Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2018 Earnings Presentation
17 slides from Omv Petrom Sa's earnings presentation, Feb 6, 2019
Slide 1: OMV Petrom Q4/18 Results
OMV Petrom Q4/18 Results Christina Verchere, CEO February 6, 2019 OMV Petrom S.A.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe
Slide 3: Economic environment
Economic environment Oil price (USD/bbl) Gas prices (EUR/MWh)1 25.1 25.0 74 75 20.5 21.3 19.5 24.5 74 69 18.2 22.6 67 73 16.9 18.1 19.4 68 17.1 61 16.3 16.7 16.1 65 61 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Avg Urals price in USD/bbl Avg Brent price in USD/bbl BRM future deliver
Slide 4: Romanian environment
Romanian environment Macroeconomic environment Fiscal framework 2018e GDP growth1: +3.6% yoy; Offshore Law promulgated Q3/18 GDP growth2: +4.2% yoy Government Emergency CPI annual inflation: 3.3% end- Ordinance no. 114: Dec; Q4/18: 0.55% • gas price cap: RON 68/MWh • regulated power price for Demand
Slide 5: Key messages
Key messages performance Financial Clean CCS Q4/18 Operating Clean CCS Dividend Operating Cash Flow ROACE proposal 1 result RON 1.8 bn 14.3% RON 1.5 bn RON 1.4 bn Neptun Deep: Strategic Prerequisites for FID are currently not in place Projects Committed to dialogue with the authorities on the wa
Slide 6: Operational KPIs
Operational KPIs Upstream Downstream Oil Downstream Gas OPEX OMV Petrom Indicator Gas sales volumes (USD/boe) refining margin (USD/bbl) (TWh) -14% -14% -4% -4% 12.44 11.89 11.67 -14% -14% 13.41 14.20 10.41 10.73 12.88 10.51 9.74 6.56 6.72 6.62 6.16 5.27 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q4/17 Q1/18 Q2/1
Slide 7: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) 2018 at RON 4.3 bn: 110 new wells and sidetracks drilled 4.3 ~1,000 workovers performed 3.7 Refinery turnaround 3.0 2.6 2019E RON ~3.7 bn: Drilling ~100 wells and sidetracks Maintain a constant level o
Slide 8: OMV Petrom Q4/18 Results
OMV Petrom Q4/18 Results Stefan Waldner, CFO February 6, 2019 OMV Petrom S.A.
Slide 9: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) +47% 4.80 Clean CCS Operating Result reflects: +149% 3.27 ► Favorable commodities prices 1.43 0.57 ► Higher demand for fuels and electricity Q4/17 Q4/18 2017 2018 ► Lower exploration expenses Co&O and Cons Downstream Upstream Clean CC
Slide 10: Special items and CCS effect
Special items and CCS effect Q4/18 Reversal of an impairment RON mn Q4/18 Q4/17 2018 2017 Gain from forward contracts for electricity Clean CCS Operating Result 1,426 573 4,804 3,273 CCS effects: Inventory holding -81 103 186 102 gains / (losses) Net change in provisions Special items 406 145
Slide 11: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) 794 Higher realized prices 181 -118 140 Lower production cost 251 340 Lower exploration expenses Sales volumes -7% Q4/17 Market Volume Exploration Other Q4/18 effects Downstream (RON mn) 99% refining utilization rate after turnaround 514 71 Re
Slide 12: Cash Flow highlights
Cash Flow highlights Operating Cash Flow (RON bn) OCF1 reflect Operating Result +24% 7.39 2018: lower depreciation, amortization and reversal +21% +21% 5.95 of impairments incl. write-ups 1.51 1.82 2018: higher income tax Q4/17 Q4/18 2017 2018 Free Cash Flow (RON bn) -11% 3.51 3.12 +4% 2018
Slide 13: 2018 Dividend proposal: EUR 329 mn
2018 Dividend proposal: EUR 329 mn DPS1 2018: RON 0.027, up 35% yoy Dividend yield2 2018: 9.0% EUR 1.3 bn returned to shareholders in the past six years 2012-2017 DPS and Dividend yield DPS, RON/share 2018 Payout ratio (%) 2 Dividend yield , % EUR mn 3 876 9.0 6.6 7.0 6.5 5.7 329 0.031 2.7 0.0
Slide 14: Outlook 2019
Outlook 2019 Indicators Actual 2018 Assumptions/Targets 2019 Brent oil price USD 71/bbl USD 65/bbl Refining margin USD 6.28/bbl USD ~6.28/bbl Production 160 kboe/d ~ -5% yoy 1 CAPEX RON 4.3 bn RON 3.7 bn FCF after dividends RON 2.0 bn positive 1 Not including portfolio optimization 14 | OMV Petrom │
Slide 15: Q&A
< no Ss 5 o a The energy for a better life. @ OMV Petrom
Slide 16: Backup
< no Ss 5 o a The energy for a better life. @ OMV Petrom
Slide 17: Clean CCS Operating Result
Clean CCS Operating Result Upstream Higher realized prices (RON mn) 3,224 -404 210 Lower total production costs 134 1,610 Lower exploration expenses 1,674 Negative FX development 2017 Market Volume Exploration Other 2018 Sales volumes -6% effects Downstream (RON mn) Higher electrical out