Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2020 Earnings Presentation
38 slides from Omv Petrom Sa's earnings presentation, Feb 4, 2021
Slide 1: OMV Petrom Q4/20 Results Conference Call
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Christina Verchere Chief Executive Officer and President of the Executive Board Alina Popa Chief Financial Officer The spoken word applies. Check against delivery. Page 1 of 38
Slide 2: Intro
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. Thank you for joining our call. I hope you and your families are all safe and healthy. I am pleased to introduce to
Slide 3: Legal Disclaimer
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 2 – Legal Disclaimer Please let me first draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 38
Slide 4: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 4 of 38
Slide 5: Economic environment
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 3 – Economic environment Let me start with some highlights regarding commodity prices and main currencies in the fourth quarter of 2020. Brent price averaged 44 dollars per barrel, only 3 percent higher quarter-on- quarter and still 30
Slide 6: Base load electricity prices in Romania
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Base load electricity prices in Romania were up around 6 percent year-on- year in Euro terms, and around 23 percent higher quarter-on-quarter. This increase, together with the lower gas prices, supported the spark spreads in the fourth quart
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OMV Petrom Q4/20 Results Conference Call, February 4, 2021 This page was left blank intentionally. Page 7 of 38
Slide 8: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 8 of 38
Slide 9: Romanian environment
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 4 – Romanian environment Now looking at the Romanian environment, the state of alert imposed in Romania in May 2020 was prolonged until mid-February 2021 with the vaccination program starting at the end of December last year. In terms
Slide 10: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 10 of 38
Slide 11: Key messages Q4/20
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 5 – Key messages Q4/20 On slide 5, we present the key highlights for the quarter. During this challenging period, we secured our business, proved our agility and maintained our commitment towards our stakeholders. We ensured business c
Slide 12: Key messages Q4/20 (continued)
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 also played a key role for the security of the national energy system through ancillary and balancing services. In the fourth quarter we have further pursued our strategy execution. In December we signed the transaction for the sale of our o
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Slide 14: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 14 of 38
Slide 15: Operational KPIs
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 6 – Operational KPIs On slide 6, I would like to present to you the operational performance, as reflected in our KPIs in the fourth quarter of 2020. Let me start with Upstream. The hydrocarbon production declined by almost 8 percent ye
Slide 16: Operational KPIs (continued)
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 terawatt-hour were supplied to the regulated power market at a price of around RON 223 per megawatt-hour. Page 16 of 38
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Slide 18: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 18 of 38
Slide 19: CAPEX and E&A
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 7 – CAPEX and E&A Slide 7 provides an overview of CAPEX and exploration and appraisal activities for 2020 and the outlook for the year 2021. In 2020 total organic CAPEX amounted to 3.0 billion RON, 28 percent lower year-on-year. Includ
Slide 20: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 20 of 38
Slide 21: OMV Petrom achievements on strategic objectives
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 8 – OMV Petrom achievements on strategic objectives Ladies and gentlemen, I would now like to present to you a short review of our strategic achievements in 2020. In the context of a twofold crisis related to COVID-19 and to the decrea
Slide 22: Strategic objectives (continued)
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 As part of the second strategic pillar – developing growth options – maturing Neptun resources remains one of the most important strategic objectives for the years to come. We believe that 2021 is a crucial year for Neptun. We expect to see
Slide 23: Strategic objectives (continued)
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 supplier to a regional energy player, leveraging market opportunities and existing business footprint. The progress of our strategy implementation is also reflected in our financial performance and the distribution of dividends to our shareh
Slide 24: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 24 of 38
Slide 25: Income Statement highlights
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 10 – Income Statement highlights Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 10, starting with some highlights from the Income Statement, with focus on the developments of the
Slide 26: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 26 of 38
Slide 27: Clean CCS Operating Result
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 11 – Clean CCS Operating Result Let me go on to slide 11, which shows the major building blocks for the development of the Clean CCS Operating Result in the fourth quarter of 2020. I will start with Upstream, where Clean Operating Resu
Slide 28: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 28 of 38
Slide 29: Cash Flow highlights
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 12 – Cash Flow highlights On slide 12, I would like to continue with the highlights of our cash flow statement. In the fourth quarter of 2020, we achieved an operating cash flow of 1.2 billion RON, 30 percent lower year-on-year. Operat
Slide 30: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 30 of 38
Slide 31: Strong response to adjust to the weak market environment
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 13 – Strong response to adjust to the weak market environment Triggered by the challenging environment, we took swift financial measures to maintain the strength of our balance sheet. In line with the plans announced with our second qu
Slide 32: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 32 of 38
Slide 33: 2020 Dividend proposal: RON 1,756 mn
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 14 – 2020 Dividend proposal: RON 1,756 mn On slide 14, let me highlight once more that we, the Executive Board of OMV Petrom, are committed to delivering a competitive shareholder return, also by paying an attractive dividend. Based on
Slide 34: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 34 of 38
Slide 35: Outlook
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Slide 15 – Outlook Let me conclude our presentation with the Outlook, on slide 16. Here I would like to highlight our main market assumptions and targets for 2021, as well as our guidance for 2022-23. We anticipate oil price in 2021 to be on
Slide 36: Outlook (continued)
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 In Downstream Oil, in 2022-2023 we plan projects aiming at improving the profitability, such as revamping of some units in order to include bio-oils in the refining process as well as investments in our retail network. On average for the per
Slide 37: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 37 of 38
Slide 38: OMV Petrom Q4/20 Results Conference Call, February 4, 2021
OMV Petrom Q4/20 Results Conference Call, February 4, 2021 Page 38 of 38