Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2016)
16 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 26, 2016
Slide 1: OMV Petrom Group 2015 Overview and 2016 Outlook
OMV Petrom Group 2015 Overview and 2016 Outlook General Meeting of Shareholders April 26, 2016 Mariana Gheorghe, CEO
Slide 2: 2015 overview, Operational highlights 2015, Outlook 2016
1 2015 overview 2 Operational highlights 2015 3 Outlook 2016 2 | General Meeting of Shareholders, April 26, 2016
Slide 3: 2015 at a glance
2015 at a glance Pressure from low crude price Economic Strong refining environment context Increased fuel demand in the operating region Weak gas and power markets OMV Petrom Unfavorable crude price and impairments: negative reported EBIT financial Swift response to steep decline of cru
Slide 4: Dynamics of the Romanian energy sector in 2015
Dynamics of the Romanian energy sector in 2015 ► Demand 1 ► Fuels 2 +5%; Gas -5%; Power +2% Demand and prices ► Prices ► Urals: -47% 2015 vs 2014 ► Gas: HH 3 +8%, deregulation continued; NHH4 liberalized ► Power 5: +5% ► Downstream Gas ► Mandatory gas trading on centralized platforms ► Abolished imp
Slide 5: OMV Petrom financial performance: the integrated business model proved benefits
OMV Petrom financial performance: the integrated business model proved benefits Clean CCS EBIT, RON mn Group cash flow from operations, RON mn -52% -23% 5,202 6,830 5,283 4,667 2,522 919 1,315 654 (63) (145) (56) 434 2014 2015 2014 2015 Upstream Downstream Oil Downstream Gas Co&O and Cons. 5 | Gener
Slide 6: Successful implementation of adjustment measures
Successful implementation of adjustment measures Planned Realized Investments reduced by 38% reduction of investments in CAPEX 20-35% vs 2014 2015 vs 2014 (2015: RON 3.9 bn) Efficiency Intensify cost optimization RON 500 mn reduction in operational programs costs yoy Portfolio Portfolio optimization
Slide 7: OMV Petrom Strategic Directions
OMV Petrom Strategic Directions 2012-2015 - DELIVERED 2016-2021+ Main strategic directions remain… …but pace depends on market fundamentals and investment friendly environment Stabilize production through field redevelopment, drilling, ► Increase oil and gas recovery workovers ► Appraise and devel
Slide 8: Operational highlights 2015
1 2015 overview 2 Operational highlights 2015 3 Outlook 2016 8 | General Meeting of Shareholders, April 26, 2016
Slide 9: High safety and efficiency focus
High safety and efficiency focus LTIR1 Romania Operational safety – our top priority LTIR substantially improved 1.6 2015: the lowest level since privatization Lower than IOGP2 international benchmark > 60% reduction 0.8 0.48 0.42 0.49 Significant reduction of GHG3 emission 0.33 0.30 inten
Slide 10: Upstream production largely maintained due to past investments and discoveries
Upstream production largely maintained due to past investments and discoveries Production in Romania, kboe/d ► 2015 production relatively stable: ► FRDs (incl. Totea) contribution to up to production increased by 60% vs 2014 -4%1 174 174 170 171 171 170 ► Workovers in 2015 ~7% higher contribution to
Slide 11: Neptun Block: drilling program completed
Neptun Block: drilling program completed Neptun Deep ► JV established in 2008: OMV Petrom (50%), ExxonMobil (50%,Operator) ► Total investment in excess of USD 1.5 bn since 2008 (thereof 50% OMV Petrom) ► First exploration drilling campaign in 2011 – 2012 ► Domino-1 well gas discovery ► Two seismic a
Slide 12: Downstream Oil: strong operational performance
Downstream Oil: strong operational performance 2015 vs 2014 Market position in Romania in 20151 Strong indicator refining margin Refinery utilization rate at 88% Retail #1 Total refined product sales increased by 5%, despite competition in the Wholesale #2 operating region Retail sales volum
Slide 13: Downstream Gas: good operational results in a weak market environment
Downstream Gas: good operational results in a weak market environment Gas sales, TWh Net electrical output, TWh 52.7 51.4 2.9 47.7 2.7 6.5 6.1 3.4 1.3 46.2 44.3 45.2 2013 2014 2015 2013 2014 2015 Internal sales Sales to third parties Gas Power ► Sales volumes: +8% yoy ► Brazi power plant: ► Brazi po
Slide 14: Outlook 2016
1 2015 overview 2 Operational highlights 2015 3 Outlook 2016 14 | General Meeting of Shareholders, April 26, 2016
Slide 15: Outlook 2016
Outlook 2016 Oil price: Brent annual average estimated at USD 40/bbl International market Refining margin: Expected to decline from 2015 levels Fuels: Demand supported by low prices and VAT reduction; increased competition Romanian Demand broadly flat yoy, price to be impacted by Gas: market competi
Slide 16: Management agenda for 2016
Management agenda for 2016 ► Capitalize on existing foundation to deliver on strategic objectives, although impacted by adjustment to market downturn ► Focus on sustainable performance, profitability and optimization of assets portfolio ► Neptun Deep: encouraging results to further assess commercial