Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2021 Earnings Presentation
31 slides from Orlen Spolka Akcyjna's earnings presentation, Apr 28, 2021
Slide 1: Consolidated financial results Q1 2021
Consolidated financial results Q1 2021 28th of April 2021
Slide 2: Agenda
Consolidated financial results Q1 2021 Key highlights ….………………………………………………... 3 External environment .……………………………………..…..... 6 Exploration & production….…………………..…………….… 11 Refining & marketing ….………………………………………… 17 Consolidated financial results ……………………………..… 22 Appendices ……………………………………………..…....
Slide 3: Key highlights: Q1 2021 performance
Key highlights Q1 2021 performance ● LIFO-based EBITDA(1) for Q1 2021 at PLN 615m vs PLN 670.5m the year before, down 8.3%, of which: o Exploration & Production EBITDA PLN 167.9m, up 19.3% q/q chiefly as a result of higher crude oil prices (33.7% q/q)(2) and gas prices (28.2% q/q)(3), o Refining & M
Slide 4: Summary: LIFO EBITDA, throughput, cash flow, production
Summary Q1 2021 LIFO EBITDA(1) Refining & marketing – crude oil throughput in Gdańsk m PLN k tons -8% 671 -24% 615 2 598 2 598 1 975 491 (3) 445 201 60 refining & marketing 184 141 168 exploration & production Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021 Operating cash flow Exploration & producti
Slide 5: Agenda
Consolidated financial results Q1 2021 Key highlights ….…………………………………………………... Podsumowanie ….……………………………………………........ 33 External Otoczenieenvironment .…………………………..…........ 66 makroekonomiczne.……………….…….. Exploration & production….…………………..…………….… Segment wydobywczy ….…………………..……………….... 1111 Ref
Slide 6: Global oil demand and air traffic during the COVID-19 pandemic
External environment Global oil demand and air traffic during the COVID-19 pandemic Global crude oil consumption (1) m bbl/d 101 101 99 99 Sharp drop in oil consumption in 2020 as a 98 96 97 consequence of COVID-19 outbreak. 93 94 91 90 Gradual recovery in demand seen from Q3 83 2020 on an upturn in
Slide 7: Macroeconomic environment vs strategic assumptions
External environment Macroeconomic environment (1) vs strategic assumptions (2) Brent DTD Product crack spreads USD/bbl USD/ton -9% 179 Crude oil prices rebounding to pre-pandemic 67 levels and gradual recovery of crack spreads visible 61 over the Q1 of 2021 (vs. Q4 2020). -46% 96 Gasoline 2021 stra
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 4.1 5.6 5.6 3.9 5.2 5.4 3.8 3.9 3.9 5.1 3.8 3.8 3.8 3.8 4.8 4.8 4.8 3.9 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Polish GD
Slide 9: Crude oil, natural gas and product cracks
External environment Crude oil, natural gas and product cracks Crude oil (1) and nat gas prices (2) Key product crack spreads (1) USD USD/t 157 154 122 121 69 112 97 96 90 63 62 63 61 68 116 66 69 60 83 51 47 34 44 30 30 43 38 35 -63 30 30 -85 -81 -101 23 23 -121 19 18 -137 -139 -154 15 -251 9 Q1 19
Slide 10: Agenda
Consolidated financial results Q1 2021 Key Podsumowanie highlights ….…………………………………………………... ….…………………………………………..….... 33 External Otoczenieenvironment makroekonomiczne.…………………………… .……………………………………..…..... 66 Exploration Segment wydobywczy & production….…………………..…….… ….…………………..…….…... 1111 Refining S
Slide 11: Exploration & Production key highlights
Key highlights Exploration & Production ● clean EBITDA of PLN 167.9m, compared to the previous quarter, improvement in the financial result by 20% due to higher crude oil prices by 33.7% (1) and natural gas prices by 28.2% (2), which compensated the decline in sales volumes in Norway and Poland, ● p
Slide 12: Producing assets in Q1 2021
Exploration & Production Producing assets in Q1 2021 B8 Sleipner Utgard Baltic Sea North Sea North Sea Reserves(1) 33.4 m boe Reserves(1) 10,5 m boe Reserves(1) 1.4 m boe Production(2) 3.5 kboe/d Production(2) 7.6 kboe/d Production(2) 2.5 kboe/d B3 Heimdal AB Geonafta Baltic Sea North Sea Lithuania
Slide 13: Overall production figures
Exploration & Production Overall production figures Average daily production in quarters Overall production boe/d m boe -22% -21% 2.14 23 538 0.06 Norway 0.44 1.67 1.67 Poland 0.05 0.05 Lithuania 18 167 18 578 0.49 0.50 12 289 9 229 9 764 1.64 1.13 1.13 11 249 Q1 2020 Q4 2020 Q1 2021 8 938 8 814 FY
Slide 14: Total recoverable reserves vs 31 December 2020
Exploration & Production Total recoverable reserves in comparison to 31st of December 2020 Reserves 2P m boe 74.8 -1.1 Lithuania 2.5 -0.5 73.2 -0.1 2.4 Poland 46.0 45.5 Norway 26.3 25.2 2020-12-31 Production Norway Production Poland Production Lithuania 2021-03-31 14 Consolidated financial results Q
Slide 15: Quarterly operating results of the segment
Exploration & Production Quarterly operating results of the segment Q1 2020 Q4 2020 Q1 2021 m PLN -9% 184 168 141 107 61 84 296 86 -29 86 -198 EBIT Q1 2020 Depreciation One offs Clean EBIT Q4 Depreciation One offs Clean EBIT Q1 2021 Depreciation EBITDA Q1 2020 EBITDA 2020 Q4 2020 EBITDA Q1 2021 Q1 2
Slide 16: Agenda
Consolidated financial results Q1 2021 Podsumowanie Key highlights ….…………………………………………………... ….……………………………………………........ 3 Otoczenie External environment makroekonomiczne.…………………………….. .……………………………………..…..... 6 Segment wydobywczy Exploration & production….…………………..…………….… ….…………………..………………..... 11 11
Slide 17: Refining & Marketing key highlights
Key highlights Refining & Marketing ● clean EBITDA LIFO (1) of the Refining & Marketing segment at a level of PLN 444.7m, strengthened by the so-called effect of cheap layers of crude oil estimated at approximately PLN 90m, ● safely and efficiently concluding the key part of the maintenance shutdown
Slide 18: Refining output structure
Refining & Marketing Refining output structure k tons % share in total 2 836 2 758 2 772 2 708 2 418 14% 14% 13% 12% 17% 5% 6% 6% 6% 4% 58% 56% 54% 56% 61% 8% 10% 10% 8% 8% 3% 3% 3% 2% 2% 13% 12% 12% 14% 12% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Gasoline Naphtha Middle distilates Heavy Products Pe
Slide 19: Quarterly operating results of the segment
Refining & Marketing Quarterly operating results of the segment Q1 2020 Q4 2020 Q1 2021 m PLN -9% 491 -336 445 24 757 444 884 -144 243 -39 60 46 Retail 66 29 Retail -968 574 (1) EBITDA LIFO effect One offs Clean LIFO EBITDA LIFO effect One offs Clean LIFO Retail EBITDA LIFO effect One offs Clean LIF
Slide 20: Model refining margin
Refining & Marketing Model refining margin(1) USD/bbl Model refining margin -73% Revenues from products of 94% of throughput, including 23% gasoline, 63% diesel and 8% heavy fuel oil. Costs: 100% of processed crude and natural gas. Own consumption HSFO 6% Gasoline 10.1 8% 9.6 23% 8.1 7.0 5.8 5.4 4.5
Slide 21: Agenda
Consolidated financial results Q1 2021 Podsumowanie ….……..………………………………………….. 33 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.……………………………. External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..…………………. 1111 & production….…………………..…………….… Segme
Slide 22: Quarterly financial results
Consolidated financial results Quarterly financial results Q1 2020 Q1 2021 m PLN -8% 671 615 275 -336 263 353 664 24 1 180 -1 359 574 -1 312 EBIT Q1 2020 LIFO effect One offs Depreciation Clean EBITDA Net loss EBIT Q1 2021 LIFO effect One offs Depreciation Clean EBITDA Net profit LIFO Q1 2020 Q1 202
Slide 23: Operating cash flows vs CAPEX
Consolidated financial results Operating cash flows vs CAPEX Quarterly CAPEX Q1 2021 m PLN 1 445 Exploration Refining & Total CAPEX & Production Retail Marketing Q1 2021 1 139 68 12 340 38 75 108 118 125 95 108 39 264 90 155 156 114 69 119 -55 29 71 -1 031 8 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 E
Slide 24: Debt
Consolidated financial results Debt Net debt(1) Gearing ratio(2) Net debt / EBITDA LIFO (3) bn PLN 3.8 3.9 3.8 30% 2.7 3.6 2.9 23% 11% 1.0 1.3 10% 17% 1.3 1.9 1.4 1.0 11% 1.2 0.9 0.4 1.8 1.6 2019 2020 31 mar. 2021 2019 2020 31 mar. 2021 2019 2020 31 mar. 2021 impact of lease liabilities impact of le
Slide 25: 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
Slide 26: Appendices
Consolidated financial results Q4 2020 and FY 2020 Podsumowanie ….………………………………………………... 33 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.…………………………… External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..………………... 1111 & production….…………………..……
Slide 27: Macroeconomic environment and operational highlights
Appendices Macroeconomic environment(1) and operational highlights 2016 2017 2018 2019 2020 Q1 2019 Q1 2020 Q1 2021 Brent Dtd (USD/bbl) 43.58 54.15 71.18 64.21 41.96 62.90 50.54 61.04 Brent Dtd vs Ural Rtdm spread (USD/bbl) 2.45 1.40 1.47 0.89 0.58 0.24 2.31 1.46 Natural gas UK NBP (USD/boe) 25.84 3
Slide 28: Financial performance
Appendices Financial performance (PLNm) 2016 2017 2018 2019 2020 Q1 2019 Q1 2020 Q1 2021 Revenue 20,931.1 24,185.6 30,121.7 29,493.3 20,908.6 6,741.0 6,095.8 5,863.3 Cost of sales 17,215.7 20,194.1 25,619.0 25,649.1 19,441.7 5,943.0 6,685.2 4,709.4 Gross profit 3,715.4 3,991.5 4,502.7 3,844.2 1,466.
Slide 29: Financial position
Appendices Financial position (PLNm) 2016 2017 2018 2019 2020 Q1 2019 Q1 2020 Q1 2021 Assets 19,326.3 21,171.2 22,223.9 23,672.1 21,856.4 23,982.7 21,356.2 22,722.7 Non-current assets 12,330.7 12,462.1 13,078.0 14,236.2 13,960.1 14,291.3 13,995.8 14,199.2 Current assets, including: 6,995.1 8,709.1 9
Slide 30: Cash flows
Appendices Cash flows (PLNm) 2016 2017 2018 2019 2020 Q1 2019 Q1 2020 Q1 2021 Net cash from operating activities, including: 2,653.9 3,126.5 2,327.5 2,130.2 2,869.9 494.5 340.4 (1,030.5) Net profit/(loss) 1,015.2 1,671.8 1,587.4 1,152.9 (1,146.2) 172.5 (1,311.6) 353.3 Depreciation and amortisation 1
Slide 31: 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