Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q2 2023 Earnings Presentation
19 slides from Omv Petrom Sa's earnings presentation, Jul 28, 2023
Slide 1: OMV Petrom Q2/23 Results
OMV Petrom Q2/23 Results Christina Verchere, CEO July 28, 2023
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the Company or any
Slide 3: Commodity prices: on a downward trend, with persisting volatility
Commodity prices On a downward trends, with persisting volatility Oil prices FX OMV Petrom indicator refining margin USD/bbl RON/USD, RON/EUR USD/bbl 4.9 4.9 4.9 4.9 4.9 24.4 4.9 4.8 18.8 4.6 4.6 4.5 17.1 16.6 114 11.2 101 89 81 78 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Avg USD/
Slide 4: Romanian environment: Mixed demand evolution despite economic growth
Romanian environment Mixed demand evolution despite economic growth GDP 4.8% 2.8% 3.2% 3.5% Growth expected 20221 Q1/231 2023e2 2024e2 Inflation 10.3% 7.0% 4.2% (CPI) On a downward June 23/June 221 2023e3 2024e3 trend Romania maintained at investment grade by major rating agencies4 Demand Q2/23 yoy
Slide 5: Romanian regulatory environment: Persistent interventions
Romanian regulatory environment Persistent interventions Regulations in place Increasingly regulated gas sales portfolio Gas and power market: Q2/22 Q1/23 Law 357/2022: approving GEO 119/2022; introduced price caps 22% 22% for gas and power, price cap for gas used in power production, 57% regulate
Slide 6: Key messages Q2/23
Key messages Q2/23 Significant progress in delivering on our Strategy 2030 Good financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 1.6 bn RON 0.4 bn 31.3% -56% yoy -89% yoy -4pp yoy Operational performance Strategic focus Neptun Deep: FID in June/23 Contribu
Slide 7: Operational performance: Impacted by key assets maintenance
Operational performance Impacted by key assets maintenance Exploration and Production Refining and Marketing Gas and Power Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh -5% -5% -55 pp -14% 120 117 118 116 114 99 99 98 12.5 13.1 86 11.0 57 56 57 56 55 9.8 9.5 31 63 6
Slide 8: CAPEX: On an upward trend
CAPEX On an upward trend Group CAPEX1 RON bn 6m/23 2023E ~6 RON 2.4 bn: RON ~6.0 bn: 16 new wells and sidetracks; ~240 Wells and sidetracks: ~55; ~450 workovers workovers Coke drums replacement Neptun Deep project 3.6 Coke drums replacement 2.8 Major turnaround in Petrobrazi refinery
Slide 9: Strategy 2030 in action
Strategy 2030 in action EUR 11 bn for a predictable and cleaner energy future in Romania Neptun Deep Photovoltaics E-mobility Attractive dividends • 2027 - first gas • CE Oltenia partnership: • 150 charging points installed • Base DPS: RON 0.0375 /share • 100 bcm - total estimated 450 MW • EU financ
Slide 10: OMV Petrom Q2/23 Results - Alina Popa, CFO
OMV Petrom Q2/23 Results Alina Popa, CFO July 28, 2023
Slide 11: Income Statement: Resilient results
Income Statement Resilient results Clean CCS Operating Result RON bn -56% -37% Q2/23 Clean CCS Operating Result reflects: 3.7 5.9 ► Lower commodity prices and refining margin 0.8 1.5 3.7 1.2 1.6 1.8 1.2 ► Planned turnarounds and maintenance activities 0.8 1.9 0.1 0.5 3.0 ► Lower fuels and electric
Slide 12: Clean CCS Operating Result: Lower prices and prolonged planned maintenance
Clean CCS Operating Result Lower prices and prolonged planned maintenance E&P RON mn Lower E&P taxation 1,889 Lower impairments -433 -305 1,152 Realized crude price -33%; lower realized gas price Hydrocarbon sales -6% Higher production costs Q2/22 Market effects1 Operational effects Q2/23
Slide 13: Cash flow: Positive net working capital
Cash flow Positive net working capital Cash Flow from Operating Activities RON bn -21% -89% 3.7 6.4 Q2/23 Cash Flow from Operating Activities: 5.1 0.4 4.3 ► Decrease in operating cash flow before working capital changes 4.5 7.8 1.4 2.2 ► Solidarity contribution for 2022 paid in Q2/23, RON (1.5) bn
Slide 14: Outlook 2023-2025
Outlook 2023-2025 Indicators Actual Assumptions/ Targets Assumptions/ Targets 6m/23 2023 2024-2025 averages Brent oil price USD 79.7/bbl USD 75 – 80/bbl USD ~75/bbl (prev.: USD >80/bbl) Production 1 115 kboe/d ~110 kboe/d 95 – 100 kboe/d Refining margin USD 14.0/bbl USD >10/bbl USD ~9/bbl (prev.: US
Slide 15: Special dividend: Record high dividends for the second year in a row
Special dividend Record high dividends for the second year in a row Total dividends to be distributed Highly competitive in 2023 of ~RON 5.1 bn among our peers DPS Dividend yield (DY) 1,2 Dividend yield 2021-2022 2,3 19.6 RON/share % % 19.6 15.9 15.9 0.079 0.083 6.5 0.045 0.045 4.7 0.034 0.038 2021
Slide 16: Q&A
Q&A July 28, 2023
Slide 17: Back-up
Back-up July 28, 2023
Slide 18: Sensitivities in 2023
Sensitivities in 2023 2023 sensitivities Change EBIT impact Brent oil price USD +1/bbl ~EUR +15 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn Exchange rates EUR/USD USD appreciation by 5 USD cents ~EUR +50 mn 18 OMV Petrom Q2/23 Results
Slide 19: OMV Petrom
@ OMV Petrom