Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q3 2020 Earnings Presentation

20 slides from Omv's earnings presentation, Oct 29, 2020

  1. Slide 1: Q3 2020 Results Conference Call

    Q3 2020 Results Conference Call Rainer Seele Chairman of the Executive Board and CEO October 29, 2020 OMV Aktiengesellschaft

  2. Slide 2: Disclaimer

    Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will”, and similar terms or by their context. These forward-loo

  3. Slide 3: Macro environment – improved crude oil price, but significantly lower refining margin

    Macro environment – improved crude oil price, but significantly lower refining margin Oil prices USD/bbl OMV indicator refining margin Europe USD/bbl 70 62 63 6 5.5 5.0 4.9 60 50 5 61 50 59 43 4 40 47 30 3 2.3 30 Average Brent price 37 20 2 Average realized crude price 26 0.9 10 1 0 0 Q3/19 Q4/19 Q1

  4. Slide 4: Key messages

    Key messages FINANCIAL STRONG DELIVERING THE PERFORMANCE OPERATIONS STRATEGY Clean CCS Operating Result of Quarterly production of Long-term oil price revision EUR 317 mn 444 kboe/d Signed sale agreement with (67)% y-o-y Production cost VERBUND for 51% stake in Gas at USD 7.5/boe Connect Austria +11

  5. Slide 5: Clean CCS Operating Result substantially impacted by lower oil and gas prices and reduced demand

    Clean CCS Operating Result substantially impacted by lower oil and gas prices and reduced demand Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Other EUR mn Downstream 949 1.40 449 457 145 317 490 309 335 65 8

  6. Slide 6: Upstream – significantly weaker oil and gas prices and missing contribution from Libya

    Upstream – significantly weaker oil and gas prices and missing contribution from Libya Clean Operating Result Q3/20 vs. Q3/19 EUR mn  Significantly weaker market environment  Average realized oil price decreased by 37% (474) -106%  Average realized gas price declined by 32% 449  Negative FX impa

  7. Slide 7: Downstream – significantly weaker market environment, partially offset by positive hedging impact and higher gas contribution

    Downstream – significantly weaker market environment, partially offset by positive hedging impact and higher gas contribution Clean CCS Operating Result Q3/20 vs. Q3/19 EUR mn  Weaker market environment (155)  Refining indicator margin at USD 0.9/bbl (-84%) 490  Ethylene/propylene net margins at

  8. Slide 8: Solid organic free cash flow of EUR 1.1 bn in 9m/20

    Solid organic free cash flow of EUR 1.1 bn in 9m/20 Organic cash flow 9m/20 Cash flows 9m/20 vs. 9m/19 EUR bn  Decrease of EUR 1.3 bn in cash flow from operating activities excl. net working capital change 3.3  Net working capital effects of EUR 502 mn (9m/19: EUR (227) mn)  Cash flow from operat

  9. Slide 9: Healthy balance sheet

    Healthy balance sheet Net debt excluding leases Gearing ratio excluding leases EUR bn, % 26% 22% 21% End of Sept. 2020 19% OMV cash position 19% Gearing ratio 1 excluding leases EUR 7.3 bn 12% End of Sept. 2020 OMV 11% 11% 3.7 3.6 undrawn committed credit 3.2 3.4 facilities 2.7 Net debt excluding 1.

  10. Slide 10: Good progress on EUR 2 bn divestment program

    Good progress on EUR 2 bn divestment program Divestment of OMV retail Divestment of 51% share network in Germany in Gas Connect Austria  Signing expected in Q4/20  Signed on Sept. 23, 2020  Closing expected in H1/21  Closing expected in H1/21 Net debt reduction EUR (570) mn EUR 2 bn Divestments

  11. Slide 11: Updated outlook 2020

    Updated outlook 2020 2019 Outlook 2020 Brent oil price (USD/bbl) 64 40 Average realized gas price (EUR/MWh) 11.9 <10 Total hydrocarbon production (kboe/d) 487 450–470 1 OMV European indicator refining margin (USD/bbl) 4.4 ~ 2.5 (previously ~3.0) Ethylene/propylene net margin (EUR/t) 433 <433 Utiliza

  12. Slide 12: OMV completes the acquisition of additional 39% share in Borealis

    OMV completes the acquisition of additional 39% share in Borealis  OMV acquires additional 39% share in Borealis, increasing its share to a controlling interest of 75%  Purchase price of USD 4.68 bn  Cash-out (net of cash acquired) of EUR 3.8 bn paid in full at closing  Borealis will be fully co

  13. Slide 13: Very resilient operating cash flow of Borealis of EUR 1.1 bn

    Very resilient operating cash flow of Borealis of EUR 1.1 bn OMV Borealis Operating cash flow Operating cash flow (incl. Borouge dividends) EUR bn EUR bn 2.9 Downstream excluding 2.3 Borealis 1.2 dividends 1.5 1.1 1.1 Upstream 1.9 1.0 OMV OMV Borealis Borealis 9m/19 9m/20 9m/19 9m/20 13 | OMV Group,

  14. Slide 14: Disciplined capital spending supports high free cash flows from combined businesses

    Disciplined capital spending supports high free cash flows from combined businesses OMV Borealis OMV & Borealis Organic CAPEX CAPEX combined organic CAPEX EUR bn EUR bn EUR bn 2.5 - 3.0 ~ 2.4 1 1.9 ~ 1.7 0.7 0.5 2017-19 2020 2017-19 2020 2020 2021+ average average 1 Pro-forma illustration including

  15. Slide 15: BACKUP

    BACKUP OMV Aktiengesellschaft

  16. Slide 16: Upstream – improved crude oil price, partially offset by lower gas price and weaker USD/EUR

    Upstream – improved crude oil price, partially offset by lower gas price and weaker USD/EUR Clean Operating Result Q3/20 vs. Q2/20 EUR mn  Slightly improved market environment  Realized oil price increased by 46% +128  Realized gas price decreased by 12%  Realized hedging loss  Negative effect

  17. Slide 17: Downstream – higher earnings due to improved Retail and Borealis performance

    Downstream – higher earnings due to improved Retail and Borealis performance Clean CCS Operating Result Q3/20 vs. Q2/20 EUR mn  Weaker market environment +26  Lower refining margin at USD 0.9/bbl (-61%) 335 4  Lower ethylene/propylene net margin (-5%) 309 10 At-equity 6  Operational performance

  18. Slide 18: Operational KPIs

    Operational KPIs Hydrocarbon production Refined product sales Retail sales kboe/d mn t mn t 480 464 5.60 1.81 1.75 444 4.68 4.16 1.23 Q3/19 Q2/20 Q3/20 Q3/19 Q2/20 Q3/20 Q3/19 Q2/20 Q3/20 Hydrocarbon sales Refinery utilization rate Natural gas sales kboe/d % TWh 466 96 90 32.3 33.3 434 422 79 27.2 2

  19. Slide 19: Strong balance sheet

    Strong balance sheet Balance sheet September 30, 2020 vs. June 30, 2020 EUR bn 42.9 42.9 41.1 41.1 12.7 Tangible & Stockholders’ equity 12.3  Decrease of tangible and intangible assets 19.0 intangible assets 17.5 impacted by impairments triggered by reassessment of long-term price assumptions 3.7 N

  20. Slide 20: OMV Aktiengesellschaft

    OV OMV OMV Aktiengesellschaft ouv OMV

OMV Aktiengesellschaft — Q3 2020 Earnings Presentation on 6ix