Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q1 2020 Earnings Presentation
44 slides from Omv Petrom Sa's earnings presentation, Apr 29, 2020
Slide 1: OMV Petrom Q1/20 Results Conference Call
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Christina Verchere Chief Executive Officer and President of the Executive Board Alina Popa Chief Financial Officer The spoken word applies. Check against delivery. Page 1 of 44
Slide 2: Intro
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. Thank you for joining our call and I hope you and your families are all safe and healthy. We are in exceptional circum
Slide 3: Legal Disclaimer
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 2 – Legal Disclaimer Firstly, please let me draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 44
Slide 4: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 4 of 44
Slide 5: Economic environment
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 3 – Economic environment Let me start with an overview of the commodities and exchange rates environment, as well as some macroeconomic, energy, and regulatory environment highlights for Romania in the first quarter of 2020. The Brent oi
Slide 6: Exchange rates
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Regarding the exchange rates, in the first quarter of 2020, the USD was 4 percent stronger versus the RON on average year-on-year, while the EUR appreciated by 1 percent versus the RON. Page 6 of 44
Slide 7: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 7 of 44
Slide 8: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 8 of 44
Slide 9: Romanian environment
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 4 – Romanian environment As a response to COVID-19, a nation-wide state of emergency was declared in Romania on the 16th of March. This is currently expected to last until mid- May. The authorities imposed health and social measures, suc
Slide 10: Romanian macro indicators and energy sector
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 With regards to macro indicators, the Romanian GDP advanced in the fourth quarter of 2019 by 4.2 percent, while the annual inflation index in March 2020 versus March 2019 was 3.1 percent. In the new coronavirus context, the outlook for 2020 GD
Slide 11: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 11 of 44
Slide 12: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 12 of 44
Slide 13: Key messages Q1/20
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 5 – Key messages Q1/20 On slide 5, we present the key highlights of the first quarter of 2020. Overall for our company, the first quarter results reflect the significant decrease in oil price which had an impact on Upstream financials, p
Slide 14: HSSE performance
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 On HSSE, the Lost Time Injury Rate on a 12-month rolling basis was 0.24, better than international benchmark. As for the first quarter this year, we had an outstanding HSSE performance, with zero lost time injuries. Page 14 of 44
Slide 15: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 15 of 44
Slide 16: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 16 of 44
Slide 17: Operational KPIs
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 6 – Operational KPIs On slide 6, I would like to present to you the strong operational performance, as reflected in our KPIs in the first quarter of 2020. Let me start with Upstream. The daily hydrocarbon production decreased in the firs
Slide 18: Downstream Gas operational KPIs
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 In Downstream Gas, total gas volumes advanced 52 percent year-on-year and we managed to successfully maintain our customer portfolio in the context of the regulated market allocation and centralized market obligation. We supplied the regulated
Slide 19: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 19 of 44
Slide 20: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 20 of 44
Slide 21: CAPEX and E&A
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 7 – CAPEX and E&A Slide 7 provides an overview of CAPEX and exploration and appraisal activities for the first quarter of 2020 and the outlook for the whole year. Our total CAPEX in the first quarter of 2020 was around 1.0 billion RON, 1
Slide 22: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 22 of 44
Slide 23: OMV Petrom's response to COVID-19 and the new market environment
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 8 – OMV Petrom’s response to COVID-19 and the new market environment Ladies and gentlemen, in these unsettling times, we remain a reliable partner for Romania, working intensively with the authorities to contain the effects of COVID-19 o
Slide 24: Response to COVID-19 and the new market environment (continued)
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 As previously announced, starting last summer we are offering to all our B2B customers, bulk and cards, solutions to become fully digital. We moved to full digitization of fuel contracts with business customers by implementing digital signatur
Slide 25: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 25 of 44
Slide 26: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 26 of 44
Slide 27: Income Statement highlights
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 10 – Income Statement highlights Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 10, starting with some highlights from the Income Statement, with focus on the developments of the f
Slide 28: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 28 of 44
Slide 29: Special items and CCS effect
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 11 – Special items and CCS effect On slide 11, we bridge the Clean CCS Operating Result to the Reported Operating Result. For the first quarter of 2020, we recorded inventory holding losses amounting to (239) million RON due to the sharp
Slide 30: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 30 of 44
Slide 31: Clean CCS Operating Result
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 12 – Clean CCS Operating Result Let me go on to slide 12, which shows the major building blocks for the development of the Clean CCS Operating Result in the first quarter of 2020. These two charts illustrate the benefits of our integrate
Slide 32: Clean CCS Operating Result (continued)
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 power segment which recorded an improved performance, built on forward contracts. Page 32 of 44
Slide 33: This page was left blank intentionally
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 This page was left blank intentionally. Page 33 of 44
Slide 34: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 34 of 44
Slide 35: Cash Flow highlights
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 13 – Cash Flow highlights On slide 13, I would like to continue with the highlights of our cash flow statement. In the first quarter of 2020, we achieved an operating cash flow of 1.4 billion RON, 10 percent lower year-on-year. Operating
Slide 36: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 36 of 44
Slide 37: Strong response to adjust to the weak market environment
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 14 – Strong response to adjust to the weak market environment In the current extremely challenging environment, we took swift financial actions to ensure the health of our balance sheet. For the full year 2020, we reduced our total capit
Slide 38: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 38 of 44
Slide 39: Prepared to cope with challenges
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 15 – Prepared to cope with challenges As Christina mentioned earlier, we believe that we are well prepared to cope with these unprecedented challenges, as we are supported by our strong balance sheet and our integrated business model. We
Slide 40: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 40 of 44
Slide 41: Sensitivities in 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 16 – Sensitivities in 2020 We are witnessing increased volatility and a twofold pressure on oil prices: from both the supply and the demand side, with global forecasts being currently pessimistic due to the coronavirus outbreak, which, t
Slide 42: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 42 of 44
Slide 43: Outlook 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Slide 17 – Outlook 2020 Let me conclude our presentation with the outlook for the full year 2020, on slide 17. Here I would like to highlight our main market assumptions for the full year 2020 and how they compare to the actual figures for 201
Slide 44: OMV Petrom Q1/20 Results Conference Call, April 29, 2020
OMV Petrom Q1/20 Results Conference Call, April 29, 2020 Page 44 of 44