium bran

  14. Slide 14: Capital Discipline

    GAZPROM INVESTOR DAY 2017 CAPITAL DISCIPLINE INVESTING SELECTIVELY FOR FUTURE SUCCESS Investments outlook, US$ mln 2017E Investments breakdown, US$ mln Investment peak 2017E 0.6  Drilling and technological 0.3 development at legacy assets 2.1 Brownfields  Ongoing investment in major 6.0 6.2 1.4 6.

  15. Slide 15: Proactive Management of Robust Financial Structure

    GAZPROM INVESTOR DAY 2017 PROACTIVE MANAGEMENT OF ROBUST FINANCIAL STRUCTURE Debt maturity profile at the end of 4Q16 Credit ratings EUR 13% Credit ratings at sovereign level: 28% bank loans 53% S&P BB+ STABLE USD RUB 56% 33% 676 Moody’s Ba1 STABLE bonds bln 12% Fitch BBB- STABLE 27% LPN RUB 34% 31%

  16. Slide 16: Dividends

    GAZPROM INVESTOR DAY 2017 DIVIDENDS Total shareholder return, % Dividends, Rub per share 65 57 12 10 44 43 41 8 Capital gain 60 6.47 49 6 40 39 20 39 4 15 2 Dividend yield 8 5 4 4 2 6 0 Peer 1 Peer 2 GPN Peer 3 Peer 4 Peer 5 2015 2016F*  Priority of dividend payout  Expect to pay Y2016 dividends e

  17. Slide 17: Appendices

    GAZPROM INVESTOR DAY 2017 Appendices

  18. Slide 18: Progressive Oil and Gas Taxation in Russia

    GAZPROM INVESTOR DAY 2017 PROGRESSIVE OIL AND GAS TAXATION IN RUSSIA REDUCED THE EFFECT OF LOW OIL PRICE Brent 55$/bbl Brent 100$/bbl Ex.rate 63.3 Rub/$ Ex.rate 35 Rub/$ Net upstream price 39% 31% Urals difference 2% 2% MET 41% 35% Export duty 23% 26%

  19. Slide 19: EBITDA Sensitivity Analysis

    GAZPROM INVESTOR DAY 2017 EBITDA SENSITIVITY ANALYSIS $/bbl Urals price change by 5$/bbl RUB/$ rate change by 5 4.0 3.8 4 3 2 1 0 -1 -2 -3 -4 -4.0 -5 -4.4 *based on EBITDA excluding JV

  20. Slide 20: Opex Decreases Due to Ruble Depreciation

    GAZPROM INVESTOR DAY 2017 OPEX DECREASES DUE TO RUBLE DEPRECIATION AND INCREASED PRODUCTION FROM STARTUPS Upstream OPEX, US$ bln Upstream OPEX, $/bbl -1.3% -12% 1.61 1.59 4.0 3.6 -2% 3.2 Brownfields 1.00 0.98 Greenfields 0.19 +12.9% 0.22 Joint operations and 0.41 0.39 international projects -6% 2015

  21. Slide 21: Upstream Capex Decrease

    GAZPROM INVESTOR DAY 2017 UPSTREAM CAPEX DECREASE WHILE HYDROCARBON PRODUCTION IS GROWING Upstream CAPEX Hydrocarbon production, kbpd Rub USD +8% bln bln 1,749 300 5 1,623 255.0 4.2 250 245.0 3.7 4 200 3 150 2 100 1 50 0 0 2015 2016 2015 2016 2015 2016

  22. Slide 22: Production Profile

    GAZPROM INVESTOR DAY 2017 PRODUCTION PROFILE 120 MMToe Exploration projects and M&A 100 Production Outside Russia 80 Gas projects 60 Greenfield projects in Russia 40 Joint ventures 20 Legacy fields 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

  23. Slide 23: Planned Capex

    GAZPROM INVESTOR DAY 2017 PLANED CAPEX TO SECURE LONG-TERM FCF GROWTH USD, bln Operating Cash Flow Investments Free cash flow 15.0 10.0 5.0 - -5.0 -10.0 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E

Gazprom Neft — Investor Day (2017) on 6ix