Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q1 2016 Earnings Presentation
23 slides from Omv Petrom Sa's earnings presentation, May 11, 2016
Slide 1: OMV Petrom results January – March 2016
Cover option 1: Insert a cover picture and align grouped text OMV Petrom results freely on page, (28pt) Place, xx. Month 2013 (16pt) January – March 2016 May 11, 2016
Slide 2: Business environment and operational highlights
Business environment and operational highlights Mariana Gheorghe, CEO
Slide 3: Business environment in Q1 2016
Business environment in Q1 2016 International environment Romania: good macroeconomics Urals price: - 39% yoy 2015 GDP growth3: +3.8% Oil demand and supply in Europe1: CPI annual inflation: -3% end-March; demand +1% yoy, supply +1% yoy 12-month average: -1.4% European gas demand2: broadly flat yoy B
Slide 4: Dynamics of the Romanian energy sector
Dynamics of the Romanian energy sector ► Demand1 ► Fuels2 +7%; Gas -6%; Power3 stable Demand and prices ► Prices ► Urals: -39% Q1/16 vs Q1/15 ► Gas: HH4 +13%, deregulation continued; NHH5 under pressure ► Power6: -14% ► Taxation ► Tax on constructions kept at 1% Fiscal ► Supplementary taxation7 exte
Slide 5: Safety and efficiency focus
OMV Petrom Safety and efficiency focus LTIR1 Romania 1.0 Operational safety – our top priority > 79% reduction LTIR substantially improved 0.48 0.49 0.5 0.42 Q1 2016: the lowest level since 0.33 privatization 0.30 0.16 Lower than IOGP2 international 0.10 benchmark 0.0 2010 2011 2012 2013 2014 2015 Q
Slide 6: Upstream – KPIs
OMV Petrom Upstream – KPIs Hydrocarbon production Romania, kboe/d FRDs contribution incl. Totea Q1/16 vs Q1/15 171.4 171.4 169.6 174.3 166.5 Group 145.8 152.3 137.0 ► Total hydrocarbon production dropped by 3% due to 164.3 156.8 reduced investments, increased number of uneconomic +34% wells and plan
Slide 7: Downstream Oil – KPIs
OMV Petrom Downstream Oil – KPIs Refinery utilization rate (%) +8 pp 86 94 92 94 81 Q1/16 vs Q1/15 ► Refinery utilization rate improved to 94%, optimized to capitalize on market demand and to Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 prepare for the planned shutdown in Q2/16 ► Fuel and losses at ~9% in Q1/16 Gr
Slide 8: Downstream Gas – KPIs
OMV Petrom Downstream Gas – KPIs Gas sales1 (TWh) -16% 16.7 13.3 14.0 10.6 10.9 Q1/16 vs Q1/15 ► Gas sales impacted by lower volumes in storage and the ~6% decline2 of national demand Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 ► Gas sales volumes towards end-customers kept stable Net electrical output (TWh) ► Ne
Slide 9: Financial highlights and priorities
OMV Petrom Financial highlights and priorities Andreas Matje, CFO
Slide 10: Economic environment
Economic environment Oil price (USD/bbl) and FX (USD/RON) OMV Petrom Indicator refining margin (USD/bbl) 90 4.5 10 4.07 8.24 3.96 8.06 4.0 60 53 3.5 32 30 3.0 5 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Avg Urals price (left scale) Avg USD/RON (right scale) Gas prices (EUR/MWh)1 Po
Slide 11: Q1/16 overview
Q1/16 overview Clean CCS EBIT, RON mn Q1/16 vs Q1/15 -31% 594 Average Urals crude prices down 39% to USD 32.29/bbl 175 408 RON weaker vs USD by 3% Group production at 175 kboe/d 174 255 Indicator refining margin at USD 8.06/bbl 3 47 Group retail sales volumes up 3% 242 Favorable development of provi
Slide 12: Special items and CCS effect
Special items and CCS effect Q1/16 (RON mn) RON mn Q1/16 Q1/15 Clean CCS EBIT 408 594 408 CCS gains/ (losses) (177) (92) 343 Clean EBIT 231 502 118 Personnel related costs (7) (8) Other impairments - (3) (177) (7) Other 118 3 Total special items 111 (8) Reported EBIT 343 494 Clean CCS gains/ Personn
Slide 13: Clean CCS net income
Clean CCS net income Clean CCS net income attribu- RON mn Q1/16 Q1/15 ∆ table to stockholders (RON mn) EBIT 343 494 (31)% Financial result 0 (22) n.m. -24% 433 Taxes (55) (127) (57)% Effective tax rate 16% 27% (41)% 330 Net income 288 345 (17)% Minorities (2.32) (3.56) (35)% Net income attributable
Slide 14: Cash flow
Cash flow Q1/16 (RON mn) in RON mn Q1/16 Q1/15 ∆ Profit before tax 343 472 (27)% Depreciation, amortization and 830 873 (5)% (54) impairments (81) Net interest paid (13) (17) (27)% 830 Tax on profit paid (81) (274) (70)% (1,007) Other (138) (280) (51)% Sources of funds 942 775 22% 343 Change in net
Slide 15: CAPEX and EBITD
CAPEX and EBITD Q1/16 (RON mn) Key investment projects 1,173 Upstream: Field redevelopments, workover and drilling activities, surface facilities modernization, as 569 769 well as investments related to the Neptun Deep project 710 Downstream Oil: Projects related to 462 the refinery planned turnarou
Slide 16: Upstream – Clean EBIT
Upstream – Clean EBIT Q1/16 vs Q4/15 (RON mn) Q1/16 vs Q1/15 (RON mn) 175 (73) (491) 257 (73) (223) 289 259 (56) (45) (320) 10 Q4/15 Realization Volume Exploration Other Q1/16 Q1/15 Realization Volume Exploration Other Q1/16 expenses expenses ► Realized oil price in USD/bbl down by 26% ► Significant
Slide 17: Upstream – Production costs
Upstream – Production costs Production costs, USD/boe Q1/16 OPEX reduced by 14% vs Q1/15: -14% ► Lower services, personnel and materials costs ► Favorable FX effects ► Shut-in of uneconomic wells ► Improved running time of pumping units 14.23 13.16 13.11 ► Resizing of workover rig fleet 12.10 12.25
Slide 18: Downstream – Clean CCS EBIT
Downstream – Clean CCS EBIT Q1/16 vs Q1/15 (RON mn) 302 44 177 81 Q1/15 Downstream Oil Downstream Q1/16 Gas Downstream Oil: significantly increased result mainly driven by higher oil product sales and lower cost for own crude consumed Downstream Gas: improved result mainly due to a RON 15 mn reversa
Slide 19: Management agenda for 2016
Management agenda for 2016 Mariana Gheorghe, CEO
Slide 20: Outlook 2016
Outlook 2016 Oil price: Brent annual average estimated at USD 40/bbl International market Refining margin: Expected to be below 2015 levels Demand supported by low oil prices and increased private consumption; Fuels: increased competition Romanian market Gas: Demand expected to decline, prices to be
Slide 21: 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 as well as optimization of asset portfolio and cash flow neutrality ► Neptun Deep: encouraging resul
Slide 22: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the Company or any
Slide 23: Contact Investor Relations
Contact Investor Relations OMV Petrom Investor Relations 2016 Financial Calendar Tel.: +40 372 088406 August 10: Q2 & HY 2016 results E-mail: investor.relations.petrom@petrom.com November 9: Q3 2016 results Homepage: www.omvpetrom.com