Slide 1: Q2/18 Results Presentation with Speech
Christina Verchere Chief Executive Officer and President of the Executive Board Stefan Waldner Chief Financial Officer The spoken word applies. Check against delivery. 1
Slide 2: Intro
Christina Verchere - OMV Petrom - CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. It is a real pleasure to present to this audience for the first time today the Q2/18 performance of OMV Petrom. 2
Slide 3: Legal Disclaimer
Slide 2 – Legal Disclaimer Before I start the actual presentation, please let me draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. 3
Slide 4: Key messages Q2/18 Clean CCS
Key messages Q2/18 8 Clean CCS —-o BY 5 @) . Operating 2 E Operating result Clean CCS £e Gestalt RON 735 mn ROACE LG RON 1.4 mn 9.5% Q Production 160 kboe/d, -5% yoy 3 OPEX USD 11.7/boe, +12% yoy oa 2 3 Petrobrazi und successfully completed fe Retail sales volumes +1% yoy; n etail sales volume: gs f
Slide 5: Key messages Q2/18
Slide 3 – Key messages Q2/18 Let me start with some key highlights for the second quarter of 2018 on slide 3. In this quarter, market conditions were very supportive for Upstream. While crude prices increased, refining margins and electricity spark spreads declined. In addition, retail fuels and pow
Slide 6: Key messages Q2/18 (continued)
dividends shows an outflow of around RON (640) million in Q2/18. Finally, our Clean CCS ROACE improved on a year-on-year basis almost 2 pp to 9.5%. The Lost Time Injury Rate reached 0.34 in the first six months of 2018, above the figure recorded in the first half of last year. Our 12-month rolling a
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Slide 8: Economic environment
Economic environment 67 » 213 61 16.2 ENA) 6. Q2H7 3/7 aii? nie 28 2/17 Q37 Q4!17 Qs a28 —*— Avg Urals price in USD/bbl (left scale) Avg USDIRON (right scale) —+ avg Brent price in USDibbI (left scale) —*— Romanian centralized market? —®— CEGH? Power prices in Romania’ (EUR/MWh) Romani 59 59 > GDP g
Slide 9: Economic environment
Slide 4 – Economic environment On slide 4, we provide some macroeconomic highlights for Romania and an overview of the pricing environment in our industry. Brent averaged USD 74/bbl in the second quarter, 50% higher year-on- year. A similar trend can be seen for Urals. The price spread between Brent
Slide 10: Offshore and Energy laws
We expect clarifications for both Offshore and Energy laws in order to assess the impact on our operations. We continue to stress that a stable, predictable and investment-friendly fiscal and regulatory framework is a key requirement for our future investments, both onshore and offshore. We are aimi
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Slide 12: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) > 6m/18 at RON 2.1 bn: > 45 new wells and sidetracks drilled 37 > ~470 workovers performed > Refinery turnaround on > Brazi power plant partial shut-down > 2018E maintained at RON 3.7 bn: LJ > Drilling >100 developm
Slide 13: CAPEX and E&A
Slide 5 – CAPEX and E&A Slide 5 provides an overview of CAPEX and exploration and appraisal activities including an outlook for 2018. In the first six months of 2018, our total CAPEX was around RON 2.1 billion, more than double the amount recorded in the first half of 2017. The majority was spent in
Slide 14: Cash Flow highlights
FOMV Petram Q2/4 Results August 2;:2048 seetan Waldner, CFO 2 OMV Petrom Cash Flow highlights Operating Cash Flow (RON bn) > Q2/18 OCF! down due to lower Operating Result Ba. 2.98 i 3.18 ; > Q2/18 NWC?: cash outflow RON 76 mn >» Q2/17 NWC?: cash inflow RON 275 mn Q2N7 Q28 6m/17 6m/18 Free Cash Flow
Slide 15: Cash Flow highlights
Slide 7 – Cash Flow highlights Thank you, Christina, and good afternoon to you all. On slide 7, I would like to start with the highlights of our cash flow statement. In Q2/18, we achieved an operating cash flow of about RON 1.4 billion, 19% down year-on-year, mainly reflecting the market conditions
Slide 16: Income Statement highlights
Income Statement highlights Clean CCS Operating Result, (RON bn) eB. 1.69 6m/18 Co&O and Cons [ll Downstream Ml Upstream Q2i17 Q2/18 6m/17 Clean CCS Net Income’ (RON bn) 1.28 1.21 >, 0.46 Q27 Q2/18 6m/17 6m/18 » Clean CCS Operating Result reflects: Favorable commodities prices Petrobrazi turnaround
Slide 17: Income Statement highlights
Slide 8 – Income Statement highlights On slide 8, I would like to discuss some highlights of the Income Statement, with a focus on Q2/18 versus Q2/17 developments. Sales increased by 8% year-on-year, supported by higher prices for petroleum products and natural gas and by higher electricity sales vo
Slide 18: Upstream Clean Operating Result
Upstream Clean Operating Result (RON mn) a 820 | -109 Sy a 447 iH i > Higher realized oil prices > Lower total production costs Q217 Market Volume Exploration Other 2/18 effects >» Negative FX development (RON mn) > Sales volumes -6% — 1,465 me | 220 A5———~ ssn > Higher exploration expenses 907 6m/1
Slide 19: Upstream Clean Operating Result
Slide 9 – Upstream Clean Operating Result Let me move on to slide 9, which shows the major building blocks for the development of the Upstream Clean Operating Result in Q2/18 and in 6m/18. The increase in the realized oil price by around 55% year-on-year to USD 64.7/bbl in Q2/18, resulted in a posit
Slide 20: Downstream Clean CCS Operating Result
Downstream Clean CCS Operating Result (RON mn) Q217 Market Operational Petrobrazi effects effects turnaround effect HB Downstream Oil Ml Downstream Gas (RON mn) 7420 | = Eo 675 68 6m/17 Market Operational Petrobrazi effects effects turnaround effect 6m/18 Higher Brazi power plant availability Positi
Slide 21: Downstream Clean CCS Operating Result
Slide 10 – Downstream Clean CCS Operating Result Moving to slide 10, the Q2/18 Clean CCS Operating Result of Downstream decreased by 49% year-on-year, reflecting the results development of both the Downstream Oil and Downstream Gas segments. In Downstream Oil, we had a lower year-on-year Clean CCS O
Slide 22: Outlook 2018
Outlook 2018 Brent oil price Refining margin Production FCF after dividends Actual 2017 USD 54/bbl USD 7.75/bbl 168 kboe/d RON 3.0 bn RON 2.7 bn * Not including portfolio. @® 11 omveetrom | a2/18 Results 22 OMV Petrom #@ OMV Petrom
Slide 23: Outlook 2018
Slide 11 – Outlook 2018 Let me finish my part of the presentation with the outlook for the full year 2018, on slide 11. Here I would like to highlight our main market assumptions as well as the targets we have set for 2018 and how they compare to the actual 2017 figures. Throughout the first half of
Slide 24: OMV Petrom
OMV Petrom #@ OMV Petrom
Slide 25: Operational KPIs
Operational KPls | Upstream Downstream Oil Downstream Gas OMV Petrom Indicator refining margin (USD/pb!) OPEX (USD/boe) 12.44 1042 10.23 pe ts? Q2n7 a3n7 aan7 ais azn 27 a3st7 a7 tite ate Gas sales volumes (TWh) saat 14.20 M179 40.70 40.54 27 Q37 aai7 ais aang Hydrocarbon production (Kboe/d) Q2N7 Q3