Orlen Spolka Akcyjna · GPW:PKN

Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2014 Earnings Presentation

26 slides from Orlen Spolka Akcyjna's earnings presentation, Apr 29, 2014

  1. Slide 1: LOTOS Group Consolidated Financial Results 1st Quarter 2014

    LOTOS Group Consolidated Financial Results 1st Quarter 2014 Management Board of Grupa LOTOS S.A. 29 April 2014

  2. Slide 2: Agenda

    Grupa LOTOS S.A. Agenda 1 Key highlights 2 External environment 3 Upstream 4 Downstream 5 Consolidated financial results Management Board of Grupa LOTOS S.A. 2/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  3. Slide 3: Key highlights Q1 2014

    Grupa LOTOS S.A. Key highlights Q1 2014 Upstream Financial results  First full quarter of oil & gas production on  Strong contribution of reported upstream EBITDA Norwegian Continental Shelf to the overall result - at the level of 66%, out of the  Further expansion of E&P assets portfolio - two t

  4. Slide 4: Agenda

    Grupa LOTOS S.A. Agenda 1 Key highlights 2 External environment 3 Upstream 4 Downstream 5 Consolidated financial results Management Board of Grupa LOTOS S.A. 4/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  5. Slide 5: External environment: Crude oil, Brent/Ural spread, fuel cracks

    Grupa LOTOS S.A. External environment Crude oil, Brent/Ural spread, fuel cracks Brent oil (USD)& Brent/Ural spread (USD/bbl)  Brent oil price slightly lower comparing with the previous quarter  Brent/Ural differential for the second quarter above 1 USD – average 1.37 USD/bbl for the quarter Gasoli

  6. Slide 6: External environment: GDP growth, FX rates

    Grupa LOTOS S.A. External environment GDP growth, FX rates Polish GDP growth (% increase y/y) (1) FX average quarterly rates(2) (3)  According to the latest forecast Polish  EUR slightly appreciating vs USD q/q quarterly GDP growth should exceed  Polish zloty stronger against the 3%, still fuel c

  7. Slide 7: Agenda

    Grupa LOTOS S.A. Agenda 1 Key highlights 2 External environment 3 Upstream 4 Downstream 5 Consolidated financial results Management Board of Grupa LOTOS S.A. 7/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  8. Slide 8: Upstream: First quarter of Heimdal production in place

    Grupa LOTOS S.A. Upstream First quarter of Heimdal production in place  Heimdal: PDQ(1) for satelite fields Heimdal features and  One of the key gas hubs in Norway c.a. 15 - 20% of total Norway export capacity plan to extend the life of  Gas processing capacity c.a. 13-14m m3/day; condensate c.a.

  9. Slide 9: Upstream: Hydrocarbons reserves and production figures

    Grupa LOTOS S.A. Upstream Hydrocarbons reserves and production figures 2P hydrocarbon reserves (gas + oil) (mln boe eop) Average daily hydrocarbons production (boe/d) +160% 68.9 12 573 67.8 55.8 5 388 4 843  Quarterly production figures including first full quarter of Norwegian production from the

  10. Slide 10: Upstream: Quarterly EBITDA and EBIT dynamics

    Grupa LOTOS S.A. Upstream Quarterly EBITDA and EBIT dynamics Q1 2013 Q4 2013 Q1 2014 +44%  Clean EBITDA comparison showing a 44% increase y/y, clearly following the impact of Heimdal assets production  Increased level of depreciation as a result of higher than expected depreciation from LOTOS Norg

  11. Slide 11: Upstream: Current exploration plans

    Grupa LOTOS S.A. Upstream Current exploration plans  New oil discovery on the Trell license (part of the Heimdal package) – level of 2P reserves to be confirmed  Awarded new exploration licenses in the January Awards in Pre- Oil discovery + APA defined Areas (APA) 2013 (both cases as an operator):

  12. Slide 12: Agenda

    Grupa LOTOS S.A. Agenda 1 Key highlights 2 External environment 3 Upstream 4 Downstream 5 Consolidated financial results Management Board of Grupa LOTOS S.A. 12/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  13. Slide 13: Downstream: Model refining margins

    Grupa LOTOS S.A. Downstream Grupa LOTOS model refining margin -3.26 $/bbl +0.43 $/bbl (2) Model refining margins (USD/bbl) (1) Source: Total; European Refining Margin Indicator (ERMI) - European Refining Margin Indicator (ERMI) is an indicator intended to represent the margin after variable costs fo

  14. Slide 14: Downstream: Refinery throughput and feedstock structure

    Grupa LOTOS S.A. Downstream Refinery throughput and feedstock structure Quarterly oil throughput (m tons) -1% Management Board of Grupa LOTOS S.A. 14/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  15. Slide 15: Downstream: Sales volumes and share of key products

    Grupa LOTOS S.A. Downstream Sales volumes and share of key products Quarterly sales volumes Share of key product groups (% of total sales volume)(4) Light distillates(1) +7% m tons Middle distillates(2) Heavy products(3) (1) Gasoline, Naphtha, LPG (2) Diesel, Jet, LHO (3) HSFO, Bitumens, Bunker fuel

  16. Slide 16: Downstream: Segment sales revenues

    Grupa LOTOS S.A. Downstream Segment sales revenues Quarterly consolidated sales (m PLN) Out of which: retail sales (m PLN) -2% +5% (1) (1) Retail sales share in total downstream sales Management Board of Grupa LOTOS S.A. 16/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  17. Slide 17: Downstream: Market share evolution and petrol station network

    Grupa LOTOS S.A. Downstream Market share evolution and petrol station network Market -28% share development Petrol station network development (No. of units) Ownership structure of petrol station network  Retail market share on steadily growing curve, exceeding 9.2%  Overall decrease of the number

  18. Slide 18: Downstream: LIFO EBITDA development

    Grupa LOTOS S.A. Downstream LIFO EBITDA development Q1 2013 (PLN m) Q4 2013 (PLN m) Q1 2014 (PLN m) -42%  LIFO EBITDA in Q1 2014 below Q1 2013 due to lower margins for key refining products  Q1 2014 worse than Q4 2013 due to seasonal factors (higher share of HSFO in the overall product slate) Mana

  19. Slide 19: Downstream: Further steps in execution of the DCU project

    Grupa LOTOS S.A. Downstream Further steps in execution of the DCU project DCU project key upsides  Enables full conversion of crude oil heavy residue  Ensures flexible adjustment to current market conditions by switching between two options of heavy residue processing: – production of fuels using

  20. Slide 20: Agenda

    Grupa LOTOS S.A. Agenda 1 Key highlights 2 External environment 3 Upstream 4 Downstream 5 Consolidated financial results Management Board of Grupa LOTOS S.A. 20/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  21. Slide 21: Consolidated financial results: Q1 2014 results breakdown vs Q1 2013

    Grupa LOTOS S.A. Consolidated financial results Q1 2014 results breakdown vs Q1 2013 Q1 2014 (PLN m ) Q1 2013 (PLN m ) Management Board of Grupa LOTOS S.A. 21/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  22. Slide 22: Consolidated financial results: Clean EBITDA breakdown

    Grupa LOTOS S.A. Consolidated financial results Clean EBITDA breakdown + significant impact of Heimdal package production Q1 2014 (PLN m ) + operational improvement - negative impact of oil measures undertaken products cracks development 105m reported EBITDA + 3.5m impairments related to Norwegian e

  23. Slide 23: Changes in reported segment EBITDA results

    Grupa LOTOS S.A. Consolidated financial results Changes in reported segment EBITDA results Quarterly view (m PLN) Impacted mainly by: Impacted mainly by: + Overall efficiency improvement Impacted mainly by: - Worse overall product margins + inlcusion of Heimdal package results in the overall segment

  24. Slide 24: Debt and financing

    Grupa LOTOS S.A. Consolidated financial results Debt and financing 10+ and inventory debt financing Financial debt (PLN m) Net debt (PLN m)  Decreased gearing ratio at 66%  Financial and net debt figures including loans, borrowings, leasing and bonds Gearing ratio Management Board of Grupa LOTOS S

  25. Slide 25: Thank You

    Grupa LOTOS S.A. Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Management Board of Grupa LOTOS S.A. 25/26 LOTOS GROUP Q1 2014 Consolidated Financial Results Warsaw, 29 April 2014

  26. Slide 26: Legal disclaimer

    Grupa LOTOS S.A. Legal disclaimer  This presentation regarding the consolidated financial results of Grupa LOTOS S.A. after the first quarter of 2014 („Presentation") has been prepared by Grupa LOTOS S.A. ("Company"). The Presentation nor any copy hereof may be copied, distributed or delivered dire

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