Omv Petrom Sa · BVB:SNP

Omv Petrom Sa — Q2 2021 Earnings Presentation

16 slides from Omv Petrom Sa's earnings presentation, Jul 28, 2021

  1. Slide 1: OMV Petrom Q2/21 Results

    OMV Petrom Q2/21 Results Christina Verchere, CEO July 28, 2021

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and This presentation may contain forward-looking statements. These statements reflect should not be construed as, constituting or forming part of, any actual offer to sell or the Company’s current knowl

  3. Slide 3: Improving economic environment

    Improving economic environment Oil price (USD/bbl) and FX (RON/USD) OMV Petrom indicator refining margin (USD/bbl) 4.8 4.8 4.9 4.9 4.9 4.27 4.0 4.1 4.4 4.1 69.0 2.80 4.1 61.1 43.4 44.4 67.3 1.85 2.00 60.0 29.9 42.9 44.2 0.94 29.6 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Avg Urals price in USD/bbl (left axis) A

  4. Slide 4: Romanian environment recovered to pre-COVID levels

    Romanian environment recovered to pre-COVID levels  Q1/211: 0.1% yoy; +2.9% qoq; GDP growth above pre-COVID level  2021e2: +7.4% yoy  June 21/June 201: 3.9% CPI on an upward trend  2021: 4.1%3 Demand Q2/21 6m/21 6m/21 yoy yoy vs. 6m/19 Fuels4 +28% +11% +12% Gas5 +12% +8% +9% Power6 +14% +8% +1%

  5. Slide 5: Key messages Q2/21

    Key messages Q2/21 Clean CCS Operating Operating Cash Clean CCS Financial result Flow ROACE resilience RON 0.9 bn RON 1.5 bn 7.4% >3X yoy +23% yoy vs. 10.3% in Q2/20 • Despite higher yoy contribution from drilling • Neptun: ready to act as Operator for and workovers, impact of natural decline Neptun

  6. Slide 6: Operational performance reflects recovering, yet challenging market environment

    Operational performance reflects recovering, yet challenging market environment Upstream Downstream Oil Downstream Gas Hydrocarbon production (kboe/d) Refinery utilization rate (%) Gas sales volumes (TWh) -9% -2% -14% -4% +2% +1% 147 141 140 139 14.36 134 13.06 13.25 96 12.11 95 11.21 71 69 67 67 65

  7. Slide 7: CAPEX and E&A: cautious approach maintained in a volatile market

    CAPEX and E&A: cautious approach maintained in a volatile market Group organic CAPEX* Organic CAPEX (RON bn)  6m/21 at RON 1.2 bn:  22 new wells and sidetracks; ~380 workovers  Projects in the tank farm area in Petrobrazi -28% -28%  Preliminary works for coke drums replacement in Petrobrazi 4.2

  8. Slide 8: OMV Petrom Q2/21 Results – Alina Popa, CFO

    OMV Petrom Q2/21 Results Alina Popa, CFO July 28, 2021

  9. Slide 9: Income Statement: results mainly supported by improved commodity prices

    Income Statement: results mainly supported by improved commodity prices Clean CCS Operating Result (RON bn) 20% +20%  Q2/21 Clean CCS Operating Result evolution reflects: 209% +207% 1.50 ► Higher oil prices 1.25 0.85 ► Higher refining margin 0.28 ► Lower contribution from refining hedges and power

  10. Slide 10: Clean CCS Operating Results: improved commodity prices and refining margins

    Clean CCS Operating Results: improved commodity prices and refining margins Upstream (RON mn)  Realized crude price +139%  Higher gas price -168 473 -11 -27  Lower exploration expenses 808  Hydrocarbon sales -10% (130)  Negative FX effect Q2/20 Market Volume Exploration Other Q2/21 effects Down

  11. Slide 11: Cash Flow: higher commodity prices impact net working capital

    Cash Flow: higher commodity prices impact net working capital Cash Flow from Operating Activities (RON bn) +3% +23% +23% 2.7 2.6 1.5 1.2 2.2 3.3  Q2/21 CFO: increase driven by Operating Result has been reduced by 0.8 1.7 negative working capital impact due to upward trend in commodity prices 0.5 -0

  12. Slide 12: Outlook: 2021 oil price estimate revised upwards

    Outlook: 2021 oil price estimate revised upwards Assumptions/ Targets Assumptions/ Targets Indicators Actual 2020 2021 2022-2023 averages USD 65-70/bbl Brent oil price USD 41.84/bbl USD 60/bbl (prev. USD 60-65/bbl) Decline ~6% yoy1 Production 145 kboe/d Decline ~5% yoy1 (prev. ~5% yoy1) USD ~4/bbl R

  13. Slide 13: OMV Petrom

    OMV Petrom The energy for a better life.

  14. Slide 14: Back-up

    #2 OMV Petrom The energy for a better life.

  15. Slide 15: Sensitivities in 2021

    Sensitivities in 2021 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +20 mn Equity gas price EUR +1/MWh ~EUR +20 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn Exchange rates (EUR/USD) USD appreciation by 5 USD cents ~EUR +35 mn 15 | OMV P

  16. Slide 16: Clean CCS Operating Results: improved oil price

    Clean CCS Operating Results: improved oil price Upstream (RON mn)  Realized crude price +69%  Lower depreciation -300 784 18 15  Lower exploration expenses 1,025 27  Hydrocarbon sales -9% 6m/20 Market Volume Exploration Other 6m/21 effects  Negative FX effect Downstream (RON mn)  Improved marg

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