Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Q2 2020 Earnings Presentation
35 slides from Omv's earnings presentation, Jul 29, 2020
Slide 1: OMV Q2 2020 Results Conference Call
OMV Q2 2020 Results Conference Call July 29, 2020 OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO The spoken word applies 1/35 | OMV Group
Slide 2: OMV Q2 2020 Results Conference Call, July 29, 2020 2/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 2/35 | OMV Group
Slide 3: Macro environment – all indicators down significantly
OMV Q2 2020 Results Conference Call, July 29, 2020 Ladies and gentlemen, good morning and thank you for joining us today. The second quarter of 2020 was one of the most challenging quarters in years. We were confronted not only with the biggest oil crisis in decades, but also with an unprecedented c
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 4/35 | OMV Group
Slide 5: Ethylene and propylene margins declined
OMV Q2 2020 Results Conference Call, July 29, 2020 Ethylene and propylene margins declined by 14 percent quarter-on-quarter and 17 percent year-on-year, despite a strong start in April. In May and June margins came under pressure from rising feedstock cost. Demand in the second quarter remained robu
Slide 6: OMV Q2 2020 Results Conference Call, July 29, 2020 6/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 6/35 | OMV Group
Slide 7: Key messages
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 4: Key messages The disagreement among OPEC+ countries on production cuts in March combined with the coronavirus pandemic led to an unprecedented simultaneous deterioration of the market environment for both Upstream and Downstream. A combinat
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 8/35 | OMV Group
Slide 9: Construction of largest photovoltaic plant in Austria
OMV Q2 2020 Results Conference Call, July 29, 2020 In early July, together with VERBUND, we have started the construction of the largest photovoltaic plant in Austria. The plant will generate around 14 gigawatt hours annually, equivalent to supplying 4,400 households, and will prevent 10,000 metric
Slide 10: OMV Q2 2020 Results Conference Call, July 29, 2020 10/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 10/35 | OMV Group
Slide 11: Clean CCS Operating Result substantially impacted by lower oil and gas prices
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 5: Clean CCS Operating Result substantially impacted by lower oil and gas prices and reduced demand Let’s now come to our financial performance in the second quarter of 2020. Our clean CCS Operating Result decreased by around 900 million Euros
Slide 12: OMV Q2 2020 Results Conference Call, July 29, 2020 12/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 12/35 | OMV Group
Slide 13: Upstream – significantly weaker oil and gas market environment and no sales in Libya
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 6: Upstream – significantly weaker oil and gas market environment and no sales in Libya Let me now discuss the performance of our two business segments. Compared to the second quarter of 2019, the Upstream clean Operating Result decreased to m
Slide 14: OMV Q2 2020 Results Conference Call, July 29, 2020 14/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 14/35 | OMV Group
Slide 15: Downstream – significantly weaker market environment
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 7: Downstream – significantly weaker market environment, partially offset by positive hedging impact and higher gas contribution Downstream earnings were more resilient than Upstream. The clean CCS Operating Result declined by 28 percent to 30
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 16/35 | OMV Group
Slide 17: Gas business performance
OMV Q2 2020 Results Conference Call, July 29, 2020 Our gas business returned excellent performance and contributed 89 million Euros to our result, an increase of 85 million versus the prior-year quarter. This was due to a better storage result, improved trading performance, and significantly higher
Slide 18: OMV Q2 2020 Results Conference Call, July 29, 2020 18/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 xx 18/35 | OMV Group
Slide 19: Cash flow from operating activities excluding net working capital effects
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 8: Cash flow from operating activities excluding net working capital effects of EUR 1.3 bn in first six months of 2020 At 431 million Euros, second-quarter cash flow from operating activities – excluding net working capital effects – was solid
Slide 20: OMV Q2 2020 Results Conference Call, July 29, 2020 20/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 20/35 | OMV Group
Slide 21: Healthy balance sheet
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 9: Healthy balance sheet OMV’s balance sheet remained very healthy and showed a strong liquidity at the end of June with a cash position of 5.8 billion Euros and 3.2 billion Euros in undrawn committed credit facilities. Compared to the first q
Slide 22: OMV Q2 2020 Results Conference Call, July 29, 2020 22/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 22/35 | OMV Group
Slide 23: Borealis deal and divestment projects progressing well
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 10: Borealis deal and divestment projects progressing well I would like to give you a quick update on our portfolio measures. Our acquisition of the majority in Borealis is on track. We have already received regulatory approvals in several cou
Slide 24: OMV Q2 2020 Results Conference Call, July 29, 2020 24/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 24/35 | OMV Group
Slide 25: Updated Outlook 2020
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 11: Updated Outlook 2020 We have updated our outlook for the full year 2020. Based on the developments we have seen so far, we maintain our forecast of an average Brent price of 40 Dollars per barrel for 2020. We update our view on the average
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 26/35 | OMV Group
Slide 27: Organic CAPEX outlook
OMV Q2 2020 Results Conference Call, July 29, 2020 Organic CAPEX is now projected to come in at around 1.7 billion Euros, 1.1 billion Euros of which will be in Upstream. Exploration and appraisal expenditures are expected to be 250 million Euros. The clean tax rate for the year 2020 is estimated to
Slide 28: OMV Q2 2020 Results Conference Call, July 29, 2020 28/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 28/35 | OMV Group
Slide 29: OMV sets new, more ambitious emission targets for 2025
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 12: OMV sets new, more ambitious emission targets for 2025 This concludes my comments on the second quarter, which was one of the most challenging in recent history. However, also in such difficult times, we continue to work on the most import
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 30/35 | OMV Group
Slide 31: Low and zero carbon product portfolio
OMV Q2 2020 Results Conference Call, July 29, 2020 But we are not only looking into our own direct emissions. We were one of the first oil and gas companies to define a target for our product portfolio several years ago. Our strategy is clear: We want to focus on low and zero carbon products. What d
Slide 32: OMV Q2 2020 Results Conference Call, July 29, 2020 32/35 | OMV Group
OMV Q2 2020 Results Conference Call, July 29, 2020 32/35 | OMV Group
Slide 33: Ambition of net-zero carbon emissions in operations by 2050
OMV Q2 2020 Results Conference Call, July 29, 2020 Slide 13: OMV’s ambition is net-zero carbon emissions in operations by no later than 2050 Today, we are not only providing an update on our mid-term targets, but also announcing a clear commitment to where we see ourselves in 2050. Ladies and gentle
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OMV Q2 2020 Results Conference Call, July 29, 2020 Page left intentionally blank 34/35 | OMV Group
Slide 35: Recycling and circular economy
OMV Q2 2020 Results Conference Call, July 29, 2020 Borealis is part of a consortium with other leading petrochemical companies that have joined forces, invest in R&D and share know-how to assess possibilities in this area. Last but not least, we believe that recycling – both mechanical and chemical
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