Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q1 2023 Earnings Presentation
34 slides from Omv Petrom Sa's earnings presentation, Apr 28, 2023
Slide 1: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 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 34
Slide 2: Slide 1 – Intro
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 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. It is a real pleasure to present to you today OMV Petrom’s performance for the first q
Slide 3: Slide 2 – Legal Disclaimer
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 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 34
Slide 4: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 4 of 34
Slide 5: Slide 3 – Volatile yet lower commodity prices
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 3 – Volatile yet lower commodity prices Let me start by taking a look at the evolution of commodity prices and our main currencies in the first quarter of 2023. Brent price continued its decline in the first quarter and averaged 81 dolla
Slide 6: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 6 of 34
Slide 7: Slide 4 – Romanian environment: negative demand evolution
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 4 – Romanian environment: negative demand evolution Moving to the macroeconomic environment, the latest available data shows that in the fourth quarter of 2022 Romanian GDP increased by 5 percent year-on-year, mostly supported by service
Slide 8: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 8 of 34
Slide 9: Slide 5 – High regulatory interventions
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 5 – High regulatory interventions In our previous calls, we mentioned the temporary measures implemented by the Romanian Government to address the high gas and power prices, applicable starting April 2022. These regulatory measures were
Slide 10: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 10 of 34
Slide 11: Slide 6 – Key messages Q1/23
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 6 – Key messages Q1/23 On slide 6, we present the key highlights for the quarter. At Group level, Clean CCS Operating Result of 2.1 billion RON was 7 percent lower year-on-year. Our operating cash flow increased by 77 percent year-on-yea
Slide 12: Key messages Q1/23 (continued)
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 As part of Transition to low and zero carbon, we are progressing towards securing EU funding for various low and zero carbon projects. In March, we received the approval for the financing through the Recovery and Resilience National Plan for b
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OMV Petrom Q1/23 Results Conference Call, April 28, 2023 This page was left blank intentionally. Page 13 of 34
Slide 14: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 14 of 34
Slide 15: Slide 7 – Good operational performance in the context of lower market demand
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 7 – Good operational performance in the context of lower market demand On slide 7, I would like to present the operational performance and I will start with Exploration and Production. Hydrocarbon production decreased by only 4 percent,
Slide 16: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 16 of 34
Slide 17: Slide 8 – Increasing CAPEX
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 8 – Increasing CAPEX Moving now to slide 8, total organic CAPEX amounted to almost 1 billion RON in the first quarter of 2023, 52 percent higher year-on-year. More than half was directed to Exploration and Production, where we finalized
Slide 18: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 18 of 34
Slide 19: Slide 9 – Progress on delivering on our sustainability targets
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 9 – Progress on delivering on our sustainability targets recognized by ESG rating agencies Moving now to slide 9, I am happy to share with you our progress in terms of sustainability. Yesterday, we published our Sustainability Report for
Slide 20: Sustainability ratings and disclosure
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Since 2020, when we became the first Romanian company to support the recommendations of the Task Force on Climate-related Financial Disclosures, we have improved our disclosure in terms of climate-related risks and opportunities as well as rel
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OMV Petrom Q1/23 Results Conference Call, April 28, 2023 This page was left blank intentionally. Page 21 of 34
Slide 22: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 22 of 34
Slide 23: Slide 11 – Income Statement: resilient results
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 11 – Income Statement: resilient results Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 11, starting with some highlights of the Income Statement, with focus on the developments of
Slide 24: Income Statement (continued)
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 For comparison, in the first quarter of 2022 the net special charges of (162) million RON were also related mainly to temporary losses from power forward contracts. The Clean CCS net income attributable to stockholders increased by 5 percent y
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OMV Petrom Q1/23 Results Conference Call, April 28, 2023 This page was left blank intentionally. Page 25 of 34
Slide 26: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 26 of 34
Slide 27: Slide 12 – Clean CCS Operating Results supported by good performance
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 12 – Clean CCS Operating Results supported by good performance, despite lower prices and reduced demand Let me go on to slide 12, which shows the major building blocks for the development of the Clean CCS Operating Result. I will start w
Slide 28: Cash flow
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 RO bn ecrease in operating cash flow before working capital changes Positive RO bn Reflects trends in Operating ash low ash outflow from investing activities 88 higher yoy 13 OMV Petrom 1 3 Results Page 28 of 34
Slide 29: Slide 13 – Cash flow
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 13 – Cash flow On slide 13, I would like to continue with the highlights of our cash flow statement. In the first quarter of 2023, we achieved an operating cash flow of 4.7 billion RON, 77 percent higher year-on-year, reflecting mainly t
Slide 30: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 81. bbl 80 bbl bbl 11 kboe d 110 kboe d 100 kboe d 1 . bbl bbl bbl RO 1.0 bn RO .0 bn RO .0 bn RO 3.3 bn Positive Positive 1 OMV Petrom 1 3 Results Page 30 of 34
Slide 31: Slide 14 – Outlook
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Slide 14 – Outlook Let me conclude our presentation with the Outlook, on slide 14. We expect Brent oil price in 2023 to be above 80 dollars per barrel, significantly above the range of 65-70 dollars per barrel assumed in our Strategy 2030. Our
Slide 32: Outlook (continued) and closing
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 to slightly increase year-on-year. Our total gas sales volumes are envisaged to be lower, mainly on lower supply, both from equity and third parties. Net electrical output is also expected to be lower year-on-year, in the context of the longer
Slide 33: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 33 of 34
Slide 34: OMV Petrom Q1/23 Results Conference Call, April 28, 2023
OMV Petrom Q1/23 Results Conference Call, April 28, 2023 Page 34 of 34