Slide 1: Webcast – Conference Call: Fourth Quarter 2017 Results
WEBCAST – CONFERENCE CALL Fourth Quarter 2017 Results February 28th 2018 © Repsol Investor Relations www.repsol.com
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2018 Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or
Slide 3: 4Q and FY 2017 Results
4Q and FY 2017 Results 1. Delivery of strategic objectives 2. Operational highlights 3. Financial results 4. Outlook for 2018 5. Conclusions ©
Slide 4: Market environment
Market environment Brent - $/bbl 70 61.3 60 2017: 54.2 50 53.7 52.1 49.3 49.6 40 30 4Q16 1Q17 2Q17 3Q17 4Q17 Exchange Rate - $/€ Henry Hub - $/Mbtu 1,20 3,5 3.3 3.2 2017: 3.1 1.18 1.17 3,0 1,15 3.0 3.0 2.9 2017: 1.13 2,5 1,10 1.08 2,0 1.10 1,05 1.06 1,5 1,00 1,0 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q
Slide 5: Delivery of strategic objectives
Delivery of strategic objectives . Synergies and efficiencies: €2.4Bn per annum by the end 2017 Capex Optimization: ~€3Bn in 2017 without compromising safety, volumes & reserves Divestment of non core assets: >€5Bn benefit by the end of 2016 Group FCF Breakeven: ~40$/bbl by the end of 2017 Reducing
Slide 6: Operational Activity
Operational Activity Upstream QUARTER AVG PRODUCTION + 3% 693 715 kboe/d kboe/d 3Q 2017 4Q 2017 Higher volumes in Libya FULL YEAR AVG PRODUCTION Ramp-up Trinidad & Tobago + 1% 690 695 kboe/d kboe/d FY2016 FY2017 6 ©
Slide 7: Operational activity
Operational activity Upstream Algeria Reggane First production in December’17 Sagari Peru Kinabalu Malaysia First production in First production in October’17 November’17 © 7
Slide 8: Operational activity
Operational activity Upstream MonArb & Flyndre/Cawdor UK First production in May’17 T&T Juniper Algeria Reggane First production in August’17 First production in December’17 Sagari Peru Kinabalu Malaysia First production in First production in October’17 Brazil November’17 Lapa & Sapinhoa
Slide 9: Operational activity
Operational activity Upstream DEVELOPMENT SANCTIONS IN 2017 Buckskin in the Gulf of Mexico Angelin in Trinidad & Tobago CRD Red Emperor in Vietnam MLN field in Algeria YME in Norway NEW DISCOVERIES IN 2017 Horseshoe in Alaska Savannah and Macadamia in Trinidad & Tobago EXPLORATORY SUCC
Slide 10: Operational activity
Operational activity Downstream Refining Margin Indicator Petrochemicals 10 7.2 7.1 6.2 7.0 6.9 6.8 • Favorable trading environment • Higher Naphtha prices 5 0 • FY Operating Income: €600M 4Q16 1Q17 2Q17 3Q17 4Q17 $/bbl Utilization rates Commercial businesses 4Q 2017 • In line with 2016 97% 113% • G
Slide 11: Financial Results
Financial Results Q4 2017 Q4 2016 FY2017 FY2016 CCS Adjusted Net Income 703 698 2,405 1,922 Net Income 538 616 2,121 1,736 EBITDA CCS 1,799 1,475 6,580 5,032 Million € UPSTREAM Q4 2017 Q4 2016 FY2017 FY2016 CCS Adjusted Net Income 145 148 17 632 -28 52 Million € DOWNSTREAM Q4 2017 Q4 2016 FY2017 FY2
Slide 12: Gas Natural Transaction
Gas Natural Transaction Agreement to sell our 20% stake in Gas Natural to CVC Price: 19€/share €3.8Bn Capital Gain: €400M Entering new gas businesses Leverage our capabilities and existing client base Looking for new opportunities in high return Gas & Power businesses Investing prudently and for h
Slide 13: Outlook for 2018
Outlook for 2018 2018 Budget* Group Organic Capex Upstream Division: €2.4Bn 3.4 • (€Bn) • Downstream Division: 10% increase Production (kboe/d) >700 • New projects and ramp-ups offsetting decline and divestments • Scheduled maintenance in our refineries includes: Refining Margin Indicator ($/bbl) >6
Slide 14: Outlook for 2018: Strategy Update - Early look
Outlook for 2018 Strategy Update- Early look UPSTREAM BUSINESS Growing margins rather than just volumes Increase production by ~50 Kboed between now and 2020 DOWNSTREAM BUSINESS Refining & Petrochemicals: Leading margins Marketing, G&P, LPG: Potential for expansion DIGITALIZATION-THE NEXT PHASE OF E
Slide 15: Conclusions
Conclusions Adjusted Net Income increase year on year by 25% Net Debt reduced by ~€2Bn, continued deleverage in 2018 CF breakeven of ~50$/bbl covering dividends or repurchase of dilution from 2017/18 onwards Stable capital investment maintaining upstream volumes and reserves Savings form e
Slide 16: Q&A Session
Q&A Session Fourth Quarter 2017 Results Repsol Investor Relations investorsrelations@repsol.com ©
Slide 17: Webcast – Conference Call: Fourth Quarter 2017 Results
WEBCAST – CONFERENCE CALL Fourth Quarter 2017 Results February 28th 2018 © Repsol Investor Relations www.repsol.com